Future of Procurement

Christian Lanng CEO, Tradeshift

February 2016

What does the death of amarket leader look like?

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Shaving & Men's Grooming:$13bn industry

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Controlled by one brand

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Then this happened...

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Cost to produce: $4,500Time to produce: 1 day

Youtube views: 22 million

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Dollar Shave Club Launch

Dollar Shave Club’s market position 3 years later?

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No.1 Online + No. 2 Overall

Dollar Shave Club 52.9%

How did this happen?

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Traditional Procurement Job:Acquire the right goods at the best price,

quality, location and time

It took the incumbent brand more than 24 months to react to Dollar Shave Club

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Do you think their initial reaction was better or

cheaper?

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Could any company in this room have reacted in less than 24

hours for less than $5000?

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| Confidential

Without agility you will lose

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What’s happening today?

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• Exponential Innovation

• Hyper Competition

• Unpredictability

From efficiency to responsiveness.

From hierarchies to networks.

From controlling to empowering.

From offices and office hours to working anytime and anywhere.

From “customers and partners” to “communities and ecosystems”

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Organizations are Changing

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Innovation is a High Priority

98%

62%

33%

30%

32% 35%

8%

Innovation will become a more important competitive differentiator in our industry in the next 5

years

Creating disruptive innovation is an important part of our business strategy

Our company has the right KPIs, processes and incentives in place to meet its innovation goals

strongly agree neutral disagree/strongly disagree

1%

1%

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The Chief Procurement Officer is now the Chief Agility Officer

Savings As A Service

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Value As A Service Agility As A Service

Top-line growth As A Service

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We build software for the future of procurement

● Collaborative and agile● Real value for supplier participation● Apps enable new business processes

instantly for whole supply chain● End-to-end transparency and analytics

What could have happened instead in the case of the leading shaving brand?

| Confidential25

“Dollar Shave Club is a strategic risk to our

business and we need to act now!”

-Tina, BigShave CEO

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Thank you!

email: chl@tradeshift.comtwitter: @christianlanng

learn more: tradeshift.com