In this episode of Smarter Sourcing, John speaks with Kevin Spinti, Vice President of Global Procurement at Heraeus Medevio. Kevin shares his insights on the evolving landscape of supply chain management, offering his perspective on the significant impact of remote work on team dynamics and communication as well as how technology has facilitated collaboration in a virtual environment.

Kevin also emphasizes the importance of contingency planning, especially in light of recent global disruptions, and how it has reshaped procurement strategies. Additionally, he explores the changing negotiation landscape, driven by inflation and market shifts, and the need for innovative approaches to supplier relationships.

Topics discussed:

• The transformation of team dynamics and communication strategies due to the shift to remote and hybrid work environments in supply chain management.
• The importance of contingency planning in navigating supply chain disruptions, particularly in the context of recent global challenges and the pandemic.
• How technology is reshaping procurement roles, streamlining processes, and enabling teams to focus on strategic decision-making and supplier relationships.
• How the evolving negotiation landscape is influenced by inflation, requiring procurement professionals to adopt new strategies and approaches in supplier interactions.
• The significance of dual sourcing and risk mitigation practices in ensuring supply chain resilience and stability amidst potential disruptions.
• The role of continuous improvement and training in enhancing the skills and capabilities of procurement teams in a changing environment.
• The impact of geographic diversity in procurement, with teams covering multiple facilities and categories across different regions and countries.
• The growing emphasis on sustainability and environmentally friendly materials in procurement decisions and supplier partnerships.
• The need for effective communication and stakeholder engagement when managing multiple projects and prioritizing risk mitigation initiatives.
• The shift in executive expectations, with a greater focus on risk management and strategic insights rather than just cost savings in procurement.

Guest Quotes: 

“I would say if you rewind the clock seven years ago, what was procurement? Procurement was, well, make sure you get the right stuff to the right place on time, but really save us money, find savings, avoid inflation. And those are your main KPIs, right? On-time delivery. And what did you do from a net savings standpoint? And then the pandemic hit, and then suddenly there were shortages everywhere, stuff you didn’t even see coming, new things every day. And so now I think companies or executive teams are much more willing to spend the time and the money and the resources on preventing some of that.”

“We shifted and we were able to have people work on a more regional or even global basis where instead of being the buyer just for one facility, you’re covering maybe one category across multiple, multiple facilities and buying regionally helps from a communication and coordination standpoint, it really helped when we were having a some of the shortages needing prioritized.”

“Given where our handful of our suppliers are located, where our sites are located, that would be a huge disruption. Not that we wouldn’t necessarily have the safety stock to get through it if it were a week, but if it were something more serious or more localized, near one of our suppliers or plants, that would probably still shut down production for some time. And so that would be a big one.”

“Just from a bigger picture view, it’s not like, oh, okay, we’re shut down for a week, we’re going to miss this amount of revenue. We’re going to have this customer that’s unhappy. No, there’s a patient potentially sitting in a hospital who needs this device or this treatment and they’re going to really struggle or could even potentially die without it.”

Get in touch with Kevin Spinti:  

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Get in touch with your host, John Pavia: 

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