Coupa Software

Leading with Innovation: Insights from Michael van Keulen, Chief Procurement Officer at Coupa Software

In the fast-paced world of procurement, adaptability and foresight are essential for success. Michael van Keulen, Chief Procurement Officer at Coupa Software, exemplifies this leadership ethos as he navigates the complexities of modern procurement. With a rich background in finance and extensive experience in driving operational efficiencies, Michael shares his journey, the innovative strategies Coupa employs, and his philosophy on leadership that cultivates a culture of collaboration and diversity. As Coupa continues to redefine the procurement landscape, Michael’s insights offer a valuable perspective on the future of the industry.

 

Click below to access the digital version

Career Journey: Can you share your career journey and what led you to your role as Chief Procurement Officer at Coupa Software?

My background is in finance. I started at Arthur Andersen back in the mid-90s. I always say I’m a recovering accountant forever. As a result, I did a lot of finance work in accounting. For example, I set up a finance shared service centre and did tax accounting, and then, at Foot Locker, I was first asked in early 2000’s, “Hey, Michael, are you interested in running e-sourcing for Europe?” I was the European controller at the time, and I thought, “I don’t really know what that means, but sure.” Naturally, my curiosity led me to accept the challenge.

I became responsible for e-sourcing, deploying it in Europe. We ran several sourcing events and saved a significant amount of money. That’s when I first started to think about integrating my finance expertise with my strong desire to drive value and have a measurable impact across the enterprise. It really got me excited about procurement, which at the time we referred to as sourcing or purchasing.

It was a very immature process, if you will, but it was an exciting time, and we had a lot of impact. Then I moved to VF Corporation, where I started in finance but challenged the organisation by saying, “Hey, we have no procurement.” VF is the parent company for brands like North Face, Vans, Timberland, Lee, and Wrangler, and all these brands operated independently. I suggested, “Why don’t we start leveraging our collective purchasing power to drive more competitive outcomes?”

That’s what we did; We set up the procurement function for VF International and consequently was given the opportunity to lead a global transformation at VF, which went extremely well. I moved to Greensboro, North Carolina, for that. We drove significant value and ultimately selected Coupa as the platform for source-to-pay processes.

I was then given an opportunity to do something similar at Lululemon, which was a $1B retailer at the time with little governance or control. We moved to Vancouver and established the procurement function there during a period of high growth and ultimately became a Coupa customer there as well, so I’m a two-time customer. I’ve known this company for over a decade, and when the opportunity arose to join what I sometimes refer to as the “mothership,” it was a no-brainer.

In my current role, I focus on three main things. Of course, I support a greater procurement team, which has different complexity coming out of retail since we don’t deal with physical supply chains. We buy no hard goods and have very different risks for business continuity. The other two aspects of my role are that I am a consumer of our Total Spend Management platform, which I spend time on, and I have taken this as an opportunity to evangelise the procurement profession that I have now loved for almost 20 years…. By sharing my experience and connecting with the community I try to contribute to the continued evolution of procurement, share best practices and establish connections across the community.

 

Company Overview: Coupa Software is a leader in Business Spend Management. Can you provide an overview of how Coupa’s platform empowers companies to manage their spending more effectively?

 

We used to be known as a business spend management company, but we now call ourselves total spend management because there was still a misconception that we could only handle indirect spend, which is not true. We are the leader in total spend management.


What we emphasise is that we have an end-to-end source-to-pay solution that helps companies multiply their margins by simply having an end-to-end connected platform. This platform is organically grown, natively integrated, and offers capabilities that we believe are unique in the marketplace.


When you think about AI, we have been building community intelligence for over a decade, which we now refer to as community AI or artificial intelligence. We have permission-based data access from over 3,000 customers. We anonymise the spend data and use it to train our AI models. Currently, we have over six trillion dollars’ worth of spend data which is growing rapidly with 10+ million suppliers and over 3,000 customers.


This allows us to train our AI across the platform, from sourcing to contracting, requisitioning, invoicing, and risk management, as well as sustainability expenses and everything in between. We believe we are uniquely positioned to help our clients maximise their potential and ultimately reach their true potential by using an unmatched data set.

Procurement Innovation: Procurement is evolving rapidly. How does Coupa Software stay ahead of industry trends, and what innovations are you most excited about?

The advantage we have architecturally is that we operate on one code base, and we prioritise configuration over customisation. What that means is that all of our customers are on the same platform. We don’t do customised anything; we’ve always believed that configuration is the way to go based on best practices.

This doesn’t mean we limit customers in designing their business processes. It means that we have one code base, and we invest about 17% of our revenue, which equates to around $170 million and growing annually, into this single code base. This investment allows us to drive innovation at speed and scale, which puts us in a very unique position.

We are multi-tenant, which also means we can integrate with any ERP. We have 400 different applications that are natively integrated into our platform because it’s a very open system. I don’t want to turn this into a sales pitch, but that’s what makes us unique and one of the reasons why we are a leader in over 30 analyst reports.

This success is not about pay-to-play tactics; it reflects our core DNA. We started when the cloud was emerging, so we didn’t have to deal with any legacy systems. Our supplier network is free of charge and does not force suppliers down a certain path, which leads to very high levels of spend adoption across all our customers. That’s why we have extremely high renewal rates and why we’re growing at the rate we are.

So, how do we stay ahead of the game? We’re staying ahead of the game because of our architecture. What I’m mostly excited about is AI and how we can remove more repetitive tasks. How do we simplify basic things like requisition to purchase order? How do we orchestrate contract reviews? How can we use data to drive better business outcomes?

Everyone talks about AI—generative AI and large language models. But I always say you need to ask your software partner how their AI is trained. Is it trained based on relevant, meaningful data, or is it trained on data that’s out in the public domain? If it’s the latter, you need to be very careful because how do I know that the underlying data is relevant, trusted, structured, meaningful, and reliable?

The AI will prescribe outcomes based on that data. For example, if you ask ChatGPT whether the Earth is flat or round, it will likely respond that the Earth is round because most of the information in the public domain says that. But we also know there’s information out there claiming the Earth is flat. Sometimes you’ll get an outcome suggesting that.

Without getting into the debate of whether the Earth is round or flat, let’s assume for the sake of the argument that it’s round. This doesn’t really matter when it comes to procurement. But if I asked about supplier risks, supplier discovery, or prescriptions around commodity pricing, it becomes quite serious. If the outcomes aren’t reliable, how can I make informed decisions without impacting business continuity?

Also, I would ask your head of global risk and compliance if they’re comfortable using ungoverned information. If they’re okay with putting reliable or trusted confidential information from your company into the public domain, I think the answer is probably no. So, you need to be super careful.

AI is exciting; it’s another tool that’s available right now. It’s not just blockchain; there are real use cases across various business functions including procurement. However, you need to be cautious and understand what the AI is trained on. We fundamentally believe—and you can quote me on this—that the best data makes for the best AI.

 

 

Sustainability and ESG: How does Coupa integrate sustainability and Environmental, Social, and Governance (ESG) factors into its procurement strategies, and how do you help your clients do the same?

 

In our platform, we have over 100 different configurations and settings driven by ESG considerations. We partner with organisations like EcoVadis that are integrated into our platform. Based on your strategy, you can start driving outcomes that allow your organisation to purchase from suppliers that meet the right sustainability profiles and objectives.

Now, that could be environmental, such as scope 3 emissions or carbon, but it could also be social—such as driving more diversity in spending. It’s essential to ensure compliance with the latest regulations, such as those regarding modern slavery in places like Germany or the UK. These factors are embedded in the platform.

Every customer has unique use cases, and we can certainly delve deeper into that. However, at a high level, you can configure your platform based on your strategic objectives, which will differ significantly from one customer to another. For example, Microsoft does this with their carbon footprint in their supply chain. It just depends on your use cases.

Customer-Centric Approach: Coupa is known for its customer-centric approach. How does the company ensure that its solutions meet the specific needs of diverse industries?

We run customer advisory boards across various industries and geographies. Through these advisory boards, we hear from our customers about what the platform is doing well and what they would like us to focus on.

This feedback informs our R&D investments. For example, with $170 million worth of R&D, we prioritise where we want to invest our time and energy based on customer input. This comes through our community platform, where users share suggestions and ask, “Why doesn’t the platform do XYZ?”

That feedback is very democratic, and what drives prioritisation for our future releases. We do two to three new releases a year, with each release incorporating 100 to 200 new features and functions. About 95% of that comes from our customers telling us what they want.

As said before, this is not a sales pitch; it’s how our platform came together. That’s why I chose Coupa previously—because I have the ability, not just as Lululemon, but as a community member, to influence the product roadmap of the company. A lot of other companies are starting to do this, but customisation is gone.

It’s configuration based on best practices that need to come from our customers. We’ve moved beyond the days when software companies operate from an ivory tower, configuring some random features and throwing them into the marketplace. If you don’t like it, you can customise it, and no one really remembers what it was supposed to do in the first place, especially when upgrading to a newer version.

 

Technological Integration: What role does emerging technology, such as AI and machine learning, play in Coupa’s platform, and how do these technologies enhance procurement processes?

We’ve kind of talked about this earlier. The way we’ve always thought about this platform is that it needs to be open and easy to integrate—not just with ERPs but also with point solutions that augment and extract more value from spend management.

That has been one of the founding principles of Coupa. Our platform is very easy to integrate with any ERP, and we have over 400 applications in our marketplace—similar to what Salesforce has—that are natively integrated based on the use cases of our customers.

Because it’s so easy to integrate, our customers can constantly drive more value. If you want to focus on risk, ESG, diversity, or any other area, you can integrate those point solutions into the Coupa platform. The fundamental belief is that you need a comprehensive source-to-pay platform.

