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🚗 Digitalization in a Ferrari and Procurement Apart from the speed, there are certainly similarities, aren’t there? I think so, as Procurement in 2025 must still learn a lesson from a 2024 Ferrari announcement: ⚠️ In 2024, Ferrari put a hard stop on developing its infotainment software. Ferrari realized it couldn’t keep up with Apple and Google and would not further develop its own navigation and infotainment system. Apple CarPlay and Android Auto offer better UX, and smartphone apps are always up to date. What does it mean for Procurement? ⚡Building your digital solutions makes little or no sense: But why are there still Procurement Managers & IT Departments who believe they have to develop and code Digital Procurement solutions, despite there now being hundreds of systems for almost every challenge in Procurement? ⚡It is 2025: Why are there Procurement Managers who still firmly claim that many digital solutions, especially eProcurement platforms, are “not yet ready to handle their challenges”? A few thoughts after 24 years in the Digital Procurement space: 📌We can draw from dozens of proven solutions, quickly delivering progress with mature solutions – used by your competitors. This applies to all industries, company sizes, and budgets. There is no reason to do nothing! 📌After bumpy years (the early 2000s) where the number of functions took precedence over UI/UX and user experience, we now have (mostly) user-friendly, intuitive interfaces that focus on people rather than the system, and providers have learned and copied much from successful consumer platforms (e.g., Amazon) 📌Digitalization comprehensively expands the Procurement toolbox (“value levers”) and the skills of your Teams (connect human and digital skills to increase effectiveness and results) 📌APIs are also manageable (time, costs, complexity) 📌Plug & Play in the context of Procurement hubs is the future of system landscapes in Procurement. Many solution providers complement each other perfectly and collaborate (e.g., Risk and Sustainability and Compliance Management) ⚠️It is simple: If you are a Procurement Leader with no digital ambitions or initiatives, you may also jeopardize the company’s digitalization efforts. When running an extensive network of business partners and supply chains, Procurement either promotes or inhibits a company-wide digitalization approach. Choose your role wisely! ⚠️By the way: Procurement digitalization is also crucial for talent attraction and retention. Excel, pens, discouragement & hesitation..NOT! Digitalization in Procurement in less than 12 months? We at targetP evolving procurement are happy to share insights and learnings from more than 30+ digital projects in Procurement. From digital strategy & architecture to solution selection and implementation. Source Graphic. P. Raasch

💥RISK ALERT: Closing the Strait of Hormuz: Cutting the oil lifeline and fueling inflation & recession? ➡️FACTS ✅Iran’s parliament voted to close the Strait of Hormuz, the world’s most critical oil chokepoint (20 million barrels of oil pass it daily). But will Iran risk disrupting its oil exports and foreign currency lifeline? ✅So far, it has not happened but traffic has already dropped. Close to 50 large oil tankers scrambling to leave the Strait. LNG shipments are also at risk with roughly 20 percent of global LNG flows passing the Street. ✅Europe is heavily reliant on Gulf oil and in the past few weeks, prices have already risen more than 35 percent, climbing to the high $70s ✅Market & Risks Analysts are alerted. Platts: All eyes are now on the Strait & the complex of heavy sour and medium sour crudes which depend on the narrow 21-mile-wide channel to reach markets in Asia by tanker. ➡️IMPACT – SIGNIFICANT ✅If the strait is closed, the GLOBAL impact would be immediate & severe. Current pipelines