The Market Intelligence Category

Efficio Panel Debate: Good Banter, Robot Jokes and 3 Points About the Future of Procurement

Last week in London I participated in one of the livelier and more spirited panel debates on the future of procurement (skills, technology and more) in recent memory. The event, held at Efficio’s offices Thursday to mark the release of its latest report, “Procurement 2025: Is Digital Transformation Driving More Effective Procurement,” included not only a handful of esteemed panelists and facilitators from the procurement/CPO, consulting and academic ranks, but also a robot — which led to many robotic process automation jokes throughout the discourse. If Efficio does something like this again, ask them for an invitation — you won’t be disappointed!

Here are three points that stuck in my mind from the different panel discussions and chats that I had.

‘More people in the tools, lower risk, faster processing, better results’ — Roy Anderson sums up procurement’s future (Part 3)

“Use your suppliers to get the work done more efficiently, effectively and start to manage the overall supplier base like an orchestra leader,” procurement veteran Roy Anderson says, laughing at the image — but not the lesson. “That orchestra leader can’t play every instrument and certainly isn’t going to sing every song, but has to be able to have the structure and the reporting and the analytics to be able to manage it more effectively.

“That’s the future. A virtual procurement operation living on a marketplace of capabilities is the future of procurement.”

In Part 3 of Anderson’s conversation about his career and digital changes in the industry, he talks about being at Tradeshift (“where ideas win”),  how “every CPO has a bandwidth problem” and the promise of AI.

Anderson, who became Tradeshift’s CPO and digital transformation officer in September, sat down with another procurement veteran, Pierre Mitchell of Spend Matters, to share some laughs and lessons about how the industry adapted to technology over the last 40 years.

The following is the last of a three-part series of their conversation, which has been edited for clarity. Part 1 ran Monday, and Part 2 ran Wednesday.

Commodities Roundup: LME Nickel, Auto Sales Down in China and Oil Price Sliding

Chinese demand

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters. This week: Surcharges fall on LME nickel and stainless steel, auto sales stall in China and oil prices drop after a peak in September.

Tradeshift Analyst Day: The Marketplace Strikes Back

I touched down in New York City today for a quick stop at Tradeshift’s fall 2018 analyst day. The theme of the event is marketplaces, a topic that brings me back nearly 20 years to the heyday of the B2B marketplace era. But now — unlike when Commerce One, Tradex (which Ariba purchased), Metiom, i2 TradeMatrix and all the industry-based “exchanges” looked much better in PowerPoint than they performed in theory —  the technology to support them is real.

Amazon Business Prime Updated: Analysis and Procurement Recommendations (October 2018 Update) [PRO]

AnyData Solutions

Earlier today, Amazon announced a host of enhancements to its Amazon Business Prime offering. To help procurement organizations understand the implications of these added capabilities, this Spend Matters PRO research brief provides an overview and analysis of the new solution components and offers recommendations to procurement organizations already using or considering Amazon Business.

The emphasis of this PRO analysis centers on the spend visibility/analytics, e-procurement (guided buying) and working capital/payment capabilities of the October 2018 Amazon Business release. While some of these areas are likely to be less interesting for organizations that already use a third-party e-procurement solution that integrates with Amazon Business (either via punch-out or API), Amazon’s enhanced invoicing, working capital and payment components can be applied to all potential users.

But perhaps most important, these enhancement offer some signals of how Amazon may continue to build out the capabilities of its Prime business solution. Let’s delve in.

Upwork Post-IPO Rising: A Next-Gen Staffing Industry Analysis [PRO]

On Oct. 3, 2018, Upwork became a public company listed on the Nasdaq exchange. Its stock was offered at $15 per share and has since been trading in the $19 to $21 range, giving it a market valuation on the order of $2 billion. This was a company that emerged from a new segment of innovative, online platform intermediaries, and just six years ago, was widely considered to be a non-starter, even dismissed as a “flash-in-the-pan,” by practitioners in the staffing industry. Now, based on gross revenue/gross services volume, it would rank among some of the world’s largest staffing companies. The Upwork IPO was not only an important milestone in the evolving and increasingly digitized contingent workforce space, it also presented an opportunity to look more clearly into the company and assess where it stands (and might eventually stand) in the space. In this Spend Matters PRO brief we take a look at both. We provide a snapshot of key Upwork information to highlight what the company actually is and what it represents in the industry vs. common industry perceptions.

An Introduction to Sourcing Business Intelligence (Part 2): The Leap from Sourcing Analytics to Supply Intelligence [PRO]

data analytics

In Part 1 of this Spend Matters PRO research series, we defined and explored the concept of sourcing business intelligence (BI), an emerging focus area for an increasing number of procurement organizations. Sourcing BI is not a “tool” like a spend analysis application module or a general purpose BI tool — like the visualization tools Qlik, Tableau or Sisense. Rather it is an enabling approach to sourcing, supplier management, total cost modeling/should cost analysis and related initiatives like clean sheeting that focus on the ability to incorporate increasingly rich external market, commodity, category and supplier intelligence with existing internal data sets, process flows and activities to enhance savings, compliance and organizational resilience.

Much of this activity is occurring within category management where managers are trying to move from historical descriptive analytics to “outside-in” predictive/prescriptive analytics that yield true intelligence rather than just subscribing to tribal best-practices sharing and generic data-as-a-service (DaaS) offerings in the marketplace.

In Part 2 of exploring sourcing business intelligence, we first will set some context about how to make the leap from sourcing analytics to broader supply intelligence. “Supply management” is bigger than “sourcing management” — and similarly — “intelligence” is bigger than “analytics.” By understanding this evolution, it helps us set up a deeper discussion into how artificial intelligence relates to analytics — with an immediate focus on sourcing, but a longer-term focus on broader spend/supply.

Sponsored Article

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.

Sponsored Article

Beroe LiVE Poll: Spend Analysis Helps Trim Costs up to 5%

A procurement organization’s spend data usually resides in various databases and spreadsheets, often making it difficult to collate them into one coherent form for reporting purposes. However, procurement organizations can reap enormous benefits by bringing in much needed visibility into spend patterns. The importance of spend analytics has not gone unnoticed: 38% of procurement leaders had rated spend analysis as the most critical area to receive investment, according to Deloitte's 2016 Global CPO Survey.

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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.