Category Archives: Procurement Financials

Mastercard and Basware – Exploring Payments and Discounting (A Tragic Irony)

Earlier this month, the Mastercard and Basware teams shared with Spend Matters and Trade Financing Matters a very comprehensive survey-based research study the two firms (and partners) had completed over the summer months. The study, based on responses from more than 1,000 finance professionals (on both the accounts receivables and accounts payables side of the fence), provides a very global view of where cash management and payments stand today (respondents from 10 countries are represented in the data set, and each country had approximately 100 responses). The survey participants were best represented by the SMB market segment (e.g., only 11 percent of respondents had 5,000 or more employees). In a series of posts exploring the data and findings, the Spend Matters team will highlight some of the more useful elements that the research surfaced as well as select analysis and recommendations by the authors. We’ll share some of our insights as well.

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A Better Month for the Spend Matters Stock Portfolio (Even Blur Group Moves Up!)

- September 2, 2014 10:28 AM | Categories: Industry News, Procurement Financials, Solution Providers

We move into the start of a new academic year in many parts of the world, children try on their new school uniforms, and summer inexorably turns into autumn. And the thoughts of procurement people turn to matters of great import – such as whether the Proactis share price can keep rising and why Hubwoo’s just doesn’t seem to move at all.

Yes, another month has gone by, and it is time to review Spend Matters' virtual stock portfolio, made up of 21 stocks in firms that have a procurement content to their portfolio. Peter Smith and Jason Busch have been tracking them all through 2014 in this Spend Matters Plus series to get a sense of where the market for firms in this industry is going. They then chose their preferred portfolios from those stocks, using an imaginary $1 million initial fund each. Jason focused on just eight firms; Peter spread his risk with 14.

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50 Shades of Pay: Level 1 – How to Wring Every Bit of Value Out of Spend Data

In this introductory analysis, we begin our exploration of how to wring every bit of value out of spend data. At every level or ‘shade’, we will describe the spend-related analysis (i.e., its scope and the approach used to attack it), the value of it, the challenges in doing it, and some methods to overcome those obstacles. In level 1, we'll start with basic Accounts Payable (A/P) spend analysis by supplier – the very basics (this is absolutely essential). Let’s jump in!

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Spend Matters Procurement Stock Portfolio: Good Thing Jason Busch Has a Day Job

- August 1, 2014 9:04 AM | Categories: Industry News, Procurement Financials, Solution Providers

So now we move into the dog days of August. The UK has been sweltering, by our standards at least, in hot, humid weather, punctuated by the occasional biblical thunderstorm. And with that note of foreboding and doom, it is time to return to the Spend Matters stock portfolio challenge for the year of 2014. Regular readers will know that we identified a portfolio of 21 shares with a procurement content and interest in order to track their performance and get a sense of where the market for “our” firms was going. Jason Busch and Peter Smith then chose their preferred portfolios from those stocks, using an imaginary $1 million initial fund each. Jason focused on just eight firms; Peter spread his risk with 14. It's not been the best of months. Peter Smith, managing director of Spend Matters UK/Europe, provides an update on which firms are doing well and which ones less so in the latest installment of this Spend Matters Plus series.

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Taulia Raises $27 Million, Valuing Company at 15X Trailing Revenue (Roughly)

We continue to be surprised at some of the funding rounds and public company valuations in the sectors of procurement and trade financing (receivables and payables financing). However, Taulia is one of the few vendors that I’d bet my own money on to grow into what is a curiously high valuation based on historical – even historical tech – norms. It’s my estimate that the recent Taulia valuation round was done on a valuation multiple roughly around 15 times trailing top line numbers. I base this multiple on a napkin sketch of Taulia’s current accounts and business activities (including program adoption) and a WSJ blog pegging the overall valuation at $200 million.

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A Sector in Turmoil? Procurement in the Financial Services Industry Face a Range of Challenges

Remember to register for our webinar tomorrow titled "A Sector in Turmoil? Challenges for Procurement in the Financial Services Industry," sponsored by the procurement software and solutions provider SciQuest. That’s this Thursday, May 8 from 9 to 10 am CDT (mid-afternoon of those of you in Western Europe). Along with SciQuest’s Lindsay Sloan, I’ll be looking at the issues and challenges for procurement in the sector and proposing some steps procurement professionals might want to consider.

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Driving Sustainable Value in Procurement Outsourcing – Don’t Assume It’s a No-Brainer

The Procurement Outsourcing (PO) industry has rapidly emerged. It grew at 10% in the last year and reached $220 billion in terms of managed spend, according to Everest Group. They also predict PO to grow at a rate of 15-23% annually over the next 10 years. Yet, while the PO market is on the rise, first-time contracts are often leaving clients unsatisfied and hesitant to renew. In a two-part series, I’ll examine the common pitfalls that cause this phenomenon and the steps to avoid them.

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Procurement and Finance: How to Close the Budget Loop (Survey Results!)

In today’s economy, many companies are looking for ways to improve their budget management practices with the main objective of increasing their spending visibility and control. Following our last post (Procurement and Finance: How to Close the Budget Loop), in which we invited you to take a brief survey, we have gathered data from over 100 participants. We then complied and analyzed the data to identify trends.

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Hackett P2P and eProcurement Effectiveness Metrics: Where Procurement ROI hits the Savings Road

- November 12, 2013 9:04 AM | Categories: Analytics, Procurement Commentary, Procurement Financials

Earlier in this series on the Hackett Group metrics that Richard Waugh shared at Zycus Horizon, I focused on eProcurement and broader P2P efficiency. Today, I’d like to turn your attention to overall effectiveness metrics that I believe go even further in justifying increased efforts and attention to eProcurement and e-invoicing activities. Warning: these high-level numbers will convince even spend curmudgeons to take action.

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Hackett P2P Efficiency Metrics: From Requisition to Discounting and More

Hackett Group has built a reputation as the gold standard for procurement benchmarking. Theses metrics are really just a “teaser” and Spend Matters thinks that organizations serious about understanding and improving relative performance would be well served to better understand how getting involved in this Hackett program can help them.

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How to Justify Spend Analysis to Finance/IT When There’s No Clear ROI (Part 2)

Yesterday, we discussed the first five of ten possible strategies to justify a spend analysis initiative to Finance/IT despite the Catch 22 that comes from not knowing the potential value that may come from the initial investment. Today we pick up with recommendations #6-10, ("Help IT...Help You!" to procurement-ize the quote from Jerry Maguire) and close with some final remarks and recommendations. PRO members, click on through. If you're a qualified practitioner who would like access to a free trial of Spend Matters PRO, please don't hesitate to reach out to Sheena:

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How to Justify Spend Analysis to Finance/IT When There’s No Clear ROI (Part 1)

Analytics are all the rage. And spend analysis is Procurement 101. So, getting some reasonable investment shouldn't be a problem, right? Wrong. The problem with analytics is that the identified value is all “option value.” You don't know how much value opportunity you will uncover with the analytics until you actually perform them (and implement the identified opportunities)! This article is designed to help you overcome this Catch 22 problem - we've prepared ten strategies to help you get the ball rolling with IT and Finance (even if the ROI isn't clear).

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