Procurement 2.0: How the Rules Have Changed and Why You Need to Adapt!

Conrad from Graphite Connect, along with Natasha and Zach, discuss the evolution of procurement, highlighting its transition from an essential tactical function to a more strategic one, focusing on value, transparency, and integrity. They explore the challenges of having a centralized procurement versus a “shadow procurement organization” and the importance of tailoring procurement practices to a company’s size and stage of growth. The conversation also touches on the need for procurement teams to deeply understand the market and leverage that knowledge to streamline the RFP process.

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Transcript: Proc-N-Roll 04 | Procurement 2.0: How the Rules Have Changed and Why You Need to Adapt!

Zachary | Welcome to Proc-N-Roll, your practical guide to procurement. With me are my co-hosts Natasha, former CPO at IBM, McKesson, Salesforce, Nike, and Conrad, former Intel CPO and Adobe CPO, now founder and CEO of Graphite. I’m Zach Bashir, self-proclaimed procurement expert. Together, we bring 70 years of procurement experience to discuss trends and fundamentals. Let’s begin. Today we’ll cover procurement basics: definition, core principles, and evolution. Natasha, how has procurement evolved in your career?

Natasha | I fell into procurement 25 years ago, starting as a temp at The Gap verifying business cards and matching invoices. I advanced through all ranks to Nike’s CPO. Now I’m CEO of Kendra Procurement. Procurement is about strategic spending and problem-solving. Every company spends money, but few do it mindfully with clear ROI and partner relationships. It’s about creating logical, structural purchasing processes.

Zach | Conrad, your perspective?

Conrad | I started in the 90s. People thought buyers were just for retail fashion. At Intel, I discovered the diversity in corporate purchasing – even rattlesnake removal services in Arizona. Procurement ranges from basic cleanup to strategic category management, varying by company size and needs.

Zach |  Procurement is fundamentally about how companies spend money. Conrad, you researched its history?

Conrad | It dates back to the pyramids, with evidence of organized buying systems. Like Henry Ford’s supply chain, these ancient projects required structured procurement to manage resources and labor.

Zach | It’s become increasingly organized. Natasha, thoughts on procurement’s evolution?

Natasha |  Corporate functions often develop redundant procurement processes. Without proper procurement systems, departments make independent purchases, creating inefficiencies and wasting money. Modern procurement needs user-friendly processes and technology. Beyond purchasing, it now handles sustainability and diversity targets.

Zach | That covers key principles: value, transparency, fairness, and compliance. Conrad, other principles? 

Conrad | Integrity is crucial. Previously, supplier relationships involved gifts and subtle bribes. Now, fair processes and ethical decisions are paramount. The fundamentals haven’t changed in 30 years: sourcing, contracts, onboarding, risk, PRs, POs, invoices, payment, delivery. But automation remains limited despite promises.

Natasha | Companies typically prioritize procurement seriously at $700-800M revenue, with $200M in expenses. Before that, focus is mainly on revenue growth.

Conrad | The need varies by company size. Startups need basic procurement – “staying out of the way and cleaning up the mess.” As companies grow, procurement becomes more strategic.

Zach | Thanks everyone. Next episode will cover world-class procurement across different business sizes.

Natasha | If you give us enough hours, we won’t stop talking about procurement.

This transcript has been edited for clarity while maintaining all substantive content