Blog

From insights come answers.

A series of articles from the Insider Pro team, in which we examine relevant topics and examples of current challenges that we see in our work with a huge range of organisations, across many sectors.

Talking Trash!

Posted by Ollie Hucks

Trash or rubbish, or waste, is something we all produce daily, and other than putting it into a nearby bin or putting the bins out once a week, you probably don’t think much about it. In this blog I will be talking rubbish… literally, not metaphorically.

The waste landscape is ever changing but its importance to society and business is becoming increasingly pertinent. As the population increases and individuals use and consume more and more products on a daily basis, the demand for waste disposal increases. Society is also becoming increasingly environmentally conscious, so the ability to just chuck everything to landfill is no longer an option, and with the use of rarer substances that require specific disposal methods, there is a requirement for robust waste solutions.

What types of waste are there?

There are eight types of waste, these are: (Click to slide through)

 

Where does waste go?

Depending on the type of waste being collected, it could go through several potential destinations and processes:

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Topics: Disruptive Procurement, Best Practice, Procurement Consultancy, Case Studies

The productivity puzzle - can you solve it in 2024?

Posted by Jeremy Bowley
 
The productivity puzzle in the UK is a longstanding challenge, one that seems resistant to both quick fixes and seismic shifts in economic policy. While technological advancements, government interventions, and investment strategies are often heralded as silver bullets, the real solution lies deeper within the fabric of how businesses operate and strategize.  We need productivity growth to make sure that we can grow as a nation and deal with the global inflation we have experienced in the last year.
 
 
The Current Productivity Landscape
Recent statistics paint a grim picture of UK productivity, lagging significantly behind other G7 nations. This is not a new problem, but it has been exacerbated by a confluence of recent geopolitical and economic upheavals—from Brexit and the COVID-19 pandemic to the ongoing effects of the War in Ukraine and the Middle East, and fluctuating interest rates. The broader economic and political climates have undeniably influenced the UK's productivity, creating an environment of uncertainty and reactive policymaking. For instance, Brexit alone has reshaped trade, labour markets, and regulatory frameworks, disrupting established business operations and supply chains.

Source: House of Commons Library. Productivity: Key Economic Indicators

Historical Context
However, the UK has faced and surmounted significant challenges before. The post-war rebuilding efforts, the Cold War, and the economic crises of the 1970s, including the Winter of Discontent, all presented substantial hurdles. This historical resilience suggests that while external factors do impact productivity, they are not insurmountable barriers.  There has however been a decline in productivity growth over the past 50 years, from an average 2.1% per annum between the years 1975 - 2006, to 0.2% between 2007 - 2019.  The pandemic years of course led to a further decline and we are struggling to turn this around even now in 2024.
 
The Limits of Conventional Solutions
In the face of these challenges, there is a rush to look to technology, increased investment, or changes in tax policy as panaceas. Indeed, technological innovation has the power to transform industries, making processes faster and more efficient. However, as seen in various sectors, technology alone cannot spur productivity if the workforce is not skilled enough to leverage these new tools effectively, or if organisational structures do not adapt to new operational paradigms.  The recent collapse in the e-passport system at our borders, led to a very unproductive few hours whilst border forces appeared powerless to manage efficiently without the technology.

Similarly, while government policies on investment incentives or tax relief can provide temporary boosts, they often fail to address underlying systemic issues. For example, significant investment has flowed into digital infrastructure and startup ecosystems, yet productivity growth remains tepid. The reason? These investments are not always aligned with a coherent strategy that addresses the specific needs of businesses or the economy at large.  The Government funded UK Productivity Commission set up by the National Institute for Economic and Social research has noted a North/South divide with London performing well but cities in the Midlands and North of England, suffering from poor communications and investment in skills.  Lagging sectors include manufacturing, Finance, Insurance and Communications technology.

What else could be drivers?  Ross Clark, writing in the Spectator last September had some good ideas.  Did the plentiful availability of Eastern European labour replace any incentive for investment in automation? Did the Equality Act of 2010 make it harder to recruit and manage the productivity performance of the workforce? Is the post-pandemic pattern of increased working from home, focus on work-life balance and mental health awareness, also contributing to our challenges in increasing productivity?

Rethinking Productivity Growth
This brings us to a crucial realization: the challenge of productivity is fundamentally a thinking issue. It's about how we design our business propositions and our work processes. Productivity growth is less about what tools we have and more about how we use them. It is about leadership vision, management practices, and organizational culture—factors that determine how effectively resources are utilized and how well employees are engaged.

True productivity enhancement comes from within the organization. It involves rethinking how tasks are allocated, how teams are structured, and how outcomes are measured. It requires a shift from traditional hierarchies towards more agile, collaborative work environments that empower employees and foster a culture of continuous improvement.

Conclusion
In conclusion, while external factors like economic policies, global crises, and technological changes influence productivity, the core of the issue lies in how businesses strategize and operate. The UK's productivity challenge is not just an economic puzzle to be solved by policymakers but a call to action for business leaders across the nation. The path to higher productivity is paved with smarter work designs and more innovative business models.
 
Some practical, fairly easy things you can do, right now:
  1. Reduce the number of meetings your team is involved in - evaluate the necessity of every meeting.
  2. Invest time in making sure everyone, at all levels, understands the 3 most important things the team will deliver, each quarter.
  3. Focus half a day a week on getting your team together in one room, to agree who is doing what and what they are not doing. Follow up each week to review activity.
  4. Use Whatsapp within small groups to communicate quickly - include urgent information, and lots of good news to help motivation and a sense of healthy competition.  
  5. Meanwhile, encourage people to speak to each other 1-2-1, to iron out issues and clarify who is doing what.

