EP 24 - Arm's Sean Park on Making Transformation a SPORT

Sean Park, VP of Procurement and Transformation at Arm, didn't set out to revolutionize procurement at Arm, but when you're scaling a $4 billion semiconductor company at 20% year-over-year growth without adding procurement headcount, revolution becomes necessity. Sean offers John a peek at how Arm achieved nearly 20% savings on an 8-figure server deal using AI agents that required zero human intervention once launched, completing negotiations in days rather than weeks.

 

He also shares his SPORT framework — Strategy, Processing & Policy, Organization, Reporting, Technology — that represents a complete reimagining of procurement priorities, while his prediction that 20-40% of procurement knowledge becomes obsolete annually reflects the accelerating pace of change facing the profession. Sean's vision for procurement as a consumer-grade experience, combined with his philosophy of supplier relationships rooted in mutual respect rather than adversarial negotiations, offers a blueprint for procurement leaders navigating AI transformations of their own. 

 

Topics discussed: 

• The SPORT framework for procurement transformation, encompassing Strategy, Processing & Policy, Organization, Reporting, and Technology as interconnected elements.
• Implementing AI-powered negotiation agents that achieved 18% savings on 8-figure server procurement with zero human intervention after launch.
• Scaling procurement impact at a $4 billion company experiencing 20% year-over-year growth without increasing team headcount.
• Cultural lessons from Japan on the power of listening before reacting, and how this approach transforms stakeholder relationships in high-margin industries.
• Supplier relationship philosophy based on mutual respect and interdependence rather than adversarial price-focused negotiations.
• The accelerating obsolescence of procurement knowledge, with 20% or more becoming irrelevant year-over-year thanks to AI advancement.
• Organizational design featuring business partners vertically oriented by function rather than horizontally by category to improve stakeholder experience.
• Technology-first approach, where breakthrough tools drive changes in organizational structure, processes, and strategic objectives.
• Creating consumer-grade procurement experiences through unified platforms, chatbot integration, and simplified stakeholder interfaces.
• Predictive sourcing and negotiation platforms that accelerate savings maximization while maintaining supplier relationship quality and service.
• Geographic and functional coverage strategies for global procurement operations spanning multiple continents and complex supplier ecosystems.