Category Intelligence (Indirect) Content

3 Areas Where CSR Risks Hide in Your Indirect Spend (Part 2)

risk

Because procurement is so often measured on cost savings as its primary KPI, another essential factor can be left by the wayside: risk. Especially when it comes to corporate social responsibility (CSR) and sustainability, risk remains hidden within indirect spend. To see how these dangers go unaddressed, here are three areas with examples of where organizations miss — but, with proper tools, can address — CSR and sustainability risks for indirect procurement.

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Achieving a Personalized Buying Experience for Businesses

Today’s technology enables fine-grained customization and personalization. When applied correctly, personalization can lead to a better customer experience and higher sales or engagement. If applied poorly, it can detract from the user experience, causing frustration and possibly missed sales. In this article, we’ll walk through some of the personalization that can be enabled when using Amazon Business, helping to make it easier to find the right products and better control rogue spending.

If you’re not familiar with it, Amazon Business makes it easy for business customers to find and buy from hundreds of thousands of sellers and helps sellers reach millions of registered business customers around the world. Similar to Amazon.com, buyers search for products from millions of available items. For businesses, personalization helps make the buying experience fast and efficient. From relevant search results to customized messaging, buyers can find the items they need, and know upfront if they are approved for company purchase.

Addressing CSR and Sustainability Goals Through Improved Indirect Spend Management (Part 1): Background and Challenges

The list of corporate social responsibility (CSR) and sustainability risks in the physical supply chain is long. When securing direct materials, procurement organizations must assess factors from restricted or hazardous substances to the kind of labor that went into raw material extraction and even political restrictions like sanctions on whether companies from certain countries are even allowed to do business with you. Because of these and numerous other potential issues, many companies have begun to focus on identifying and eliminating such risks from their supply chains with the help of third-party CSR data sources and risk-monitoring platforms. But while the value of assessing CSR risks for direct materials spend has gained prominence in recent years, the other side of the procurement coin, indirect spend, has not received nearly as much interest. That’s a shame — and a risk in itself.

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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.

Who’s Adopting T&E Management Software, and Who Isn’t? Breaking It Down by Industry and Revenue

Oversight Systems

If expensing that hotel stay or work lunch requires you to keep paper receipts, you are in good company. According to a report from PayStream Advisors, more than a third of employees file expenses either by mailing paper receipts to their AP department or through a combination of scanned receipts and spreadsheets. Nearly two-thirds, however, report that their organizations use a dedicated expense software tool. And as companies move along in their digital transformations, the trend in travel and expense (T&E) management is certainly away from manual systems.

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Shopping Online for Services Through E-Catalogs

We all have purchased something from online shopping portals. Can the same experience be replicated across procurement categories? Especially, when it comes to indirect services categories, which are hard to structure or commoditize? Organizations are constantly discovering ways to make the procurement process simpler, efficient and effective. There is a potential to bring a lot of contracts under managed spend instead of spot buying. Procurement managers usually spend a lot of time either negotiating for a better price or requesting services from suppliers. Catalog buying is being viewed as a solution to these procurement issues.

What Amazon Business Has Learned About Managing Tail Spend

“Amazon, like any other organization, is not immune to the challenges you all are having with tail spend.” That was Jeff Oar, head of customer success, enterprise, at Amazon Business, speaking on a recent webinar held by Spend Matters (and co-hosted by our own Pierre Mitchell). If one of the 800-pound gorillas has a tail spend problem — and we say that as politely as possible, given the fact that Spend Matters and Amazon Business joined forces on the indirect spend research study underpinning this report and the webinar — chances are, your organization is, too.

What Does The Age of Digitalization Mean for the Travel Services Buyer?

services sector

The role of today’s corporate travel manager or category manager is more demanding than ever. The manager must not only take responsibility for the travel budget, be a skilled negotiator, understand technology, leverage data and manage travel policies, contracts and compliance, but also deliver value to the organization. And of course, they must also keep the corporate traveller safe and be risk-aware. How can practitioners prepare to handle all of this and more?

Certify T&E Report: Business Travelers Go for Starbucks, Delta and Uber (But Lyft is Catching Up)

Oversight Systems

Travel and expenses management software provider Certify recently released its latest SpendSmart Report, analyzing business travel spending for Q3 2017. Lyft is experiencing impressive growth, while its ride-hailing rival Uber, as well as taxis and car rentals, are seeing declines. The data comes from 10 million business travel receipts and expenses that are processed via Certify’s system. Certify then analyzes the data by category, such as ground transportation, meals and lodging.

Taking Control of Your Unmanaged Indirect Spend

AnyData Solutions

Spend Matters welcomes this guest post from Scott Dever, vice president of member development at Corporate United.

Targeting areas of unmanaged indirect spend is a key way procurement leaders can deliver value and maximize savings, and ultimately extend their reach and influence. Traditionally, this unmanaged spend has challenged procurement for a number of reasons. Decentralized decision-making and fragmented buying creates a lack of visibility into spending, supplier proliferation and limited opportunities to support competitive sourcing. But increasing spend under management enables teams to realize many worthwhile benefits, including incremental cost savings, supply base consolidation and reduced risk.

Managing Employee Spend Strategically

BuyerQuest

Spend Matters welcomes this guest post from Guy La Corte, general manager, Americas, at Concur.

Employees have access to and are spending more of your company’s money across more spend categories using more payment methods than ever before. And for finance and procurement managers, it’s increasingly challenging to track spending in a world where employees are paying supplier invoices directly with company checks; booking and managing travel directly on their mobile devices; using their corporate, ghost, virtual, corporate or even personal cards for just about everything; and vendors are marketing directly to them with upgrades and offers. This employee-initiated spend has become the largest unmanaged spend category in almost every company’s financial program.

New Research: Using Best Practices to Maximize Travel & Expense ROI

T&E

Travel and expense management goes beyond making sure employees aren’t submitting dubious expenses like, say, $1,000 toward adult entertainment or $80 worth of drinks to keep a spouse “calm and occupied” (both of which were real expenses, by the way, as reported by Inc.). According to a new London School of Economics report commissioned by Amadeus, companies can cut the cost of processing a transaction by more than 50% by actively managing T&E and implementing best practices.