In 2020, EIPM released a new book: “Fifth generation Purchasing”. It outlines 6 work modes that purchasing professionals can harness, to work at a different pace and deliver outstanding value to the business.
In 2021, Chief Purchasing Officers will guide their teams through uncertain times while continuing to build the capabilities to deliver their long-term vision.
Each of the six work modes described in the book have a motto that will be highly relevant in 2021. The six mottos are: (1) Simplify (2) Create a common denominator (3) I grow, you grow, we grow together (4) Anticipate & Accelerate (5) Look beyond the obvious (6) Fail fast/Learn fast.
For the 2021 conference EIPM, together with its partner Argon &Co, have built an agenda aligned with the short- and longer-term challenge of Purchasing teams. This agenda is structured around four themes. Each theme is connected to one of the mottos above.
▸ Motto: Create common denominators
On the economic side, achieving sustainable financial performance during uncertain times will require paying attention to cash and to lower financial breakeven points. Careful budgeting will be at the centre of attention; make vs buy decisions will be revisited; capital investment will be transformed into operational expenditure; open source and standard market solutions will be considered with fresh eyes. Procurement needs to demonstrate initiative and to propose some breakthrough moves which generate synergies across the business.
▸ Motto: Look beyond the obvious
In terms of supply chain footprint, the debate around reshoring will remain loud. Environmental and social impacts will be increasingly scrutinised when decisions are made. However, across sectors and supply markets, there will be significant degrees of attention given to these themes. It will be paramount to keep an open mind, to map alternatives and to come up with solid economic assessments, as the division of labour along most supply chains will be revisited to deliver value for the business AND its clients, AS WELL AS its external stakeholders.
▸ Motto: anticipate and accelerate
Risk will be at the centre of attention as sources of uncertainty and disruptions are numerous. The focus will move beyond increasing visibility to managing critical relationships within corporations and across the value chains. A solid sense of anticipation and the development of diverse scenarios will be required. Words such as vulnerability, resilience or agile will be used by many but only a few will be able to get things done and effectively progress throughout the coming turbulent times.
▸ Motto: Fail fast / Learn fast
2020 has demonstrated that technology plays a critical role in business continuity and rapid adaptation during difficult periods. This will lead to a reprioritisation of digital investments. Digital solutions will need to be safe, open, and easily integrated within operations, products, and business models. Beyond automation, technologies will need to power effective and timely decision making. Learning fast will be paramount to move rapidly from Proof of concepts to results.
The conference will be open to everyone in 2021 as we believe that openness and insight sharing are key for everyone these days.
The four themes mentioned above will be discussed from different angles (a 90-minute session for each).
We will favour short executive inputs, followed by round table discussions.
We aim to embrace complexity while remaining pragmatic during all these exchanges.
We look forward to welcoming you at this online conference.
The conference free of charge
LVMH Wines & Spirits
West Virginia University
La Lettre des Achats primarily targets the management of any purchasing activity and the organisation of the departments. La Lettre des Achats enhances both issues, reporting the events in Purchasing through the managers involved in the activity, and considering the development strategies.
The articles published every month in La Lettre des Achats provide much information on these various issues and opportunities for the readers to compare their strategies and their methods with the best recent achievements.