CIPS L6M8 - Innovation in Procurement and
Supply
Supply chain integration
Supply chain integration requires the procurement professional to develop strategic collaboration with
key supply chain partners and understand customer requirements.
Behaviours to enhance innovation
Pellathy identified 3 key behaviours that affect how individuals engage with each other:
1, Task behaviours - how an individual executes tasks of their role
2, Organisational citizenship - the quality of a person's interpersonal actions and to challenge change
while accommodating others
3, Counterproductive work behaviours - challenging individuals
Early Supplier Involvement
Supplier Involvement is the result of cooperation between suppliers and the organisation at the product
conceptualisation stage. Suppliers will need to determine the extent to which they are willing to invest in
working with organisation on innovation and procurement & supply
Supplier Involvement
Supplier involvement is essential for improving supply chain effectiveness and contributes to managing
the tensions between cost, time and quality.
Innovation councils
Innovation councils provide a governance structure which can be used to coordinate and maximise
innovation throughout the supply chain, coordinating concurrent innovation efforts across multiple
stakeholders within the organisation.
Supplier forums & associations
Gaining access to diverse perspectives gives the procurement professional access to different world
views, information & ideas that can help to drive the development of innovation in the procurement and
supply function and the supply chain.
Supplier forums & associations
Provide the opportunity for the procurement professional to meet with other professionals who may be
able to offer a new perspective on a particular challenges or opportunities.
Professional associations offer access to research, training courses, resources, peer networks and
discussion forums.. this exposes the procurement professional to current thinking, market changes and
technical and practice changes.
,technology transfer
The organisation can enhance its business operations by combining innovation to develop new products
with technology transfer to secondary supply partners for existing products.
technology transfer
Technology transfer can affect the breadth of distribution avenues , opening up new market places and
opportunities for an organisations products and services
Data Analytics
As of 2016, only 28% of organisations ahd incorporated a big data initiative and 85% did not have the IT
capacity to maganage a database of a petabyte
Advanced analytics
The subsets of Advanced analytics:
1, Descriptive analytics - dashboards for ad hoc reporting i.e. what happened?
2, Predictive analytics - Real-time & historical data to make predictions based on probability i.e.
forecasting using Alogorythims & machine-based learning
3, Prescriptive analytics - Utilises predictions based on data i.e. scenario analysis, game theory,
simulation
Data analytics
Data analytics can be used to help the procurement professional better understand the capacity of
suppliers in the supply chain.
Data integration tools in system technology
Data integration is a digital process of integrating and mining data from disparate systems using
integrations tools such as:
1, API - Tightly coupled systems integration - Application programming interface - requests data from
various systems e.g. CRM, ERP, SCM - Makes the request, transports response and translates the
response for reporting purposes.
2, SOA - Service-orientated architecture - Promotes loose coupling & greater flexibility meaning changes
in one functions system do not directly affect another functions system.
3, ESB - Enterprise Service Bus - A customised central hub which helps to connect distinct systems and
applications, enabling them to communicate.
4, iPaaS - Integrated platform as-a-service - Cloud based tool that uses web service protocols to manage
integration.
, Data integration tools in system technology (4):
API - Application programming interface
Tightly coupled systems integration that requests data from various systems e.g. CRM, ERP, SCM - Makes
the request, transports response and translates the response for reporting purposes.
Data integration tools in system technology (4):
SOA - Service-orientated architecture
Promotes loose coupling & greater flexibility meaning changes in one functions system do not directly
affect another functions system.
Data integration tools in system technology (4):
ESB - Enterprise Service Bus
A customised central hub which helps to connect distinct systems and applications, enabling them to
communicate.
Data integration tools in system technology (4):
iPaaS - Integrated platform as-a-service
Cloud based tool that uses web service protocols to manage integration.
(7) Forms of e-procurement:
EDI - Electronic Data Interchange Networks
EDI - Electronic Data Interchange Networks - Suppliers and Buyers linked through a private network
called an EDI. Automate procurement processes including inventory replenishments.
(7) Forms of e-procurement:
B2E - Business to employee requisition applications
Enable self service procurement within the organisational structure to speed up the buying approval
process and standardise requisition proceedures
(7) Forms of e-procurement:
Corporate Procurement Portals
For buying production and non-production related goods required for day to day production and
business operations.