through Saudi Arabia and the UAE can only reroute around 6 to 7.5 million barrels daily, leaving a supply gap of over 13 mn. barrels per day. ✅The inflationary impact would be global. For every $10 rise in crude, U.S. CPI alone could rise by 0.2 percentage points. Analysts estimate oil could spike to $130 or $200 / barrel ✅A full closure would ripple across energy markets, inflation, central bank decisions, supply chains, and political alliances. It would mark the most significant energy disruption since the 1973 oil embargo ➡️RISK MANAGEMENT – YOUR LIFELINE Do you understand the total impact on your supply chain and the cost structure of your operations and products? Your lifeline: understand your suppliers‘ cost structures and your supply chain risks, your only way to protect your company’s earnings and liquidity. Cost management is risk management and vice versa. What you need to do: ✅Awarenes & Strategy: Risk culture & risk strategy incl. ESG topics ✅Comprehensive SCRM: Operating model & Governance framework ✅Risk Identification: Risk categories, cost risks, compliance risks ✅Impact Analysis: Probability, impact, prioritization ✅Minimize Risk Exposure: Diversification, substitution, buffers, contracts, technology ✅Continuous (digital) monitoring: suppliers, logistics nodes, regions and performance measurement, markets & prices ✅Crisis Mgmt. Capabilities: Contingency plans, communication ✅Collaboration: Cooperation & supply chain transparency ✅Lessons Learned & Adjustments: Audits and agile adaptation 👉 Make sure your supply chain teams are empowered to act as cost and risk managers in the current climate. Sourcing Graphic: Andy Critchlow, Platts Platts

😠Friday Rant THE CHATGPT FUELED PROCUREMENT INFLUENCER / PROCUREFLUENCER I’ve been thinking about it for a long time. I never really wanted to, but after this week I HAVE to. Procurement is always later than others. Whether it’s new methods or digitalization, year after year surveys show that Procurement is slow to adapt to new technologies. It was therefore only a matter of time before Procurement got its swarm of Procurement Influencers. They call themselves ProcureFluencer, Raven, Maven, ProcurementQueen, but almost all of them feel that they are THOUGHT LEADERS. If mediocrity had a mascot in the world of Procurement, it would be this self-declared “influencer.” Honestly, watching this person try to teach Procurement on LinkedIn is like watching someone read the glossary of a third-rate textbook and thinking they’ve discovered fire. Every post is the same recycled gem: “Procurement is not the same as Purchasing!” Wow. What an insight. What a revolution. Someone alert the CPOs of the world they’ve been doing it wrong until now. Never mind that this “influencer” has rarely made it past the Buyer level or held any role that required actual delivery. No, no why let experience get in the way of a good post? Experience: You mean like leading a global category, driving transformation, building an actual team, or owning a P&L? No, no, an influencer is far too strategic for that. They wisely hop jobs every 18-24 months before any real accountability or delivery is required. Never led a team of significance, never built a function, and never stuck around long enough to face the consequences of their own „strategy decks“. Why bother building a lasting impact when you can build a personal brand instead? But the real magic? The Canva explosions. Bright, AI-generated slides shouting things like “VALUE > COST” or “PROCUREMENT = STRATEGIC.” The kind of graphics that make your eyes bleed and your brain sigh. Truly, nothing says “expert” like dumping ChatGPT quotes onto pastel backgrounds and pretending it’s an original thought. And where are the war stories? The tough lessons? The supplier disasters turned into recovery? Nowhere. Because you can’t share what you’ve never