On May 24th, Harley Reed Kenya organized a Heads of Procurement and Supply Chain Breakfast Meeting at Villa Rosa Kempinski, bringing together procurement leaders from diverse sectors including humanitarian aid, financial services, manufacturing, health, transport, and media. The event’s highlight was a keynote address by Harley Reed Group CEO, William Tagoe, titled ‘Driving Value Through Change’.
Tagoe’s speech was both timely and insightful, focusing on three critical elements for procurement leaders to drive value: understanding the evolving environment, defining value, and utilizing the appropriate tools for change.
Tagoe emphasized the need for procurement leaders to comprehend the macro and micro pressures influencing the 21st century. These include socio-cultural, technological, economic, environmental, political, legal, ethical, and demographic trends. For instance, issues like political instability, climate change, resource depletion, and population growth are reshaping the landscape in which procurement operates.
Defining value in procurement is not merely about cost savings but about understanding the worth and importance of procurement to an organization. Tagoe discussed the challenges in achieving value, such as accurate spending data, compliance issues, supply chain disruptions, and ESG (Environmental, Social, and Governance) considerations. He posed critical questions for procurement leaders: What are our key stakeholders’ definitions of value? Do our procurement processes align with these strategic objectives?
To deliver value, procurement leaders need the right toolkit, which includes strategy, people, and technology. Tagoe outlined a functional capability model that assesses the level of influence the procurement function has over strategic direction and key business decisions. This involves leveraging technology and spending data to enable better procurement processes and ensuring that the procurement team has the appropriate level of resources and capability.
One major takeaway from the event was the realization that procurement supports every other function in an organization but often lacks representation at the executive level. Tagoe stressed the importance of procurement leaders having a seat at the table to drive meaningful impact. However, he noted that this change must start from within the procurement community by shifting the narrative and demonstrating the strategic value of procurement.
The Heads of Procurement and Supply Chain Breakfast Meeting provided valuable insights and actionable strategies for procurement leaders. By understanding the changing environment, defining value effectively, and utilizing the right tools for change, procurement professionals can drive significant value and impact within their organizations.
The discussions also highlighted the importance of aligning procurement strategies with business strategies, engaging stakeholders, and fostering collaboration across functions. Tagoe’s insights underscored the need for procurement leaders to be proactive in addressing the challenges and opportunities in their field to drive sustainable value.
