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Digital procurement and reducing friction | Future Ready with Bechtle
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Digital procurement and reducing friction | Future Ready with Bechtle
Supply chain disruption, rising operational costs and increasing governance requirements are changing the way organisations approach IT procurement.
In this episode of Future Ready with Bechtle, host Stephen Harley is joined by Jon Tupper, Digital Business Manager for UK & Ireland at Bechtle, to explore how digital procurement platforms are helping organisations improve efficiency, reduce operational friction and strengthen supply chain resilience.
In this episode, we cover:
How IT procurement has evolved over the past two decades
The growing importance of governance and compliance in procurement
Reducing operational friction through digital procurement platforms
Managing supply chain disruption and product availability challenges
The hidden soft costs associated with procurement processes
Balancing digital platforms with human expertise and account management
The importance of vendor relationships during supply chain disruption
How procurement integrations improve efficiency and control
Why marketplaces and ERP integrations are becoming increasingly important
The role procurement plays in improving wider business resilience
👉 Watch the full episode to explore how digital procurement platforms can improve operational efficiency and reduce supply chain risk:
https://youtu.be/Fb6a6eyuxa0
👉 Learn more about Bechtle UK’s digital procurement and e-commerce solutions:
https://www.bechtle.com/gb/bechtle-library/bechtle-pillars/services
👉 Interested in improving procurement efficiency or reducing operational friction?
https://www.bechtle.com/de-en/help-centre
#FutureReady #BechtleUK #DigitalProcurement #SupplyChain #Procurement #ECommerce #ITLeadership #DigitalTransformation #BusinessEfficiency #FutureOfWork"
The Bechtle Future Ready Podcast explores how technology is transforming the way we work. Hosted by Bechtle UK, each episode features thought leaders and innovators discussing digital transformation, cybersecurity, sustainability, and the modern workplace.
Discover insights and strategies to help your business stay agile, connected, and ready for what’s next.
🎧 Subscribe now and get future ready with Bechtle UK.
I'm Steve Harley and this is Future Ready with Beckla. Today I'm going to sit down with John Tupper, Digital Business Manager for UK and Ireland here at Beckla. We're going to be discussing digital procurement platforms and their role in reducing friction, lowering costs, and helping us cope with supply chain risks in a volatile world. This is a great episode for anybody looking to improve their procurement processes and eliminate soft costs and cope with supply chain challenges that we're seeing today. Remember to like and subscribe wherever you get your podcast from. Welcome to Future Ready with BeckLab. My name's Steve Harley, and today I'm joined by John Tupper. He is Digital Business Manager for UK and Ireland. And today we're going to be speaking about all things IT digital procurement and the role that plays in building resilience within our organisations. First of all, John, welcome to the show. Hi Steve. Thanks for having me.
SPEAKER_01Good to be here.
SPEAKER_00John, you've obviously been in the industry now for some time, involved with digital procurement and the Beckler.com platform for a substantial period. Don't mean to make you sound old at all in that. What's changed though over that time in procurement? Because it it feels to me like it started out quite straightforward and now it's not as simple.
SPEAKER_01Yeah, hit the nail on the head. So for context, I joined Beckler early 2000s. It was a simpler time, I think, back then. Certainly less competition, uh, less should we say red tape from uh organizations that we worked with. It was fairly simple. They need uh XYZ and we'd provide it, and that was it. There was no real uh checks or balances uh to a certain extent. So um I think fast forward to today, um, there's certainly it's it's it's kind of shifted from more of a transactional mythology to more of a data-driven, I guess, decision-based outcome. Um, more people involved in in ordering stuff, whatever that stuff may be. Um more um compliance challenges around around that? A bit more compliance for sure, but I would say more pressure to prove return on investment as well. Um, so yeah, I think overall just more scrutiny on every penny that is being spent by our organizations, and whether or not that means uh organizations are using their kit for longer, or if they are seeking more value from the goods that they're ordering. Um there's definitely more of a uh a magnifying glass on the output of IT than 20 years ago. That's what I'd say is the the biggest change.
SPEAKER_00Yeah, no, I you can see that in in on all sorts of levels because IT's is it like you. I've been I've you know I I had hair when when this this whole thing, not this episode, but but my career started in IT. So I I've seen that change. IT's become much more intrinsic to our organizations, and I suppose with that, that's driven that procurement piece as being ever more important, making sure that we've got the components, got the uh the the hardware that need to make things happen. Yeah. And the software, of course, as well.
