Daily Archives: November 1, 2012

What The A-Team Can Teach Us About Supplier Negotiations

Guest-Post - November 1, 2012 2:11 PM | Categories: Industry News, Suppliers

Spend Matters welcomes a guest post from Mason Lee, Manager, and Matt Kucharski, Sr. Consultant, at The Hackett Group. From 1983 to 1987, The A-Team delivered five seasons of action-packed episodes to its cult following. The ex-U.S. Army Special Forces unit, turned mercenaries, were constantly on the run for a “crime they didn’t commit.” The four “soldiers of fortune” who were Colonel John “Hannibal” Smith, Lieutenant Templeton “Face” Peck, Captain H.M. “Howling Mad” Murdock, and Sergeant First Class Bosco “B.A.” Baracus. The sitcom has left its mark on popular culture through its iconic van and catchphrases. But the creators of […]

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Afternoon Coffee: Manufacturing Expands, NYC’s Free Subway, Uber’s “Surge” Pricing, Lumber Futures

Sheena Smith - November 1, 2012 10:11 AM | Categories: Afternoon Coffee, Sheena Moore

“The production index expanded after two months of contraction, rising to 52.4 from 49.5.” Manufacturing Expands, Construction Spending Rises — The U.S. manufacturing sector expanded last month, but employment weakened, according to data released Thursday by the Institute for Supply Management. The ISM’s manufacturing purchasing managers’ index was little changed at 51.7 in October from 51.5 in September. A reading above 50 indicates expansion. Economists surveyed by Dow Jones Newswires expected the October PMI to come in at 51.0. “Comments from the panel this month reflect continued concern over a fragile global economy and soft orders across several manufacturing sectors,” […]

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Supplier Reduction Programmes: Pros and Cons (Part 2)

Peter Smith - November 1, 2012 8:41 AM | Categories: The Knowledge

Today we'll look at some of the issues and dangers of implementing supplier reduction under three areas: incorrect baselining, calculation of costs and inappropriate business outcomes. This is relevant to practitioners and solution providers alike, given that supplier reduction has formed part of the business case for many software, consulting or other solution sales over the past two decades.

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Spend Matters PRO Week: Holding MSPs Accountable to a BPO-Based Standard (Part 2)

Jason Busch - November 1, 2012 7:11 AM | Categories: Jason Busch

To highlight the depth of what’s available on Spend Matters PRO, we’ll be featuring full text analysis from select research briefs this week on the Spend Matters public site. Spend Matters PRO is our response to the type of material we wanted (but never got) when we were customers of industry analyst research firms. It’s fast, deep, pragmatic, and insightful. We’re offering a special discount to the first 25 yearly subscribers we sign up this week (individual seat costs in this offer are creditable on a pro-rotated basis to corporate/all company access accounts should you decide that you want to […]

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Spend Matters PRO Week: Ariba/SAP Customer Recommendations and Initial Analysis (Part 2)

Jason Busch - November 1, 2012 4:11 AM | Categories: Jason Busch

To highlight the depth of what’s available on Spend Matters PRO, we’ll be featuring full text analysis from select research briefs this week on the Spend Matters public site. Spend Matters PRO is our response to the type of material we wanted (but never got) when we were customers of industry analyst research firms. It’s fast, deep, pragmatic, and insightful. We’re offering a special discount to the first 25 yearly subscribers we sign up this week (individual seat costs in this offer are creditable on a pro-rotated basis to corporate/all company access accounts should you decide that you want to […]

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Spend Matters PRO Week: SAP and Ariba Customer and Prospect Implications – E-Invoicing

Jason Busch - November 1, 2012 12:11 AM | Categories: Jason Busch

Take advantage of our special PRO offer this week by clicking here. For subscribers, access this original Spend Matters PRO here: SAP and Ariba: Customer and Prospect Implications – E-Invoicing (Part 2). (Part 1 can be found here.) This research brief provides a comparison and overview of different e-invoicing elements contained in solutions provided by SAP and Ariba (including invoice/data submission supplier portal, interoperability/integration, network connectivity, etc.) It explores current capabilities of SAP and Ariba (including partner solutions), comparative strengths/weaknesses, operating philosophies (e.g., network centric vs. network/connectivity agnostic) and alternative approaches in the market. This piece will be of particular […]