I have never, as a practitioner, believed in using different systems for sourcing, contracts, expenses, and contingent labour but always wanted a unified platform that can be augmented with point solutions, and that’s what Coupa has built. In the end we want to have customers and not prisoners….

Strategic Partnerships: Can you discuss some of the strategic partnerships Coupa has developed and how these collaborations have contributed to the company’s success?

To scale effectively, our partners are just as important as our customers. We have large partners like KPMG, Deloitte, and Accenture for system integration but also have boutique firms that are specifically focussed on driving digital procurement transformation.

We also have 400+ partners in our community who are integrated software partners on our platform. They range from intake solutions to analytics and everything in between. Our partners are fundamental in allowing us to scale and grow rapidly. Deploying Coupa does require system integration, and we have numerous certified system integrators that contribute to our success.

 

Challenges in Procurement: The procurement landscape is constantly changing. What are the biggest challenges you see in procurement today, and how is Coupa helping organisations overcome them?

The biggest challenges stem from macroeconomic factors. There are over 100 elections happening this year, inflation remains unpredictable, and the geopolitical landscape is complex. We’ve seen disruption, climate challenges, and political unrest. There are some very tense situations in various parts of the world, and we cannot influence these factors.

However, we can control several aspects within our own four walls. We need to ensure we have the right people, processes, and technology in place. It’s important to have the right blend to support strategic objectives and to ensure we have the necessary infrastructure.

That’s where Coupa helps from a technological standpoint. It’s not just about technology; it’s also about people and operationalisation. Where we help is on the tech side, but we recognise that it’s also about having the right balance.

We need to help organisations with end-to-end processes, visibility, and adoption. We enable them to prepare for “what if” scenarios. For example, if something were to happen in my supply chain, how quickly can I react? How quickly can I change suppliers, adjust lead times and/or quality?

What I’m trying to say is that there are a lot of macro factors we can’t control, but we can control our own destiny and prepare for various scenarios, having the right level of visibility. If you don’t do that and simply let circumstances unfold, you end up in trouble as history has shown us. Companies that thought everything was fine were the first ones to struggle during past crises.

Procurement has a fiduciary responsibility. We’re here to plan, anticipate, and project, always keeping “what if” scenarios in our back pockets. I think that’s fundamental to procurement.

Future Vision: What are your future plans for Coupa’s procurement platform, and how do you envision the company’s role in the global procurement landscape evolving over the next few years?

We will continue to invest in the platform. We have very ambitious plans. Currently, we are a billion-dollar company, and the plan is to reach two billion in revenue over the next three to four years. We believe that’s achievable. We have the right ownership structure with Thoma Bravo, which is committed to investing in this space.
We’re excited about our organisational structure. We will continue to invest in the platform, that’s for sure. We are particularly excited about AI and the opportunities to collaborate with suppliers on aspects like inventory management and forecasting.

There’s a lot of potential for advanced supplier collaboration that ERP systems are not equipped to support. Solidifying our leading position in the market while ensuring our customers drive more value is crucial for our ongoing success.

 

Leadership Philosophy: What is your leadership philosophy, and how do you guide your team to drive innovation and success at Coupa?

Well, that’s a whole different article! My leadership philosophy is straightforward, guided by my core values of authenticity, honesty, integrity and humility. 

First, I believe in hiring smart people and letting them tell us what to do. Too often, companies hire very intelligent individuals and then we try to fit them into moulds. I think that’s wrong. We should give people the freedom to express their expertise and maximise their full potential.

Another key principle is to create an environment where people feel comfortable making mistakes. Driving innovation requires a certain level of risk-taking, and the only way to achieve that is through failure. I often use the phrase “fail fast, move on.”

We obviously need to learn from our mistakes, but it’s vital to foster an environment where people are comfortable making them in the first place. I know that sounds pretty basic, but many organisations struggle to implement this principle effectively.

The third aspect is diversity. I focus on assembling a diverse group of people with different thoughts and backgrounds—not just in terms of gender, ethnicity, and religion, but also in terms of their experiences and ideas. Diverse teams drive better business outcomes; this is a proven fact…..At Coupa, we embrace three core values: focusing on our customers, striving for excellence, and driving results. We are very outcome-based. Instead of spinning our wheels, we prefer to get things done. If we fail, we fail fast, learn, and move on. Those are my core principles as a leader and a professional.

Art of Procurement

Transforming Procurement: Insights from Philip Ideson on the Evolution of Art of Procurement

In the evolving landscape of procurement, adaptability and innovation are crucial. Philip Ideson, Managing Director of Art of Procurement, reflects on the platform’s journey since 2015. With experience at Ford, Pfizer, and Accenture, he has witnessed the industry’s challenges and opportunities. In this interview, he shares how Art of Procurement has transformed from a podcast into a comprehensive media and consultancy business, driven by customer feedback and the demand for high-quality insights. Philip discusses the core values guiding their operations and explores future trends, offering a compelling vision for how Art of Procurement empowers professionals worldwide.

 

Click below to access the digital version

Founding Vision: Can you share the inspiration behind starting Art of Procurement in 2015 and how your background in procurement shaped the creation of the platform?

Before starting AOP, I worked for about 15 years as a procurement practitioner for companies like Ford Motor Company, Pfizer, Chiquita, Ally Financial, and Accenture. I was lucky enough to become a Head of Procurement relatively early in my career, and I also spent time living and working in India, managing a captive shared services organisation.
Having spent a lot of time in the outsourcing and offshoring world, I decided to leave my last role as a practitioner at Accenture to start an advisory business that helped companies optimise their procurement operating models. I was inspired to start that company because of the many transformations I had been involved in, and especially during the time I spent in India, I noticed how so many procurement professionals were resistant to, or even afraid of, driving change, and that worried me. I believed that the profession was about to go through a significant transformation with all the new delivery models and technology coming into the mix. I was concerned that if we didn’t embrace that change, then the future of procurement would instead be determined by those executives in the organisation who didn’t have a good perception of the value that procurement could bring – and this could be an existential issue for all of us.

I started the AOP podcast shortly after that to help tell the stories of companies that were successful in driving change and to provide a resource where procurement practitioners could learn about best practices and emerging trends. At the time, this information was only really available to people who could afford to go to procurement conferences. And I figured that if no one listened, it would still be great for my own personal learning to have the opportunity to speak to, and build connections with, leaders in our industry.

 

Growth and Evolution: Art of Procurement began as a podcast and has grown into a comprehensive media and consultancy business. What have been the most significant milestones in this journey?

The single biggest influence on our growth as a business has been my collaboration with Kelly Barner. Kelly is a fellow former procurement practitioner, so we share that in common, and she’s the leading content creator in procurement. It’s no surprise to any of us familiar with her work that she’s regularly ranked as #1 on the Thinkers360 list of procurement influencers. But Kelly is also a wonderful business operator, and our strengths are very complementary to each other (as are our mutual overuse of Mr Bean GIFs as a method of communication).

I first interviewed Kelly as Episode 6 of the podcast. At that time she was leading her own company, Buyers Meeting Point. Over the years, our collaboration grew stronger, and Kelly is now my co-partner in the business, and Art of Procurement acquired her Buyers Meeting Point and MyPurchasingCenter brands in 2023.

AOP’s growth trajectory really took off in 2021, and we’ve grown 5X since then. We’ve gotten here by focusing on growing both the content and consulting sides of our business. From the content side, we work with a number of procurement SaaS and software companies to help them tell stories about their businesses in ways that are engaging for procurement practitioners. On the consulting side, we launched a new brand called SpendPros in early 2024 that builds on our 9 years of experience providing advisory and consulting support directly to procurement teams. – With SpendPros, we can support procurement with things like sourcing and category management, transformation and digitisation support, or learning and development.

 

Impact on the Procurement Community: How has Art of Procurement influenced the procurement industry, and what feedback have you received from the community about its impact?

In some regard, I think that is for others to speak to in terms of how we have influenced the procurement industry. That said, we receive positive feedback every day from our community members. For example, just looking at our Net Promoter Score, our rating of 69 is 3 times higher than the media industry benchmark. Being a trusted source of information is at the forefront of everything we do, and I think it shows in a lot of the metrics we track, like the NPS.
Early in my journey with AOP, I had so many CPOs telling me that there was no place for them to go to get access to executive-level content and insights like we were producing. At the time, that was by accident—I was just creating content that I, as a former Head of Procurement, found interesting. However, from that moment onwards, we have deliberately focused on content aimed at procurement leaders, change agents, and those who aspire to be.

Core Values: One of your core values is “No Jerks.” How does this value guide your business practices and interactions with clients and partners?

Part of why both Kelly and I left the corporate world is because we wanted the ability to choose who we worked with. We wanted to enjoy our work every day and surround ourselves with positive, inspiring colleagues and clients. This drove our “no jerks” core value, and it was the first value we wrote down when trying to articulate what we stand for.

When you build this into business practices and interactions, a couple of things come to mind. The first is empathy. For example, being former practitioners, we can truly empathise with the day-to-day challenges that our community of readers, viewers, and listeners face. We are careful to take that into consideration in the way we create content and in how we encourage our community to drive change in their organisations. We also know how busy they are, so the last thing we want to do is waste their time with throwaway content or hyperbole.

We also use this value to determine who we partner with—or do not partner with. It is critical to us that everyone we work with also embodies this core value.

 

Educational Resources: Art of Procurement offers a variety of resources, including webinars and podcasts. How do you decide on the topics to cover, and what do you hope your audience gains from these resources?

