ProcureCon 2017

17 - 19 October, 2017

Hotel Palace Berlin, Germany

+44 (0) 207 368 9465

Digital Innovation Q&A: Grégory Kochersperger

Digital Innovation Q&A: Grégory Kochersperger

Global Head of Value Sourcing and Supply Chain Practice, Oliver Wyman

Q: Digital procurement has become a reality. How do your clients perceive the challenge and the need for action going forward?

Many of our clients are aware of the need for change, and they develop a forward-looking agenda, specify required skillsets and adjust their operating models. Value sourcing strategies are being reviewed in light of disruptive industry trends. Others focus on screening their supplier markets, as they are strongly impacted by new technologies and identifying the right innovation partners is critical to establish new business models. Ultimately, we see companies actively assessing the benefits of digital supply chain concepts in order to improve the transparency, resilience and efficiency of their delivery.

Q: Can you give some examples how companies benefit from disruptive technology changes in their value sourcing?

As an example, we see retail players aiming to improve real-time transparency to fully align all distribution channels and actively use this data in their category management. Major Telco players further develop their analytical toolset to support advanced strategic sourcing and analytics. Luxury goods companies upgrade their marketing procurement skills with a specific focus on sourcing of digital marketing services. And in Aerospace, improved maintenance concepts are established based on integrated diagnostics, data transfer and condition monitoring.

Q: Going forward, what are your recommendations, when it comes to preparing for digital procurement challenges?

While many companies aim to address the digitalisation challenge, this is often not related to a specific purpose or a broader transformation agenda. Companies need to maintain a business perspective to benefit from strategic challenges in procurement and supply chain.

With this in mind, three things are critical for procurement teams

  1. Clearly understand the impact of new technologies and changes along the value chain for your company’s business model and the resulting needs and priorities of you internal business partners

  2. Take a strategic view on critical supply markets and project their technology-driven evolution, e.g. the effect on supplier / customer communication, or the effect of new intermediates on key business relations

  3. Understand, where and how digitalisation and automation can drive efficiency, cost improvements and value, and which changes are required to adapt the company’s individual operating model.

Mr. Kochersperger, thank you for the interview