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A Chicken and Egg Situation: Tricky Imports, Rising Prices

Guest-Post - October 1, 2012 12:10 PM | Categories: Commodities, Industry News

Spend Matters welcomes a guest post from Robert Miles, at Mintec Ltd. The US poultry and egg industry are both major users of animal feed, and chicken and egg prices are set to soar if an increase in the cost of feed sweeps the supply chain in the months ahead. The US is the largest poultry meat producer, a major egg producer, and a large exporter of processed egg products, with about 20% of the world’s poultry meat supply. They are closely followed by China (17%) and Brazil (16%). Brazil has about 34% of global poultry meat exports, but at […]

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Afternoon Coffee: SAP and Ariba Officially Close, search4procurement.com, No Bacon Shortage

Sheena Smith - October 1, 2012 10:10 AM | Categories: Afternoon Coffee, Sheena Moore

And there you have it, folks. (Stay tuned for our full analysis later this week). SAP closes $4.51 billion Ariba acquisition — German business software maker SAP AG said Monday that it has closed its $4.51 billion acquisition of Ariba Inc., a maker of Web-based software that connects suppliers and buyers online. The deal continues SAP’s rivalry with Oracle Corp. Both companies are buying up smaller ones that, like Ariba, provide software that’s hosted on remote servers, in the so-called “cloud.” Cloud-based applications remove the need for businesses to install and run software in-house. The newest Spend Matters UK/Europe venture! […]

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PRO Analysis: DOJ and UK Fair Trading Office Clear SAP Acquisition of Ariba

Jason Busch - October 1, 2012 9:37 AM | Categories: M&A, The Knowledge

Over the weekend, the US department of Justice (DOJ) cleared SAP’s announced acquisition of Ariba, a move that represents the last major hurdle that SAP had to overcome to close the deal. This follows news from earlier last week that the U.K. Office of Fair Trading also approved SAP’s announced acquisition of Ariba. The DOJ clearance was something we predicted on Spend Matters PRO (and Spend Matters), but the announcement was by no means certain. In fact, as we referenced previously this summer, once proposed acquisitions receive a second request, nothing is certain.

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The Elusive Group Buy: GPOs, Healthcare and Beyond (Part 2)

Jason Busch - October 1, 2012 7:10 AM | Categories: Healthcare Matters, Jason Busch, Spend Management

In the first post in this series, we examined how healthcare GPO provider Premier is tackling group-buying opportunities and the success it has realized for members above and beyond the standard leveraged pricing that GPOs typically provide. Yet to make group buys work, as my colleague Tom Finn on Healthcare Matters observes, technology is what can (and will) form the basis of making this technique a more frequent (and successful) means of negotiating optimal pricing, terms and service levels with suppliers. On the most basic level, the following requirements are necessary to enable group buys through technology-automated approaches (note this […]

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Building a Procurement Business Case for CFOs (Part 4)

Jason Busch - October 1, 2012 4:10 AM | Categories: Jason Busch, Procurement

Read the previous installments in this series below: Part 1: Introduction and Background Part 2: CFO Demographics Part 3: CFO Churn and Risk Aversion CFOs are the true MacGyver’s of the corporate world. They like to do more with less than what they have already. Ideas to redeploy or leverage existing assets in creative ways can truly capture the attention of enterprising CFOs. But CFOs are also calendar-driven, and monthly, quarterly and annual deadlines often take precedent over everything else. This calendar-driven mentality is branded into the DNA of a CFO based on their typical accounting training (see Part 2 […]

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DOJ and UK Fair Trading Office Clear SAP Acquisition of Ariba

Jason Busch - October 1, 2012 12:10 AM | Categories: Breaking News, Jason Busch, Optimization, M&A

Over the weekend, the US department of Justice (DOJ) cleared SAP’s announced acquisition of Ariba, a move that represents the last major hurdle that SAP had to overcome to close the deal. This follows news from earlier last week that the U.K. Office of Fair Trading also approved SAP’s announced acquisition of Ariba. The DOJ clearance was something we predicted on Spend Matters PRO (and Spend Matters), but the announcement was by no means certain. In fact, as we referenced previously this summer, once proposed acquisitions receive a second request, nothing is certain: If we look at the numbers alone, […]

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