Author Archives: Pierre Mitchell

About Pierre Mitchell

Pierre leads Spend Matters procurement research activities and has broader solution development responsibilities for intellectual property creation and firm strategy as Managing Director of Azul Partners. This includes spearheading efforts to build new types of interactive and social communities of interest within the procurement profession including overseeing the evolution of, Spend Matters PRO, MetalMiner, and other digital assets within Azul Partner’s umbrella. Pierre has 25 years of procurement and supply chain industry and consulting experience, and is a recognized procurement expert specializing in supply processes, practices, metrics, and enabling tools and services. He is a regular contributor to business publications, a frequent presenter at industry events around the world, and counts himself fortunate to have served and interacted with so many CPOs and future CPOs. Prior to his positions in research and advisory, he led numerous operations and systems transformations at Fortune 500 organizations. Industry positions include manufacturing project manager at The Timberland Company, materials manager at Krupp Companies and engineer at EG&G Torque Systems. He holds an engineering degree from Southern Methodist University and an MBA from the University of Chicago. In the early 2000's, Pierre was the first supply chain practitioner to become a procurement "industry analyst" as the VP of supply management research at AMR Research (now part of the Gartner Group) where he provided trusted counsel to procurement executives, business leadership, IT, and the solution providers who serve them. Most recently, he was the head of procurement research and adjunct business advisor at The Hackett Group, where he helped expand Hackett's procurement benchmarks and research studies while growing the Procurement Executive Advisory Program into a gold standard membership-based procurement advisory service in the market today.

How Better Procurement Practices Could Have Helped Resolve the West Coast Port Crisis

- February 20, 2015 1:08 PM | Categories: Analysis, Industry News, Procurement Strategy & Planning

KONICA MINOLTA DIGITAL CAMERA The ongoing logistical logjam at the West Coast ports is still not resolved. The situation is impacting small and large businesses across the US as well as workers that rely on imports and exports from the ports. How could procurement have helped this situation? Spend Matters analyzes the issue and offers ways procurement can step in.

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Coupa Sets Itself Apart in the S2P Sector

public-domain-images-archive-free-stock-photos-3-1000x666 copy Coupa stands alone as the most aggressive vendor in the source-to-pay sector on virtually every level – starting with breakneck pace R&D development and continuing to assertive sales and partner tactics. In this PRO analysis, the Spend Matters research team provides an outlook for Coupa in 2015 and 2016 and offers their thoughts on what potential activities and actions mean for customers, possible customers and partners, including an examination of what the future for Coupa may bring. It is important to factor in both upside and downside potential based on multiple developments occurring in the sector, some of which are outside of the provider’s control.

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Coupa Looks Ahead in 2015 – History and Context

tumblr_nchz8vf3sG1qfirfao1_1280 In recent years, Spend Matters research suggests that Coupa has led the market for new e-procurement sales in North America. It also built material traction in parts of Europe – something that many US providers struggle to do. The European traction is all the more remarkable because Coupa brings a very US-centric view to P2P – empowering the end-user rather than creating a command/control catalog-driven structure. In this PRO analysis, the Spend Matters research team explores a number of scenarios and considerations for Coupa in 2015 and 2016 (including a potential IPO), and what it means for customers, potential customers and partners of the high-growth vendor. The team begins today by providing historical context for Coupa and outlining engagement tactics for maximizing value when working with the fast growing vendor.

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Don’t Forget the “R” in Procurement ROI

- February 13, 2015 9:48 AM | Categories: Procurement, Procurement Commentary, Procurement Financials

1129140-2590-D31A-402A89DD1F58ACC9 I have researched this topic and correlated procurement ROI with procurement savings (a major subset of the “R”) over hundreds of real-life benchmarked firms, and what I found is that the correlation is expectedly very high…to a point. Once you exceed an ROI of about 3, the correlation weakens and then ends. In other words, some procurement organizations get very expensive and inefficient without seeing a commensurate return on that investment. Others, however, spend somewhat more, but do get disproportionately high payback from those investments.

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The Future of B2B E-Commerce in the Extended Supply Network

- February 12, 2015 2:41 AM | Categories: Analysis, eProcurement / Procurement, Supply Networks

FZQOV2XR3W We have previously reported on Amazon’s recent foray into B2B via e-procurement application integration, highlighting numerous areas where Amazon (or any online B2B network) needs to focus to ensure robust support for buy-side requirements. In this Spend Matters PRO series, Spend Matters Chief Research Officer Pierre Mitchell analyzes the bigger picture e-commerce opportunity in this massively complex market. We will be using Amazon as an entre to this discussion on the implications for providers, practitioners and the broader market ecosystem. Part 1 frames the broader discussion for this series. We begin by explaining and sizing the market opportunity.

