Optimizing Procurement Processes!
Sourcing and procurement are essential components of today’s business ecosystem. Their strategic influence ensures that organizations not only function seamlessly but also thrive in an increasingly competitive environment. The combination of these functions ensures that companies secure the best possible goods and services at optimal prices, contributing significantly to cost management and operational efficiency.
The importance of these areas has grown as businesses increasingly recognize the need for strategic sourcing to manage extensive global supply chains. This growth has brought about new challenges, requiring specialized skills and a deep understanding of market trends.
Wasif Bokhari, the Head of Global Sourcing and Procurement, stands out as a visionary leader with a wealth of knowledge and experience across various industries. His journey from the entry-level position he took while still in college at 21 to start his corporate career to his current role has equipped him with a diverse skill set that he applies to excel in sourcing and procurement. Known for his strategic mindset and ability to build key relationships, Wasif is passionate about advancing processes and driving impactful decisions. His approach demonstrates the importance of expertise and dedication, which he believes are critical for success in this niche field.
At The TCW Group, Wasif has been playing a key role in reforming the global sourcing and procurement functions. Under Wasif’s guidance, TCW aims to set industry standards through best-in-class practices. The company recognizes the importance of having a robust sourcing strategy to develop operational efficiency and drive cost savings while mitigating the risks to the business. He believes it’s very important to partner with the right strategic vendors and monitor and act on any risks associated with them.
Focusing on enhancing processes and ensuring high performance from its vendors, TCW is committed to maintaining a competitive edge in the market, supported by a strong and capable procurement team.
Let’s explore Wasif’s journey from Transactional Procurement to Strategic Sourcing and Procurement:
The Role of Experience in Sourcing and Procurement
Wasif believes that Sourcing and Procurement are still niche areas. Until recent years, there weren’t even true educational classes in colleges, or a path related to them. Now there are Bachelor’s and Master’s degrees around Supply Chain Management. Though these degrees are similar but not exactly core: Sourcing and Procurement.
The fact is that most leaders in Global Sourcing and Procurement rely less on the educational part of a college or university and more on experience. This is not to say a Supply Chain Management degree is not beneficial. Ultimately, it prepares individuals for some of the responsibilities of sourcing and procurement, but not all of them. Wasif took an executive-level program at MIT for Mastering Negotiations and Influence. “This program was very helpful as it concentrated on the core skill set that is needed in a role in sourcing and procurement. After all savings and cost avoidances are essential to the success of the department. Negotiating with vendors and understanding most of the possible tactics that sales representatives may be trying to utilize on Sourcing and Procurement folks.
With over 20 years of experience in Sourcing and Procurement, Wasif’s career journey is marked by a mountain of expertise. He began his professional path in property services and logistics at the start of his career and then transitioned into fleet management where he was negotiating the costs for a vast company car program at ADP and where with the OEM’s to get the best price in the market while decreasing the company Co2 footprint. This was all before fully immersing himself in the core of sourcing and procurement. Reflecting on this progression, he recognizes that each role served as a foundational building block, contributing to the skills and insights he now leverages as the Head of Global Sourcing and Procurement.
He aspired to be the best in each role. A mentor he had early in his career once said, “If you strive to know your subject more than anyone else in the room, you will be looked at as the expert in that room, and they will look for guidance from you. The key is to study your area of expertise and try to be the best at it. Be a true subject-matter guru.”
Wasif has a passion for optimizing processes. He believes that being analytical and good at programs like Microsoft Excel and Microsoft PowerBI sets you apart from the old-school procurement person. This helps business see insights that they may not have seen before from more of a financial or contractual angle.
Overseeing end-to-end Strategic Sourcing Activities
Wasif has been with TCW for a year and a half. His goal is to ensure that TCW’s global sourcing and procurement department is the best in the class.
His responsibilities include:
- Managing all activities for an end-to-end Strategic Sourcing department.
