Author Archives: Spend Matters Brand Studio



Building the MSP of the Future: The GRI Approach

digital business transformation

Managed service providers (MSPs) failing to adapt to evolving enterprise standards for contingent workforce management risk becoming obsolete before the end of the decade. To win and keep business, MSPs of the future have to reposition themselves as experts, becoming trusted advisors offering a consultative approach built on modern contingent workforce strategies. What does this look like in practice? To find out, we take a look at how Geometric Results Inc. (GRI) is tackling the contingent workforce challenges of tomorrow and examining how its solutions and services align with the three characteristics of successfully evolving MSPs.

ROI, Today: Making the Near-Term Business Case for Spend Analytics

spend analytics

Most varieties of procurement software deliver some form of return on investment. Whether it’s an e-procurement system that consolidates process costs or a sourcing tool that optimizes supplier selection, successful vendors can always point to clear ways their solutions deliver value, both immediately and in the future. When it comes to spend analytics, however, demonstrating ROI has proven more elusive. This is because dedicated spend analysis tools are often viewed as enablers to saving money through other methods, rather than a benefit in their own right. Yet while it is true that spend analytics deliver value by illuminating new savings opportunities, these tools can also be used to obtain tangible wins in their own right.

The Imperative to Improve Working Capital: Driving Forces and Emerging Solutions

Improving working capital performance has become increasingly important to companies in recent years, yet few procurement and finance organizations have found truly sustainable, long-term solutions to support this goal. The problem is that immediate external forces are pushing businesses to make working capital improvements now, while the sound financial strategies to maintain these changes require more than a few “quick fixes” to ultimately succeed.

How to Proactively Defend Against Supply Chain Risks from Section 232 and 301 Tariffs

trade

The escalating U.S.-China trade war has put billions of dollars of Chinese imports under tariffs — but thousands of Chinese products are about to fall under additional duties. Off the back of the Trump administration's Section 232 investigation, which resulted in steel and aluminum tariffs, the recently finalized Section 301 investigation has targeted numerous Chinese products. Many procurement organizations have been following the investigation and its potential effects on their supply chains, but knowing exactly how a decision could introduce risk on a part, supplier and regional level has been far from easy. To shield their businesses from uncertain trade risks, procurement organizations need to take a proactive approach.

The Future of MSPs: 3 Characteristics of Successfully Evolving Providers

The world of work continues to change, and managed service providers (MSPs) need to evolve to remain relevant. Gone are the days where enterprise contingent workforce programs required little more from MSPs than managing a base of temporary staffing suppliers, regulating contingent workforce spend, and enforcing baseline program compliance. Today, these programs must also be built to navigate an expanding contingent workforce ecosystem, guard against increasing regulatory risks, and integrate data and analytics to provide program value beyond simple costs savings.

Selecting Market Intelligence Providers: A Roadmap for Procurement

To make the best purchasing decisions possible, procurement organizations need current and accurate data about the categories they manage. But limited time, resources and accessible market data have hindered procurement’s ability to meet this standard on its own. This is why third-party supply market intelligence has become an invaluable tool for businesses as of late, with a majority of companies now using at least one or more external SMI resource.

3 Reasons Why Payables Transformation is Coming to Mid-Market Businesses

Catalant

Despite their outward appearances, large and midsize companies face many similar payables challenges. The real difference between the two, however, comes from the way different companies address these challenges. Whereas a large multinational likely has the necessary resources or a shared services organization to manage purchasing and payables complexity, mid-market firms are left to tackle the same problems with fewer people, less budget and older tools. Add to this increasing regulatory hurdles, global expansion and the ever-present need for faster revenue growth and one thing becomes clear: midsize companies need a payables transformation to thrive in the modern economy.

The State of the MSP Industry (Part 1): The Moment of Truth Has Arrived

Capgemini IBX Business Network

The MSP industry was born in the early 1990s. Enterprises were using more and more temporary labor, sourced without much control of cost and risk from a fragmented and opaque staffing industry. The very idea of an enterprise contingent workforce management program was a glimmer in the eye of CFOs. However, what had been a small problem was becoming a big one. To help businesses take control of their growing temporary labor use, MSPs, along with VMS technologies, stepped up to offer a solution to this problem. And since the 1990s, MSPs have served enterprises in these ways, delivering value primarily in the form of spend visibility, cost avoidance and reduction, and compliance enforcement. But what worked in the past in no longer simply enough for many businesses to justify their ongoing with relationships with MSPs.

3 Reasons Catalogs Can’t Be Trusted to Manage Low-Value Spend

For many procurement organizations, catalogs have become the default way to manage indirect spend. It’s easy to see why. Catalogs offer a simple way to manage recurring, low-value purchases. By grouping previously sourced categories and commonly requested items into a single interface, catalogs promise ease of use, efficiency and, of course, increased savings, especially through the reduction of maverick spend. In practice, however, catalogs often create as many new problems as they solve. To help you understand why, here are three reasons why catalogs can’t be trusted to manage low-value spend — and how you can go about protecting your organization.

What CFOs and CPOs are Looking at to Transform Accounts Payable in 2018

As companies set their strategic priorities for 2018, the push for digital transformation has taken hold. But while functions such as sales and marketing already have a firm foothold in the digital world, supply chain-related functions have had to wait their turn to revolutionize their tools and process. This year, however, stands to be the one where procurement and accounts payable organizations shed their back office brand for a new, strategic approach. To find out just where CPOs and CFOs are focusing in 2018 as they lead their digital transformations, we sat down for a quick Q&A with Xavier Olivera, our in-house purchase-to-pay (P2P) expert, and David Gustin, executive editor of Trade Financing Matters, for a conversation spanning procurement-finance collaboration, common barriers to technology adoption and the future of early payment programs. 

What is Market Intelligence, and is it Relevant to Procurement?

Torchlite

As procurement takes on increased strategic importance within companies, purchasing professionals are being asked to do even more with their limited time. This is especially true when sourcing direct materials, which requires keen attention to many changing economic factors outside of the organization. To make the best decisions possible without falling behind, procurement must ensure it has access to and effectively uses supply market intelligence. To help practitioners understand why, this three-part series first outlines the key pillars of market intelligence, explaining why companies seek out this capability. It then explores why market intelligence matters to procurement, and concludes with an analysis of why businesses should seek help from a third-party provider to build out a market intelligence program.

Why Mid-Size Companies Need On-Demand Solutions to Conquer Tail Spend

Procurement has firmly entered the tail spend era, and with necessary tools now available to tackle this persistent purchasing problem, supply organizations are finally consolidating costs, cracking down on unauthorized spend and clawing back lost time to deliver real value to their businesses. At least, that’s what the picture is starting to look like at large manufacturers and corporates. Within the typical mid-size firm, however, addressing tail spend still eludes many procurement organizations. The issue is less a challenge of capability than finding a solution that fits their unique business needs.