The Procurement Category

Does Marketing Procurement Deserve a Bloody Break? Our Q&A with Tina Fegent

marketing spend

In our series Ask Spend Matters, we recently answered this question: Do other areas of procurement get as much negative press from suppliers as marketing procurement do? We had the chance to chat with our question asker, Tina Fegent, who lives near Oxford, England, via Skype as we kicked off our reporting process. Here are select excerpts from that initial conversation. (Read the full piece to see where it all went.)

Supply Dynamics: Vendor Snapshot (Part 1) — Background & Solution Overview [PRO]

manufacturing

Direct materials procurement is similar in some respects to indirect procurement: you want to see your spend, aggregate demand and find opportunities to reshape your value chain to unlock value. But that’s where the similarities end. Analyzing direct spend (especially across multiple tiers of supply) is sometimes like seeing a cloud of smoke coming out of your tailpipe — you know there’s something wrong but don’t know the cause. For indirect spend, you basically change the oil, replace the air filter and hope for the best. But for direct spend, you need specific engine diagnostics to figure out what’s driving performance and how much you could potentially improve. And unfortunately, in many cases, the manufacturers of those engines parts don’t want you poking around under the hood.

Whether it’s for plastics, resins, hydrocarbon feedstocks, agricultural commodities, standard catalogue parts, electronic components or metals, you must translate your demand for parts into the raw materials that go into them. And you must understand the demand volumes, supply chain capacities and processing capabilities that drive that pricing — especially if you want to tap into aggregated buying channels beyond the stuff you buy to support your own internal factory requirements.

This intersection of supply chain modeling, demand forecasting, demand-supply reconciliation, demand aggregation and commodity price forecasting is where Supply Dynamics plays. The idea originated with one of North America’s largest privately owned metals distributors where the opportunity to roll up demand information across OEM customers and their outside contract manufacturers gave it a unique opportunity to build out specific analytics that would help it size up opportunities for its customers and itself. But last year that technology was liberated from its previous owners and is now a commercial offering for any manufacturer or distributor that wants to optimize its own extended supply chain.

This Spend Matters PRO Vendor Snapshot provides facts and expert analysis to help buying organizations make informed decisions about whether they need a solution like Supply Dynamics to expand their analytics initiatives into previously unchartered materials and supply chain components. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Supply Dynamics. The rest of this multipart research brief covers product strengths and weaknesses, competitor and SWOT analyses, user selection guides and insider evaluation and selection considerations.

10 Things Procurement Professionals Must Consider Before Hiring Labor for Their Organization

Spend Matters welcomes this guest post from Deepesh Jethwani, consultant at GEP.

There are times when you need to hire non-permanent labor for your production line or when your contract with an existing labor providing agency is about to expire. Before you decide to launch a request for proposal (RFP) with suppliers, here are the top factors you must consider as a procurement professional.

Latest Modern Slavery Index Released: Turkey and EU See Increased Risk

No company wants its global supply chains to have any exposure to slavery. Yet new research shows that the risk is on the uptick worldwide, including in 20 European Union countries. Global risk research firm Verisk Maplecroft released its Modern Slavery Index 2017 on Thursday. The index assessed 198 countries for risk of modern slavery, which the researchers define as including slavery, human trafficking and forced labor. The percentage of countries at “high” or “extreme” risk for modern slavery has grown to 60%, a 2% increase since last year.

Do Other Services Procurement Areas Get as Much Negative Press from Suppliers as Marketing Procurement?

Tina Fegent is mad as hell and she’s not going to take it anymore. OK, that may be a bit of an overstatement, but for someone with a couple decades of experience in the marketing procurement space, Tina is officially en garde when it comes to marketing services suppliers (namely, the agencies) bad-mouthing her chosen profession. That really got Tina’s goat. So she she came to Ask Spend Matters and asked us a question: “Do other areas of procurement get as much negative press from suppliers as marketing procurement do?”

3 Hot Topics Procurement Won’t Be Able to Stop Thinking About Even at the Beach

As we slog through the dog days of summer, many procurement folks are letting their minds wander to more pleasant thoughts — a drink by the beach, a few rounds on the back nine, a moment of peace (however fleeting) without the constant ding of email notifications from a smartphone. And as they pack for a well-deserved vacation, they’ll try leave behind some of those more persistent thoughts and concerns, as well. What has been top of mind for procurement this year, and what has stressed them out to the point where they need to get away from it all for a bit? Here are the top three topics our readers have been sweating over for the last seven months.

New Report: Obstacles in Advancing Marketing Procurement’s Strategic Value

marketing spend

There is still a case for marketing procurement, as a new report on the function’s obstacles and opportunities shows. Globality, which connects clients with small service providers, commissioned a survey of 300 senior procurement professionals from around the world. It gleaned eight major takeaways from the survey, which are presented in the report, Marketing Procurement 2017: Key Opportunities and Barriers in Advancing Procurement’s Business Impact. We’ll look at a few of these more closely.

Can Procurement Save the Least Diverse Profession in the United States?

forced labor

The biggest change agent for the legal profession could be the as yet unspoken (rather than contractual) pressure from legal firms’ corporate clients, who are pushing their legal partners to go further into supplier diversity efforts. These corporations (e.g., HP, Facebook and Oracle), many of which have instituted their own supplier diversity programs, increasingly want their suppliers and partners to do the same, according to Lee Garbowitz, managing director of Procurement Managed Solutions for HBR Consulting. This helps the partners align strategically, with the ultimate goal of improving brand image and reputation on both sides.

Real-Time Procurement Data for Total Purchasing Control: A 3-Part Webinar Series



Out with the old and in with the new, and for procurement, real-time data is the leading edge of what organizations like the LDS Church are doing to achieve total purchasing control and ensure compliance with suppliers. This recorded three-part webinar series from Aquiire and Spend Matters digs deep on the B2B procurement shopping list to unearth real savings for your company. Transforming Procurement in Real-Time is now available for download here.

What Sets World-Class Procurement Organizations Apart? Use of Digital Technology for One

There are many things that set world-class procurement organizations apart from their average-performing peers. It may be working closely with suppliers to drive innovation and manage risks, or perhaps it’s collaborating with senior management on strategic initiatives. According to a new report from The Hackett Group, world-class procurement organizations also have 29% fewer full-time workers on average, and they rack up 22% lower labor costs. But how is it that these organizations can achieve more with fewer full-time employees? One indispensable factor is digital technology, the report says.

3 Reasons the Cognitive Era is Not Yet Upon Us — But it Will Be Soon

Forget digital. The 2020s will be powered by super intelligent, human-like applications that all but replace their creators. This is the dawn of the cognitive era. At least, that’s what the software market has been saying for the past year or so. But given that most organizations, particularly those in a B2B or supply chain context, have barely come around to adopting even plain old “digital” strategies, cognitive’s penetration in the enterprise is, perhaps, a bit oversold. To understand why, here are three examples of how we're still laying the groundwork for the transition from digital to cognitive — and what to expect when it really starts.

What Worries Procurement Professionals the Most? Trade Comes Out on Top

trade

Global trade disputes. Automation and job losses. Immigration policies. Which of these three worry procurement the most? In a survey of 200 procurement professionals recently conducted by Beroe Inc., 55% of the respondents cited trade squabbles as their top concern, reflecting broader anxieties about current political and economic uncertainty.