Supernegotiate – Details, episodes & analysis

In today's rapidly evolving business landscape, the procurement function is no longer just about cost savings; it's a strategic lever for driving overall business value. The traditional procurement KPIs, focused on savings and cycle times, are becoming obsolete1. To stay ahead, procurement teams must adopt new metrics that reflect a more strategic, forward-thinking approach1. This evolution involves moving from a focus on simple cost reduction to enhancing profitability, accelerating time to market, and building resilient and sustainable supply chains1.... By embracing these advanced KPIs, procurement can transform itself from a transactional function into a strategic partner1.

The future of procurement KPIs centers around several key areas:

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Profitability: Instead of just measuring savings, top-performing teams should focus on the percentage improvement in operating margin due to procurement initiatives1. This metric directly links procurement activities to overall business profitability1.

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Speed to Market: Rather than just tracking cycle times, the focus should be on how quickly procurement can get materials for new products to market2. This requires a coordinated effort with marketing and sales to meet product launch timelines2.

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Data Utilization: Digitization efforts should move beyond simply adopting new tools and instead focus on using data effectively4. Measuring the percentage of data utilized, along with having a library of use cases, is critical4.

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Supplier Innovation: Beyond basic metrics like on-time delivery, procurement should focus on fostering cost innovation projects with strategic suppliers and evaluating the percentage of contracts at risk5....

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Working Capital Management: Procurement should focus on negotiating payment terms to achieve negative working capital and reduce reliance on large safety stocks of inventory7.

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Risk Management: This area must expand from traditional risk factors to include cyber security and near-shoring efforts, while also addressing troubled suppliers8....

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Sustainability: The focus should be on measuring and reducing scope 3 emissions in the supply chain, moving from spend-based to emission-based approaches3.

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Upskilling Teams: Procurement teams need training in spend analysis, negotiation, and increasingly, data science and game theory, enabling them to make data-driven decisions and negotiate effectively10....

This shift represents a move from basic, reactive procurement to strategic, proactive practices that truly impact the bottom line. These new KPIs provide a roadmap for procurement to become a strategic function, contributing directly to the overall success of the organization

Procurement KPIs of 2025! I am bumping this one up as this is the key KPI in 2025! What are the core areas or skills to build the top 1 % Procurement team in 2025? Especially when we are becoming reliant upon data being fed to us or analysis being served to us by AI.I have been quite vocal about how to spot non-performers in Procurement setups, especially in large complex teams. Mediocrity often hides behind Digital Tools and Project Management of Slow Implementation Programs. Layers of Middle management and Project managers don't innovate. I am going to release a case study on this subject soon.

So, back to the topic. Why are we not working on Producing more Procurement Data Scientists, Why are we not studying more aspects of Game Theory in Negotiations or even how to drive Category Strategy like a true Product manager? This is the topic Supernegotiate dives into in detail.

Big Bold KPI Series: KPI 04 is here! Scope 3 Management.

Continuing the series, Supernegotiate shares my thoughts on Scope 3 Management KPI.

Most organizations are starting to manage how to measure and manage Scope 3 KPI. The traditional approach favors measuring activity level carbon emissions data and introducing measures to reduce it.

However, a better approach is enforcing the use of Green Energy instead! More about Scope 3 new KPI in this video!

If you have not been following this series, I started Big Bold KPI series last month. Introducing a 5-part video series. BIG BOLD KPIs for CPOs. These are my top 5 KPIs, which I think, we must embrace, to enable a meaningful Procurement transformation in the current hype of "Ai" / "Digitalization".

Each KPI video will be 5-7 minutes long, hence, perfect for your car commute podcast or while you sip your coffees.

Available on Linkedin, Spotify, Apple Podcast, and Youtube!

I'll leave the link of previous episodes in the comments!

