In an enlightening interview with Silvério Governo, the Country Manager for New Zealand and Head of Sales for Spend Management at Portt—an Advanced company, the evolving landscape of procurement and the strategic deployment of technology in the industry were thoroughly examined.
Portt, originally a New South Wales-based software provider, was acquired by the UK-headquartered Advanced, transforming it into a global leader in sector-focused Software as a Service (SaaS). Governo outlined that while Advanced predominantly serves the UK, its focus on the Australian and New Zealand markets remains strong, aligning its solutions with the specific People Management and Spend Management demands of these regions.
Founded in 2010, Portt has undergone significant evolution, including a rebranding from its original inception. The company, along with Advanced, has been operating in Australia and New Zealand since approximately 2014, focusing on spend management solutions. With around 70 employees across these regions, Portt is poised at the forefront of procurement innovation.
Governo emphasized the company's shift towards enabling procurement teams' strategic potential. He noted that the future involves aligning the organization with specific sectors, such as government, education, and public research, to leverage its comprehensive portfolio of solutions more effectively.
A critical part of the discussion revolved around the misconception of procurement functions and their evolving role over the past four to five years. Far from merely pressuring suppliers for cost reductions, procurement now encompasses compliance, navigating supply chain challenges, and enhancing supplier relationships to support organizational Environmental, Social, and Governance (ESG) goals. This shift, particularly pronounced in Australia and New Zealand, marks a significant departure from traditional procurement roles.
The conversation also tackled the difficulties procurement teams face in achieving cost savings, compliance, and de-risking supply chains amidst global uncertainties. The industry's skills shortage further complicates these challenges, highlighting the necessity of embracing technology beyond spreadsheets to manage complex procurement processes effectively.
Another poignant issue addressed was the difficulty in getting procurement-led business cases approved within organizations. Governo shared insights on the importance of aligning business cases with leadership KPIs to ensure procurement initiatives receive the necessary backing and funding.
The interview further explored the impact of the hybrid work phenomenon on Portt's solutions and customers, noting a mixed response across different sectors. For spend management customers, the shift to hybrid work has presented both challenges and opportunities, emphasizing the need for strategic flexibility in the modern workplace.
In addressing supplier relationship management, Governo underscored the emerging strategic role of procurement teams in developing new business and commercial models with suppliers. This strategic shift necessitates procurement teams to move beyond operational concerns to engage in more significant, value-adding activities with suppliers.
As for the future, Portt and Advanced are set to focus on sector-specific goals and continued growth in 2024, moving away from a product-centric view to a more aligned and sector-focused approach. This strategic pivot aims to address the unique challenges and opportunities within each sector, bolstering Portt and Advanced's position as leaders in people management, procurement and spend management.
Through strategic innovation, embracing technology, and a sector-focused approach, Portt, under Advanced, is powering the world of work, ensuring organizations can navigate the complexities of modern supply chains and achieve their strategic goals.