Spend Matters welcomes a guest post from Shannon Lowe and Mark Schaffner of Verian. So it's time to consider purchasing and AP automation software as a way to enhance visibility into near term financial commitments and help drive savings. There are of course case studies where purchase-to-pay (P2P) automation really turned things around for companies struggling with maverick spending and long AP cycle times. But there are also horror stories about companies that attempted to implement P2P software initiatives and things didn't go so well. Perhaps you've listened to your peers complain about rollouts that took forever, and clunky systems […]
Today on Spend Matters PRO: 10 Negotiating Tactics To Reduce Supplier Network Fees (Part 2) -- In the first research brief in this series, we suggested five techniques and approaches for reducing supplier network fees. In summary: Make P2P platform decisions that give strong consideration to providers and deployment models that do not contractually lock them into network fees Ask for RFPs from network providers that include the costs for the buying organization to assume supplier fees themselves under different scenarios Don't "over-specify" requirements and invite multiple network providers to the table by understanding the entire network landscape and the […]
Spend Matters predicts that networks such as Ariba and OB10 will make a substantial portion of their overall revenue by 2015 from supply chain finance programs. Given this opportunity and prediction, procurement and AP organizations may wish to consider negotiating basic connectivity for network fees with a sliding scale based on supply chain finance adoption within a supply base. This aligns incentives all around, as suppliers are likely to react with the opposite approach when paying fees to get payment early as paying fees for basic document interchange.
As noted earlier today on Spend Matters (read posts here and here) and our premium research service Spend Matters PRO (subscription or free trial is required for access), consultancy Monitor Group has declared bankruptcy and Deloitte has stepped into the mix to buy the assets (including Monitor's entire consulting operation). It's likely the biggest winner -- if there is a winner -- in the bankruptcy will be Deloitte, which will, at least on paper, gain hundreds of highly talented consultants and partners with a particular set of skills and expertise which would be hard to replicate with the same scale […]
Monitor Group's bankruptcy raises a number of questions around supply risk management, services firm internal controls, scenario planning failures, and more. Below, we feature a guest post from Azul Partners and Cartegic Group scenario planning expert, Art Hutchinson. Art worked for Northeast Consulting (a rival of Monitor Group's Global Business Network (GBN) scenario planning practice) for many years. He continues to teach and consult on scenario planning for a range of clients. Art and Spend Matters co-founder Jason Busch have worked together for fifteen years. Let me begin by referring to a quote from Victor Cheng, "a one-time McKinsey Consulting […]
Yesterday on Spend Matters PRO, we published a research brief exploring the intersections of supply risk management, professional services and supply chain risk management: Monitor Group Goes Bankrupt: Why Services Procurement and Risk Management Best Practices Matter. For those tasked with monitoring supply risk within their organization, Monitor's bankruptcy filing provides an ideal justification for making the right set of investments in information, technology and capabilities to proactively monitor supply risk for virtual goods (consulting, banking, accounting, legal, marketing, etc.) If you're interested in our perspective on the topic, we encourage you to reach out to our team to inquire […]