75% of innovations come from startups

75% of innovations come from startups – Dan Bartel Schneider Electric CPO

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Schneider’s procurement spend is roughly 50% of its revenue. As of 2019, the spend was at about $15 billion. The company has incorporated over 690 supplier innovations over the past 8 years.

Dan’s interview with Beroe shares insights into how procurement’s approach and organisation at Schneider Electric has evolved to capitalise on the $3 trillion global startup economy fuelled by $300 billion in venture capital investments around the world, according to a report by Startup Genome, a research and policy advisory organization.

Critical considerations

Organizational Design – beyond category management and operational procurement to the development of new product development capabilities and teams

75:25 Ratio of Supplier Innovation

“75% of the innovations that we embed are coming from startups now and 25% are coming from our strategic suppliers. I would say five years ago – you could flip that around – it was almost the opposite. Much heavier emphasis on startups has been the trend. And this is, I think, again, mainly driven by the types of innovations that we need to embed in our products,” according to Dan.

Adaptive processes – the balance between a robust procurement approach and when to apply a more agile approach for start ups

Schneider Electric recently topped the global league of green firms compiled by researcher Corporate Knights. It ranks over 8,000 publicly listed companies that generate annual revenue of over $1 billion on sustainability parameters. Schneider Electric’s procurement team look set to continue to help the company retain that leadership position.

 

Check out the full article here.

Author: Dan Bartel, CPO Schneider Electric

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