lived. But you can reword Gartner articles, steal HBR headlines, and pretend you’re a “transformational leader” from the comfort of your keyboard. Talk big, stay vague, quote a McKinsey chart (without the context), and throw in some “digital transformation” buzzwords. Let’s not forget the #StrategicProcurement #NextGenSourcing #DigitalExcellence because adding corporate jargon magically covers the lack of experience & substance. The Procurement Influencer: a loud voice, a hollow résumé, and graphics that could trigger migraines in a kindergarten teacher. The emperor of empty Procurement wisdom parading in fluorescent, ChatGPT-stitched robes. Follow at your own risk! Source Graphic: of course not ChatGPT but Copilot

Die Zukunft der Beschaffung – das Treffen der Einkaufsprofis in Berlin Am 19.6.2025 haben wir die Premiere von „Procurement of Tomorrow“ gefeiert. Facturee und Mercanis hatten in die Osram-Höfe eingeladen und durften wichtige Entscheider aus Berlin und Brandenburg begrüßen. Ein neues Format für Einkäufer:innen in Berlin. Und die Erstausgabe war top. 🔍 Keynotes, Diskussionen und Austausch auf Augenhöhe Ich hatte die Ehre, die erste Veranstaltung mit einer Eröffnungs-Keynote zu eröffnen und sprach darüber wie Innovation, Mensch und KI den Einkauf gerade in Krisenzeiten stärkt und ihm wirksame Werkzeuge an die Hand gibt. Werkzeuge die Prävention, Reaktionsgeschwindigkeit, Resilienz und Wertbeitrag steigern. Aber nur im Zusammenspiel von Mensch und Maschine ihre volle Wirksamkeit entfalten. Beim anschließenden „Talk & Tackle“ ging’s in kleinen Gruppen direkt an die echten Pain Points → offen, ehrlich, praxisnah. ✨ Highlight: die Paneldiskussion mit Bettina Fischer von Hivebuy, Alejandro Basterrechea von Zalando, Jan-Henner Theissen von targetP evolving procurement, Christopher Walzel von FACTUREE und Fabian Heinrich von Mercanis. Mit starken Impulsen zur Zukunft des Einkaufs und zur Rolle von Technologie im operativen Alltag. 🥂 Danach: Drinks, gutes Essen und jede Menge Ideen für das, was kommt. Danke an alle und ich freue mich auf die nächste Runde!

🎙️ Vom CPO zum CEO der Ausgaben: Warum der Einkauf ein Rebranding braucht – und auch mehr als das! Vor einigen Wochen durfte ich im Mercanis Podcast mit Fabian Heinrich einige Gedanken über das unternehmerische Potenzial des Einkaufs, insbesondere in Zeiten von Krisen und Unsicherheiten, austauschen. 💡 Gemeinsam diskutierten wir -abseits der immergleichen Phrasen und dem üblichen Wunschdenken-, warum moderne Einkaufsleiter nicht nur Prozesse managen, sondern als CEO der Ausgaben auftreten sollten. Mit digitaler Souveränität, mutiger Vision und unternehmerischem Gestaltungswillen. Und warum nur Leistung und eine entsprechende Positionierung den Einkauf vorwärts bringt. Und nicht das ewige Gejammer nach dem Sitz am Vorstandstisch. Der Einkauf hat seine Zukunft, sein Schicksal und sein Standing selbst in der Hand. Niemand sonst! 🫵 Das erwartet Sie in knapp 30 Minuten: ➡️Warum der Einkauf raus aus der Abwicklerrolle muss – 2:00 ➡️Wie CPOs strategische Verantwortung übernehmen – 6:00 ➡️Welche Skills & Strukturen zukunftsfähigen Einkauf ausmachen – 10:00 ➡️Warum KI, Plattformen & Change Management unerlässlich sind – 14:00 ➡️Wie Einkaufserfolge intern sichtbar gemacht werden – 19:00 ➡️Was wir von Marketing & Vertrieb lernen können – 23:00 ➡️ Zukunftsausblick: Vom Krisenmanager zum Wertgestalter – 25:00 📈 Der Einkauf muss anders gedacht werden: sichtbar, strategisch, digital. 🎧 Jetzt reinhören: 🔗Youtube: https://www.youtube.com/watch?v=6IaqSAm3qI4&t=5s 🔗Spotify: https://open.spotify.com/episode/1BIsuAmZqBCvvMM0BRRJxX?si=cfe632c9bb2846d8 🔗Apple Podcasts: https://podcasts.apple.com/de/podcast/vom-cpo-zum-ceo-der-ausgaben-im-gespr%C3%A4ch-mit-jan-henner/id1590102225?i=1000709125247 Oder mich kontaktieren für einen „persönlichen Podcast“ – old-fashioned auch Austausch genannt.  

