Category Archives: Procurement Strategy & Planning

Examining Current and Future Supply Chain Capacity – 10 Services Procurement Secrets (No. 7)

Man-observer-sand-desert-0522140EFE892D9B When Ford pursued a light-weighting program on its popular F-150 line of trucks, it had to understand both the existing and potential supply chain and capacity of the supply market (and different alternatives) years in advance of actual production. Yet when it comes to how companies consume and use third-party services, including contingent workforce management, few organizations formally translate and compare these forward-looking requirements to existing "supply." 


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Link Processes to Other Procurement Programs – 10 Services Procurement Secrets (No. 6)

hands holding jigsaw Contingent workforce success is magnified when programs are truly linked together rather than loosely coupled. There is early evidence we have seen based on our own analysis of supplier diversity programs that some progress has been made in this one area. But “loosely coupled” rather than “joined at the hip” remains the norm, rather than the exception. This is a shame.

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AGCO and riskmethods Win BME Award for Electronic Procurement

IMG_5924 We're pleased to share the news that a US company has received a German award for procurement excellence! In Dusseldorf, Germany, the leading (yes, really) German trade association BME (Bundesverband Materialwirtschaft, Einkauf und Logistik or "Association for Materials Management, Purchasing and Logistics") has awarded Georgia-based AGCO the 2015 "Excellence in eSolutions" prize. The ceremony took place during the sixth BME eLÖSUNGSTAGE ("eSolution days") in Dusseldorf on March 24.

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Cross-Functionally Manage and Govern External Relationships – 10 Services Procurement Secrets (No. 5)

Lady-Holding-the-Sun-Sunrise-0315144F7400397E Within both direct materials procurement as well as large IT vendor relationships, program governance, management and orchestration go hand-in-hand with overall vendor performance management, and ultimately, the outcomes one can achieve with the contribution of third parties. Yet in the realm of services procurement today, the ability to cross-functionally manage and govern large external relationships consistently and effectively is a skill that procurement has all too often abdicated to others (e.g., MSPs) and/or not entirely embraced internally.

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Procurement Technology Fear Tactics – Solving the Adoption Challenge

Spend Matters welcomes this guest article by John Ryan Shaw, senior director of adoption services at BravoSolution. Do people really fear new procurement technology? I don’t think so, certainly not in a literal sense. It is hard to picture a sourcing professional sitting upright in the middle of the night, sweat beading down their forehead, trying to shake images of giant procurement technology monsters emerging from the surf. No, it is much more likely that technology fear is rooted in the known or unknown implications of a technology change. We present some tactics to use to overcome the challenge of implementing new procurement technology.

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Tackling Myth vs. Reality in Procurement

CB8PFQR6E9 This week on Chief Procurement Officer, we began our series of dismantling the top procurement myths that exist in the industry. Written by Pierre Mitchell, chief research officer, the series includes a new post every day discussing another procurement myth and why it should no longer exist. It is clear that while some procurement practices worked 20 years ago, they shouldn't be followed today. Pierre tells us why. Check out the beginning of the series, published this week on the CPO website.

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Model and Manage Total Costs – 10 Services Procurement Secrets (No. 3)

dollar wallpaper Modeling and managing total cost is an important best practice for procurement organizations expanding their services procurement efforts. In the direct supply chain, cost management is religion. From modeling the total cost of individual parts or components – including raw materials, labor, value-added elements, etc. – to factoring in inventory carrying costs and general working capital, total cost is the direct procurement king. But in services procurement, we typically only build limited visibility into total cost both from the buyer and the provider (cost breakdown) perspective.

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How to Sell MRO Spend to Your Organization

1129141-2590-D31A-40A871BEE07DC548 Earlier today on Spend Matters PRO, we published Part 2 of a series focused on MRO spend. Authored by Jason Busch, founder and managing director, and Pierre Mitchell, chief research officer, the series explored MRO-specific procurement. Today's article, Building a Business Case for Addressing Complex MRO Spend in Asset-Intensive Industries, looked at how to create a case for investing in MRO items, and Jason and Pierre also offered their recommendations for procurement organizations to begin their MRO initiatives.

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Focus on Forecast Requirements In Business Planning Process – 10 Services Procurement Secrets (No. 2)

scrabble-to-do-3299 copy In our recent research study Applying Supply Chain Rigor to Contingent Workforce Management, we were somewhat surprised at the number of organizations that suggested they invest the time to forecast services procurement requirements up front in business planning processes, especially compared with services procurement sophistication overall (compared with direct procurement maturity).

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Who You Gonna Call? Procurement MythBusters!

android-calling-dialer-3071-364x550 I go to a lot of conferences and have facilitated a lot of CPO panels, and what I always find surprising is not just how many of the same challenges exist, but also the extent that the same conventional wisdom gets bandied around. Perhaps it shouldn't be so surprising. When procurement leaders are looking for approaches or solutions, they will turn to their peers or to traditional sources of knowledge such as consulting firms, membership organizations and so forth. Stay tuned for a multi-part series on SpendMatters Plus that begins sharpening (or discarding) the “old saws” and conventional thinking that are worth re-visiting.

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How a CPO Can Take Advantage of Technology – Lessons from a CIO

V0HMOIS7LF This week on Chief Procurement Officer, Pierre Mitchell, chief research officer, continued his series What CPO’s Can Learn From Facebook’s CIO. The series was based of an interview The Wall Street Journal held with Facebook CIO Tim Campos. What lessons could a chief information officer teach procurement? Pierre breaks it down. Make sure to check out our CPO website for the series!

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Traditional Supplier Portal E-Invoicing Models Made Obsolete by Brazilian Nota Fiscal Mandates

Spend Maters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. As we explored previously, the Brazilian government recently introduced a new web recovery service for required NFe goods and CTe transportation documentation, allowing companies to pull their XML invoicing records back 5 years. The implication is that the government intends to increase its auditing efforts and will severely fine companies that do not adhere to the 5-year invoice archiving mandate. While these fines can be tremendous for unprepared companies, this recovery service also has benefits, such as helping companies to streamline processes and eliminate obsolete e-invoicing solutions.

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