(7) Forms of e-procurement:
First-generation trading exchanges
Supply
Supply chain integration
Supply chain integration requires the procurement professional to develop strategic collaboration with
key supply chain partners and understand customer requirements.
Behaviours to enhance innovation
Pellathy identified 3 key behaviours that affect how individuals engage with each other:
1, Task behaviours - how an individual executes tasks of their role
2, Organisational citizenship - the quality of a person's interpersonal actions and to challenge change
while accommodating others
3, Counterproductive work behaviours - challenging individuals
Early Supplier Involvement
Supplier Involvement is the result of cooperation between suppliers and the organisation at the product
conceptualisation stage. Suppliers will need to determine the extent to which they are willing to invest in
working with organisation on innovation and procurement & supply
Supplier Involvement
Supplier involvement is essential for improving supply chain effectiveness and contributes to managing
the tensions between cost, time and quality.
Innovation councils
Innovation councils provide a governance structure which can be used to coordinate and maximise
innovation throughout the supply chain, coordinating concurrent innovation efforts across multiple
stakeholders within the organisation.
Supplier forums & associations
Gaining access to diverse perspectives gives the procurement professional access to different world
views, information & ideas that can help to drive the development of innovation in the procurement and
supply function and the supply chain.
Supplier forums & associations
Provide the opportunity for the procurement professional to meet with other professionals who may be
able to offer a new perspective on a particular challenges or opportunities.
Professional associations offer access to research, training courses, resources, peer networks and
discussion forums.. this exposes the procurement professional to current thinking, market changes and
technical and practice changes.
,technology transfer
The organisation can enhance its business operations by combining innovation to develop new products
with technology transfer to secondary supply partners for existing products.
technology transfer
Technology transfer can affect the breadth of distribution avenues , opening up new market places and
opportunities for an organisations products and services
Data Analytics
As of 2016, only 28% of organisations ahd incorporated a big data initiative and 85% did not have the IT
capacity to maganage a database of a petabyte
Advanced analytics
The subsets of Advanced analytics:
1, Descriptive analytics - dashboards for ad hoc reporting i.e. what happened?
2, Predictive analytics - Real-time & historical data to make predictions based on probability i.e.
forecasting using Alogorythims & machine-based learning
3, Prescriptive analytics - Utilises predictions based on data i.e. scenario analysis, game theory,
simulation
Data analytics
Data analytics can be used to help the procurement professional better understand the capacity of
suppliers in the supply chain.
Data integration tools in system technology
Data integration is a digital process of integrating and mining data from disparate systems using
integrations tools such as:
1, API - Tightly coupled systems integration - Application programming interface - requests data from
various systems e.g. CRM, ERP, SCM - Makes the request, transports response and translates the
response for reporting purposes.
2, SOA - Service-orientated architecture - Promotes loose coupling & greater flexibility meaning changes
in one functions system do not directly affect another functions system.
3, ESB - Enterprise Service Bus - A customised central hub which helps to connect distinct systems and
applications, enabling them to communicate.
4, iPaaS - Integrated platform as-a-service - Cloud based tool that uses web service protocols to manage
integration.
, Data integration tools in system technology (4):
API - Application programming interface
Tightly coupled systems integration that requests data from various systems e.g. CRM, ERP, SCM - Makes
the request, transports response and translates the response for reporting purposes.
Data integration tools in system technology (4):
SOA - Service-orientated architecture
Promotes loose coupling & greater flexibility meaning changes in one functions system do not directly
affect another functions system.
Data integration tools in system technology (4):
ESB - Enterprise Service Bus
A customised central hub which helps to connect distinct systems and applications, enabling them to
communicate.
Data integration tools in system technology (4):
iPaaS - Integrated platform as-a-service
Cloud based tool that uses web service protocols to manage integration.
(7) Forms of e-procurement:
EDI - Electronic Data Interchange Networks
EDI - Electronic Data Interchange Networks - Suppliers and Buyers linked through a private network
called an EDI. Automate procurement processes including inventory replenishments.
(7) Forms of e-procurement:
B2E - Business to employee requisition applications
Enable self service procurement within the organisational structure to speed up the buying approval
process and standardise requisition proceedures
(7) Forms of e-procurement:
Corporate Procurement Portals
For buying production and non-production related goods required for day to day production and
business operations.
(7) Forms of e-procurement:
First-generation trading exchanges