We are very deliberate in not trying to create content that appeals to all of our community all of the time. We want to dig down into the weeds and explore the nuances that may only be relevant to a small subset of our audience—but for those whom it is relevant to, it is highly impactful. By doing this consistently, we build a library of content where there is something for everyone.

We select topics in a few different ways. First, we think about what is interesting to us as former procurement leaders. We also consider what are the big trends that procurement professionals need to be aware of and best practices that will help them elevate their impact. And we also never forget to ask ourselves, “what is our audience seeking? What do they want or need to know?” We try to make those decisions by doing things like surveying our community, speaking directly to them one-on-one, through insights gained from the consulting side of our business, and by observing what content they are already engaging with.

 

Technological Integration: With the rise of digital tools in procurement, how is Art of Procurement leveraging technology to enhance its services and provide value to its audience?

We are currently building a roadmap that will help us integrate digital tools into our solution set for procurement leaders on the consulting and services side of our business. In the meantime, we are primarily focused on using technology to help our audience more quickly find the content that can help them in real-time from our library of over 1,000 webinars and podcasts. We have a new website that will be launched shortly—possibly before this article is published—that will be the first step toward achieving that goal.

Challenges and Resilience: You’ve mentioned that building Art of Procurement requires resilience. Can you share some challenges you faced and how you overcame them?

Before embarking on this journey, I would often read that entrepreneurship was a rollercoaster. I thought this was just another tired cliché. How wrong I was! We have faced LOTS of challenges over the years. Here are a couple of examples:

For the first five years of the business, I invested all of my family’s personal wealth (plus a lot more) into the business. By outside metrics, we were successful—I was always told what a strong brand we were building. But by the only metric I really cared about—putting food on the table—I was failing. I could have quit many times over. In the end, we sold our home and moved cross-country because I was convinced that I was just missing how to connect the dots. I kept “fighting to see another day” long enough to figure things out, and eventually, we started to see the light at the end of the tunnel, and the business has grown from there. During the lean times, I’d convinced myself that I was just not a good salesperson. What I learned is that it wasn’t that I couldn’t sell, but that I wasn’t confident in what I was selling. When I became much clearer about our value proposition, that drove changes to our positioning and focus, which finally led to the positive momentum we see today.

For another example, earlier in our journey, another company in our space took legal action against us out of the blue. We were down to my last $5K in the bank, and I felt that was it—I’d have to close the business down. We survived—just—but this experience gave us a newfound energy, which ended up being the turning point in our business, and we never looked back.

 

Future Trends in Procurement: What trends do you foresee in the procurement industry over the next decade, and how is Art of Procurement preparing to address these trends?

Since I entered the procurement profession in 2000, there has always been speculation about how different things would be in 10 years. But when I look back, not much has fundamentally changed over these years.

That said, the next 10 years have the potential to be the most transformative decade in the history of procurement, one that could determine if we even exist as a centralised or centre-led function by 2035.

I personally foresee a much smaller, leaner procurement organisation in the future. Around 80% of purchases made by an organisation will be directly managed by the business, but within guardrails governed by procurement and enabled by technology. The procurement team of the future will consist of generalists—digitally literate relationship builders with commercial acumen—who can translate business needs into procurement-driven solutions. These teams will be a hybrid of internal and external talent, with external category experts supplementing an internal team.

At Art of Procurement, we are addressing these trends in two ways:

First, from a content perspective, we collaborate with a wide range of leaders both inside and outside of procurement to understand the latest trends and the pace of adoption. We use these insights to steer our content program.

Secondly, on SpendPros, the consulting side of our business, we have built a service offering that gives procurement teams access to category-specific subject matter expertise on an on-demand basis, helping them gain the expertise they need, when they need it.

(note here is my annual letter from the start of 2024: https://artofprocurement.com/podcast/episode660/) 

 

Global Community Engagement: Art of Procurement has a global reach. How do you engage with a diverse audience, and what strategies do you use to ensure relevance across different regions?

Approximately 60% of our community is based in North America, 20% in Europe, and 20% is spread across the rest of the world. We try to reflect this diversity in the content we create—ranging from the location of our guests to the relevance of our content for practitioners in different regions.

To make sure that our content resonates globally, we feature perspectives and insights from a variety of markets. Also, we regularly seek feedback from our own audience to understand their unique challenges and interests, which helps us to tailor our content to meet the needs of a diverse, global community.


Upcoming Projects: Can you share any exciting projects or initiatives that Art of Procurement is planning for the near future, particularly those aimed at further empowering procurement professionals?

We are currently revamping the entire Art of Procurement website, making our library of over 1,000 podcasts, webinars, blog posts, and short-form videos far more accessible and organised by best practice topics or technology segments. We’ll use AI chatbots to help our community access the content they need when they need it. We are also developing a new section that will help procurement leaders to ‘demystify’ the procurement technology stack by enabling them to conduct all of their initial research in one place.

Bayer Consumer Care AG

Driving Change in Procurement: Insights from Sharmeen Lalani-Fade at Bayer Consumer Care AG

In the dynamic world of procurement, Sharmeen Lalani-Fade, Global Category Lead for Online Media and Data at Bayer Consumer Care AG, stands out as a transformative leader. With a rich background in procurement spanning over 15 years, Sharmeen has leveraged her experiences across various industries to drive innovation and efficiency at Bayer. In this interview, she shares her journey into procurement, the challenges and opportunities she has encountered, and how she is reshaping the online media landscape. From discussing the importance of diversity and inclusion in the workplace to exploring the future trends in procurement and technology, Sharmeen provides valuable insights into how she and her team are navigating the evolving procurement landscape while empowering fellow professionals to thrive in their careers.

 

Click below to access the digital brochure version

Career Path and Inspiration: Can you share your journey to becoming a senior procurement executive at Bayer? What inspired you to specialise in the intersection of procurement, online media, and data?

My journey in procurement began many years ago when I heard an industry leader speak passionately about the field. This ignited my curiosity and prompted me to pursue membership in the Chartered Institute of Procurement and Supply (MCIPS) qualification.

My fascination with marketing procurement was sparked while working in the non-ticket revenue department of London Underground. There, I marketed and sold spare space on cable brackets to the telecom industry in the mid-90s to lay fibre optic cable. If you ever ride the Tube, look out the window to see the black and orange cables—black for power and orange for fibre optic.

For me, procurement is a unique space where one can truly embrace an entrepreneurial mindset. It requires mastering the end-to-end process while maintaining a strategic overview. You must think critically, mitigate risks, and dive into the weeds when needed.

One of my most exhilarating experiences was transforming my family’s business. I negotiated with creditors to arrange a five-year Individual Voluntary Arrangement (IVA), drawing on every ounce of my training in finance, negotiation, contracting, and process mastery. Today, it is a flourishing family business known as Park Villa Boutique Hostel in Mile End, London.

Aspiring to global category management, I gained valuable experience in the Fast Moving Consumer Goods (FMCG) and healthcare industries. Nearly six years ago, I took on the role of leading the Global Media category at Bayer. As traditional media gradually became obsolete, online media rapidly grew and evolved. With my growing expertise, I often found myself training colleagues in legal, finance, business, and procurement. To explain online media and data, one needs to be a good storyteller, as revealing the complexities and lack of transparency in the programmatic supply chain within the online media ecosystem can be quite involved.

 

 

End-to-End Accountability: Your role requires end-to-end accountability in procurement. How do you manage the complexities of this responsibility, particularly when negotiating with major players like Google Marketing and Amazon Advertising?

I am a big-picture thinker and thrive on understanding the end-to-end process and the impact each piece has overall. If I need to dive into the details, I do. Bayer is a well-established and trusted brand that has successfully reached 160 years, and it continues to thrive under our new CEO, Bill Anderson. In contrast, technology platforms like Google are only 25 years old, and TikTok is just 7 years old.

My point is that the established systems and structures that have evolved over 160 years are not the same as those that are just a few years old. My role requires me to bridge these two worlds, whether discussing Joint Business Plans or orchestrating a cross-functional team tasked with ensuring campaigns are back online and bills are paid, or redesigning dedicated tech platform resources in legal or accounts payable.

One must understand the key elements of their operations to find the best solutions to any challenge, whether it involves Google or Amazon. Tech platform providers are composed of talented individuals, and if they believe you are there to facilitate their efforts, they will reciprocate. New media demands a new procurement mindset; otherwise, the doors will remain closed.

 

 

Navigating the Online Ecosystem: The online media landscape is constantly evolving. How do you stay ahead of the curve in understanding and leveraging the latest trends and technologies in ad tech?

Staying ahead of the curve in the ever-evolving online media landscape can indeed be challenging, but I embrace it as an exciting opportunity. I consider myself somewhat of a tech enthusiast and immerse myself in industry news and trends daily, even while walking the dog.

In addition to consuming news, I actively participate in webinars, technology conferences, and networking events where I can engage with thought leaders and peers. These interactions provide valuable insights into emerging technologies, best practices, and potential pitfalls. I also thrive on figuring out solutions when faced with uncertainty. At Bayer, we are fortunate to have a labyrinth of online training resources available at everyone’s fingertips.

Moreover, I collaborate closely with our internal teams and external partners to understand their perspectives and experiences. This collaborative approach allows me to leverage diverse viewpoints and adapt to changes swiftly. By combining my passion for technology with proactive engagement in the industry, I strive to not only stay informed but also anticipate trends that can drive our procurement strategies forward. For example, the emergence of a sub-industry of Google Certified Partners offering specific Google Platform technical consultancy services is a noteworthy development as companies continue their digital upskilling journey.

Driving ROI and Value: Procurement today must reimagine efficiencies and focus on ROI. Can you discuss how you balance financial and non-financial value, particularly in supporting Bayer’s digital acceleration initiatives?

