The Purchasing Category

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New Ways to Achieve Unprecedented Savings on Indirect Spend

In Deloitte’s 2016 Global CPO Survey 2016 report, 74% of respondents stated cost reduction as their top priority in 2017. Also, 70% of the surveyed procurement executives cited indirect spend as a top focus for controlling and reducing costs. Recent studies have found that indirect spend can account for up to 50% of a company’s purchases, and manufacturers specifically can spend 20% or more of their total revenue on indirect expenditures. It is clear the next profound impact area for procurement professionals is in accessing hidden and unexploited areas of indirect spend.

Big Data in Public Procurement: Strategic Enabler or Leaker of Inconvenient Truths?

The term big data is not new in the lexicon of business jargon. After years of hearing how big data analytics will transform the enterprise by producing brilliant insights from reams of unstructured information, procurement observers are understandably skeptical about the promises big data’s marketers have made. It was no surprise to us, then, that for one of the first questions we received in our new series Ask Spend Matters, an anonymous asker hoped to find some evidence behind big data’s claims.

Advances in Neuromarketing and Your Buying Decisions: What Can’t Speak Can’t Lie

Spend Matters welcomes this guest post from Diarmuid O’ Donoghue and Khushboo Kadmawala, of GEP.

Do you really think that you make your own buying decisions? I urge you, think again. As several recent experiments from the field of neuromarketing illustrate, your own subconscious thoughts and desires may actually speak louder than your rational thoughts.

Matchmaker, Matchmaker, Make Me a Buyer/Supplier Match!

Matchmaking is an age-old practice. And as Tzeitel, