Category Archives: Procurement Research

Zycus Exclusive Report Highlights Procurement Technology Adoption Trends and Best Practices

We recently published “Pulse of Procurement 2014,” an extensive survey of over 300 global procurement leaders to benchmark technology adoption strategies and highlight measurable business results achieved by top performing organizations. The study, conducted in Dec. 2013 and Jan. 2014, canvassed global organizations that consisted primarily of large enterprises, with 80 percent that reported revenues in excess of $500 million annually. Three-fourths were headquartered in North America. The vital signs – or key findings of the study – point toward continued healthy returns for procurement organizations investing in innovative and integrated procurement-focused solutions. Here are a few of the leading indicators.

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“Centralise or Devolve Procurement? Why Not Both?” How Technology is Enabling New Operating Models

We’ve seen many years of debate over the best way to organise procurement within complex organisations. And the question of whether it is better to centralise or decentralise, hold or devolve power, is still one of the most heated talking points among procurement executives. Now, technology has evolved to a level that means we may no longer need to choose between one or the other, or indeed try to make both models fit where an organisation has a siloed, category-led structure in place.

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KPMG: Exploring Procurement Operating Models- The Symbiotic Relationship of Changing Structures and Savings

- April 7, 2014 10:44 AM | Categories: Procurement Research, Procurement Strategy & Planning

Drawing from the KPMG and Procurement Leaders research study: High Impact Procurement Operating Models – A Survey of Global CPOs, we examine the relationship between the two key takeaways: Retaining the benefit of past models of procurement in the current model and discovering how changing the model delivers savings.

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KPMG: Operating Models, Savings and Performance – On Centralization and Journeys vs. Destinations

- March 24, 2014 6:21 AM | Categories: Procurement Research, Procurement Strategy & Planning

What happens as procurement organizations transition from decentralized operating models to greater centralization? As KPMG observes in the above-linked analysis, “we have seen the evolution of most organizations follow the same course: one of increasing
 control by procurement through centralized operating structures. Centralization brings obvious benefits, but once centralization has occurred, the benefits are known to fall off quite rapidly, so what is next?”

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Do Procurement Operating Models Affect Savings and Performance? KPMG Sets the Context

- March 20, 2014 6:33 AM | Categories: Procurement Research

Pierre Mitchell and I are in the middle of working our way through a dense but valuable study by KPMG and Procurement Leaders. High Impact Procurement Operating Model is based on survey data from over 400 respondents in Q4 2012. The data itself can be called timeless and the study examines the relationship between procurement organizational structure, commercial model and governance with actual performance – and how these sets of structural components interact and evolve over time within a typical company. The study is not perfect (Pierre lived this stuff at Hackett for years and data gathering methodology and approach is so key when getting at these types of issues), but it’s deeply interesting and useful nonetheless.

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Benchmarking the Procurement Benchmarkers – An Insider’s Guide (Part 2)

In Part 1 of this series, we began our coverage of the procurement benchmarking market (starting with non-profit providers such as CAPS Research and APQC) and also dove into some of the organizational questions and issues to consider before embarking down the benchmarking path. In this second installment, we will review some of the major commercial service providers in the market and their respective offerings. Read on for our analysis (including strengths, weaknesses and differentiators) of The Hackett Group (Hackett) and Corporate Executive Board (CEB). Hackett and CEB are big annual checks to write. But are they worth the annual investment? And what can you expect to get out of the relationship? Let us peer behind the ivory wall, as we help you decide which are the best fit for your organization as we continue our analysis that "benchmarks the benchmarkers".

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Procurement and M&A: Second Wheel or Corporate Development Secret Weapon? (Part 2)

To make procurement a corporate development secret weapon in an M&A context requires thinking outside the box of the usual transactional purchasing and supply chain integration and activities. It requires a “special forces” type of mentality, operating behind “enemy” lines, rather than bringing in a whole army of troops. I've already written about a number of examples on how procurement can get involved in acquisition activity. Here are a few more ideas.

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Benchmarking the Procurement Benchmarkers – An Insider’s Guide (Part 1)

Here at Spend Matters, we’ve been on a bit of a Procurement Performance Measurement kick lately. We started with a three-part series on A.T. Kearney’s ROSMA metric, and then we did a three-part series on improving procurement scorecards, which was then followed up by a deep dive on Implementation Considerations in Quantifying and Tracking Hard Cost Savings. One of the things that we mentioned a few times was the importance of linking external benchmarks into a procurement scorecard – and that we would follow up with a piece on procurement benchmarking firms. And so here we are. Before jumping into procurement benchmarking solutions in the market, it is critical to highlight the perhaps obvious statement to that you should know why you are benchmarking before you start looking for providers.

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Towards a New Procurement Portfolio: The Rise of Alternative Strategic Sourcing Models and Priorities

I’ve had an interesting couple of weeks talking to a wide variety of practitioners, consultants, and vendors about the area of strategic sourcing. There’s a tremendous amount of activity underneath the surface right now on what’s become known, in a classical sense, as the e-sourcing market, activity potentially missed by technology research reports, evaluations, blogs, and studies.While e-sourcing has grown up far beyond its reverse auction roots, I’m beginning to see alternative sourcing models and priorities taking shape like never before inside both mid-size and large procurement organizations.

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A 21-Question Health Check to Score Your Procurement Scorecard (Part 1)

As the old business adage goes, “what gets measured gets done.” This is certainly true in procurement. If you want to do the right things for yourself and your stakeholders, you need to measure the right things and do it efficiently. In this research brief, I’ll discuss how you can assess the quality of your procurement scorecard and how to improve it. To do so, I’ll assume that you have some type of procurement scorecard already, and that maybe you’ve even already adopted some smart principles to it. But, I’m going to go deep on this one and ask you a set of 21 questions about your scorecard. This first installment covers one through five.

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Announcing the Spend Matters 50/50: Providers to Watch and Providers to Know

- March 6, 2014 11:11 AM | Categories: Procurement Research, Solution Providers

crystal ball As part of the launch of our new online provider directory, Spend Matters Almanac, we’ll be unveiling our 2014 “50 to Watch” and “50 to Know” lists of providers in the procurement sector. The two distinctions should speak for themselves, as the core Spend Matters team (Peter Smith, Pierre Mitchell, Thomas Kase, Jason Busch, and Sheena Moore) spent weeks debating about who should be included. Not all decisions were easy, but we think the result will be useful for everyone who wants (and needs) to get smart on the provider landscape.

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A.T. Kearney’s ROSMA Procurement Benchmark: Is the Metric Ready for Prime Time?

- March 3, 2014 2:25 AM | Categories: Procurement Commentary, Procurement Research

We’ve previously covered A.T. Kearney’s ROSMA benchmark in two installments thus far. In today’s analysis, we’ll consider whether the ROSMA metric is “ready for prime time,” and if not, what areas we might consider addressing. But perhaps we should begin by posing the question and answering it: Is ROSMA ready for all the attention it will receive because of its ISM and CIPS affiliation?

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