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Social media for Procurement Professionals workshop at International Supply Management Congress 2012, RAI Amsterdam by Ruud Olthoff, CPO Rabobank
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SOCIAL MEDIA FOR PROCUREMENT PROFESSIONALS
Drs. Ruud Olthoff MBA, CPO Rabobank
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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
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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.
