procurecon indirect east 2016: tradeshift ceo keynote
TRANSCRIPT
Future of Procurement
Christian Lanng CEO, Tradeshift
February 2016
What does the death of amarket leader look like?
2
Shaving & Men's Grooming:$13bn industry
3
Controlled by one brand
4
Then this happened...
5
6
Cost to produce: $4,500Time to produce: 1 day
Youtube views: 22 million
7
Dollar Shave Club Launch
Dollar Shave Club’s market position 3 years later?
8
9
No.1 Online + No. 2 Overall
Dollar Shave Club 52.9%
How did this happen?
11
Traditional Procurement Job:Acquire the right goods at the best price,
quality, location and time
It took the incumbent brand more than 24 months to react to Dollar Shave Club
12
Do you think their initial reaction was better or
cheaper?
13
Could any company in this room have reacted in less than 24
hours for less than $5000?
14
| Confidential
Without agility you will lose
15
What’s happening today?
16
• Exponential Innovation
• Hyper Competition
• Unpredictability
From efficiency to responsiveness.
From hierarchies to networks.
From controlling to empowering.
From offices and office hours to working anytime and anywhere.
From “customers and partners” to “communities and ecosystems”
17
Organizations are Changing
18
Innovation is a High Priority
98%
62%
33%
30%
32% 35%
8%
Innovation will become a more important competitive differentiator in our industry in the next 5
years
Creating disruptive innovation is an important part of our business strategy
Our company has the right KPIs, processes and incentives in place to meet its innovation goals
strongly agree neutral disagree/strongly disagree
1%
1%
19
The Chief Procurement Officer is now the Chief Agility Officer
Savings As A Service
20
Value As A Service Agility As A Service
Top-line growth As A Service
21
We build software for the future of procurement
● Collaborative and agile● Real value for supplier participation● Apps enable new business processes
instantly for whole supply chain● End-to-end transparency and analytics
What could have happened instead in the case of the leading shaving brand?
| Confidential25
“Dollar Shave Club is a strategic risk to our
business and we need to act now!”
-Tina, BigShave CEO
26
27
28
29
