Daily Archives: December 20, 2012

Overcoming Supplier Diversity Capacity Challenges – When Suppliers are Too Small (Part 1)

In working with diverse suppliers, many take the phrases “capacity constraints” and “supply base consolidation” too lightly. Even the best prepared diverse supplier – the one walking in the corporate door fully registered in the company’s SLM (supplier lifecycle management) tool, with their current diversity certificate already uploaded, prepared with exciting products, and several client references – can still easily fail to get any business.

How to Offshore: Relationship Management

Spend Matters welcomes a guest post from Vantage Partners. Click for Part 1, Part 2, Part 3, and Part 4 of this series on managing performance in offshoring relationships. Promote root cause diagnosis and collaborative issue resolution An effective way to promote exceptional performance is to distinguish penalties between problems that occur for the first time and recurring problems that have not been addressed at root cause. With an incentive for eradicating problems at their roots, providers may be more likely to communicate service issues and become more interested in generating solutions that prevent those problems from recurring. Rewarding exceptional […]

Afternoon Coffee: Commodity Risk Management, Oracle Buys Eloqua, Helium Shortage

A not-so-sweet commodity risk tale... In $18 Million Theft, Victim Was a Canadian Maple Syrup Cartel -- It was an inside job of sorts. Thieves with access to a warehouse and a careful plan loaded up trucks and, over time, made off with $18 million of a valuable commodity. The question is what was more unusual: that the commodity in question was maple syrup, or that it came from something called the global strategic maple syrup reserve, run by what amounts to a Canadian cartel. Measuring marketing effectiveness. Oracle to Buy Eloqua in $810 Million Deal -- "Eloqua's leading marketing […]

A New Spend Matters PRO Video!

Plus, there's now a new option to see everything in The Knowledge category of Spend Matters PRO: click here to sign up for a free 7-day trial. More information: How can I benefit from Spend Matters PRO? Information and Pricing Sign up now! Questions? Contact Sheena: smoore@spendmatters.com

Ariba, SAP, and Supplier Diversity (Part 2)

Please click here for Part 1 in this series. We can evaluate the SAP/Ariba supplier network on three basic elements in terms of smaller businesses: direct cost, reach and value. Our analysis of the direct cost is likely to surprise many of those in procurement organizations who follow Ariba somewhat closely: relative to middle market and larger organizations, we think the Ariba supplier network is a bargain, even given the upward price pressure Ariba has applied over the years to supplier-paid network fees. In an earlier research brief on the topic, we suggest that Ariba's network fee increases will be […]

Ariba, SAP, and Supplier Diversity (Part 1)

We often spend a lot of time on the notion of supplier diversity in choosing the right set of localized suppliers (see recent coverage here, here, here, and here, as examples). We've even seen supplier diversity strategies reflected in accounts payable and working capital programs designed to get smaller, more vulnerable suppliers paid early without the types of onerous APRs charged by card providers. Yet it's rare that supplier diversity thinking extends to generalized source-to-pay tools selection, especially in the eProcurement arena. However, perhaps it should, given that providers like SAP and Ariba are increasingly turning to supplier fees to […]

Iasta: A New Analytical Orientation (Part 2)

Please click here for Part 1. As users work their way through the various configurable tabs in the Iasta Executive Analytics (EAS) suite, they might create a tab to support specific project-based procurement initiatives not just limited to sourcing events. For example, the dashboard might show the specific initiatives tagged to either categories, commodities, or individuals. Specific initiatives might include cost avoidance scenarios, negotiation of contract renewals, initial source programs, claim/rebate initiatives or just about any activity within procurement that one can conceive. The power of the dashboard framework for initiatives within the EAS suite, however, is about being able […]