Reimagining Procurement the Way it Should Be with Nadia Stoykov

In this episode of Procurement Reimagined, host Daniel is joined by Nadia Stoykov, Chief Procurement and Supply Chain Officer at Tesca Group a global company that makes automotive fabrics and seat components. Nadia deep-dives into the implementation gaps in procurement at most companies and reimagines procurement and how it should be run to deliver true value to the company. She also explains why sales and procurement are two sides of the same coin. 

Nadia brings over thirty years of leadership experience in the procurement and supply chain domain at global enterprises like Dow and Valspar. She rolls out a new framework for procurement and how supply chains and procurement should fit into the organisational puzzle. 

Key highlights:

• 00:30 - 14:40 - Procurement Reimagined by Nadia - The bulk of the procurement teams sits in the middle layer of hierarchies at companies. The quality of this talent, their skill, and agility are what deliver on the strategy from the top layer. Get this bit right. Next, remove structural impediments at the organisation that limit procurements’ scope and ability to deliver. Global companies need a unified and global procurement and supply chain. Procurement can’t thrive in multilocational silos. Cultivate long-term relations with suppliers with supplier relationship management. Sustained cost-cutting is an unsustainable strategy. Instead, leverage relations to drive value for the organisation.
• 16:11 - 18:36 - Digitalisation of Procurement is Incomplete Without a Robust Human Interface -  Nadia firmly believes that relationships with suppliers are the pivot for delivering value to an organisation. These relationships are built on human interaction, which always precedes digitalisation and automation of tasks. 
• 18:45 - 21:36 - To be a Good Buyer, You Need to be a Good Seller - Nadia believes that procurement and sales are two sides of the same coin, as the skillset required for the role are very similar. Both functions require the art of negotiation and give and take to reach a win-win solution for both parties. Both functions require a holistic view of the business and can have a direct impact on the bottom line.
• 30:32 - 33:18 - The Perils of Parallel Procurement - This is a situation where business verticals in an organisation bypass the procurement team and deal directly with new suppliers. This drives inefficiencies in the process, and procurement costs are often higher. Often, the suppliers aren’t vetted for quality and capacity, which could lead to business disruptions down the line. 

Quotes:

• “Very few companies have professional procurement talent in the middle level, and this is the level that delivers on the strategies crafted at the top”.
• “I’m not afraid of digitalisation because it comes after you have found the supplier, built a relationship, and signed a contract. Human interface always comes before digital automation”.
• “It’s time that companies woke up to the fact that sales and procurement are two sides of the same coin. They require similar skills, and both can have a direct impact on the bottom line”.