Daily Archives: February 23, 2012

Key Considerations for MRO Outsourcing

Spend Matters welcomes a guest post from Timothy Yoo, Principal at Archstone Consulting. Manufacturers face continual pressure to lower their cost structures. As a result, more and more companies are considering MRO Outsourcing. Check out a previous article we wrote on the subject here. As you probably know, MRO refers to maintenance, repair and operations. It's often used to describe the indirect expenses associated with keeping a manufacturing plant running. Plant engineers typically consider it anything but direct materials and labor, but that's too broad of a definition. Procurement would define MRO based on "source-able" subcategories (industrial supplies and spare […]

Spend Matters Afternoon Coffee

A fascinating interview around supplier diversity...on the consumer level. A Year of Shopping Only at Black Businesses -- The ensuing adventure, dubbed The Empowerment Experiment and chronicled in Anderson's book Our Black Year (coauthored by Chicago Tribune reporter Ted Gregory), took them from gritty corner stores at the epicenter of urban decay to Texas megachurches to the boardrooms of the nation's most powerful trade organizations. By the end, the Andersons emerged from the maw of racial-economic inequality with powerful insights into how black Americans might better wield their collective $913 billion buying power to improve their communities. I spoke with […]

Upcoming Webinar: Top P2P Secrets to Realize Your Cost Reduction and Working Capital Ambitions

Spend Matters had an excellent prep call earlier this week about a webinar we'll be co-hosting with sharedserviceslink.com on Tuesday, Feb 28, at 11am Central: Top Procure-to-Pay Secrets to Realize Your Cost Reduction and Working Capital Ambitions. Matt Garrow-Fisher, Head of Research, asked that we answer some specific questions from the conversations he and his team have been having with the market: How do you choose the right procure-to-pay technologies for you? What can current electronic invoicing and invoice automation capabilities achieve? What must be done to maximize the return on your procure-to-pay technology investments? We at Spend Matters understand […]

Procurement and Finance Collaboration: A Non-P2P Perspective (Part 2)

In the first post in this series, we explored, courtesy of an article by Emptoris' Craig Doud in Business Finance, how procurement and finance organizations are beginning to work together outside of P2P enablement and management. One area Craig touches on is one we've been writing about for some time -- the importance of having finance and procurement work together in supplier risk management, ideally moving from "risk reaction to risk avoidance," as Craig suggests. In recent years, we've observed a number of organizations sponsoring a new supply risk function that is staffed with a procurement leader (or two) but […]

Will CombineNet’s New Partnership with Spend Radar/Upside Fully Address Modular Suite Gaps? (Part 1)

Earlier in February, CombineNet announced it had partnered with Spend Radar and Upside in spend analysis and contract management. When we initially heard about the news, we were intrigued for a number of reasons. First, by partnering with third-parties in areas where it doesn't compete today (although one could argue data acquisition and line-level classification is fundamental to doing large scale sourcing and optimization right), CombineNet tacitly acknowledged that the advanced sourcing/sourcing optimization market where it competes is not an island, and that it must have closer linkages with other parts of sourcing suites that are more than batch-based hand-offs. […]