Before embarking on any negotiation, every procurement professional must understand the key business goals, meaningful and actionable KPIs, and the ROI measurements that will help drive business and brand objectives. For every purchased product, one must comprehend its ROI. For example, when buying brand safety or ad verification post-bid products, it is essential that every cent is accounted for.

Oracle’s subsidiary, “Moat,” which is no longer operating, published a complex white paper on measuring the ROI of brand safety and ad verification. I utilise a straightforward calculation that I developed: it considers the benefits of preventing wasted impressions, such as the value of reduced wasted impressions, higher conversion rates, and improved brand perception, relative to the cost of preventing those wasted impressions, which includes the software needed to optimise and verify ad placements.


Challenges in a Male-Dominated Field: You’ve noted that there are few women in your field. What challenges have you faced as a woman in procurement, especially in the tech-driven space, and how have you overcome them?

As a woman entering the tech-driven space, I have certainly encountered my share of challenges. One significant challenge has been navigating the male-dominated culture that can exist in tech environments. This experience has required me to build strong relationships and networks with tech platforms and providers to foster collaboration and support.

To overcome these challenges, I’ve leaned into some of my strengths—such as empathy, my drive to continuously learn, and relationship building—to establish rapport and credibility. I actively seek mentorship and sponsorship from leaders in the industry, which has been invaluable for my growth and confidence. Additionally, I seize every opportunity to advocate for diversity, equity, and inclusion (DE&I) initiatives, helping to create a more inclusive environment for everyone who works with me.

Ultimately, I believe that by sharing my experiences and supporting other women in the field, we can collectively break down barriers and pave the way for future generations of female leaders in the tech-driven space.


Diversity, Equity, and Inclusion (DEI): You’ve been recognised for your work in DEI, including a Bayer leadership award. How do you integrate DEI principles into your procurement strategies and daily operations?

In 2020, Thomas Udesen, our Chief Procurement Officer, was a pioneer in championing diversity, equity, and inclusion (DE&I) within Bayer’s global procurement efforts. I was fortunate to be part of the team that came together to initiate the dialogue around DE&I and drive the agenda forward. We called ourselves SWIRL, which stands for Stronger With Inclusion, Respect, and Love. Securing the word “Love” was not easy, but we believed it was essential to our mission.

This marked the beginning of my learning journey in DE&I, focusing on awareness, action, and advocacy. I launched a safe space initiative, which ultimately earned me an award. The safe space sessions were grassroots open dialogue forums designed to foster honest conversations. In preparing for the bi-monthly sessions, I researched topics such as personal pronouns, institutional privilege (including aspects like being straight, male, cisgender, white, upper/middle class, and able-bodied), microaggressions, and intersectionality. This allowed me to upskill in DE&I terminology, tools, and concepts, similar to my journey in online media and the tech space.

This growing knowledge enabled me to weave DE&I principles into everything I do, including procurement strategies and daily operations. For instance, I began advocating for diversity to be considered in the engagement of creators and influencers, in the publisher sites where we place our ads, and in the teams that design media plans. I truly believe, along with McKinsey research, that DE&I drives better business outcomes.

Strategic Procurement Leadership: You’ve led the strategic setup of procurement deliverables. Can you share how you approach transformational leadership, particularly in aligning your team’s goals with Bayer’s broader business objectives?

For me, transformational leadership means coaching, inspiring, and empowering teams to align their goals with Bayer’s business objectives. My approach starts with clear communication. I believe in sharing the company’s mission and how our procurement strategy fits into that picture. This understanding translates into the Joint Business Plan goals that we have in place. Bayer’s powerful mission—“Health for All, Hunger for None”—gives us all purpose and is both inspiring and empowering.

Bayer is undergoing an organisational shift towards placing the customer and the product at the centre of everything we do. Linked to this is the goal of reducing bureaucracy and removing command-and-control leadership practices. For me, this is transformational leadership in 2024.

I also encourage team members to share their ideas and insights, fostering an environment where everyone feels valued. This not only sparks innovation in the ideas produced to overcome challenges and roadblocks but also increases team motivation and respect for one another.

Lastly, I focus on continuous development. I invest in training and resources to equip the teams that support me with the skills they need to succeed. In 2021, I developed online media training modules on Degreed, the training platform I mentioned earlier. This training is regularly updated. By nurturing their growth, we collectively drive the digital transformation at Bayer and contribute meaningfully to the company’s success. Ultimately, it’s about creating a culture where everyone is empowered to take ownership and contribute to our shared vision.


Podcast and Speaking Engagements: You were invited to speak at the Programmatic Pioneers Summit and record a podcast for the New Digital Age magazine. What insights did you share, and how do these experiences influence your work at Bayer?

I am passionate about programmatic transparency, defining and measuring ROI, and sustainability, including inclusive practices in the programmatic supply chain.

Regarding transparency, I believe that the only way to shift the needle is through legislation, such as the Digital Services Act. We have reached a point where it is imperative for industry bodies to achieve consensus on the highest standards of transparency that are universally accepted across the ecosystem.

When it comes to defining and measuring ROI, the narrative around measurement needs to be simplified and made accessible. Ad verification and brand safety serve as good examples of this.

On sustainability and DE&I, every link in the programmatic supply chain should strive to measure CO2 emissions consistently and accurately across the industry. Responsible media is a crucial part of this, and I believe that ad verification agencies should drive the agenda of effectively measuring where advertiser brands appear and do not appear—100% versus 99.5% of the time. Additionally, ensuring that sites that promote hate speech are identified and avoided is vital. I also advocate for the need to inspect every system and process for bias across the entire programmatic value chain.

 

Future of Procurement: As the landscape of online media and procurement continues to evolve, what trends do you foresee shaping the future? How is Bayer preparing to adapt to these changes?

The online media and procurement landscape is evolving rapidly, and I see several key trends shaping the future. First, data privacy and compliance are becoming increasingly important. With regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) tightening, we need to navigate these complexities while retaining trust with consumers. The recent news about the disbanding of the Global Alliance for Responsible Media (GARM) means that advertisers must be more vigilant and thorough regarding where their ads are placed. Inclusion and exclusion lists have renewed significance, and ad verification agencies need to increase investment in R&D to better serve brands and ultimately protect brand equity.

Of course, I must mention the rise of artificial intelligence and machine learning in ad tech. These technologies are game changers, enhancing targeting and personalisation, which leads to more efficient media buying and better ROI. At Bayer, we’re actively exploring AI-driven solutions to optimise our procurement strategies and processes, yielding incredible results.

Sustainability is also a major focus right now. Both consumers and brands are prioritising eco-friendly practices, which means we must adopt sustainable procurement strategies. Sustainability was integrated into our procurement framework several years ago, ensuring our partners align with our environmental goals. At Bayer, we are even reviewing tier-two suppliers. Within our joint business plans, sustainability forms an integral element, driving accuracy in measuring online media carbon emissions from creative ideation through to publisher site policies, such as the percentage of green electricity used.

Lastly, I believe that the shift toward full-funnel marketing should reshape how we, as a procurement function, approach media procurement. As consumers engage across multiple platforms, we should adapt by developing integrated procurement strategies that leverage various channels instead of siloed approaches. Additionally, procurement should consider cross-divisional and cross-agency partner joint business plans wherever possible—such as with Google, creative teams, media planning, sustainability efforts, and even ad verification agencies—all working toward the same meaningful and measurable goals.

Dormakaba

Elevating Procurement Excellence: Nina Bomberg on Global Strategies at Dormakaba

In today’s complex procurement landscape, strategic foresight and operational excellence are crucial for success. Nina Bomberg, the Director of Global Indirect Procurement at Dormakaba, shares insights into her career journey and the innovative strategies she employs to enhance the company’s procurement processes. With a focus on sustainability, technology integration, and supplier relationships, Nina is at the forefront of transforming Dormakaba’s approach to indirect procurement, ensuring it aligns with the company’s broader goals for growth and efficiency.

 

Click below to access the digital brochure version

Career Journey: Can you share your career journey and what led you to your role as Director Global Indirect Procurement at Dormakaba?

I began my procurement career 20 years ago, somewhat by coincidence, and over the years, I’ve had the privilege of working across five different industries. During this time, I led three major procurement transformations, which provided me with invaluable experience in building teams and optimising departmental operations. I have always enjoyed the challenge of developing teams and driving operational improvement, which eventually led me to dormakaba. The company was seeking someone to elevate its indirect procurement function to the next level of maturity. I was excited to take on this challenge, aligning my expertise with dormakaba’s vision for global procurement transformation.

Procurement Strategy at Dormakaba: How does Dormakaba’s global procurement strategy align with the company’s goals of operational efficiency and innovation?

Dormakaba’s global procurement strategy is closely aligned with our overall business objectives of operational efficiency and innovation. We focus on achieving operational excellence by consolidating our supplier base and streamlining procurement processes. Additionally, we are working on digitising our procurement landscape to ensure seamless integration across functions. By adopting robust procurement strategies, we can enhance both cost efficiency and supplier collaboration. This approach allows us to remain agile and innovative, ensuring that procurement contributes effectively to the company’s long-term growth and sustainability goals.


Sustainability in Procurement: How is Dormakaba integrating sustainability into its procurement processes, and what are the key sustainability initiatives within indirect procurement?

Sustainability is a core focus of Dormakaba’s procurement processes. We have integrated sustainability criteria into our supplier selection and decision-making, ensuring that our procurement practices support the company’s broader environmental and social goals. A dedicated team within procurement focuses exclusively on sustainability initiatives, helping to ensure that our suppliers align with our values. This includes reducing our carbon footprint, promoting ethical sourcing, and adopting circular economy principles.

