Reimagining Automation in the Procurement Space

Hannah MacDonald, Supplier Operations Lead at Monzo Bank, joins us today to discuss the role of automation in procurement management at a large company.

Hannah has over twenty years of experience in IT, category management, and procurement management. Hannah and Daniel have a free-flowing discussion on topics such as automating routine procurement processes and the risks therein, how to stay ahead of the curve in high-growth companies, and best practices in the procurement space while looking forward. They also touch upon the role of ESG in the procurement process.

Key Highlights:

• 04:15 - 6:36 - Automation in Procurement Risk and Rewards - Start with the basics and automate routine tasks to maximise the benefit of face-to-face time. If you have a standard contract for all suppliers with only a few fields that need to be changed, you can automate the generation and renewal of these contracts. Invoice matching and processing, along with payrolls, are some other low-hanging fruits in terms of automation. However, in high-growth companies where contracts are customised and are equally about managing a process while mitigating risk, human intervention is still required.
  
  
• 07:18 - 13:08 - Risk Management When Automating and Staying Ahead of the Curve - The first risk is that of adoption, and keeping the process simple and intuitive goes a long way towards mitigating this risk. Do a workflow analysis to see what works well and what needs fixing before diving into automation. Don’t outsource what is broken; managing it will cost you more. The other thing to manage at fast-growth companies is a future vision. Always keep an eye on where you will be over the next two to three years and what your toolkit will need to have at that point. Focus today on building that toolkit.
  
  
• 17:44 - 21:45 - A Look at Procurement Teams in the Future - ESG (environmental, social, and governance) concerns will be an integral part of procurement teams. We’re in the midst of a generational change where people are making informed decisions about the impact they will have on the planet. ESG will be implemented as a team goal with your suppliers and vendors and will be a foundation pillar that cuts across all roles. We will have C-suite roles of Chief Sustainability Officers at most companies. 
  
  
• 22:33 - 25:56 - Best Practices for Procurement Professionals - Start by building your skill set in different roles like IT, operations, negotiations, and category management. The skills you acquire in these roles will serve you well in your procurement role. If you want to work in a tech or high-growth company, you must be able to wear many hats. It helps if you start with a small company on an accelerated growth path. It gives you insights into working in a high-growth environment. Networking is critical for building your contact base and gaining valuable insights into critical topics like risk management, ESG, and acquiring leads. 

Quotes:

• “Personal growth at an organisation that’s in hypergrowth mode is incredible. If you can hang on and enjoy the ride, it’s an amazing place to be”.
• “If you’re in a high-growth company, you need to be ahead of the curve; otherwise, you can’t scale, and you’ll become the dreaded blocker to growth”. 
• “Run with lean, agile, and multi-skilled teams. In an economic downturn, you must be careful how you set your team up for success”.