EP 20 - Apollo's Johnathon Baker on Transforming Portfolio Procurement Through Partnership

What does it take to transform procurement from a cost center into a strategic value driver? Johnathon Baker, Operating Partner & Head of Strategic Sourcing and Procurement at Apollo Global Management, shares his expertise in procurement transformation, gained from leading strategic initiatives at major companies like Starbucks, before taking on his current role at Apollo.

His discussion with John on this episode of Smarter Sourcing explores how Johnathon’s team drives value across Apollo's portfolio companies through strategic sourcing, leveraging AI and analytics while building strong CPO partnerships. From managing complex supplier relationships to preparing for global economic shifts, Johnathon offers valuable insights into modern procurement leadership and the evolution of sourcing from a back-office function to a strategic business driver.

Topics discussed:

• The evolution of procurement into a strategic business function driving organizational value and operational excellence.
• Transformation of procurement practices at Starbucks during the 2009 recession, particularly cost reduction while maintaining supplier relationships.
• Building effective partnerships with portfolio company CPOs while driving significant cost savings and operational improvements.
• Leveraging AI and analytics to manage complex procurement data across Apollo's extensive portfolio of companies.
• Preparing portfolio companies for economic shifts through scenario planning and strategic supplier relationship management.
• The importance of balancing cost-reduction goals with maintaining strong supplier partnerships and business growth.
• Implementation of technology solutions to streamline procurement processes and enhance decision-making capabilities.
• Managing procurement transformation across diverse portfolio companies while maintaining individual company autonomy.
• Development of procurement talent and the changing skill sets required in modern strategic sourcing.
• Creating value through procurement beyond cost savings, including revenue growth and operational efficiency improvements.