Supplier Relationships: How do you manage supplier relationships globally, and what strategies are used to ensure alignment with Dormakaba’s values and standards?

Managing supplier relationships globally requires a structured and cohesive approach. At Dormakaba, the Global Indirect Procurement team operates as a single, unified entity. We regularly communicate across regions and share best practices to ensure consistency in managing our supplier relationships. This teamwork helps ensure that all suppliers adhere to Dormakaba’s values and standards, regardless of geography. By fostering open communication, regular collaboration, and a clear understanding of our expectations, we maintain strong relationships that align with our operational goals and ethical standards.

 

Challenges in Indirect Procurement: What are the biggest challenges in managing indirect procurement at a global level, and how do you address them?

One of the biggest challenges in managing global indirect procurement is ensuring data transparency across more than 40 different ERP systems. The lack of integration can make it difficult to access and analyse procurement data efficiently. Another significant challenge is that many stakeholders within the organisation may not be accustomed to working closely with indirect procurement. To address these issues, we invest time in educating internal teams about the importance of our work and the value we bring. By encouraging clear communication and collaboration, we can effectively navigate these complexities.


Technological Integration: How does Dormakaba use technology to optimise procurement processes, and what recent advancements have you introduced?

At Dormakaba, we see digitalization as a critical factor in optimising indirect procurement processes. Recently, we implemented an AI tool designed to enhance the user experience across procurement functions. This tool simplifies day-to-day operations by addressing routine procurement-related queries and streamlining the requirement definition process. The tool not only improves efficiency but also reduces the time spent on administrative tasks, allowing procurement teams to focus on more strategic activities. By adopting advanced technology solutions like AI, we aim to create smoother processes that benefit the entire company. This digital integration is crucial for maintaining agility and enhancing the overall effectiveness of our procurement operations.

Risk Management in Procurement: How do you ensure risk management in the procurement process, particularly when managing global suppliers and indirect categories?

Effective risk management in procurement starts with identifying which suppliers and categories are critical and which are not. Critical suppliers are those that have a significant impact on our operations, and these relationships are managed closely to ensure supply chain continuity. Nearshoring has also become a viable strategy for mitigating risks, as it allows us to reduce our dependence on distant suppliers, particularly during times of geopolitical instability or logistical challenges. By continuously monitoring the risk landscape and having contingency plans in place, we ensure that our procurement processes remain robust and resilient, even in the face of uncertainties.


Cost Efficiency: What strategies do you implement to drive cost savings in global indirect procurement without compromising quality and supplier relationships?

Driving cost savings in global indirect procurement without compromising quality or supplier relationships requires a multi-faceted approach. One key strategy is to consolidate our supplier base, which allows us to negotiate better terms with fewer, more strategic partners. Additionally, we implement tailored procurement strategies to identify opportunities for savings, such as process optimization and collaboration with suppliers to achieve mutual benefits. We also explore process changes that facilitate greater efficiency for both our team and our suppliers. This approach enables us to maintain strong supplier relationships while ensuring that cost efficiency remains a priority across our operations.


Sustainability and Digitalisation: How do digital tools support Dormakaba’s sustainability goals in procurement, and what future innovations do you see playing a role?

Digital tools play an increasingly important role in supporting dormakaba’s sustainability goals. We use platforms like EcoVadis to monitor and assess the sustainability practices of our suppliers, ensuring they align with our environmental and social responsibility standards. These digital connections provide greater transparency and enable us to collaborate more effectively with suppliers. Looking ahead, we anticipate that advancements in technology will further streamline our sustainability efforts by providing more data-driven insights and automating compliance processes. The future of procurement lies in deeper integration between digital tools and sustainability initiatives, driving responsible sourcing practices.


Future Vision: What are your future plans for Dormakaba’s global procurement strategy, and how do you see indirect procurement evolving in the coming years?

As we look ahead, the goal for Dormakaba’s global indirect procurement strategy is to continue advancing toward greater maturity. We aim to remain flexible, ensuring that our procurement processes can adapt to future changes in the market and industry. A key focus will be on developing our procurement teams, empowering them to become even stronger partners to our internal stakeholders. This involves ongoing training, leadership development, and equipping teams with the latest tools to maintain operational excellence. We envision indirect procurement evolving into a more strategic function that not only supports the business but also drives innovation and value creation.

SAP

Pioneering Digital Transformation: Insights from Marwan Zeineddine at SAP UAE

In a rapidly evolving digital landscape, Marwan Zeineddine, Managing Director of SAP UAE, is at the forefront of empowering organisations to embrace innovative technologies. With a strong focus on cloud solutions, AI integration, and sustainability, Marwan leads SAP’s commitment to driving digital transformation across the region. In this interview, he shares his insights on the challenges businesses face in their digital journeys and the strategic initiatives SAP is implementing to support their growth and success.

 

Click below to access the digital brochure version

Career Journey: Can you share your career journey and what led you to your current role as Managing Director at SAP UAE?

I have deliberately followed a diverse career path, as I am passionate about all aspects of technology, from a technical standpoint to exploring how it can be leveraged to improve people’s lives.

After graduating from the American University of Beirut with a BSc in Computer Science, I spent several years designing and developing customised apps and then complex software, mainly in the areas of enterprise resource planning (ERP) and human capital management. After this, I moved into project management, outsourcing services, implementation, consultancy, and sales, all of which helped prepare me for a series of leadership roles.

I have been with SAP for around nine years in total and have just completed a year in my role as Managing Director of SAP UAE. I couldn’t have chosen a more opportune time to take on this role, with AI creating major industry shifts and the UAE being at the forefront of new technologies.

 

Digital Transformation: SAP is at the forefront of digital transformation. How is SAP helping organisations in the UAE adopt innovative technologies to remain competitive?

Many of our UAE customers understand the importance of digital transformation to gain a competitive edge, future-proof their operations, and leverage the latest technologies. They recognise that the cloud is the best platform to enable scalability, data availability, measurability, and access to SAP’s reliable, relevant, and responsible Business AI.

Nevertheless, some customers are unsure where or how to start their digital transformation journey, so our aim is to make the process as accessible as possible for all companies. SAP and our partner ecosystem are there to support our customers through every step of the journey and simplify it wherever possible.

Over the past few years, we have introduced two service-as-a-subscription offerings—RISE with SAP and GROW with SAP—to help simplify and accelerate cloud transitions for customers of all sizes and starting points.

An important consequence of digital transformation is its impact on job roles, which are changing much faster than ever before, particularly with the proliferation of AI applications. This is why SAP is supporting public and private sector enterprises in this area, investing significantly in training initiatives. Our Young Professionals Program (YPP), for example, is focused on identifying gifted Emirati graduates and training them in advanced technological skills to support a sustainable workforce and produce future technology leaders. Similarly, our Dual Study Program (DSP) is offered in collaboration with many UAE universities to students alongside their regular curriculum. The DSP is a sponsored training initiative provided by SAP’s Digital Skills Center and fast-tracks students’ work readiness, closing the gap between academic studies and industry requirements.

 

Cloud Solutions: How have SAP’s cloud offerings influenced business operations in the UAE, and what future developments do you foresee in the region’s cloud adoption?

SAP cloud solutions, particularly our SAP S/4HANA ERP, are changing the way our UAE and regional customers operate in myriad ways. These companies enjoy increased efficiencies, greater visibility over operations, and integrated and automated processes. They also have the scalability and flexibility needed to respond to changes in demand and seize opportunities in the market with agility.

Arguably, the most significant impact of SAP digital transformations stems from their ability to drive innovation and produce high-quality data and insights. Effective data is not only important for decision-making; it is also fundamental to ensuring the effectiveness of AI solutions—after all, AI is only as good as the data made available to it.

As for the future outlook, our region is focused on digital transformation to support economic diversification, so digital transformation will continue its impressive pace. In the UAE, the government strongly supports digital transformation across all sectors while also leading by example with its innovative approach and UAE Digital Government Strategy 2025, becoming the first country in the world to appoint a Minister of AI. Within this supportive framework, the UAE is set to remain at the forefront of a rapidly evolving digital landscape.

Sustainability Initiatives: How is SAP incorporating sustainability into its solutions, and what role does it play in helping UAE businesses meet their sustainability goals?

It is no coincidence that 97 of the 100 greenest companies in the world run SAP. Sustainability is core to SAP’s corporate strategy and our purpose: to help the world run better and improve people’s lives. Our vision is for carbon accounting to match financial accounting, eventually adding a green line to a company’s top and bottom lines.

In the UAE, as elsewhere, we aim to create a positive economic, social, and environmental impact while respecting planetary boundaries and human rights—both as an exemplar through our own activities and as an enabler to customers using our products and services.

When you consider that 99 of the 100 largest companies in the world are SAP customers, 85 of the 100 largest companies are SAP S/4HANA customers, and around 80% of SAP’s customers are SMEs, you can see the enormous impact we can have on addressing climate change. This is why SAP is embedding sustainability directly into ERP systems, ensuring that integration drives profitable, sustainable businesses, creating real-world benefits.

In addition to cloud-driven sustainability innovations and evolving AI-powered use cases, we offer our UAE customers a comprehensive portfolio of sustainability solutions and services to help them drive sustainable practices inside their organisations and across their value chains. These tools enable them to be agile and responsive, maintain control of integration and data flows, and master the complexity of sustainability challenges.

We also collaborate with like-minded partners in the UAE. For example, SAP worked with MORO Digital Hub to make the SAP Public Cloud offering and SAP Business AI available on the world’s largest solar-powered data centre, based in Dubai, which appeals to many of our customers.

