Social media for procurement professionals

SOCIAL MEDIA FOR PROCUREMENT PROFESSIONALS

Drs. Ruud Olthoff MBA, CPO Rabobank

Ca

roly

n R

idsd

ale

20

11

2

Ruud Olthoff

196214 years RabobankCPO Rabobank Group PurchasingDirector Sales Rabo MobileManager Virtual RabobankManager Marketing & Sales Retail

Experiences of a digital migrant

• Digital migrant: pré-internet, pré-mobile• No innovator, but early adapter• No web-nerd, or digi-evangelist• Relatively new in procurement• Hope to: arouse curiosity and trigger trial behaviour• My truth, should not necessarily be yours• If I can do it, so can you!

Research Project “Social Media for Procurement & Supply

Chain Management Professionals”

Presented at Annual IPSERA conference Naples, Italy 1-4 April 2012

Frank RozemeijerNadine KiratliRuud Olthoff

http://www.nevi.nl/sites/default/files/starterskit_social_media/starterskit_2.html http://www.nevi.nl/sites/default/files/Starterskit_digitaal_2.pdf

Social media revolution

• 2.4 billion social network accounts worldwide• 1.5 billion people using social network sites• High awareness: Facebook 100%, Twitter 80%• Facebook biggest: 800+ users end 2011• In 2012 the social media landscape has become rather stable• The world is not waiting for the next social network: no need for

something new, no intention to quit• Mobile is the accelerator for social media usage: 51% internet

users have a smartphone

Insites Consulting Social Media Around the World 2012

Social media is more than just Facebook!!!

Main criticism, why not?

• It takes too much time• It’s risky (‘Elephant’s memory’)• My clients/environment/colleagues don’t use it• Unclear rules: what (NOT) to do?• Personal/professional life gets blurred• Cannot access social media sites at work (still 55%

of the world!)

Social media in business?

Social media in business is B2C

Procurement is not on top of the social media list

Accenture 2011 US companies N= 200

Most companies do not fully leverage the potential of social media

Social media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

Social networking by procurement profs

Social media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

Social media usage in business for buyers = LinkedIn

Popular networks amongst buyers

IT buyers are active on social media

IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

77% buyers believe their social media usage will grow

Social media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

… and influences the entire process

IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

Why do buyers participate?

Social media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

Information gathering!

… and learn from trusted peers!

IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

Reasons for use?

Need for innovation

Complex organisations

Need for speed

Increased collaboration

Social Media

Need for information

Three ways to leverage Social Media

1. Market Intelligence Transparancy• Exchanging key information & best practices

• Scanning supply markets for new suppliers

• Tracking career of key supplier contactpersons

2. Peer engagement Connect & join communities• Share information from trusted colleagues about suppliers and

products

3. Supplier collaboration Interact & Collaborate• Use SM as a channel for negotiation, relationship building as

well as continous improvement with suppliers

How can you, as a buyer, use social media?

Market intelligence

How did I use to do it?

• Member of the professional association• Read the professional magazine• Went to a congress• Followed a course, or a seminar• Talked to colleagues

Professional development

What do I do now?

And much more….

What are the top-10 procurement sites and blogs (in English)?

Name your favorite top-3!

Here are some good examples:

1. www.supplymanagement.com

UK daily purchasing and supply news and jobs at the logistics and supply chain news site by CIPS, the Chartered Institute of Purchasing & Supply: the biggest! > 24k viewers pm

2. blog.procurementleaders.com

US membership-led community for international procurement, sourcing and supply chain management executives, see also: www.procurementleaders.com #2nd 12k viewers

3. www.supplychaintoday.com

U.S. Supply chain & business portal. An informational based website integrated with social media (@SupplyChainBlog). Big on twitter, now on Facebook. Many films and tutorials.

4. www.CPOagenda.com

UK based, international business review designed specifically for chief procurement officers and senior purchasing and supply chain executives in larger organisations.

5. www.capgemini.com/procurement-blog/

One year old, worldwide procurement blog by Cap Gemini (sponsored)

6. www.procurement-iu.com/blog/

Membership-led knowledge resource dedicated to corporate procurement professionals, at both the executive and operational levels

7. www.scdigest.com

U.S. web site for supply chain management and logistics practioners, news, case studies, weekly newsletter, video’s.

8. www.supplychainquarterly.com

U.S. web site and free app of the CSCMP, Council of Supply ChainManagement Professionals quarterly magazine.Mirrors the paper magazine.

9: CPOrising.com

Sponsored media site (by Ardent) for CPO’s and other supply management executives, focused on procurement and supply management.

