“Most of the work, if not all of the important work it's done before stuff turns into a contract. So gathering your requirements, deciding which suppliers to invite, deciding which internal stakeholders to involve in a process that all gets done manually, probably in a spreadsheet and email and pretty poorly.”
quote is from the automated transcript, cleaned for reading:
filler sounds and stutters are removed, nothing is rephrased. names can be misheard
(the analysis reads context, assessments check outside sources). how →
“Yeah, it is, but it's an IT ticketing system. It's never meant to ingest, you know, billions of dollars of procurement spend and, you know, Few 100,000 suppliers and payment terms and all these kinds of things, right?”
Anders LilivikFeb 22, 2023▶ 31:34They Thought the Equipment Vendor Could Handle the Cash Too
Insight
Lilivik: Procurement teams frequently over-engineer processes and stall operations
“I think procurement people try to solve for world hunger and world peace all at the same time, and they tend to over-engineer the process so that make it overly complex and kind of grind things to a halt.”
Anders LilivikFeb 22, 2023▶ 5:06They Thought the Equipment Vendor Could Handle the Cash Too
Insight
Lilivik: Applying complex acquisition methods to commodity buys is a common error
“And the mistake people sometimes do. Is take that commodity low criticality scenario and apply the more complex type or acquisition method to it.”
Anders LilivikFeb 22, 2023▶ 7:24They Thought the Equipment Vendor Could Handle the Cash Too
AssertionNot checkable as stated
Lilivik's Former Bank Lost $20M in an ATM Vendor Ponzi Scheme
“And at some point in time, four years into the agreement basically it turns out that there was a Ponzi scheme going on and we were out 20 point, some twenty million dollars, right? The music stopped, the Ponzi scheme couldn't, it couldn't, couldn't keep up any…”
Anders LilivikFeb 22, 2023▶ 8:50They Thought the Equipment Vendor Could Handle the Cash Too
Insight
Lilivik: Vet critical third-party vendors as if underwriting a loan
“If the company's critical, pretend the pretend as though you're lending them a bunch of money. And that kind of puts a whole different lens on it to say, well, would we underwrite this company to lend them money?”
Anders LilivikFeb 22, 2023▶ 13:34They Thought the Equipment Vendor Could Handle the Cash Too
Insight
Lilivik: Companies mistakenly treat outsourced functions as no longer their problem
“The worst thing that you can think about is I've outsourced this now, so this is no longer my problem. And I've seen that so many times is companies outsource things and then they don't have the proper governance in place to manage that relationship.”
Anders LilivikFeb 22, 2023▶ 15:04They Thought the Equipment Vendor Could Handle the Cash Too
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