SPEAKER_01Yeah, for sure. Um ironically, I had less hair when I started uh than now. Um, but yeah, I think IT has evolved so much in the last couple of decades. It used to maybe be a department that would enable people to do their jobs and do XYZ, but now it's become a real driver in an organization and it's at the forefront. And I think because of that, there is just more people involved. Um, and as I say, more internal steps that people or organizations have to take before parting with their well-earned money.
SPEAKER_00And I suppose with that change where IT becomes more intrinsic in what we're doing as a business and more vital, that importance has grown, we've got at the same time a situation where supply chains and the world that we live in seems ever more uncertain. And and you kind of we see that with you know disruptions um uh to global shipping, disruptions around you know demand for you know, be it memory, etc. Um, how can uh you know digital procurement platforms like Beckler.com help organisations cope with those those circumstances?
SPEAKER_01I think it's um it's it's giving options, right? So the digital procurement uh certainly from our perspective enables organisations to look at more than just a standardized kit, you know. So we are um very eager to promote catalogue management within people's platforms. Um so yes, an organization may have their 20 or 30 standard SKUs that they'll roll out, um, but having access to 80,000, 85,000 products that have real-time stock information or real-time pricing of the best industry price for those alternatives that are potentially in stock where the standards are not in stock, instantly 24-7 within a couple of clicks, I think that changes the the whole uh decision-making process because it's not just about the cost of the product anymore, it's about the uh the value. Um, and there's as with most businesses, there's always a soft cost, right? So, yes, this bit of kit might be 500 pounds, but um what's the cost of ordering your standard SKU that's then not going to be delivered for two weeks because you got somebody out of their role and and not meeting their goals, right? So, yes, it on the surface, if you exchange that for a 600-pound alternative that's in stock, yeah, it's £100, but really what's the value that you've you've gained from that? So, yeah, I think specifically within the platform, you know, we we look to enable that through tools such as um comparing items and very clearly listing out specifications next to each other, highlighting any differences in those specs so that our customers can ultimately look at the choices out there and make an informed decision based on the data that's in front of them.
SPEAKER_00You know, as you've pointed out there, John, we've got some real powerful tools in terms of scale of procurement, scale of choice, also the ability to compare and understand products. But isn't there a human element in this as well to make sure that we get the right results for our clients?
SPEAKER_01Yeah, spot on. Um as much as I am a massive believer in digital platforms and tools and automation and all that kind of good stuff. Um there's no replacement for somebody that knows your organization, knows you, knows your goals, your strategies, um, and knows the industry. Um, and from our perspective, I think we will never say, hey, Mr. Customer, here's a platform, see you later. It will do everything. To some extent, yes, you know, we have self-service customers which um can benefit from that approach, but but I think 99% of the time it's about how our account managers are managing the digital experience and making sure that things like not just catalog management but the and the commercials of the products are in there, but uh the workflows, the the user rights administration, this is all needs to be set up correctly initially if customers are gonna see the real value from it. So, yeah, the from my perspective, it's a 50-50. You know, we we don't ever say, oh, this customer is primed for a platform, and this customer is not going to benefit from a platform, they need to have um some kind of you know a key account management function. Um, it's it's nearly always a combination of the two. And some will lean more heavily towards just using the platform because uh the nature of what they do with us as a as a reseller is the transactional stuff. Um, but from from our perspective, yeah, there's always that human element that is there to um to orchestrate what is available online.
SPEAKER_00So I imagine you know, when supply chains get disrupted, when lead times get pushed out or parts or components become under constraint, then you having that human element able to intervene and understand what the technology can actually do and what you're doing with the technology and being able to identify the most appropriate alternatives, that that's got value, right?
SPEAKER_01Yeah, it's crucial, absolutely crucial. And it's it's not just about the or our account managers uh experience and their ability to mold and and tailor this the these types of platforms to our customers, it's about our relationships with the vendors as well. You know, that that plays a massive part in this. So um, let's say uh you know, uh go back to the example before. X standard laptop is no longer available. There's nothing really stopping an organization from looking at either a different SKU or a different vendor and different vendors, you know. We work with, you know, as an organization, as I'm sure you know, we are completely agnostic um between all of the vendors that we work with, um, highest accreditations and everything. So we we have people uh that represent these vendors come to us and they are eager to win the business from their competitors as we are from our resellers uh from our competitors. So I think having that account manager that has that um ability to have those direct conversations on our customers' behalf about the issues about the supply chain around XYZ and you know, there's an opportunity to now step in and take that business, that's crucial. And that's not going to happen online, at least at the moment, you know, maybe in a few years with the rise happening. It's been what, 10 minutes and we haven't mentioned A.
