Procurement Professionals as Decathletes

Published Efficient Company Management 8. 11. 2024

Procurement Professionals as Decathletes

The 10th annual Procurement Forum took place on November 6 in Prague, gathering over 150 procurement experts from across the Czech Republic. Open discussions centered on topics related to technology, negotiations not only with suppliers but also with internal customers, and ESG reporting.

The program opened with Tomáš Dvořák from Oxford Economics, who placed current events in a macroeconomic context. In addition to forecasting price trends for key commodities, he addressed the state of the largest global markets. The discussion highlighted the impacts of Chinese exports, particularly in the automotive sector. Chinese exports are tied to overproduction and are subsidized by the government. According to Dvořák, China's growth is expected to slow and the country will be focusing more on its domestic market.

Climate change significantly affects commodity price fluctuations, most notably in the food industry. A critical example is cocoa, whose price has quadrupled over the past three years due to speculation. This was illustrated by Klára Mikulincová from the family-run company Čokoládovna Janek. Cocoa is often referred to as the "new bitcoin" due to its high price volatility.

Building on the economic outlook presented, Zdeněk Mikeš from SAP Czech Republic called for a shift in how procurement is perceived:
“Let’s view procurement as an opportunity to drive innovation and ESG rather than merely saving 5%. Because when inflation shocks occur, you won’t save anything.”

Procurement as a Decathlon

Lukáš Večeř from Motorpal described procurement managers as decathletes, as their work touches on virtually every aspect of a company’s operations, requiring expertise across diverse areas. Procurement’s agenda continues to expand, particularly in non-financial reporting. Helena Boršická from ING Bank demonstrated how even small investments in facility management can enhance environmental scores while reducing costs.

Adam Březovský from Gumex highlighted the diverse roles of procurement professionals, including close collaboration with production, where they contribute product innovations. This also requires exceptional cooperation with the sales department.

Technology and Artificial Intelligence in Procurement

Industrial engineer Jan Bouda showcased how creating a personal assistant powered by artificial intelligence can be quick and user-friendly, benefitting both professional and personal development. Other technological tools for managing employee expenses and business travel were presented by experts from Deloitte – Tereza Matys, Dávid Hankovský, and Martin Jenčík. Automated price negotiations using chatbots were demonstrated by Filipp Samarin from apsolut.

Jaromír Zika from Plaček Pet Products emphasized:
“A procurement professional is not a market vendor. A tender is an opportunity to improve and move forward – that’s the added value of procurement.”

The Art of Negotiation

Technology creates space for interpersonal communication, including strategic negotiation. Karel Pošíval, a former police intervention unit negotiator, outlined the key principles of successful negotiation. First, it is essential to identify barriers and address them, as this is where space for collaboration is created. He stressed the importance of letting go of roles we automatically assume during negotiations. Showing respect to the other party is crucial, and tools for expressing respect include silence and active listening. Internal barriers to negotiation, as identified by Pošíval, include pressure to find the solution or the belief that only one party is right.

Procurement professionals often face more complex negotiations with internal customers than with suppliers. Olga Rinaldi from Rinaldi Consulting addressed this challenge, cautioning against hasty decisions in relationships with internal customers, especially when they are uncooperative or even resort to sabotage.

Don’t miss upcoming Blue Events conferences HERE.

Contact: tereza.ordonez@blueevents.eu

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