The Procurement Strategy & Planning Category

Global Contracting: 3 Factors to Understand Before Involving Developed and Developing Geographies

change of control clauses

Spend Matters welcomes this guest post from Iyappan C., senior research analyst, FM/CRE Services at Beroe.

One of the clear trends in the current business world is that global organizations are increasing their operational presence in developing geographies and, as a consequence, procurement teams are forced to seek and attain benefits from integrated supply contracts including these geographies. If they can attain such integration, it will consolidate the organization's’ overall supply bases more efficiently.

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Digital Sourcing: The Magnificent 7 is Back


Spend Matters welcomes this sponsored article from Stefan Dent, managing director at Simfoni.

There’s no ignoring the advent of digital technologies. The strategy consulting firms call it the “Fourth Industrial Revolution,” and they prophesize a rise of machines and the demise of traditional roles performed by humans, which are being replaced (to a degree) by robotics and artificial intelligence.

How to Source a Recall Effectively: From Volkswagen to Samsung

on-demand workforce

Spend Matters welcomes this guest post from Pranav Padgaonkar, of GEP.

2016 has seen a surge in product recalls across industries, from Volkswagen’s “dieselgate” to Samsung’s Galaxy Note 7 and subsequent washing machine recall. A product recall is a huge disruption to the supply chain, and a huge dent to brand image. Managing a recall effectively is crucial — sometimes to the survival of the product in the market and sometimes to the survival of the company itself.

Accenture Spend Trends Category Insight

4 Ways to Optimize IT Services Spend [Plus+]

Increasing pressure on the CIO organization to deliver innovation to the business — at speed — is driving investment in IT services. However, this push for speed to market can result in poor sourcing practices, lower-quality business outcomes and higher costs. As a result, organizations often make mistakes that can cost them millions of dollars and also expose them to increased implementation and other risks.

So what is going wrong? There are three opportunities many IT services buyers miss. With increasing demands on the CIO organization, speed and service to the end business customer is of paramount importance. However, IT organizations need to be wary of several common mistakes that can negatively affect quality, on-time delivery performance and cost.

The Corporate Challenge of Third-Party Risk Management Staffing for Program Execution


Spend Matters welcomes this guest post from Jeannie Pumphrey, senior director at Alvarez & Marsal.

Third-party risk management (3PRM) continues to be one of the top three risk-related topics discussed in the boardrooms and amongst executive management teams in the financial services industry. As corporations tackle the task of segmenting their provider base and identifying and managing the risk inherent to the use of third parties, lack of clarity regarding appropriate program ownership, accountability and responsibility forms a common challenge.

President Trump: Procurement, Supply Chain and Policy Perspectives

Anne Rung White House

Our European readers are likely looking at the news out of the U.S. this morning and feeling shocked in the same way they felt following the Brexit vote. Granted, both elections were equally as close. (Clinton appears to have won the popular vote in the U.S., although the Electoral College makes the election look more one-sided.) But as we get over the initial Facebook breakdowns and capital market shocks, the question remains: What will a Trump presidency look like, and how will it affect procurement?In thinking through the implications, we can break down changes into three areas: environmental policy, trade policy and tax policy.

What is OPEC’s Next Move at the Poker Table?


Spend Matters welcomes this guest post from Diarmuid O’Donoghue, manager, consulting, at GEP.

Every Christmas, it is a tradition in my family to come together and play poker for fun. Without fail, one of my uncles is renowned for trying to bluff the rest of us with a poor set of cards. Despite us knowing his reputation, he continues to do so every year (and loses, might I add). In late September, OPEC members reached a preliminary agreement to limit the group’s daily production to between 32.5 million and 33 million barrels a day. They have said they’ll complete the agreement, including setting individual member output quotas, at their next official meeting in Vienna in late November.

Plastic Resin Price Outlook: What to Expect in 2017

e-procurement market outlook

Piggybacking off of our recent plastics outlook for Q4 2016, we had the chance to sit in on a presentation given by Paul Blanchard, director of engineering plastics for IHS Chemical, for The Right Place/Supply Chain Management Council's Commodity Trends 2017 Outlook. Whereas Spend Matters contributor John Hall focused more tightly on the drivers of feedstock costs and pricing — ethylene and propylene, for example — Blanchard dove into three distinct markets: ABS, polycarbonate and nylon 6 (and nylon 6,6). (Although, I'd be remiss not to mention that Blanchard fielded a polypropylene question right off the bat – and late last week we ran a propylene outlook on Spend Matters from our friends at contributing firm Mintec.) Here are some details and price outlooks behind the three resin markets, according to Blanchard and IHS Chemical.

You Know Your Company Needs to Implement SIOP…So Why Don’t You?

strategy planning

Spend Matters welcomes this guest post from Michael Nelson of Alvarez & Marsal. Ask any executive in a product-based company if they think a formal Sales, Inventory and Operations Planning (SIOP) process is critical to success in their business and they will immediately say “yes, of course.” Ask them if their companies have this process in place, or do it well, and they will just as quickly say “no, not yet.” So, why is this the case in too many companies? It is hard to do, and even harder to do well! There are several factors that contribute to difficulty in SIOP implementation and process stabilization. However, if you understand the failure modes, you have a much better chance of successfully implementing a beneficial Sales, Inventory & Operations Planning process. Here's how.

How to Use ISO9001 to Achieve 100% Mandated Spend Under Management [Plus+]


The latest version of ISO9001 (called ISO9001:2015) is a “quality system” that is really a business management system customers might ask you to get certified in — and that you may in turn ask your suppliers to get certified. The beauty of ISO9001:2015 is that it can actually help you do both of these things simultaneously while also using the power of a customer-required certification as a way to drive internal change management. In the previous two installments that I wrote on ISO9001, I focused on using ISO9001 for such transformation, specifically on how to align risk and compliance, and to build a business case for supply risk management.

In this two-part Spend Matters Plus brief, I highlight how to use ISO9001:2015 to not just run the business but more specifically the business of procurement. This will illustrate how to make a quality management system that is more than just a transformative business management system — a transformational supply management system.

More important, this brief delivers deeper dive into ISO9001:2015 and shows procurement professionals how exactly how to use it to drive 100% spend influence in strategic sourcing and supplier management. People often forget that spend/supply influence also includes supplier management, when, in fact, the leader of ISO9001:2015 described the capabilities from ISO9001 simply as “confidence that customers around the world right through the supply chain — business-to-business and business-to-consumer — right down to us as individuals, can have confidence in the products and services they’re receiving from their certified suppliers”

It makes complete sense, and the certification can help procurement drive a case for change on this simple idea.

Procurement organizations almost always say, “We can’t mandate anything around here.” Well, now you have a mandate. So, use it to your advantage. We’ll show you how.

Using DMAIC 2.0 to Blow Up the N-step Procurement Process [Plus+]

An n-step chevron process is a siloed procurement-centered sourcing methodology geared towards supplier rationalization. It’s a fine start for procurement hitting cost savings goals, but it’s not a great way to align to the broader organization as procurement evolves. So, we’re proposing DMAIC as an emerging, superior approach, but it’s far beyond the DMAIC that you usually think of. The n-step sourcing process has had a good run, but let’s not try to make it do unholy things. Read on to see how other companies have used DMAIC.

New Category Intelligence Coming to Spend Matters Plus


I’m excited to announce a new relationship with Accenture that I know our Spend Matters Plus+ readers will be excited about. Accenture currently publishes a broad set of category intelligence and analysis to its community of procurement clients. These Spend Trends insights offer some of the latest thinking, from strategies for third-party management to optimizing MRO spend and risk management approaches in critical categories like energy.