Hottest information about 8th Annual Global Strategic Sourcing and Procurement Summit
8 July 2020
Questions For Sherif Aboelgheit
What is the biggest issue your company is facing while establishing close relationship with key suppliers?
The perception of the supplier about your value to him, as building close relationship must be the target and aim of both parties. Building a relationship with suppliers who see you as noisy will not have any value or any benefit. In order to build a relation with a supplier, he should see you as strategic to him as you see him a key supplier to you in order for this process to succeed and gain momentum. So choosing the right supplier in order to establishing close relationship with is the biggest issue my company is facing.
How do recent technological innovations, such as advanced analytics, integrated suites and machine learning, create new opportunities for supplier relationship management?
Of course, technological innovations enhanced the process of supplier relationship management. The a/m innovations enabled the organisations to forecast future events and behaviours, enabling them to conduct what-if analyses to predict the effects of potential changes in business strategies and as a result provide more probable accurate future information between both parties which will enhance the trust, credibility & business performance between them and as a result create new opportunities of SRM. On the other hand, advanced analytics practices are becoming more widespread as enterprises continue to create new data at a rapid rate. Now that many organisations have access to large stores of data, or big data, they can apply predictive analytics techniques to understand their operations at a deeper level thus transmit more solid information to the other party will also lead to enhancing SRM.
Where do you see procurement post-pandemic?
I believe there will be major changes in procurement post-pandemic: e-procurement will not be an option, dependence on local suppliers will increase, building close relations with key suppliers will be mandatory in order to face the new challenging competitive high changes era, and enhancing CSR for organisations will be a must.
Dr.Aboelgheit is a Senior Consultant specialising in Strategic Management & Supply Chain Management. He is internationally recognised as an inspirational speaker, trainer, coach, facilitator and conference presenter. Dr. Aboelgheit has over 20 years of work experience in the field of strategic management, procurement, supply chain management & project management in major multinational companies.
After earning his bachelor’s degree in engineering – electric power section, followed by a master degree in Business Administration – Marketing Specialisation, Dr. Aboelgheit earned a doctorate degree in Business Administration – Management specialisation. On the other hand, Dr. Aboelgheit is certified as International Supply Chain Manager & International Procurement Manager from IPSCMI.
He currently holds the position of Assistant General Manager for Procurement at ENPPI Petroleum Company Egypt. This added to his experience in the different functions of procurement & supply chain management including purchasing, contract management, logistics, inventory management as well as supplier performance management.
As a freelance, Dr. Aboelgheit has distinctive expertise in strategic management, project management, interpersonal skills, marketing, operations and supply chain management.
He has participated in many training courses, workshops and conferences in cooperation with international and authorised training and consultation companies.
Quoting Dr. Aboelgheit, the success and prosperity of any organisation lies in the human element, hence training and continuing education is the only guarantee for the progress of societies.
26 June 2020
Senior Vice President Global Purchasing Fabric, Dish Care & BA Europe
Questions For Filippo Milanese
How is technology helping you to build stronger relationships with your suppliers? What kind of challenges are you facing in regards to this?
We have an array of technological solutions that help streamline and reduce administration with our suppliers through data exchange, as well as by sharing platforms with our business partners. This enhances communication, transparency and speed, while allowing for data traceability and supporting internal governance with a well-structured flow. Moreover, technology plays a key role in sustaining preventive actions through data analytics elaboration, which lets us formulate different scenarios and plan accordingly.
On the other hand, with the surge in interest in digitalisation across functions, it is vital to set clear company priorities in order to optimise resources. At the same time, the full potential of digitalisation has yet to reach to be realised. We believe that an agile cycle of reiterations is the best way to move forward.
We are finding that the different levels of technological readiness among our suppliers must also be taken into account; for many good reasons, it is difficult for all our business partners to move in step as IT accelerates.
Lastly, there is the people element: we need to allow for the rapid shift in mindset that technology requires. For some age groups, this is a radical change. Here we are finding out that a good way to move forward is to mix experienced colleagues with younger people: it is a great opportunity for both to learn from each other.
How is value creation driving innovation within your company?
To super-charge innovation we need, as a company, to be recognised by our suppliers as a “customer-of-choice”.
To earn this recognition, there are different elements in relationships needed to create the right conditions. These we have brought together under our value-based sourcing methodology.
The relationship model we have established with strategic suppliers rests on long-term agreements. This encourages trust and openness, which allows our suppliers to invest in resources and automation. Together, we set development programmes based on knowledge- and competence-sharing where suppliers are involved at the early in the development cycle: at the concept and project initiation phase. This helps us to develop solutions which offer the best possible consumer experiences.
In this virtuous cycle, it is of utmost importance to share the company’s future direction with key suppliers and to make them part of strategic decision-making through a well-structured communication plan.
All this creates a fertile breeding ground for innovation that fosters products, processes and relationships.
How are you using sustainable sourcing to improve brand image and increase revenue?
Electrolux has been a leader in sustainability for over a decade. Sustainability is at the core of the group’s purpose and business model. Our sustainability framework, For the Better, guides us by focusing on three key areas: better solutions, better operations and better society.
We are determined to continually improve in terms of sustainability and to make smarter, more resource-efficient solutions available for everyone. We develop better operations for our co-workers and the communities around us, while striving to always act ethically and to respect human rights. In fact, sustainability is increasingly turning out to be a competitive advantage.
With such a heritage, it is natural for us to transfer our accumulated expertise, and to demand the same focus and commitment from our supplier base.
At the moment, we are further developing a sustainable procurement programme which covers a number of aspects. These range from code of conduct and human right ethics, through lower impact use of resources, to the implementation of recycled materials, for example.
Our ambition is to make sustainability more and more a key element when it comes to making sourcing decisions and building business relationships.
What are the challenges within implementing digital solutions faster?
The effective implementation of digital solutions is linked to two main key success factors: resources and adaptability.
Limited resources and, in some cases, decentralised budgets make it very difficult to develop all solutions at the same time – and to scale them at a global level. We run many successful pilots but only a few see a global roll-out.
Moreover, as mentioned, it is also an adaptability issue: we tend to underestimate the time needed to modify ways of working, behaviours and an approach. In other words, we always need to consider the level of maturity of the organisation for each proposed solution.
However, things are changing: Electrolux has embraced a global approach in order to accelerate the group towards cutting-edge global standards with the aim to further speed up our digital transformation.