Rai Antonio De Jesus, Chief Procurement Officer, ePLDT, 0
The procurement landscape has withstood interruptions, changes in the economy, megatrends like climate change and technology breakthroughs, the dynamic AI revolution, and whatnot. The importance of procurement as a strategic function has intrinsically increased. Many Chief Procurement Officers (CPOs) face significant challenges in guiding their departments through the changes needed to prosper in the modern world. Sharing his insights on leading in today’s procurement landscape through insightful conversation with CEO Insights Asia is Rai Antonio De Jesus, Chief Procurement Officer, ePLDT. Rai expounded his thoughts on various aspects that should be inculcated into modern procurement leadership. Below is an Excerpt from the Interview.
What are the latest challenges impeding the procurement function, and how should leaders address them?
Today, procurement leadership demands you to be a business collaborator, actively participating at the executive level by sharing insights that influence the organization's strategy. Now, this leads us to the first challenge: the need for procurement professionals to hone and forge skills like strategic thinking, critical analysis, problem-solving, and strategy crafting.
It requires adjusting to the evolving landscape of their respective industry, which, I believe, is a key skill—understanding the organization's necessities to establish the right structure. Also, it’s essential for procurement professionals to stay informed about global trends, as this exposure aids in sharpening your critical thinking and strategic development skills while gaining professional connections beyond your home country.
Another challenge is that as technology progresses, procurement professionals are increasingly required to achieve more with fewer resources. They are tasked with more responsibilities like category management, strategic sourcing, managing supplier relationships, and addressing risk management. These expanded responsibilities make it mandatory for them to evolve, and technology has become vital in meeting these modern demands.
Likewise, incorporating AI into our roles and skill sets is another challenge. While procurement professionals juggle growing responsibilities, AI could handle the mundane tasks, enabling them to focus on more strategic initiatives.
How do you perceive the role of AI and procurement leaders working in sync?
AI is mainly employed for operational activities in procurement. For example, we have automated purchase order (PO) processing. Previously, a designated buyer handled creating and processing POs for the organization. Now, thanks to AI, we can automate this procedure, greatly diminishing the requirement for procurement participation.
I feel we are nearing a stage where negotiation bots, powered by generative AI, will assist in negotiating with suppliers. This development will allow contemporary procurement professionals to accomplish more with limited resources and enhance their effectiveness.
Therefore, we must dedicate time to educating AI systems to accurately mirror the functions and tasks of procurement professionals.
Furthermore, despite the rise of Generative AI, we still hold primary responsibility for all aspects of procurement. Even with the plethora of systems, platforms, and modern technologies available to today’s procurement professionals, the ultimate duty falls on us to train users, pinpoint opportunities, and encourage the adoption of our current tools. Every solution should be seamlessly incorporated into a well-defined strategy that outlines its practical implementation and application.
Integrating new technologies into any function is challenging. How difficult is it to integrate the procurement function with the latest tech?
When considering incorporating new technologies, it's vital to acknowledge that there will be a distinct moment or timeframe for adoption. As leaders, our primary duty is to convey the overall strategy clearly. We must articulate the reasons behind integrating new technologies into our processes. The key element is to bring everyone together and ensure we are aligned toward a shared objective: enhancing automation, increasing digitization, and improving intelligence in our operations.
Subsequently, we should create a framework that everyone can embrace and a supportive environment where mistakes are allowed. We must keep in mind that new technologies might not always function flawlessly at first; we might still require effective change management. Establishing this environment is essential for our teams to learn and innovate, as adaptability to new technologies will vary among individuals.
Next, it is crucial that this initiative is adopted across the entire organization. It cannot merely be confined to procurement. A culture of trust must be established, demonstrating our collective commitment to this initiative. Our key performance indicators (KPIs) and overarching priorities should show this dedication.
If the responsibility falls solely on procurement or select departments, it will be difficult to achieve the full range of impacts and benefits. In the end, every person within the organization is interconnected and contributes to our shared mission of fostering the company’s growth.
How do you see the role of a CPO unfold in the near future?
I believe that adaptability has become the most vital skill. This encompasses embracing new technologies, adjusting to varying organizational frameworks, and reacting to changes in market trends and dynamics.
The second skill that CPOs should emphasize is being technology-oriented. In our current landscape, technology is vital; it enhances our capabilities and allows us to make a more significant impact on the organization. Therefore, being both adaptable and technology-oriented is an essential skill for a modern day procurement leaders.
Also Read: CES 1991: Nintendo's Treason Made Sony Rule With PlayStation's Success
The third aspect is becoming a strategic partner and a facilitator for the business. Since responsibilities have expanded, CPOs will be expected to introduce valuable ideas—concepts that resonate with other stakeholders. A crucial aspect of this process is managing our relationships with stakeholders. If we regard our role solely as negotiating deals and passing them along, we risk missing the vital opportunity to cultivate relationships within our organizations. The connections we nurture as CPOs and leaders enable us to contribute more significantly to the organization.
Furthermore, despite the rise of Generative AI, we still hold primary responsibility for all aspects of procurement. Even with the plethora of systems, platforms, and modern technologies available to today’s procurement professionals, the ultimate duty falls on us to train users, pinpoint opportunities, and encourage the adoption of our current tools. Every solution should be seamlessly incorporated into a well-defined strategy that outlines its practical implementation and application.
In our current landscape, technology is vital; it enhances our capabilities and allows us to make a more significant impact on the organization.
Integrating new technologies into any function is challenging. How difficult is it to integrate the procurement function with the latest tech?
When considering incorporating new technologies, it's vital to acknowledge that there will be a distinct moment or timeframe for adoption. As leaders, our primary duty is to convey the overall strategy clearly. We must articulate the reasons behind integrating new technologies into our processes. The key element is to bring everyone together and ensure we are aligned toward a shared objective: enhancing automation, increasing digitization, and improving intelligence in our operations.
Subsequently, we should create a framework that everyone can embrace and a supportive environment where mistakes are allowed. We must keep in mind that new technologies might not always function flawlessly at first; we might still require effective change management. Establishing this environment is essential for our teams to learn and innovate, as adaptability to new technologies will vary among individuals.
Next, it is crucial that this initiative is adopted across the entire organization. It cannot merely be confined to procurement. A culture of trust must be established, demonstrating our collective commitment to this initiative. Our key performance indicators (KPIs) and overarching priorities should show this dedication.
If the responsibility falls solely on procurement or select departments, it will be difficult to achieve the full range of impacts and benefits. In the end, every person within the organization is interconnected and contributes to our shared mission of fostering the company’s growth.
How do you see the role of a CPO unfold in the near future?
I believe that adaptability has become the most vital skill. This encompasses embracing new technologies, adjusting to varying organizational frameworks, and reacting to changes in market trends and dynamics.
The second skill that CPOs should emphasize is being technology-oriented. In our current landscape, technology is vital; it enhances our capabilities and allows us to make a more significant impact on the organization. Therefore, being both adaptable and technology-oriented is an essential skill for a modern day procurement leaders.
Also Read: CES 1991: Nintendo's Treason Made Sony Rule With PlayStation's Success
The third aspect is becoming a strategic partner and a facilitator for the business. Since responsibilities have expanded, CPOs will be expected to introduce valuable ideas—concepts that resonate with other stakeholders. A crucial aspect of this process is managing our relationships with stakeholders. If we regard our role solely as negotiating deals and passing them along, we risk missing the vital opportunity to cultivate relationships within our organizations. The connections we nurture as CPOs and leaders enable us to contribute more significantly to the organization.