- Conducting vendor commercial negotiations and reduce costs for the organization
- Reviewing and redlining/editing vendor contracts.
- Working closely with the Legal and Compliance departments to mitigate risks.
- Overseeing overall spending analytics and reporting.
- Approving vendor onboarding.
- Preparing executive-level approval summaries.
- Drafting of Statement of Works (SOWs) and editing amendments and change orders.
- Managing vendors and monitoring their performance in Service Level Agreements (SLAs).
- Creating and conducting Requests for X (RFXs) and Requests for Proposals (RFPs).
- Creating Global Sourcing and Procurement Policy and procedures.
Building Key Relationships for Success
In Wasif’s opinion, savings and cost avoidance are essential to any Global Sourcing and Procurement role. For the first year, he has concentrated on impacting TCW in this area, as this hits the bottom line of EBIDA. He understands that it’s probably the highest visibility in the role of Head of Strategic Sourcing and Procurement, but it is far from the only impact he has made.
He has been able to build key relationships across the company, which is very important. Key stakeholders at the company need to buy into what he is doing for him to be successful. There will always be roadblocks in some areas or with some people, but that is something that he has been challenged with for over 20 years in every position he has been in. The key is not to let that take him off course. He acknowledges that there will always be non-believers in the program but knows that, in the end, the impact that he is making for the company is beyond one person’s opinion.
The impact will come out in the results, and he truly believes that the strategies and proven formula that he has mastered will lead him there. The impact on the company that he has been able to make so far has been tremendous. Without quoting actual numbers, he was able to drive savings that were 120% over the previous year’s savings and cost avoidances. Partially, this is because he has many of the leaders who, early on, saw the positive impact that his team was making and the value that Global Sourcing and Procurement brings.
Acceptance of change has been embraced here, starting with their dynamic and inspirational CEO and forward-thinking and adaptable CFO. Their belief in his program truly makes his job easier.
Empowering Teams for Impactful Decisions
Wasif leads by empowering those who work for him to make impactful decisions. He thinks that one of the main responsibilities of a leader is to first understand the skills of the people who work for them. He notes that many leaders make the mistake of not correctly evaluating people and understanding their skill sets, trying to fit them into a square box when it should be a circle.
They put them in conditions that they won’t or can’t thrive in. His responsibility as a leader is to identify and hire the right talent and connect them to the right responsibilities. There is always a guidance or training period for any position, but ultimately the goal is to get the individuals to a state where they can make their own decisions. In the end, he is trying to develop a staff that can make impactful decisions that are beneficial to the company.
Wasif thinks a few other important characteristics of a leader are effective and meaningful communication skills. Also, he believes in actively listening, providing constructive feedback, and cultivating a team environment where team members feel heard.
Wasif believes a few other important characteristics he brings to being an effective leader are the following:
- Motivating and inspiring a team
- Having emotional intelligence
Motivating and inspiring the team is crucial. If they don’t believe in the leader’s vision, they won’t be inspired or motivated. In the end, a leader needs their team to achieve their goals.
Emotional intelligence is very, very important. Wasif prides himself on having a high level of emotional intelligence. The key is to understand that you are working with human beings who have lives outside of work and have feelings. Also, know that everyone is different from one another and may need a different leadership style or type of guidance.
He is a huge advocate of supplier diversity. Back when he was at ADP, he played a significant role in helping them reach the Top 50 Supplier Diversity companies. Overall, whatever role he has had over the course of the years, he’s always been heavily involved and supported the company’s diversity goals. He believes that “diversity is one of the greatest aspects of the United States. Ultimately, we cannot ignore the fact that many businesses in 2024 will be owned by a person that qualifies in one of the many diverse categories. As leaders, we must embrace and support bringing on diverse vendors as they make our overall portfolio of vendor partners and supply chain stronger.”