 

Industry-Specific Solutions: SAP serves diverse industries. Can you elaborate on how SAP tailors its solutions to meet the specific needs of key sectors in the UAE, such as oil and gas or finance?

SAP has over 50 years of experience across 25 industries, with proven solutions for industry-specific needs and goals. The process is similar, regardless of the industry we are approaching. SAP and our partners rely on our global expertise and knowledge of best practices and requirements specific to their industries to build holistic solutions encompassing various industry-specific modules or co-innovations.

In the oil, gas, and energy sector, we are helping companies meet the world’s energy needs securely, affordably, and sustainably. A great example of this in the UAE can be found in our customer Crescent Petroleum, the largest privately held upstream oil and gas company in the Middle East. The company recently successfully deployed SAP’s oil and gas industry-specific solutions for its operations in the second phase of a digital transformation project. The first phase represented the first global implementation of the SAP S/4HANA Oil & Gas Model Company 1809 at that time, supporting plant maintenance, procurement, project systems, finance, human resources functions, and HSE functions.

The second phase included the integration of industry-specific modules into S/4HANA to boost data quality, productivity, operational efficiencies, cost control, and sustainability reporting. SAP worked closely with Crescent Petroleum’s digital transformation team to develop specific solutions that address company-specific use cases. One example is the custom trucking operations solution using the MII module of SAP, integrated with SAP’s invoicing engine. This involved integration with plant systems, loading dock systems, and SAP S/4HANA modules in a single process chain, bringing disparate processes into one seamless workflow with appropriate handshakes.

AI and Machine Learning: How is SAP leveraging AI and machine learning to drive efficiencies and innovation within the businesses you serve in the UAE?

SAP embeds innovative technologies such as artificial intelligence and machine learning throughout the value chain. As a result, our customers can better serve their clients, build resilient supply chains, introduce new business models, and optimise existing business processes.

Several aspects differentiate SAP’s approach to AI from that of our competitors. First, there is the quality of data, which is the foundation of effective AI, and no one has better, deeper, or more comprehensive business data than SAP. We also prioritise customer data privacy—it’s built in. Second, SAP Business AI works out of the box; it’s fully integrated, benchmarked, compliant, and ready to use. Third, we give customers and partners full choice over which leading generative AI model they want to use for their extensions, including models from OpenAI, Google, and the best open-source alternatives. Fourth, Joule, our generative AI copilot, is being embedded throughout our enterprise cloud portfolio to deliver proactive and contextualised insights. Joule is not only changing the way people work with SAP solutions—it is transforming the way people work overall.

We also collaborate widely to bring the best solutions to our customers. At our annual Sapphire flagship conference earlier this year, we unveiled generative AI innovations and partnerships, including Google Cloud, Amazon Web Services (AWS), Meta, Microsoft, Mistral AI, and NVIDIA, showcasing how the company is taking business to the next level in the era of AI.

Customer Experience: How does SAP ensure customer satisfaction and help businesses in the UAE enhance their own customer experiences?

Customer success is at the centre of everything SAP does. Our services and support offerings help customers build their teams’ skills and deploy their SAP solutions. They are designed to enable continual innovation—delivering the speed, flexibility, and results customers need right from the start and for years to come.

It is very important for us to give our customers choice. As every company faces unique challenges and is at a different stage on its path to the cloud, our customers can choose how we work together. The organisation’s individual goals, timelines, and plans define how deep our engagement goes. Extensive support services, guided tools, and resources are included with every SAP cloud solution to ensure success. Our customers can also move faster, tackle bigger challenges, or free their teams to do other work by simply adding incremental service and support options.

On the other side of the coin, SAP continuously evolves our customer experience (CX) portfolio so organisations can empower their teams to deliver exceptional experiences for their own customers. SAP’s differentiating quality is its ability to seamlessly connect customer (front-end) data with operational (back-end) data across an organisation, empowering intelligent decision-making and automation across the value chain to better serve customer needs.

To mention a few of our CX solutions as examples, SAP Commerce Cloud drives profitable growth with connected, insightful, and adaptable commerce; SAP Emarsys Customer Engagement is purpose-built for marketers to deliver personalised, omnichannel experiences with a privacy-first mindset; and SAP Sales Cloud leverages an intelligent, cloud-native architecture and generative and traditional AI to enable dynamic sales journeys that can be seamlessly connected with back-office processes to maximise revenue generation and improve the buying experience.

Cybersecurity: With the increasing threat of cyberattacks, how does SAP ensure the security of its solutions and data for its UAE customers?

Cyber threats globally are growing in sophistication and intensity with every passing day. Naturally, cybersecurity remains a top priority for SAP. Our security, cloud compliance, and data protection measures are designed to help keep SAP and our customers’ data safe, process it in compliance with local legislation, and protect it from malicious use.

SAP follows a holistic approach to security that is based on three pillars: First, we build secure-by-design solutions; second, we run cloud operations securely; and third, we create a security-first culture in everything we do. This includes training our employees and partnering with our customers and our extensive ecosystem to address security needs and improve overall security.

Challenges in Digital Transformation: What are the key challenges businesses in the UAE face in their digital transformation journeys, and how is SAP addressing these challenges?

As I mentioned, digital transformation in the UAE, and in fact, our entire region, has been extremely impressive. Nevertheless, there are some challenges, including companies needing to transition to the cloud quickly but not knowing where to start, as well as issues such as cybersecurity threats and data sovereignty.

I have already touched on these earlier, but in short, SAP helps to demystify and simplify the cloud transition process for our customers through our services-as-a-subscription offerings, RISE with SAP and GROW with SAP. We design solutions and run cloud operations securely, while issues such as data sovereignty are being addressed by companies such as SAP establishing more data centres in the region, allowing data to be stored within the country.

Future Vision for SAP UAE: What are your future plans for SAP in the UAE, and how do you envision the company’s role in the region’s digital economy evolving?

The future global economies are cloud-based, AI-enabled, secure, and sustainable, which is where we at SAP UAE will continue to focus our efforts.
The UAE is a highly significant market for SAP, and we will continue to support the country’s impressive digital agenda. This means assisting public and private sector organisations in their digital transformation and enabling them to operate as a network of intelligent enterprises. We will also deliver innovative technologies that enhance companies’ financial and sustainability goals while empowering the local workforce through transformational training programs.

Most importantly, we are extremely grateful to operate in this country, where the UAE leadership plays a proactive role in encouraging and supporting innovation for all stakeholders, creating an environment where technological advances can flourish to benefit everyone.

Inchcape Shipping Services (ISS)

Inchcape Shipping Services

Procurement with Purpose: Simon Potter’s Strategic Vision at Inchcape Shipping Services

In this Q&A, we delve into the strategic mind of Simon Potter, Chief Procurement Officer at Inchcape Shipping Services. Potter discusses how Inchcape’s procurement strategy has evolved to adapt to the dynamic maritime industry, emphasising the introduction of their global ship-chandling solution. He highlights the company’s commitment to sustainability and the integration of responsible sourcing practices. Potter also sheds light on Inchcape’s innovative ‘procurement-as-a-service’ model, which offers comprehensive value beyond cost savings, and how the company manages its extensive global supply chain. Through team collaboration and navigating market trends, Inchcape remains at the forefront of sustainable and innovative decking solutions in the maritime sector.

 

Click below to access the digital brochure version

Strategic Procurement Evolution: How has Inchcape’s procurement strategy evolved to meet the dynamic needs of the maritime industry, particularly with the global ship-chandling solution?

Inchcape’s procurement strategy has significantly transformed from its traditional roots of merely onboarding vendors. Particularly from a port agency standpoint, our role has expanded to being the vital eyes and ears on the ground for our clients. This evolution is crucial because our customers, often absent from the ports, rely on us to manage the myriad of operations occurring there. Ensuring these operations are executed promptly, safely, and cost-effectively falls under our purview. Our group’s procurement function has increasingly become adept at meeting our customers’ needs, thanks to the seasoned professionals we have in place and the expansion of our teams to ensure coverage not only at our headquarters but also in the regions we serve.

Our approach to procurement is centre-led, with specialists integrated within the business units yet maintaining a central reporting line to ensure a balance between autonomy and alignment with both customer and internal needs. This strategic blend of local autonomy within our operations is pivotal.

The introduction of our global ship chandling solution, dubbed “procurement as a service,” marks a significant advancement in our procurement strategy. This evolution stems from recognising the additional needs our customers have when their vessels are docked. By adopting a procurement-centric viewpoint, we’ve moved beyond traditional services to address common challenges like table spending and the lack of transparency in the ‘Last Mile’ of supply chains. Our global presence, coupled with a professional procurement and supply chain team, allows us to add substantial value to our clients’ operations, offering transparency, efficacy, and cost advantages over our competitors.

Sustainability also plays a critical role in our procurement strategy. We work closely with our clients to identify local sourcing solutions, moving away from the conventional practice of consolidating consumables and spares in major hubs. Our commitment to authenticity means we only deal in OEM spares, ensuring quality and reliability. Furthermore, our “warehousing on demand” service exemplifies our forward-thinking approach, accommodating the unpredictable trading patterns of vessels by leveraging our global network for strategic spare part storage. This adaptability extends across various sectors, with many of our offshore customers particularly benefiting from our ability to strategically source and supply locally.

 

Sustainability Leadership: As VP of Sustainability at IMPA, how do you integrate sustainable practices within Inchcape’s procurement processes, and what impact does this have on the industry?