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E2open Becomes a Private Party – Now What about the After Party?

- February 9, 2015 10:32 AM | Categories: Analysis, Industry News, M&A, Technology

cheering-concert-dancing-849 Private-equity firm Insight Venture Partners (“Insight”) plans to acquire supply chain software company E2open. The all-cash deal of $273 million represents a 41% premium over its previous valuation at the time that the deal was announced. Before the announcement, E2open was only trading at roughly 2.5 times revenues due to multiple quarters of financial misses in 2014 relative to Wall Street expectations. Interestingly, the stock plummeted from nearly $30 per share almost a year ago to nearly $5 per share last month, even though the revenues and earnings barely changed. What will Insight do with E2open? We have some ideas.

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Why Xchanging Acquired Spikes Cavell: Initial Analysis

- February 6, 2015 9:38 AM | Categories: Breaking News, Industry News, M&A

Businessman hand touching M & A on virtual screen - merger & acq Earlier today, Xchanging announced it is acquiring Spikes Cavell, a UK-based spend analysis provider with operations in the US and UK, serving both the public and private sector. Spikes Cavell made a name for itself in the US market as a specialist in public sector spend analysis, but has recently started to build traction in the private sector as well. The transaction values Spikes Cavell at over 4X trailing revenue and includes both cash and earn-out provisions. Spend Matters US and UK/Europe teams will provide deeper commentary and analysis for our readers on our free sites as well as Spend Matters PRO in the coming days – but our quick take analysis suggests the following 8 key things.

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Can Amazon Start to Support The P2P Process in B2B? What Will it Take?

- February 6, 2015 2:24 AM | Categories: eProcurement / Procurement, P2P, Technology

board-cubes-game-2923 copy To really support B2B properly from a P2P and broader F2F (forecast to fulfill) standpoint, Amazon, or any other B2B focused e-marketplace must be able to support the requirements (even for mid-market companies) that buyers want from not just a punch-out supplier like Amazon, the e-tailer, but also a buy-side supplier network.

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The CPO’s Guide to Lean & Six Sigma – Part 3 (Applying Lean Six Sigma to Procurement)

- February 5, 2015 2:53 AM | Categories: Analysis, Best Practice

hands holding jigsaw In our previous two segments of this series published on our Chief Procurement Officer website (see here and here), we discussed Lean and Six Sigma individually in terms of their history, their approaches and their relationship to each other. In this installment of this series, we drill down into how to begin to apply Lean Six Sigma to procurement. In this Plus post, we define the process of when the Lean is integrated with Six Sigma and applied to supply management.

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Amazon Takes Stage with Oracle, Enters B2B Market – So What?

- February 3, 2015 10:51 AM | Categories: Analysis, eProcurement / Procurement, Industry News

Basic RGB, Inc. is the largest business-to-consumer electronic marketplace in the US. And its parent company, and more specifically its business-to-business unit, just landed its first real beachhead into the e-procurement enabled B2B market. Yes, Amazon, eBay, Alibaba and other B2C e-marketplaces do their fair share of B2B business, especially Amazon when it launched its B2B site (basically a re-skinned version of that we wrote about almost 3 years ago here. But this is different.

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Oracle Innovation: When Will On-Premise Applications Meet the Cloud?

- February 3, 2015 6:30 AM | Categories: Cloud, Conferences, Technology, Vendor Snapshots

file0001447089305 In our first installment of this series covering the recent Oracle summit, we discussed how Oracle is working toward mass customization of its cloud application suite as part of its broader PaaS strategy. (Others are doing this, too.) But, this vision won’t likely be fully fleshed out for at least 3 years. Color-coding of screens, changing logos, using flexfields, etc., is not exactly expressing the full power of a PaaS. Oracle does have more extensive capabilities in its PaaS “stack,” but it can only move so fast in using its own platform components to develop its cloud applications.

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A View From The Oracle Value Summit – Part 1

- February 2, 2015 6:03 AM | Categories: Cloud, Conferences, Vendor Snapshots

beach-holiday-idyllic-3847-825x550 I escaped the recent blizzard in Boston and flew out to the Oracle Value Chain Summit in San Jose, California, to attend some sessions, talk to customers and partners and generally try to stay out of trouble (while also supporting our team with the new CPO site launch). The event is for Oracle customers who use the company’s applications in procurement, supply chain and PLM. I chatted with a mix of folks from IT and procurement organizations, but also peeked in on some of the SCM and PLM happenings. I attended a very interesting session that relates to one of our recent procurement predictions, too, but that’ll be a story for tomorrow!

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