When cost pressure rises, the go-to response in many companies is clear: negotiate prices, bundle volumes, and push suppliers. That’s valid – and sometimes necessary. But often, it only scratches the surface. What we keep seeing in projects: The real cost drivers don’t just sit on the supplier side – 𝐭𝐡𝐞𝐲’𝐫𝐞 𝐨𝐟𝐭𝐞𝐧 𝐡𝐢𝐝𝐝𝐞𝐧 𝐢𝐧𝐬𝐢𝐝𝐞 𝐭𝐡𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧, 𝐢𝐧 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐚𝐧𝐝 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐜𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲. 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐄𝐚𝐭𝐬 𝐌𝐚𝐫𝐠𝐢𝐧. Too many variants, custom configurations, niche materials, special colors – every individual decision seems harmless, but collectively they add up. They lead to higher unit costs, smaller batch sizes, more planning effort, increased inventory, and extra quality checks. 𝐌𝐚𝐫𝐠𝐢𝐧𝐬 𝐞𝐫𝐨𝐝𝐞 𝐬𝐢𝐥𝐞𝐧𝐭𝐥𝐲 and 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐄𝐚𝐭𝐬 𝐌𝐚𝐫𝐠𝐢𝐧. A structured approach to complexity management means: ✅ analyzing the current product portfolio ✅ assessing variants based on cost, volume, and value ✅ deciding which ones truly matter – and which don’t ✅challenging technical specs ✅ collaborating across engineering, sales, and supply chain In one recent case, rationalizing just a handful of low-impact variants unlocked several hundred thousand euros in annual savings – sustainably, not just for one fiscal year. 𝐌𝐲 𝐛𝐞𝐥𝐢𝐞𝐟: 𝐈𝐟 𝐲𝐨𝐮’𝐫𝐞 𝐨𝐧𝐥𝐲 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐧𝐠, 𝐛𝐮𝐭 𝐧𝐨𝐭 𝐬𝐢𝐦𝐩𝐥𝐢𝐟𝐲𝐢𝐧𝐠, 𝐲𝐨𝐮’𝐫𝐞 𝐧𝐨𝐭 𝐬𝐨𝐥𝐯𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐩𝐫𝐨𝐛𝐥𝐞𝐦. targetP will gladly support you in identifying potentials to reduce cost, complexity, and risks. How do you manage complexity in your organization – systematically or reactively?

Establishing a Cost Analysis / Cost Engineering organization will deliver significant contributions to your bottom line. That’s a fact! But it is way more than just drawing lines and implementing software – it’s about 𝐜𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞, 𝐜𝐥𝐚𝐫𝐢𝐭𝐲, and 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐢𝐦𝐩𝐚𝐜𝐭. And a significant behavioral change with lots of obstacles and hidden pitfalls if you have not done it before. What to consider: ✅Cost Management Strategy (what do we want to achieve? just Material Cost Optimization or Product Cost Optimization) ✅Organizational Design incl. roles (e.g. specialist vs. generalist) and responsibilities (crucial) ✅Organizational Anchoring and joint target-setting ✅Process Integration & cross-functional alignment ✅Tools / Value Levers to establish ✅ One key pillar: choosing the right cost management software. But rather than chasing features, we help define objective selection criteria that align with real operational needs: ✨Seamless integration into existing system landscapes ✨Support for parametric, should-cost, and bottom-up approaches ✨Collaboration features to digitally bridge silos ✨User-friendly interface and high usability for both experts and occasional users ✨Scalability across sites and product groups Need some insights from experienced practitioners who have developed numerous Procurement and Cost Management organizations? We at targetP evolving procurement support companies in setting up cost transparency functions that go beyond procurement and create value across R&D, finance, and operations. We act as a neutral sparring partner and guide you through the evaluation process – from market scan and demo setup to decision alignment. Always build a cost management capability that enables fact-based decisions and reduces reliance on Excel silos. 🚀 𝐁𝐞𝐜𝐚𝐮𝐬𝐞 𝐫𝐞𝐚𝐥 𝐜𝐨𝐬𝐭 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐬𝐭𝐚𝐫𝐭𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 – 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐭𝐨𝐨𝐥.