Keeping Up with the Latest Trends
Wasif strongly believes in ensuring that, as leaders in Sourcing and Procurement, they keep up with the latest trends. This includes working with tools such as Gartner, Beroe, Dun & Bradstreet, etc. to help evaluate the industries or vendors that are potentially coming into their ecosystem or environment. He also thinks attending industry conferences or conferences related to Sourcing and Procurement are important to participate in. He also encourages his staff to go to these conferences as well to learn and keep up with the latest trends.
Promoting Work-Life Balance Among Staff
According to Wasif, work-life balance is a very important part of productivity in one’s role. Though the responsibilities they have as leaders are never-ending, there is a line they must stand behind to ensure that their mental health is strong enough to make clear and concise decisions that ultimately benefit the company.
When they are overwhelmed, their decisions could be potentially risky. Wasif takes pride in ensuring that his staff also practices a good work-life balance. He incorporates games, reflection hours, and breathing hours for his staff to participate in.
Understanding Strategies for Successful Negotiations
In Wasif’s view, building relationships is key to his role’s success. Key leaders must buy into his strategies and understand why he is implementing them. Many times, sourcing and procurement get a bad reputation for making things complicated or taking too long to get things started. Still, if one steps back and looks at why negotiations take longer and understands the strategy behind them, the reason comes out in the results.
An example of this is going through 3 or 4 rounds of negotiations when a stakeholder may think that 1 or 2 rounds is enough. The result of that could be another 10% or 20% of savings, which could go back to the cost center that the business owner or stakeholder oversees.
Externally, building relationships with vendors is also very important. Each negotiation is different, as each vendor or vendor sales representative is different.
Guidance for Aspiring Procurement Professionals
Wasif suggests that young professionals identify which area of sourcing and procurement they want to pursue. He notes that the supply chain, though related in some respects, is not the same thing as sourcing and procurement.
The skill set he looks for includes negotiation, debating, conflict resolution, relationship building, and the ability to adapt to different situations. If young professionals have these skills, he recommends they get into sourcing and procurement. Though it is a niche area, it can have a very impactful effect on an organization.
Wasif advises new aspiring individuals to build on the following skills for a successful career in Sourcing and Procurement:
- Develop Strong Analytical Skills: Procurement involves analyzing data, understanding market trends, and evaluating supplier performance. Hone your analytical abilities to make informed decisions. Become efficient in Microsoft Excel.
- Build Negotiation Skills: Effective negotiation is crucial in procurement. Practice negotiation techniques to secure favorable terms and build strong supplier relationships. This is essential for any company, and it is one of the first things a leader who is hiring in Sourcing and Procurement looks for.
- Conflict Resolution: Managing and resolving conflicts effectively. At times, conflict occurs with the vendors or even internally with the stakeholders. These skills are needed to address disputes calmly and constructively, ensuring that issues or disagreements in terms and conditions of a contract are resolved professionally.
- Pursue Relevant Certifications: Consider certifications such as Certified Professional in Supply Management (CPSM) or Chartered Institute of Procurement & Supply (CIPS) to enhance your credentials and demonstrate your expertise. As mentioned before, a Supply Chain Management degree is mostly related to Sourcing Procurement responsibilities. Finance is another degree that can help, as they work closely with Finance departments as well.
- Develop Strong Communication Skills: Procurement professionals often liaise with various stakeholders, including suppliers and internal teams. Effective communication helps in managing relationships and expectations.
Overall, Wasif believes that Global Sourcing and Procurement is a great path for young folks as well as people who might want a career change and are interested in all that was shared in this article. It’s not an oversaturated field, and he believes companies are starting to believe it’s more essential and critical to their overall success. Wasif says “If you go into this niche field your friends or family may wonder what you truly do for a living and are sometimes perplexed by your role. Sometimes it’s hard to explain or get them to understand the immense impact you make for the company. The best way to describe it is that your role directly allows the company to save money and mitigates the overall costs that helps the company repurpose the savings into future growth initiatives.”
