Many procurement organizations use the Pareto method to identify the 20% of suppliers that drive 80% of their spend. That is the spend (and those are the suppliers) that they will strategically manage.
While this is a traditional and efficient approach, it leaves 20% of enterprise spend unmanaged. This ‘bottom’ 20% of spend is actionable and a huge savings opportunity.
The time has come to pivot to supplier discovery, to a supplier-enabled disruptor-finding framework. It will help us escape legacy results, leverage technology to achieve scale, and permanently alter the ‘physics’ of procurement.
Procurement can and should be an innovation driver, a top deliverer of value, and one of the most trusted enterprise partners. We have the ability and the external lens, and we need to show that external lens to our internal stakeholders in ways they have not seen or even imagined.
We welcome you to contact Walter Charles, CPO at Biogen, to learn more about his approach to supplier discovery and tail spend, or CLICK HERE to read a report published by tealbook.
Walter Charles is the Chief Procurement Office at Biogen. A much sought after speaker at national and international conferences on procurement and supply chain, Walter is a highly regarded industry leader. In his role at Biogen, Walter’s teams oversee billions of dollars per year in spend for the global biotechnology company that discovers, develops and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases. Prior to his role at Biogen, Walter held senior procurement roles at major brands including Kraft Foods Group, Kellogg Company and Johnson & Johnson. Walter has an MBA from Columbia Business School, an ME in Environmental Engineering from Stevens Institute of Technology, and a BS in Engineering from the United States Merchant Marine Academy.