Ep 37: Procurement transformation at Roche; an interview with Patrick Foelck (Part - 1)

Summary

In this episode of Inside Procurement, Patrick Ball, Head of Strategy and Transformation at Roche, discusses the evolution of procurement from a traditional cost-saving function to a strategic business partner. He shares his journey from consulting to corporate procurement leadership, highlighting how Roche is transforming procurement to deliver more value through technology, digital tools, and automation. Patrick emphasizes the importance of customizing procurement strategies to meet the specific needs of different business functions, moving beyond savings to deliver productivity, innovation, and sustainability. He concludes by stressing that procurement must adapt to remain relevant in an increasingly tech-driven world.

Takeaways

• 😀 Procurement has evolved from a traditional cost-cutting function to a strategic partner that drives value through innovation, speed, and efficiency.
• 😀 Technology and digital tools are critical enablers of procurement transformation, helping automate processes and free up capacity for more value-added activities.
• 😀 Companies need to move beyond traditional category management, as technology is increasingly replacing manual procurement tasks, reshaping how procurement operates.
• 😀 Procurement should align with business functions like R&D and clinical trials, contributing to goals such as faster innovation and increased productivity, rather than just focusing on cost savings.
• 😀 Procurement can create significant value by supporting business goals, such as enabling more clinical trials or advancing sustainability efforts, which have a broader impact on society.
• 😀 There is a shift from a ‘savings-driven’ procurement function to one that is focused on delivering operational efficiency, speed, and quality outcomes for the business.
• 😀 The procurement function needs to speak the language of the business and adapt to its needs, moving away from a transactional approach to a more integrated, strategic role.
• 😀 Companies must embrace flexibility and tailor their procurement approach to different business functions, recognizing that not all areas require the same focus on savings.
• 😀 Automation, self-service, and digital tools are essential for freeing up procurement capacity, allowing teams to invest in high-value areas such as supplier collaboration, risk management, and sustainability.
• 😀 The future of procurement is about agility, connecting internal and external capabilities, and continuously adapting to changing business needs and technology innovations.

Q & A

What was Patrick Ball's initial path to procurement?

Patrick Ball initially entered the procurement field by accident through a small boutique procurement consulting firm. He spent four to five years there, primarily focused on cost turnaround, manager acquisitions, and post-integration work, which eventually sparked his deeper interest in procurement.

How did Patrick's career evolve from consulting to the corporate world?

Patrick transitioned from consulting to the corporate world after working with Roche on a transformational project. What started as a small three-week strategy project eventually led to him joining Roche full-time in 2008, where he took on roles in strategy, transformation, and eventually headed indirect procurement.

What is Patrick’s vision for the future of procurement?

Patrick envisions procurement moving beyond its traditional role as a cost-saving engine. He believes procurement should evolve into a value-creating function that connects internal and external elements, addresses business needs more holistically, and contributes significantly to innovation, risk management, and sustainability.

How has procurement evolved in the last 10 to 15 years, according to Patrick?

Procurement has undergone a transformation due to advancements in technology, digital tools, and the influx of venture capital into procurement services. This has led to a greater focus on value creation, efficiency, and aligning procurement with business goals rather than just focusing on cost savings.

What does Patrick mean when he says traditional category management is 'dead'?

Patrick believes that traditional category management, which was once the backbone of procurement strategies, is no longer effective in the modern procurement landscape. He argues that technology and digital tools are replacing the need for traditional approaches, and procurement needs to adapt to new ways of working.

What is the 'ingredients' analogy Patrick uses in the video, and what does it represent?

Patrick uses the 'ingredients' analogy to describe how procurement has historically focused on individual elements like spend, categories, and suppliers without thinking holistically about the value it delivers to the business. He argues that procurement needs to move beyond these basic components to deliver a more integrated and impactful 'meal' for the business.

What does Patrick believe is the most significant challenge for procurement today?

The biggest challenge for procurement today is piecing together the right technologies, digital tools, capabilities, and external resources to create a cohesive, efficient, and impactful function that can deliver real value to the business.

Why does Patrick emphasize automation and self-service in procurement?

Patrick emphasizes automation and self-service as a way to free up capacity within procurement teams, allowing them to focus more on high-value activities like innovation, sustainability, and risk management, rather than routine tasks. Technology, he argues, can help drive efficiency and allow procurement to add more strategic value.

How has Roche's approach to procurement evolved under Patrick's leadership?

Under Patrick's leadership, Roche has moved towards a more strategic procurement model, where the focus is no longer solely on savings but on delivering broader value, such as increasing productivity, driving innovation, and aligning procurement with business goals like improving speed and efficiency in clinical trials.

What is the key to aligning procurement with business goals in Patrick’s view?

The key to aligning procurement with business goals is understanding the specific needs of different business functions and tailoring procurement strategies accordingly. This requires flexibility in the procurement process and a shift away from a one-size-fits-all approach to a more tailored, value-driven model.