Category Archives: Procurement Research

IBM 2014 CPO Report: Its Biggest Weakness Is Also Its Biggest Strength

- December 15, 2014 6:24 AM | Categories: Analysis, Learning / Research, Procurement Research

file9021244999056 IBM recently released its 2014 Chief Procurement Officer Study, which boasts an impressive sample size of more than 1,000 senior procurement leaders at firms greater than $1 billion in size. Like the 2013 IBM CPO study, it was led by IBM’s internal research group, The Institute for Business Value, and the execution was outsourced to a third party so that respondent details would be confidential and not shared with IBM services groups. The 2013 CPO study was a fairly traditional one - but the 2014 report is different. Find out why.

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AT Kearney Releases its 2014 ROSMA Benchmark Report – Context and Approach

1411825487tprmf AT Kearney recently released a report titled “Building the Brand of Procurement and Supply,” which summarizes and analyzes its 2014 Return on Supply Management Assets (ROSMA) benchmark metric that it collects on its own (e.g., it has been part of Kearney’s AEP study since 2010) and through a partnership with ISM and CIPS. Members of ISM and CIPS (of any size) can participate in the benchmark study (and get a results readout) and we’d highly recommend procurement practitioners to at least read this report and familiarize themselves with the concepts and the structure of the ROSMA metric.

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Zycus Horizon Dispatch 2 – The Challenges of Suite Perfection

There are very few true “suite” vendors in the procurement solutions marketplace today with significant cloud traction. Coupa is no doubt one – and has even expanded past traditional procurement suite components into peripheral ones like inventory management (albeit like others, with varying degrees of depth). There are a few more names to add to this list of what we like to call in the office “sweet suites” as opposed to Frankenstein’s suite monsters – we include Ariba/SAP/Fieldglass/Concur, SciQuest, Selectica/Iasta and many others loosely in this latter definition, although some of these larger providers are moving to integrate around new integrated suite models, at least across core components.

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Free Research: Procurement Center of Excellence a Hallmark of a Progressive Organization

- November 3, 2014 10:28 AM | Categories: Learning / Research, Procurement Research

Not all procurement organizations have a Center of Excellence (CoE) in place, but the most innovative ones certainly do. Pierre Mitchell (chief research officer for Spend Matters) introduces Procurement Centers of Excellence (CoE) – What’s In Them and How to Set Them Up, a new piece of free research, available for a limited time here.

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It’s Time to Pull Procurement Research Out of the Gutter

- October 10, 2014 6:34 AM | Categories: Friday Rant, Procurement Commentary, Procurement Research

1382985400p16fs For most things in life, there’s the good, the bad and the ugly. So be it with procurement research. I’ve been doing procurement research for a long time, and have seen some really good stuff from all sorts of firms. However, I’ve noticed lately a marked increase in quantity of research surveys and an unfortunate commensurate drop in quality. “So what?” you say. “What’s the problem here?” The problem is that practitioners are surveyed to DEATH by one other (e.g., advanced firms getting hit up by others) and by third-party firms from numerous provider sectors. And when the research is sketchy, it drags everyone down.

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Centralized vs. Decentralized Procurement: Technology as (one of) the Great Governance Disrupters

- September 26, 2014 2:43 AM | Categories: Analysis, Procurement Commentary, Procurement Research

In procurement, we often look at technology as an enabler. For example, sourcing optimization technology can change how we source by allowing us to gather an increased set of data points from suppliers (and then apply our own constraints to understand how various biases or requirements create additional supply chain cost, such as requiring higher inventory levels, not awarding to the lowest bidder, etc.). Yet technology can enable more than just tactical activities like sourcing – it can also help redesign how we structure procurement teams and leadership to begin with.

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CPO Survey Insights: Gaining Value While Focusing on Cost Reduction

Spend Matters welcomes this guest post from Deloitte. We recently launched Deloitte Consulting’s annual Global CPO Survey. Last year’s edition included feedback from more than 180 procurement leaders across 17 countries, and we’re excited to provide an even broader perspective this year. Our findings from last year (click here to review the 2013 survey summary) focused on the evolving theme of procurement executives learning how to lead in an expansionary – if still cautious – economic environment after years of leading through a tight focus on cost savings.

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Centralized vs. Decentralized Procurement: Centralization Theory Takes a Great Leap Forward (Courtesy of Peter Smith)

- September 25, 2014 2:26 AM | Categories: Analysis, Procurement Commentary, Procurement Research

A couple of days back, we introduced our readers to the notion of a Center Led Action Network (CLAN) concept for structuring procurement, courtesy of my colleague Peter Smith (who recently authored the paper: . More than 10 years ago, Peter took this thinking a step further by introducing a more advanced CLAN, or Strategically Controlled Action Network (SCAN) as he termed it.

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Centralized vs. Decentralized Procurement: Seeing the Benefits and Challenges of Centralization

- September 23, 2014 2:28 AM | Categories: Analysis, Procurement, Procurement Commentary, Procurement Research

On the surface, centralized procurement seems preferable to the alternative. As my colleague, Peter Smith observes, “It is perhaps easier to see the potential benefits of centralization than the drawbacks. Centralization means control – being able to control the suppliers and contracts that the organization uses. It means procurement can develop capability, and aggregate spend more easily.” This article continues our "Centralized vs. Decentralized Procurement" series on Peter Smith's paper.

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50 Shades of Pay: Shade 4 – Analyzing Total Spend, Payments by Supplier Type

money in the form of some coins In our previous ‘shades’ (begin with Shade 1 here), we helped describe a foundational capability: to analyze and make visible how much money has been paid to suppliers. We also discussed how to wrangle the supplier master data that feeds the payment data that in turn, feeds the analytics. Now, in this Spend Matters Plus Research brief, Chief Research Officer Pierre Mitchell explores and classifies the types of suppliers with which you've held transactions to analyze your spend – ultimately signaling the shift from spend analysis to supply base analysis.

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Centralized vs. Decentralized Procurement: No Debate Necessary

- September 17, 2014 3:30 PM | Categories: Procurement Research

Earlier this year, my colleague, Peter Smith, penned a very thoughtful paper exploring the age-old concept of centralization and decentralization with a modern twist and set of observations and recommendations: Centralise or Devolve Procurement? Why not Both? How Technology is Enabling New Operating Models. In the coming weeks on Spend Matters, we’ll take a look at some of the highlights and observations that Peter makes in his work, starting first today with what he aims to achieve with his effort. We’ll also include additional observations and commentary as we explore some of the elements of his analysis in detail.

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