Supply + Demand: Digitizing Procurement to Develop a World-Class Supplier Experience

  • Sourcing: Sourcing is the process of researching, vetting, building relationships with, and eventually contracting suppliers for the inputs that a company needs for its operations. Sourcing is tasked with carrying out research, creating and executing strategy, defining quality and quantity metrics, and choosing suppliers that meet these criteria.
  • Procurement: the actual process of acquiring and paying for the goods and services that operations need to satisfy the demand for the finished goods and services that a company must deliver to its customers. Once procurement has occurred, sourcing uses the information generated during the procurement process to perform its vendor assessment and management responsibilities.

Supply Chain Process at JP Morgan

  1. The traditional process is RFP — request for proposal. You go on the website and fill out the RFP form for procurement — for a proposal to work with them. Once the application is reviewed, the team reviews the intakes and makes the decision of whether or not there’s an opportunity in their spending categories. Some of the categories are:
  • Technology
  • Professional services like auditing, recruiting, marketing and communications.
  • Global real estate, loan services (for collection, property inspection, lending on the mortgage)
  • Global security
  • Travel and entertainment
  • Tier 1 includes the largest kind of spenders and large accounting categories that spend within their companies.
  • Tier 2 includes generally smaller contracts. Some of these may start out as a pilot program to assess whether they can officially be a supplier.
Tiffanie Stanard, Supply + Demand Organizer and Host; Founder & CEO of Stimulus, Inc. and Shaunté Robinson, Vice President at JPMorgan Chase & Co. discussing supply chain
Tiffanie Stanard, Supply + Demand Organizer and Host; Founder & CEO of Stimulus, Inc. and Shaunté Robinson, Vice President at JPMorgan Chase & Co. discussing digitizing procurement

The Impact of Supplier Experience

  • They have created minority entrepreneur consultants, in 30 different cities, some of the largest and most diverse cities in the country. From startup to $2 million their goal is to mentor and coach.
  • They now have an incremental spend of 750 million across the next five years, particularly for black and Latin suppliers.
  • They are focused on financial health and literacy so they now have community managers across, 150 of them were hired just in the last 2 years they are in the most diverse cities such as Chicago Harlem Philly.
  • The goal is to rebuild trust with their communities. It is important to educate about the value of what your paycheck can do at a financial institution versus some of the alternate sources.
  • There are no taxes involved in direct deposit. They are inclusive and give opportunities for diverse employees. They’ve always had resource groups based on ethnicity or interest.
  • They talk about first-time homeowner assistants and that’s exactly what they’re doing for employees. They’re holding the managers accountable for making sure that diverse employees are advancing and developing in the firm.
Watch the session with Shaunté Robinson, VP at JPMorgan Chase & Co.

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Stimulus, a relationship intelligence software that helps companies build more valuable vendor and supplier relationships.

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Stimulus, Inc.

Stimulus, Inc.

Stimulus, a relationship intelligence software that helps companies build more valuable vendor and supplier relationships.

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