Given the multiplicity of firms offering digital transformation initiatives and the challenge that selecting the right provider for your needs presents, it is incumbent on supply management professionals to ensure that the needs of the organization are accurately defined and embraced by senior management.

This sounds like common sense but notes that in 2017, the World Commerce and Contracting organization sponsored a study of its global members and found that, for that year, the $13 B USD spent on digitization projects, over $900 M USD of the spend on those projects did not return a single benefit. That means that almost 70% of those corporation funds were lost.

Why?

A review of the World Commerce and contracting organization’s “Ten Pitfalls to Avoid in Contracting” presents some compelling elements that point to the failure of adequate change management.

Those pitfalls are available on the World Commerce & contracting website at Ten Pitfalls to Avoid in Contracting (worldcc.com).

We will not discuss all of the pitfalls here but suffice to say that over the last ten years the list has changed extraordinarily little.

From a change management perspective, the pitfalls that stand out are 1) lack of clear scope and goals, 2) failure to engage stakeholders, 3) contracts lack flexibility, 4) insufficient focus on governance and 5) poor handover to the implementation team. These five pitfalls plus the other five listed in the article have been found to lead to contract value erosion of 9.2%. Very few companies can afford to maintain that type of erosion. 

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?Procurement League brings you another thought-provoking live discussion on "CPO to CEO: How to make a leap?" The speaker will be Amitabh Prasad, Chief Executive Officer, Sterlite Power Brazil.

????Amitabh Prasad is an experienced industry professional with over 25 years of expertise in leadership positions across power and infrastructure sectors. Over the last three years, he has successfully led the Global Supply Chain function for Sterlite Power across India and Brazil, including his role as Board advisor for Sterlite Power Brazil. He is now playing a pivotal role in further strengthening the company's operations in Brazil, together with the strong Brazil leadership team.

Amitabh had proven his leadership acumen and strong project execution expertise over and again in Indian, African, and European markets for organizations like Airtel, British Telecom, Ericsson, Tata, DuPont, and Xerox. 

?In this live discussion with Amitabh, we will understand how he prepared when he moved into a CEO role from a CPO background and what advice he would give to procurement and sourcing leaders who see themselves as CPO or CEO in the next five years.

?We will also discuss how he created a common bond and purpose among his team members while working in a cross-cultural team and how suppliers should prepare themselves for cross-border traders and cross-cultural economy. 

?? We are inviting questions from our exclusive Procurement Community in the comment section of this post and we would love to address it in the live. Also, register yourself on the Procurement League LinkedIn page event by clicking on attend! 

?We are looking forward to hosting you.

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