10: purchasinginsight.com

Sponsored blog on e-procurement, P2P and electronic invoicing (software)

Other interesting sites and blogs• www.inkopers-cafe.nl• www.nevi.nl• www.supplychainmagazine.nl• inkooppracht.blogspot.nl• www.strategicsourceror.com• www.spendmatters.com• www.ifpmm.org• www.napmbuffalo.com• www.escouringforum.com• www.cebviews.com/category/taxonomy/procurement-strategies-

planning• procureinsights.wordpress.com• davidcoethica.wordpress.com/• innovationdrivenprocurement.blogspot.com/• www.npiconnection.org

Getting your newsRSS-reader: reading all digital magazines, blogs and sites of your choice in your own, real-time collected newspaper

RSS-readers as AppVia RSS-reader-app on your iPod/iPhone/iPad: Google, Reeder, Feedly, Pulse, Currents

RSS-feeds in Outlook, even at work

Storing, retrieving and sharing sourcesTagging• In Windows: favorites • Tagging software: Delicious (or Evernote, etc)

Finding and sharing presentations

Apps

•SCM Terms

•Einkaufslexikon

•SCM Supplier Strategies

•Buying business travel

Training

•Procurement management

Wiki’s

•TenderNed

•esourcingwiki

E-books

•CRICS contractmgmnt

•DEAL! (app end nov 2012)

Video learning

•Procurement Academy

E-learning tools for procurement

Peer engagement

Cooperation within

Intra company social networking

• Social tools collaborative workflow:– Yammer– Sharepoint– Social-Go– Etc.

• Aim:

Integrating

the efforthttp://www.enterpriseirregulars.com/40987/putting-social-business-to-work/

My Sites

Peer networking

Finding colleagues and promoting career

Professional social media:• LinkedIn-profile• LinkedIn search• Purchasing Groups on LinkedIn:

– CPO-Club– Procurement professionals

• Promoting yourself• React and interact• Finding jobs / colleagues• Starting a group

• PS your supplier might also do this!

Networking collaboration with peers

Collaboration platform:• Free website for business networking in

procurement

mysourcingteam.com (USA)

Networking collaboration with peers

www.pianoo.nl

Dutch community and centre of expertise for public procurement: information, advice, instruments and practices: 3.000 active users

www.sepp.nu

Dutch independant platform of Self Employed Purchasing Professionals (SEPP)

Twitter: does it allTwitter is a microblog system, enables you to follow people and companies (and vice versa) and interact with them

Professional twitter usage:– Search #procurement #purchasing– Follow sites and blogs– Publish yourself: “if you’re twittering it, you are

not doing it”– React and interact– Btw your supplier might also follow you

It’s all free!!

Active NL-social media buyers on twitter in 2011

Supplier collaboration

Source for better dealsSocial media are already an important buying decisions source for US SME buyers

SM

B G

rouop S

tudy

Tec

hnolo

gy

Buye

rs 2

010 N

=474

Following companies & suppliers (1)What do you do before meeting a new contact? Name-Google

But there is more supplier information available: google trends and alerts

Following companies & suppliers (2)

… or real-time social media search

Following companies & suppliers (3)Free apps to check chamber of commerce status (NL)

Following companies & suppliers (4)

On-line supplier rating by procurement profs

Social media public tendering

Aanbestedingskalender: Dutch Public tendering website that brings parties together.

On-line outsourcing market places

• Elance Online professionals• Freelancer Small business• eDesk Verified work• Guru Freelancers• Vworker Pay for deliverables• Scriptlance Programmers

Outsourcing networks

Outsourcing networks

New business models

crowdSPRING: marketplace for logo & web design

On-line supplier networks• Ariba – #1 web based trading community

Moving towards social media business networks• Aravo Assure• TradeShift• Emporis (nu: IBM)• Crossgate (nu: SAP)

Does your procurement department already have an ‘App’ ?

• UN Procurement Division: The first procurement department with their own app! With RFP’s and public tendering information

Collective buying?

• EC Purchasing: An Apple and Android App for buying commodities at a discount. A kind of Groupon for buyers

Want to start?

How should you behave?

Be curious

How should you behave?

Be helpful: share knowledge, give advice,

introduce people that might help

…and social: make contacts with many people and get truly

involved

Be accessible: be an active contributor

Invest: give without expecting something in return, never take more than you might give

Communicate: talk to the people in your network, make them

important

Interested?

• Just do it• Before you know it, it might be of helpTIP 1:Start simple, give yourself the opportunity to learn:Start listening, before participating. Start inspiring others, before inviting dialogue to your suppliers

TIP 2:Don’t stumble into all networks, be selective:Choose the most valuable network for your company/yourself, and put energy into it. This implies some investment upfront, but it will pay off.