BTW EP 06: The Foothills of the Flaws; Retracing Procurement’s Path with Rob Hills
Release Date: 04/02/2025
Art of Procurement
"If you can't understand how procurement affects the ultimate end users in your organization, whether it's a state prison, or whether it's a manufacturing facility in Germany, then you're abdicating your role, you're just a robot. And that's why procurement has a superpower." - David Yarkin, CEO, Procurated Long before "DOGE" became a buzzword in government efficiency, the state of Pennsylvania led a pioneering strategic procurement transformation that saved taxpayers millions… $140 million to be exact (and on a recurring basis, at that). The key to their success wasn't just smart buying...
info_outlineArt of Procurement
Procurement 6 is a short podcast from Art of Procurement that publishes in the Art of Procurement feed every Friday morning at 6am US Eastern Time. Presented by a member of the Art of Procurement team, each episode has 6 short segments that summarize the week in procurement. Segments range from procurement tips to podcast summaries, from details of events to news or overviews of blog posts that capture our attention.
info_outlineArt of Procurement
More than one hundred years after John C. Dinsmore wrote in Purchasing Principles and Practices that “there should be no great chasm between the board of directors who represent the stockholders whose money is spent and the person who does the spending,” procurement is still struggling with the same fundamental problem of misalignment. In the eighth episode of “Buy: The Way…To Purposeful Procurement,” Philip Ideson, Kelly Barner, and Rich Ham, CEO at Fine Tune, convene to grapple with the insights – and even a few uncomfortable truths – uncovered in their recent conversations...
info_outlineArt of Procurement
“I understand that tension between procurement and legal could happen, but it really is a disservice to each other. It's like two brothers fighting. It doesn't make any sense.” - Paul Bagley, Director of Commercial Contracting, Acosta Group Procurement and legal often find themselves at odds, despite the fact that they’re usually working toward the same goals for the business. We can usually trace this tension back to a few key areas like contract cycle times, risk management approaches, decision-making processes, or contract negotiations. But, when procurement and legal are true...
info_outlineArt of Procurement
Procurement 6 is a short podcast from Art of Procurement that publishes in the Art of Procurement feed every Friday morning at 6am US Eastern Time. Presented by a member of the Art of Procurement team, each episode has 6 short segments that summarize the week in procurement. Segments range from procurement tips to podcast summaries, from details of events to news or overviews of blog posts that capture our attention.
info_outlineArt of Procurement
“You’re not going to be able to completely eliminate your tariff exposure. There are three frames under which to think about tariffs: How will you mitigate in the short term? How will you think about it in the medium term from your customer's perspective and pricing? And how will you think about a long-term realignment of supply chains?” - Richeek Maitra, Director, AlixPartners With tariffs dominating the news cycle and sending global markets on a wild ride, procurement is scrambling to figure out the practical implications of tariffs on global supply chains and their own...
info_outlineArt of Procurement
Procurement 6 is a short podcast from Art of Procurement that publishes in the Art of Procurement feed every Friday morning at 6am US Eastern Time. Presented by a member of the Art of Procurement team, each episode has 6 short segments that summarize the week in procurement. Segments range from procurement tips to podcast summaries, from details of events to news or overviews of blog posts that capture our attention.
info_outlineArt of Procurement
In this seventh episode of the “Buy: The Way…To Purposeful Procurement” podcast series, Art of Procurement’s Philip Ideson and Fine Tune CEO Rich Ham take a deep dive into procurement history with Kate Vitasek, Faculty of Graduate and Executive Education at the University of Tennessee, and architect of the groundbreaking Vested methodology. With over 15 years of research and eight books dedicated to buyer-supplier strategic partnerships, Kate shares her insight into how procurement has traditionally tended to extract value from suppliers through power plays, as opposed to...
info_outlineArt of Procurement
“Procurement isn’t just a cost center; it’s a true value driver. So when they’re recruiting, CPOs and heads of procurement are looking for someone who's current and who is bringing ideas to the table. They’re not just hiring buyers anymore.” - Derek Lutz, Founder and CEO, Lean Six Search As economic and geopolitical instability sends ripples of doubt across global supply chains, the question of which procurement skills will remain valuable, as well as which ones are becoming obsolete, has never been more relevant. In this episode, host Philip Ideson talks about the...
info_outlineArt of Procurement
Procurement 6 is a short podcast from Art of Procurement that publishes in the Art of Procurement feed every Friday morning at 6am US Eastern Time. Presented by a member of the Art of Procurement team, each episode has 6 short segments that summarize the week in procurement. Segments range from procurement tips to podcast summaries, from details of events to news or overviews of blog posts that capture our attention.
info_outlineIt’s been a long, winding road that has brought procurement to its current state of flawed incentive structures and measurement challenges. Rob Hills, CEO of Hills Advisory Services and former Deloitte partner, has seen it all unfold firsthand.
But recognizing problems and how they were created is only half of the battle.
With over three decades of procurement experience that stretches back all the way to the formative days of strategic sourcing at A.T. Kearney in the mid-1990s, Rob has seen the classic procurement dilemma play out more times than he would have liked. CPOs “plant a victory flag” on savings while CFOs fail to see procurement’s win materialize on the P&L.
In the sixth episode of “Buy: The Way…To Purposeful Procurement,” co-hosts Rich Ham and Philip Ideson speak with Rob about this measurement gap, how it has evolved over time, and why procurement’s measurement and incentive systems have remained largely unchanged over the years, despite their obvious flaws.
Rob also offers a unique historical perspective of the disconnect between negotiation and execution, especially as procurement grapples with balancing increasing workloads and larger portfolios of spend with shrinking resources.
Rob, Phil, and Rich also explore potential innovative thinking about incentives, metrics, and process design that could finally address the longstanding challenges in demonstrating procurement’s full purpose, value, and impact for the business.
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