SPEAKER_00I mean, it's the longest I've been I've been all week without mentioning it.
SPEAKER_01Um so yeah, no, it's absolutely crucial that that human element is there to use the expertise and relationships that we have in place to um to try and mitigate the risks of things like supply issues.
SPEAKER_00Yeah. And I suppose as well, then to be able to bring in some of those wider Beckler services to to reduce risk, you know, so so stock holding and things like that, we can uh we can do, you know, we've we've got a decent portfolio to help people cope with these shocks.
SPEAKER_01Yeah, for sure. And not just in the UK and Ireland, but you know, if we look at the whole Bechler group across Europe, you know, we are primed to have these conversations with our customers early on, understand what their forecast and their rollout looks like, and then put together a plan of action to uh to mitigate those risks of potential issues around you know uh the the stock that may or may not be available. So yeah, stock stock holding is is a massive one. Um, you know, we are again prime to um to to manage that. Um I think moving forward, we are working towards uh more harmony between e-commerce and the efficiencies that that gives and the the kind of warehousing hands-on engineered kind of approach. Um I don't want to say too much, but don't give it too much longer. And we're gonna have a great solution that will merge those two worlds together into you know one kind of almost solution. So, yeah, absolutely. And it's about again coming back to that human element, it's about understanding the customer and putting forward the right options for them.
SPEAKER_00Yeah, no, absolutely. And and I suppose, you know, it's it's very easy to think that that you know uh tools and platforms like Beckla.com, um, you know, uh are they they they they're just e-commerce sites. It's not, it's more intrinsic to your to your procurement strategy, and your procurement strategy is is is fundamental to to to your business's success.
SPEAKER_01Yeah. Yeah, and and for us, going back to how things have changed, you know, when we were when I joined, we were a catalogue supplier, you know, a big thick catalogue, uh, which kind of quickly in my career with Beckled turned over into e-commerce. Um and that was all we did. You know, we were essentially given the best tools to deliver something in the most efficient way at the most competitive prices, um, with very little kind of value add around professional services and things like that. And now fast forwarding to today, where we are in the world of um being one of the top fares around, uh, we we have that experience of you know 30 years or so of of e-commerce, but actually couple that with what we're now able to do with our um solutions and services team, uh professional services and and act as that MSP, it's a really compelling, um uh compelling story because you'd usually get a supplier that's on one end of the spectrum, right? But we've got the history of e-commerce, but actually the the human touch and the expertise around the specific areas of the industry to really to kind of nail what the customer's looking to do.
SPEAKER_00And and if you were advising leadership in a customer today, a CEO, a CIO, an IT director, what's the biggest thing that they should understand uh about adopting the right procurement um platform, the right technologies, the right delivery mechanism? What what should people be thinking about?
SPEAKER_01I think um they need to understand the options available to them. Um and another way that the whole landscape has evolved is um the the utilization of marketplaces, things like uh SAP Ariba, uh Cooper, um having more strict rules in place within internal ERP systems and procurement systems. Um so for us, in terms of that evolution, we've moved with the times and and enable that integration of our we call it Beckler.com platform, but actually it's the catalogue supply, the ability to receive uh electronic purchase orders from their from purchasing systems directly into our ERP, um, the ability to send those order confirmations, dispatch notifications, electronic invoicing directly as soon as the invoice is raised. So it's there's the whole journey. So coming back to your question, uh what would I suggest almost is to look at the options available, look at the integrations that are available, because we talk about Becclo.com and other digital platforms increasing efficiency and control. And that's absolutely crucial and key, and that's that's never going to change. But the next step on from that is integrating into our customers' procurement systems so that um we can follow their internal approval processes that they already have set up. Access to catalogs on a per user basis is already easy to set up within um customer systems, be it a marketplace or or directly from ERP. So, yeah, absolutely. Um work with us, ask the question to see what's available uh in terms of those integrations and really push that efficiency onto the next level.
