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.

"I’m a big believer in market intelligence, where we educate the business on the providers and the levers to pull. It's not about just pricing; it's understanding the market." - Amy Fong, Partner, Sourcing and Vendor Management, Everest Group

Service categories are experiencing unprecedented change driven by generative AI, which is shifting workforce models and evolving commercial structures across the business.

Procurement has to be continuously focused on how these changes are affecting the business. For procurement leaders managing these services categories, navigating this transformation requires new ways to think about areas like contracting, relationship management, and value measurement.

In this episode of Art of Procurement, Philip Ideson speaks with Amy Fong, Partner, Sourcing and Vendor Management at Everest Group, about the rapid evolution of business services sourcing. Amy brings unique insights from analyzing thousands of contracts and observing what leading companies are doing to adapt their sourcing strategies and their approach to output- versus outcome-based contracts.

In this episode, Amy explains:

• Why outcome-based contracting remains an aspiration, not a reality, for many companies (and how to change that)
• How generative AI is fundamentally changing service delivery models and what that means for performance measurement and cost structures
• What procurement teams must bring to the table to earn their place in strategic make-or-buy decisions

Links:

• Amy Fong on LinkedIn
• Get $100 off the super early bird ticket for Engage with code AOPFRIEND
• Subscribe to This Week in Procurement
• Subscribe to Art of Procurement on YouTube

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.

Twenty-five years after co-founding Corporate United, the first indirect GPO in the United States, David McCarty points out an inconvenient truth: the very tools procurement once developed to leverage spend are no longer as effective in today's supplier-dominated landscape.

In this episode of "Buy: The Way…To Purposeful Procurement," David joins co-hosts Philip Ideson and Rich Ham to discuss the evolution of Group Purchasing Organizations (GPOs), from their early promises of dramatic savings (15-30% back in the early 2000s) to their current state, where GPOs are much more limited in their ability to determine and optimize spend.

With refreshing candor and a healthy dose of optimism about today’s forward-thinking GPO leaders, David confirms what many procurement leaders have long suspected: most GPOs are less effective today than when they were founded, partly because they've become a kind of checkbox solution that gives procurement a "false sense of security" rather than a true route to optimized expense management.

For procurement leaders who are worried that their suppliers might be gaming the GPO system, David provides realistic guidance on how to select the right GPO partner (from looking at contract age and rebidding frequency to volume transparency and customization options). He also points out the key areas where GPOs can still deliver differentiated value, but only if they are leveraged appropriately and procurement puts the time and effort into measuring the value they expect to receive.

While there are still benefits to using this model, it’s clear, says David, that in 2025, strategic procurement through GPOs requires a more discerning, purpose-driven approach than ever before.

Links:

• David McCarty on LinkedIn
• Rich Ham on LinkedIn
• Learn more at FineTuneUs.com

“In a transformation, make your good examples in the beginning, where you think you will make a difference.” - Joel Andersson, Process development and digitalization project leader - indirect procurement, IKEA

Building a mature indirect procurement function that’s strategically aligned with the rest of the business is a journey filled with problem-solving, stakeholder relationships, and continuous learning. It requires a ‘thinking-on-your-feet’ approach and a willingness to adapt as the business and its priorities evolve.

For IKEA, this transformation began about five years ago when they moved from a self-organized approach to a centralized, strategic function that drives measurable value beyond just cost savings.

In this episode of Art of Procurement, Philip Ideson speaks with Joel Andersson, Process development and digitalization project leader - indirect procurement at IKEA, about the company’s indirect procurement transformation journey.

Joel shares insights on how his team built credibility through early wins, implemented foundational technology, and is now exploring advanced capabilities including services procurement optimization and generative AI.

Listen in to hear:

• Why establishing visibility through spend analytics was their critical first technology investment before implementing a source-to-pay suite
• How demonstrating value through early "low-hanging fruit" wins created the business case for expanding the procurement function
• The unique challenges of indirect procurement compared to direct, particularly around stakeholder management and services procurement

Links:

• Joel Andersson on LinkedIn
• Subscribe to This Week in Procurement
• Subscribe to Art of Procurement on YouTube

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.

"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 strategies, but highly effective communication that helped secure executive support and turn resisters into supporters.

In this episode of Art of Procurement, Philip Ideson speaks with David Yarkin, CEO of Procurated and former Chief Procurement Officer for the Commonwealth of Pennsylvania. David brings a unique perspective influenced by his background as a former press secretary and in procurement leadership.

In this episode, David shares how he led Pennsylvania to unprecedented savings through strategic sourcing initiatives and a powerful approach to communication:

• How to build support for procurement transformation, even against significant resistance, while also staying aligned with company leadership
• Why supplier performance management should be a high priority for procurement and how a lack of visibility into early warning signs can lead to major failures
• How procurement leaders can break through organizational barriers by getting out from behind their desks and experiencing operations firsthand

Links:

• David Yarkin on LinkedIn
• Pennsylvania Did DOGE Before Elon Musk Made It Cool
• Subscribe to This Week in Procurement
• Subscribe to Art of Procurement on YouTube

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.