In this era of unprecedented change, the UK has the opportunity to redefine its productivity narrative, building on its historical resilience and forward-thinking leadership. The solution lies not in the hands of government alone but within the corridors of businesses across the country.

It is time for a strategic re-think of how we work and grow.

#productivity #efficiency #supplychainmanagement

 Download 11 ways to reduce profit by 20%
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Topics: Disruptive Procurement, Procurement People, Best Practice, Supply Chain Management

Are you tracking the right commodities?

Posted by Ollie Hucks

In an ever-changing world that is shaped by global political, environmental, social and technological changes, being aware of how these changes affect your business can feel extremely daunting. Keeping on top of your day-to-day role and responsibilities at work may seem a never-ending task, and then, on top of this, ensuring your business is getting optimal value for money through the products and services that it procures, may not be at the top of your “to do” list.

The world today is exposed to major shifts, be that through environmental degradation fuelled by climate change, or by geopolitical conflicts sending shock waves throughout the world. These events often feel distant to your organisation, especially since the majority of the audience that this article will reach is living in a relatively sheltered and stable society. However, these events can have a significant impact on our society at a scale far beyond just localised impact.

At Insider Pro we are constantly exposed to examples where global dynamics are having an impact on specific sectors. To demonstrate this, we will examine the paper commodity prices and the implications that this has had on the paper packaging sector. To set the scene, this article is being written in early 2024, amidst a war between Russia and Ukraine and a few years after the Coronavirus pandemic. Paper is a commodity, trees have to be cut down, or items have to be recycled to produce the end product.

The very nature of this commodity means that it is exposed to impacts from the following:

Whilst not exhaustive, the aspects highlighted above give a flavour of just how many key elements drive a final commodity price, so understanding how each of these aspects impacts on a commodity price is something that we empower our clients to understand. Continuing with the example of paper pricing, we believe that a holistic understanding of the market and subsequent commodity prices is something that should be a common area of discussion between a packaging supplier and their customers. This could be through a contract term that tracks commodity prices, or just through general discussions aimed at understanding the likely direction of travel in any upcoming price reviews.

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Topics: Disruptive Procurement, Best Practice, Procurement Consultancy, Supply Chain Management

A Virtual Christmas - Team Spirit in Action

Posted by Jeremy Bowley

If 2020 has taught us one thing, it's the importance of team spirit.  And Insider Pro demonstrated this clearly at our Christmas jumper charity event last week.  Since March, everyone has been forced into a position of uncertainty and isolation and being part of a team has become even more important.  It was critical to decide quickly on the best ways to hold the team together, communicate, connect and maintain important relationships. 

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Topics: Best Practice, Our Team

Why best practice procurement could be costing you £m’s (and what to do about it)

Posted by Jeremy Bowley
I regularly meet C-suite executives attempting to drive the adoption of best practice procurement in their business believing that this will lead to better cashflow, profit and a more resilient supply chain. However, I often see sub-optimal results from this approach with some organisations missing opportunities to improve enterprise value. It’s counter intuitive but a simple shift in thinking w ill drive more value.
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Topics: Disruptive Procurement, Best Practice, Procurement Consultancy

8 essentials for best practice procurement consultancy

Posted by Jeremy Bowley

"Best practice" is a phrase that can be over-used, but nonetheless sought-after by all concerned.  We like to talk about "Next practice" as a way of bringing about improvements as well as change.  This list combines suggestions from the top industry gurus - including our modest selves!

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Topics: Best Practice, Procurement Consultancy

Procurement team assessment - 7 questions

Posted by Jeremy Bowley

Procurement teams are generally assessed on their ability to meet budgets.  But if they hit their target every time, does that mean they are really good at their job, or that the spend target is too easy to achieve?

Should you be asking your procurement team to cut costs even more, or should their success be more closely aligned with company goals and driving shareholder value?

Clearly, when margins have been cut back several times there comes a point where simple cost cutting cannot be achieved.  As a consequence, the more astute procurement teams focus instead on ways to impact total cost of ownership, overall profitability, business competitiveness, risk reduction and other elements that drive enterprise value.

To test whether your team has made that leap and moved away from the traditional procurement role into the more dynamic, mission-critical role that your business needs, try this simple checklist:

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Topics: Procurement People, Best Practice, Procurement Consultancy

What can we learn from the Tesco Booker Merger?

Posted by Jeremy Bowley

As procurement consultants, we are always looking for great examples of disruptive procurement in action.

The $3.7bn Tesco Booker takeover was a great example of disruption in the food distribution marketplace.

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Topics: Disruptive Procurement, Best Practice

Construction: Supplier performance management - the 7 questions you should be asking

Posted by Jeremy Bowley

We worked with a national builder and cut £millions off their cost base, moving their business from being uncompetitive to one of the most profitable in the industry.

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Topics: Best Practice, Supply Chain Management, Case Studies

Webinar Synopsis - the 7 key ingredients of disruptive procurement

Posted by Jeremy Bowley

Procurement has traditionally been seen as a back office department. But there is an increasing desire for procurement professionals to make a big impact within a business.

While in-roads have been made, there is still a lot of work to do to make procurement a driver of strategic change.

In this webinar it was discussed how 'Disruptive Procurement' can be used by procurement professionals to deliver that change.

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Topics: Disruptive Procurement, Best Practice

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