In my dual capacity as CPO at Inchcape and my role within the International Marine Purchasing Association (IMPA), the drive towards sustainability is a significant part of our ethos. Inchcape’s commitment to sustainability is evident as we were pioneers in signing up for the IMPA ACT and subsequently for its updated version, ACT 2.0. Our dedication to sustainable practices is not just about adherence to standards; it’s about leading by example within the maritime industry.

Utilising the IMPA ACT toolbox has been instrumental in refining our procurement processes, allowing us to thoroughly scrutinise every aspect of our supply chain from a sustainability standpoint. This scrutiny is not only limited to compliance with human rights and UN conventions but extends to environmental considerations, such as emissions tracking.

For our clients, this means that when they dock at a port serviced by an Inchcape agent, we offer comprehensive support in monitoring emissions related to the core services we provide. This initiative is crucial for our clients, providing them with a detailed understanding of their emissions footprint within the port, encompassing Scope 1, 2, and 3 emissions. Our aim is to ensure that they have a holistic view of their environmental impact, including emissions from auxiliary services like tugs, launches, taxis, and hotels.

However, our commitment goes beyond tracking; it extends to educating our suppliers. Our observations suggest that approximately 30% of port suppliers are genuinely aware of what sustainability entails, and a similar percentage have set targets towards achieving net zero. As a global port agent with sustainability at our core, we believe it’s our responsibility to enlighten our supply base on the importance of supporting our clients’ sustainability goals.

This educational role synergises with our activities at IMPA, where we work closely with colleagues to promote sustainability within the industry. Our efforts are not just about compliance or meeting standards; they’re about fostering a culture of sustainability and responsibility across the maritime sector.

 

Procurement-as-a-Service: Can you elaborate on the concept of ‘procurement-as-a-service’ at Inchcape and how it delivers value beyond cost savings to your customers?

The essence of ‘procurement-as-a-service’ at Inchcape modernises the traditional ‘one-stop shop’ concept, providing a more comprehensive solution. Our clients, especially those operating container vessels with regular routes and suppliers, have a core list of needs when it comes to supplies and services at the ports they frequent. However, challenges arise when they need items or services beyond this core list, whether it’s spare parts, consumables, provisions, or other services. Finding vendors that meet the desired quality and price point outside their usual list can be difficult.

This is where our ‘procurement-as-a-service’ shines. With a global supply list exceeding 10,000 vetted suppliers across 60 countries, we offer our customers a reliable and extensive network. This service allows clients to approach us with specific needs in any port, confident in our ability to provide a solution that adheres to stringent quality and governance standards. While we may not always promise the lowest price, we ensure value through our rigorous vendor selection process, managed by our local teams on the ground. This approach guarantees that our customers benefit from the same level of governance and ethical standards they would expect from any port agency service, even if they don’t use Inchcape as their port agent.

Interestingly, over half of our ‘procurement-as-a-service’ clients do not utilise our port agency services, underscoring the standalone value of this offering. Even those with preferred agents opt for Inchcape’s procurement and logistics services to leverage our comprehensive governance framework and ethical policies, highlighting the distinct advantages and added value we bring to the table beyond mere cost savings.

Global Supply Chain Management: Managing a global supply chain presents unique challenges. How does Inchcape ensure reliability and efficiency across its vast network of ports and services?

Ensuring reliability and efficiency across Inchcape’s extensive network hinges on our adherence to strict governance, standardised processes, and unified policies. We operate under a centralised framework accessible to all employees, promoting consistent practices throughout the organisation. Leadership commitment plays a crucial role, with alignment from the CEO down, ensuring that everyone, from the board to the front lines, understands and follows our operational directives. This clarity and lean organisational structure facilitate a unified approach to service delivery.

Despite the inherent challenges of operating in diverse cultural and linguistic landscapes, particularly in regions like Asia Pacific, our long-standing focus on maintaining high standards has honed our ability to provide consistent service quality worldwide. We recognise that local conditions may necessitate tailored service delivery, but the core standard remains unwavering.

A vital component of our strategy is the meticulous onboarding and continuous assessment of our vendors. We conduct annual audits to ensure they meet our stringent requirements, maintaining high service standards irrespective of location. This rigorous vetting process is especially crucial for services involving the movement of people, where risk management is paramount for the safety of both our personnel and clients.

 

Team Dynamics: With a growing global Procurement and Supply Chain team, how do you foster collaboration and knowledge sharing among team members with diverse expertise?

Fostering collaboration and knowledge sharing within Inchcape’s diverse and global Procurement and Supply Chain team hinges on our foundational philosophy of open knowledge exchange. Recognising that no single individual holds all the answers, we place great emphasis on drawing insights and ideas from the entire team. A recent example of our collaborative approach was a gathering in Mumbai, where a significant portion of our team is based. This meeting facilitated a vibrant exchange of ideas and best practices, especially from our procurement support team, who possess a unique global perspective due to their centralised role.

Training sessions are a regular feature, aimed not only at skill enhancement but also at brainstorming improvements in our processes and methodologies. This continuous learning environment is underscored by our commitment to professional development, with many team members pursuing or encouraged to pursue CIPS qualifications, Six Sigma certifications, or advanced degrees.

Diversity in expertise is another pillar of our strategy. Our team in Mumbai, for example, benefits from the inclusion of individuals with backgrounds in mathematics and data analytics, enhancing our capability to deliver insightful data analysis and feedback to other departments. This analytical approach not only advances our procurement and risk management strategies but also propels sustainability initiatives, providing substantial non-price value to our clients.

Transparency with our customers is paramount, reflected in our practice of sharing original vendor invoices, ensuring they have clear visibility into the costs incurred. Our pursuit of competitive rates, balanced with a commitment to quality, underpins our promise of value. Moreover, our involvement in innovative projects, like the launch of the first purely electric launch in Singapore, exemplifies our dedication to sustainability and innovation. These initiatives not only reduce carbon footprints but also align with our customers’ sustainability goals, illustrating our role in driving the industry forward through innovative and sustainable solutions.

 

Chandling Service Expansion: The expansion of Inchcape’s chandling operations into strategic ports is a significant development. What criteria do you use to select these locations, and how do you tailor services to meet local demands?

The selection of strategic ports for the expansion of Inchcape’s chandling operations often begins with customer inquiries. Having an approved vendor list in various locations allows us to swiftly provide solutions, but the challenge lies in effectively communicating our capabilities to customers, ensuring they understand the breadth of services we offer.

Traditionally, port agents have provided chandling services on an ad-hoc basis, responding to last-minute requests from ships as they arrive. Our approach with the chandling solution, or ‘procurement as a service’, is to make this process more systematic, involving ourselves in the planned ordering of spares and stores rather than solely catering to emergency needs. This not only assists ships in port but also aids in preemptive planning, especially when vessels change course unexpectedly and require support in unfamiliar locations.

The selection of ports and tailoring of services hinge on understanding the diverse challenges our customers face. These challenges can vary widely, influenced by factors such as the size of the customer’s purchasing team, the number of contracts they manage, and the regularity with which they visit certain ports. We have identified around 60 ports that see regular activity from our clients, which have become focal points for our services. While sourcing a chandler in major ports like Singapore, Houston, or Rotterdam might be straightforward, our strength lies in providing reliable services outside these hubs, where finding quality support can be more challenging. Despite this, we’re also seeing increased demand in these major ports, highlighting our comprehensive capabilities and the trust clients place in our services.

Global Sustainability Strategy: Inchcape’s commitment to sustainability is commendable. How do you measure the effectiveness of your sustainability initiatives, and what are the key performance indicators?

At Inchcape, the foundation of our sustainability strategy is encapsulated in our code of conduct and, more specifically, our Supplier Code of Conduct. This sets the minimum standards we expect not only from our vendors but also from our partner agents globally. Given that we don’t operate in every location directly, it’s imperative that our representatives uphold the same sustainability standards as we do.

Measuring the effectiveness of these initiatives often presents challenges, as mere compliance on paper doesn’t necessarily equate to real-world application. To address this, we invest considerable effort in auditing and assessing our key vendors worldwide, ensuring they not only commit to our standards but actively embody them in their operations.

One of our primary Key Performance Indicators (KPIs) is the adherence to our business and supply codes of conduct, which reflect our sustainability and procurement expectations. Regular visits to our key vendors form another crucial part of our strategy, enabling us to conduct toolbox talks and demonstrate visible, felt leadership. These interactions are instrumental in conveying our values and ensuring that our sustainability standards are more than just a checklist, but a lived experience across our supply chain.

 

IMPA Act 2.0 and Industry Collaboration: How does IMPA Act 2.0 facilitate collaboration within the maritime industry, and what role does Inchcape play in promoting industry-wide sustainability through this initiative?

IMPA Act 2.0 primarily fosters collaboration between customers and their supplier networks within the maritime industry. While its direct influence on customer-to-customer collaboration may be less apparent, the initiative serves as a crucial bridge in aligning ship owners, managers, and their vendors on sustainability practices. Many industry stakeholders, often uncertain about how to approach sustainability, have found IMPA Act 2.0 to be an invaluable resource. The Act provides a comprehensive toolbox designed to navigate the complexities of sustainability in an industry traditionally characterised by analog processes.

This toolbox has become a pivotal platform for dialogue, enabling suppliers and customers to ensure mutual understanding and alignment, especially as regulatory pressures on sustainability intensify. For example, the focus on maintaining an inventory of hazardous materials is one of the many areas where IMPA Act 2.0 has raised awareness and facilitated industry-wide compliance and best practices.

Inchcape, aligning with the principles of IMPA Act 2.0, plays a significant role in promoting sustainability within the maritime sector. Our involvement goes beyond compliance; we actively engage with both our suppliers and customers to ensure a cohesive approach to sustainability. By advocating for and adhering to the guidelines and frameworks provided by initiatives like IMPA Act 2.0, Inchcape aims to lead by example, encouraging a more sustainable and environmentally responsible maritime industry.

