BTW EP 31: The Fellowship Against Fake Savings with Alan Veeck

"Isn't it true that everybody talks about supplier management, but nobody does it?"

This observation from Summit Procurement CEO and Founder Alan Veeck captures the delta between procurement's aspirations and the reality on the ground. It's a gap, he says, that AI might finally help close, but only if organizations resist the temptation to simply slash headcount when AI-powered efficiencies arrive.

In this episode of "Buy: The Way...To Purposeful Procurement," co-hosts Philip Ideson and Rich Ham speak with Alan Veeck to explore what it might look like if procurement was unleashed to pursue actual value, and why the resistance to that vision remains so formidable.

Alan presents listeners with a thought experiment: imagine a CPO given two directives: first, embrace AI to drive maximum efficiency, but second, keep every team member despite the bandwidth freed up by AI. His answer reveals momentous untapped potential: those 25 entry-level people whose salaries total $2.5 million annually? In a billion-dollar enterprise, he says, they could find 10x that value "in their sleep" within months through proper supplier engagement, category management, and relationship building.

This notion also brings procurement's existential challenge into the light. Without fixing flawed incentive structures, procurement will "continue to be the ones asking for a seat at the table."

One-off conversations and content won't solve these issues. Instead, Alan says it's time to convene "the smartest thinkers in our industry" into what Rich dubs a "fellowship." The goal: creating industry standards for measuring value across different contexts, giving organizations practical frameworks to escape the savings delusion.

As Rich notes, there's no general ledger line item for savings, only costs. Procurement can be "the hero of the expense side of the ledger," but only if they muster the collective confidence to take the necessary steps.

Links:
Alan Veeck on LinkedIn
Rich Ham on LinkedIn
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