𝐂𝐨𝐬𝐭 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 = 𝐑𝐢𝐬𝐤 𝐑𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 Cost Management isn’t just about saving money—it’s about making smarter decisions and reducing risks. When it comes to manufacturing and sourcing components, a lack of cost transparency can lead to unexpected financial risks, supply chain inefficiencies, and missed savings opportunities. So, how can companies minimize risks through better cost analysis? 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐓𝐫𝐮𝐞 𝐂𝐨𝐬𝐭 𝐃𝐫𝐢𝐯𝐞𝐫𝐬 Breaking down the cost structure of components—materials, labor, overhead, logistics, and supplier margins—helps companies identify potential risks. Are material prices volatile? Is there supplier dependency? Are production inefficiencies driving up costs? Transparency enables proactive risk management. 𝐁𝐞𝐧𝐜𝐡𝐦𝐚𝐫𝐤𝐢𝐧𝐠 𝐚𝐧𝐝 𝐒𝐡𝐨𝐮𝐥𝐝-𝐂𝐨𝐬𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 By comparing internal cost estimates with market benchmarks and conducting should-cost analyses, companies gain a realistic understanding of fair pricing. This prevents overpaying for components, strengthens negotiation positions with suppliers, and ensures competitive pricing structures. 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲𝐢𝐧𝐠 𝐇𝐢𝐝𝐝𝐞𝐧 𝐑𝐢𝐬𝐤𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 A thorough cost analysis also reveals potential vulnerabilities—geopolitical risks, currency fluctuations, supplier reliability, and material shortages. Companies that integrate these insights into their cost management strategy can make informed sourcing decisions and reduce exposure to disruptions. 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐢𝐧𝐠 𝐃𝐞𝐬𝐢𝐠𝐧 𝐟𝐨𝐫 𝐂𝐨𝐬𝐭 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 Early-stage cost transparency enables design-to-cost and value engineering. Understanding how different materials, manufacturing processes, or design changes impact costs allows engineers to develop cost-efficient and risk-minimized solutions without compromising quality. 💡 𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞: 𝐂𝐨𝐬𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭. Companies that invest in detailed cost transparency are not only optimizing expenses but also safeguarding their operations against unexpected financial and supply chain risks. 👉  𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐲𝐨𝐮𝐫 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐜𝐨𝐬𝐭 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲? 𝐋𝐞𝐭’𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬!

The 2025 Spring Church of SCRM Evangelists has closed its doors. Thank you to all participants and speakers of the 2nd Annual Supply Chain Risk and Resilience Forum. It was great to connect, exchange ideas, and explore joint opportunities. Greg Schlegel, our Meeting Host, Chief Evangelist, and Founder of the SCRM Consortium did a tremendous job moderating the event. I tried to copy his enthusiasm about SCRM („we are risk evangelists“) and started to preach during my speech hoping some wisdom would fall from the sky. Besides a panel discussion on Technology such as AI Models, etc. I had the opportunity to talk about „Supply Chain Stability Meets Integrity: Responding to Crisis with a Powerful Approach Driving Resilience and Competitiveness“ ✅Why Risk Culture matters: Fail or not to fail ✅Establishing practical effective Frameworks to make it happen ✅Digital Supply Chain (Risk) Management: Connecting Humans and Machines, combined intelligence ✅Learn from leaders: Implementation strategies, etc. To all Risk & Resilience Pros: Joint the 2026 Edition, the ultimate event for professionals dedicated to enhancing supply chain robustness and adaptability. Meet a dedicated group of Risk and Industry (thought) leaders from global companies. This year we had participants from organizations such as Nestle, Maersk, Siemens, Schneider Electric, Thermo Fisher, SAP, Heineken, Marsh, KION, TotalEnergies, Daimler Truck, Heineken, Vestas, Roche, Philip Morris, targetP evolving procurement. It’s worth the time and money!