 

Procurement Disruption and Innovation: You mentioned the maritime industry’s need for disruption and change in procurement. What innovative approaches is Inchcape implementing to lead this transformation?

While I must be cautious about divulging too much, I can share that Inchcape is actively engaging with technology disruptors to explore innovative procurement solutions. Our focus isn’t just on adopting new technologies for the sake of innovation; it’s about critically evaluating these advancements to enhance our procurement and purchasing strategies fundamentally.

A key area of innovation for us lies in managing costs and logistics beyond the major ports. It’s relatively straightforward to find chandling services in hubs like Rotterdam, Houston, or Singapore. However, the real challenge—and our differentiator—comes in providing cost-effective, efficient services in smaller or less frequented ports. Here, Inchcape stands out by not only offering procurement services but also overseeing the crucial ‘last mile’ delivery directly to the vessel, eliminating the need for intermediaries.

My background in chandling and subsequent experience with shipping owners like Maersk has highlighted the importance of transparency and efficiency in the procurement process. Traditionally, the visibility of an order diminishes once it reaches a local agent or airport, leaving purchasers in the dark until the goods are received on board. Inchcape aims to revolutionise this aspect by ensuring continuous transparency about the costs and status of orders, from procurement to delivery. Our approach provides a clear picture of the total cost of acquisition, including all logistics expenses, to the purchasing team ashore. This level of transparency and efficiency in managing the procurement and delivery process is central to our innovative strategy in transforming maritime procurement.

 

Personal Inspiration and Industry Passion: Having transitioned from various roles within the maritime sector to your current position at Inchcape, what aspects of your job inspire you the most, and how do you maintain your passion for the industry?

The greatest source of inspiration for me is the opportunity to work for a global entity like Inchcape, which allows me to engage with diverse cultures and people from different parts of the world. The chance to visit and interact with colleagues and customers globally is genuinely one of the job’s highlights. This exposure to varied cultures and business practices enriches my understanding and appreciation of the maritime sector.

Another aspect that fuels my passion is the emphasis Inchcape places on ethical governance and standards. It’s one thing to profess a commitment to strict ethics and codes, but at Inchcape, we truly embody these principles. The role of a Chief Procurement Officer (CPO) is rare in the supplier side of our industry, highlighting the value Inchcape places on procurement as a critical function. This contrasts with many sectors where procurement is undervalued.

My role at Inchcape transcends traditional procurement functions like contract management and cost-saving. It encompasses driving value through maximising supplier relationships, maintaining service standards, fostering innovation, and spearheading sustainability and ESG initiatives. Our procurement department operates with a commercial mindset, actively engaging with customers to manage risks and enhance the supply chain they depend on through us.

I find that customers appreciate engaging with procurement professionals who understand their challenges. Being able to sit down with a counterpart and discuss solutions beyond the usual sales pitch not only breaks down barriers but also adds substantial value. This direct approach allows us to address their needs more effectively, showcasing Inchcape’s commitment to driving change and delivering results in the maritime industry.

 

 

BW LPG

BW LPG Article Feature

Procurement Excellence in the Maritime Industry: Insights from Rick Ackermann at BW LPG

Rick Ackermann, Head of Procurement at BW LPG, brings a wealth of experience and strategic vision to the table, steering the procurement department of one of the leading LPG shipping companies. In this exclusive interview, Rick shares his approach to enhancing procurement efficiency, integrating sustainability, and navigating the complexities of the global market. Discover his insights on building supplier relationships, leveraging technology, and the future trends poised to reshape the procurement landscape in the maritime industry. Join us as Rick delves into the principles that guide his leadership and the innovative initiatives driving BW LPG’s procurement success.

 

Click below to access the digital brochure version

Role Overview: Could you describe your role as the Head of Procurement at BW LPG and the primary responsibilities it entails?

 

At BW LPG, the Head of Procurement is responsible for all procurement of goods and services, as well as being involved in all dry dockings. We have a team of four buyers and a Logistics Coordinator in Manila, and two buyers in Oslo. The Head of Procurement is stationed in Singapore. The main goal is to be a solid business partner for the business, which entails working closely with the Technical and Operations teams. Key activities include contract management, inventory management, innovation, ESG, and maintaining best-in-class procurement practices to provide the highest added value for BW LPG.

Strategic Procurement Initiatives: What are the key strategic initiatives you have implemented in BW LPG’s procurement practices since assuming your role?

 

Short and sweet:

  • Value Chain: From day one, I have moved the role of Procurement higher up the value chain. The traditional view of Procurement has changed from a Purchasing department into a strategic business partner.
  • Transparency: In the past, it wasn’t always clear what Procurement did and what people could expect from our department. I have changed our procedures and setup in such a way that it is very transparent on every level. I also changed the perception that Procurement is a group of people taking care of things. We are all part of the Procurement process.
  • Contract Management: We purchased a very intuitive contract management system (Scanmarket), which is easily accessible and currently contains over 170 contracts that we have in place.
  • ESG: I have invested a lot of effort into ESG in our supply chain. This varies from introducing the Supplier Code of Ethics in all of our agreements and purchase orders to plastics reduction programs on board our vessels.
  • Group Procurement: I started a collaboration team with the Heads of Procurement of the other BW entities. Procurement has transformed from a central procurement department in Oslo to a decentralised setup around the world. By collaborating on volumes, best practices, and innovation, we have migrated into a hybrid solution.

Challenges in Procurement: What are the most significant challenges you face in procurement for an LPG shipping company, and how do you address them?

From a procurement perspective, we would like to be as efficient as possible. Planning of transports is very challenging in our industry, as the port of delivery for our goods and services is sometimes changing on a daily basis. Unfortunately, this means that we have to airfreight a lot of our spare parts, which has a negative impact on our carbon footprint.

Another challenge everybody faces in shipping, which makes it more fun at the same time, is that this is a very conservative industry. As a standard, the credo is “if it ain’t broke, don’t fix it!” This means that driving innovation is upstream, and solutions found in other industries still have to be introduced in shipping. The fun part is convincing people and the fact that there is still room for improvement.

Supplier Relationships: How do you cultivate effective supplier relationships to ensure seamless operations and business continuity at BW LPG?

In order to do that, I still rely on the Kraljic matrix. It is a well-known tool to classify the importance of suppliers products and services, and is very effective when it comes to supplier positioning, criticality analysis, and quadrant strategy. As a basis, you should figure out what kind of relationship you have or need to have with a supplier or partner. You then make sure that you assign the right buyer to the right quadrant and thus supplier. Not doing this correctly could potentially damage the relationship and therefore our position. Setting this up in the right way tremendously influences our position and leverage. Above all, whatever you do and in whatever position you are in with regards to the supplier, respect is always the keyword.

Technology in Procurement: Can you discuss the role of technology in enhancing procurement efficiency and transparency at BW LPG?

Especially with regards to the operational part of the procurement process, there are some quick wins when it comes to the role of technology. As we digitise the purchasing role, we can introduce innovations and efficiency improvements. We are, for example, introducing Amazon-type platforms with certain suppliers for technical stores and PPE, such as Source 2 Sea, which makes it easier for the crew on board our vessels to simply click on the picture of the parts or equipment they need. Also benchmarking and forecasting through Closelink for Lube Oil is a new development which we embraced. The role of Procurement is to facilitate this – we can help organise the financial back office, monitor deviations, and take on the more mundane tasks so that our colleagues at sea can focus on the strategic issues and flawless operations. Another major step we are currently investigating is the introduction of new technology regarding inventory management. Together with one of our partners in freight forwarding, Marinetrans, we are developing an inventory management platform, eSeastore, that will give us the tools to plan based on stock levels and have sophisticated tools on board to maintain stock on the vessel. This is a very exciting project.

Sustainability Practices: How does BW LPG integrate sustainability into its procurement processes, especially considering the environmental impact of shipping?

We have the Supplier Code of Ethics as an integral part of everything we do. In addition to this, we are increasingly choosing sustainable solutions for parts and services in different regions of the world. There is a lot more work that we can do on the sustainability front, and we are working hard to improve both individually as a company, and with partners. One example of the latter would be us working with our suppliers to reduce single-use plastics in our victuals.

Impact of Global Markets: How do global economic conditions and market fluctuations impact your procurement strategies?

Obviously, they do, and they disrupt anything that we plan or forecast. I mean, who was counting on COVID-19? Or the political uncertainties in many parts of the world? The blockage of the Suez Canal? Drought at the Panama Canal, etc. The good thing is that we know we are very creative when it comes to problem-solving. Yes, we like to plan as much as possible, but we are agile and switch gears when necessary and required.

 

Future Procurement Trends: What emerging trends do you see in procurement that could significantly impact the LPG shipping industry in the coming years?

From a leverage point of view, unfortunately, increasingly I see large companies buying out the smaller ones, which impacts our ability to leverage in certain parts of the supply chain. This is not a good development.

The two biggest trends, however, are undoubtedly in ESG and AI.

I strongly believe and hope that in a few years’ we will have surpassed the awareness phase of ESG and that there will be more regulation and certification, making it a lot easier for all companies to determine, on the basis of a standard, who to work with. ISO did the same thing for business processes in the 1980s.

Artificial Intelligence is an absolute game changer in any business. A lot of our repetitive activities will be taken over by AI, but also market analytics, supplier dashboards, forecasting, and reporting will be a lot easier and faster. Is this a threat to our procurement existence? Not at all, it simply means that we have more time for actual procurement activities instead of creating tools to help us do just that.