#BigBoldKPIs series is here! Supernegotiate is introducing new-age Procurement KPIs, and we are at our 3rd KPI today. I recently wrote about How Mediocrity in Procurement now hides behind GenAi. Going deeper into that thought, I think how we "evaluate the success of Digitization in Procurement" needs radically new metrics. Stop doing this immediately - Running after "Adoption" or "Use Based" metrics to prove your shiny tool works - Visibility of Information amongst sea of a thousand of dashboards - Months and Months of Change Management I have proposed some new ideas in this video. Let me know your thoughts. I want to share these tips (on spend analysis, negotiation, procurement excellence, and more) during the action (when your category managers are in a transaction). So, ask your platform providers to integrate Supernegotiate content into your platform feed directly. I am not charging anything; it's free! Force them instead to do this for you.

KPI 02 in Big Bold KPIs series:Continuing the series of defining New Age KPIs and moving away from typical old KPIs in Procurement, the time has come for Cycle time to be phased out.Supernegotiate recommended that instead of a cycle time KPI, define the Time of Market (or Speed of Market) KPI for Procurement. More on this in this short video. Again, traditionalists can easily dismiss these ideas but don't complain about Procurement not getting a seat at the table. More on this in my next blog article (coming out on Monday).

Introducing a 5-part video series. BIG BOLD KPIs for CPOs. These are my top 5 KPIs, which I think, we must embrace, to enable a meaningful Procurement transformation in the current hype of "Ai" / "Digitalization".

Each KPI video will be 5-7 minutes long, hence, perfect for your car commute podcast or while you sip your coffees!

Starting with the first one, do we need a Savings KPI in 2024?

Ladies and gentlemen and welcomeback to SUPERNEGOTIATE. It has been quite a while since we last interacted. Now, I have been busy putting together a new series forus and this time I will be covering case studies. Case studies from the biggest procurement mismanagement and fiascos from the best and biggest organizations in the world. For the first one, I have for you the fiasco done by the Defence Procurement Department of UK. Chapters The program name Ajax. The budget size is 6.5 billion pounds.And the reason I picked up this as the first case study is this is Procurement 101 in What You Should NOT DO And How You Should NOT handle a procurement contract of this big size. What could have gone wrong has almost gone wrong in this horribly managed program. We have cases of design complications, we have cases of poorest schedule management, supplier performance management, communication gaps, cost overruns and poor contract negotiation skills. And to top that off, the budget overruns without any estimate and poor SLA management. And we are just barely scratching the surface.

And I am back with my new podcast on Sales Techniques used against Procurement buyers in Negotiation! In my last podcast, I shared the first 3 tips for sales techniques commonly used by sales teams against procurement buyers. Now, in this final podcast of the series, I'm sharing the last 2 tips to help procurement teams be aware and prepared for these tactics. As a Chief Procurement Officer, it's crucial to train your team to be able to detect and counteract these sales techniques. There is no need for expensive training etc.

It is 2023, and there is so much content available online already! Use it. So, on your next offsite or Friday noon catchup, could you ask your team to spend 1 hour reading about negotiations or listento the content I am putting in every week?

If the video format is required, it is available on youtube/supernegotiate. Search "Supernegotiate" and you should be there!

Seriously, what's your excuse again for not upgrading yourself in 2023?

ps: If you want to share your experience or have a chat on Procurement (Spend analysis, Negotiation, Challenges in 2023 and Digital transformation), I'd love to feature you on my next vlog. Connect with me on Linkedin at Supernegotiate me.#procurement #negotiation #suplychain #sourcing #negotiationskills #supernegotiate

Are you tired of falling for sales tricks during the procurement process? Want to learn how to avoid getting duped and make smart purchasing decisions? In this video, I'll reveal 3 of the 5 tips for savvy buyers to stay one step ahead of salespeople and protect your organization's bottom line. From understanding common sales tactics to conducting thorough research and negotiating effectively, these strategies will help you make informed decisions and avoid being taken advantage of. Whether you're new to procurement or a seasoned pro, these tips will help you navigate the sales landscape and make smart, cost-effective choices. Keywords: avoid sales tricks, procurement, savvy buyers, protect bottom line, common sales tactics, thorough research, negotiating skills, informed decisions, cost-effective choices, navigate sales landscape, smart purchasing decisions.

Do you want to learn more about Procurement and Spend Analysis? Buy my book here on Amazon. https://shortest.link/aRGd