SPEAKER_00So to kind of to summarize why I'm hearing and understanding, John, is that that that yes, there's savings in terms of buying power and uh uh and there's uh savings and reduction in risk through you know choice, uh stock holding, those kind of capabilities that people have. But there's there's a saving from deep integration within people's procurement processes and making sure that that that it just meshes and we become an extension of their organization.
SPEAKER_01Yeah, again, hit the nail on the head. Being an extension of our customers' teams is is what we look to achieve across the board, be it um uh within the IT department or within the uh advisory kind of role, in terms of you know, hey, where are you looking to get to in five years' time? We we want to be there along with the journey and the the integrations of our systems with theirs is is is another arm of that, I suppose. So yeah, um for us, we are seeing a huge amount of uptake in this, not just in the UK and Ireland, but you know, across all of Europe. Um just to give you a couple of stats, you know, 60% of all of the orders that are placed with the Bachelor group across Europe are put through our digital tools, either through our browser-based website um or e-commerce site, or through these integrations that we're talking about. So um, you know, that's that's no small number, really. You know, 60% of what are we like eight, nine billion revenue or so. Um it's not necessarily 60% of that, that financial number, because by the by the nature of the transaction, right?
SPEAKER_00Because it's still but still incredibly valuable. And I think that's I think that's the the point that that can be easily be missed is that um you know that the in a world where you know we spend a lot of time on this show talking about AI or cybersecurity. I think we just we we we met with Lee um the other week and we spoke about um uh quantum computing, right? So we talk about all these technologies, but but really moving a business forward can be as fundamental as just reducing the friction and the risk within the within the basic procurement functions of uh of an organization. And we're in a really strong place to do that.
SPEAKER_01Yeah. Do you do the the basics right and the rest will follow. I think that's uh that's something that we believe in as a as a reseller, and and a lot of the organizations that we work with are seeing this. Um I think just to to go on to a bit more detail around the um the integration possibilities, and I guess uh in general, e-procurement in in in general, um, there's soft costs involved, left, right, and center. Um, some organizations choose to ignore them. Yeah. And some organizations are very well aware that every time they raise a purchase order has already cost the business fifty dollars or whatever it might be. You know, so I think our job as a as a trusted advisor to our our uh customers and and the organizations that we deal with is to raise awareness of this and say, hey, if we can take this operational cost that is currently this and squash it down to that, the difference of a few pounds more on a product or an alternative product, or dare I say it, the the cost difference between us and one of our competitors is negligible. It's it's it's null and void because we've already looking at taking a step back and looking at the bigger picture. So I think there is from experience, there is more to be saved from a customer's perspective on refining the process increasing control than there is on I need an extra fiver off of this, or we have a three-quote process. I mean, the three-quote process in my head, and and I know a lot of organizations still do this, um, it seems bizarre to me because time is being invested from people to save a small amount of money. To save a very small amount of money, and that time invested, you know, there's the procurement piece is very such a small part of an IT's function. You know, the the department is there to push their business forward, they're not there to enjoy ordering keyboards and laptops and uh whatever it might be.
SPEAKER_00So it's the perfect example, isn't it? I mean, I I I remember from earlier in my career I used to encounter very regularly organizations that have a free quote process and they would be looking to save 20-30 pence on a on a mouse. Yeah. Yeah, and and you they're going like, this this absolute you're buying two of these. This is at the time that you've spent has cost that. So that understanding's really important.
SPEAKER_01And I would say it's less common now than maybe it was 20 years ago. Yeah. Um, but yeah, no, I think it's it's important to look at that that total cost that's involved in a process and in the journey of ordering something to enable something within your business. Um so yeah, uh, you know, we're we're here to have these conversations with our um customers and and to guide them or at least give them options because ultimately if an organization will work how they want to work, okay. Um, and no amount of advice from an external organization that has no um you know h history with that organization is gonna change that. However, all we can do is put those options forward, um give evidence as well. Uh, I think evidence-based results is really important.
SPEAKER_00People can make informed choices, right?
SPEAKER_01Exactly.
SPEAKER_00Yeah, yeah. John, it's been really, really fascinating conversation um about a subject that that that that is so easily overlooked in the boardroom. Um, but uh but thank you very much for your time. It's been having a pleasure in having you on the show. No problem, it's great to be here. Thank you, Mike.