WEBVTT 1 00:00:14.798 --> 00:00:21.879 Good morning everybody and welcome to coffee chat for financial professionals. We've been getting a great response with over 5,000 2 00:00:21.880 --> 00:00:28.960 people watching our interviews every week so I like to thank all of our audience for their 3 00:00:30.606 --> 00:00:38.208 time. So grab a cup of coffee, grab a cup of tea and come join me as I interview industry experts as they share their thoughts or opinions, 4 00:00:38.209 --> 00:00:45.811 their ideas about what we're seeing in the market today. With me, I have a good friend of mine Mr. Bruce Maltman who is a 5 00:00:45.812 --> 00:00:53.414 Partner at SimPPLY. Bruce has been in the industry for a long time, he's got 6 00:00:53.415 --> 00:01:01.015 extensive experience with business transformation, strategy and innovative approaches including procurement which we will be talking about today. So, welcome Bruce. 7 00:01:02.326 --> 00:01:05.113 Thanks for having me, Rohan and good morning to you all. 8 00:01:06.438 --> 00:01:10.783 Listen up, let's have a quick and easy question for you. Tell us a little bit about your organization. 9 00:01:12.274 --> 00:01:20.154 Thanks Rohan. SimPPLY, quite simply, we are organization that focuses only expenditure management 10 00:01:20.155 --> 00:01:28.036 established about 6 years ago with offices in Sydney, Melbourne, and recently Hong Kong so 11 00:01:28.037 --> 00:01:35.918 we do deliver services to the public and private sectors clients in the APAC region more generally. We set up the business six years ago 12 00:01:35.919 --> 00:01:43.797 with one simple objective and that is to reduce complexity and help clients get out comes sooner or otherwise on their own. 13 00:01:45.166 --> 00:01:53.471 Great. Well, you work with a lot of customers across many geographies, what are some of the obstacles, what are some of the challenges that they're facing today? 14 00:01:55.136 --> 00:02:04.985 Look, there's not doubt that all of us are reeling in terms of the impact of COVID-19 od be remiss if I wasn't reflecting on the key issues that's really on everyone's lists regarding that. 15 00:02:04.986 --> 00:02:14.835 There's no doubt that that there was lost in the security impacted by this. But with the C-suites executive that we are chatting with cost, no question there. With 40-60% of the company's 16 00:02:14.836 --> 00:02:24.685 expenses incurred in the supply chain is probably cost compression is time-critical 17 00:02:24.686 --> 00:02:34.535 the average business is going to need 8%. Each 1M save through the supply chain is a sign of economic impact of about 12.5 million dollars of sale. 18 00:02:34.536 --> 00:02:44.385 Much easy to pull cost out of a supply chain than it is to shave jobs with a build sales in an environment that's depressed like this. 19 00:02:44.386 --> 00:02:54.235 Another one that's on everyone's lips is in change the supply chain security and vulnerability, we're realizing now that things are real they don't think that just sit on the news 20 00:02:54.236 --> 00:03:04.085 register. Corporate social responsibility has been moving really quickly with 2400 21 00:03:04.086 --> 00:03:13.935 with introduce 2017 through the modern slavery act in 2018. The pressure is on boards now to ensure that the supply chain integrity is in place. 22 00:03:13.936 --> 00:03:23.785 And there's a need for that to be place and then generally the whole issue around getting more for less, putting pressure on procurement departments to 23 00:03:23.786 --> 00:03:33.635 contribute to top-line growth as well as bottom-line results are the key points that we've seen. 24 00:03:33.636 --> 00:03:43.485 Some really key points you've mentioned there. The impact on additional sales and revenue when a bit of attention and forsights and overview on or oversight on at current cost index 25 00:03:43.486 --> 00:03:53.335 expense can have a significant impact and I think I also heard you mention the other slavery act which is something that a lot of organizations may or may 26 00:03:53.336 --> 00:04:03.185 not be aware of the whole social responsibility about making sure we are ethical in are approaches. So really strong messages, Bruce, thanks for sharing that. 27 00:04:03.186 --> 00:04:13.022 I'm from Financial background and how does these all tie in, and how does it make the CFO and financial controller sit up and pay attention? 28 00:04:14.590 --> 00:04:23.583 Look, it's really a good point and I could go on and talk a little bit about the best practices in digital transformation but the fact is that most 29 00:04:23.584 --> 00:04:32.577 businesses is trying to automate what they call work close and those that have believed to make a digital technologies that they actually dissatisfied with results. 30 00:04:32.578 --> 00:04:41.571 But we are gonna go and focus on the simple things. 31 00:04:41.572 --> 00:04:50.566 Good practices that we see a lot of organizations aren't necessarily doing. Let's focus on the cost for a moment, 32 00:04:50.567 --> 00:04:59.560 all organizations should have an expenditure in place, should have run through their opportunity Diagnostics to see what the opportunities are, building 33 00:04:59.561 --> 00:05:08.554 plans for delivery, monitoring the progress, and implementing those quickly is a really important, moving quickly. 34 00:05:08.555 --> 00:05:17.543 But in moving quickly, businesses need to think to what extend can I use cost indexation as a powerful means of challenging price 35 00:05:18.853 --> 00:05:25.849 where should I be considering using cost modeling to challenge my tough categories and when is it appropriate 36 00:05:25.850 --> 00:05:32.846 appropriate to me to be looking at a tile spin review to consider or that spend with a small supplies that we very rarely get 37 00:05:32.847 --> 00:05:39.841 the opportunity to review when is it I should be looking at the third party aggregators or providers of category intelligence. 38 00:05:41.097 --> 00:05:50.654 In the area of risk, we find a lot of organizations are trying to build it themselves at the practical reality, there 39 00:05:50.655 --> 00:06:00.212 updated tools out there, cloud delivered SAAS Services where you can virtually deliver outcomes for very low cost and outcomes can be delivered within 40 00:06:00.213 --> 00:06:09.770 weeks. For example in this whole area around COVID-19 risk and supply chain integrity, you could contact the organization today 41 00:06:09.771 --> 00:06:19.326 and within two week, full visibility of your supply chain. Why we're not doing it in the current environment, I guess it's the challenge we all need to answer. 42 00:06:21.052 --> 00:06:29.305 Great! Well listen guys that's a fantastic story and message from Bruce. That's all the time we have today 43 00:06:29.306 --> 00:06:37.560 but if you have any further questions for Bruce and myself, our emails will be flashing across the bottom of the screen. We're both on LinkedIn so you can 44 00:06:37.561 --> 00:06:45.815 drop us a message. We'll be more than happy to answer any questions you might have. So please join me next week as I interview 45 00:06:45.816 --> 00:06:54.070 Mr. Wai Fook Chai from Ernst & Young from Singapore who's going to talk about tax. We going to revisit tax again but 46 00:06:54.071 --> 00:07:02.321 more for the perspective of compliance. So Bruce thank you very much for being our guest today and thank you everybody for watching. 47 00:07:03.988 --> 00:07:04.831 My pleasure have a good day.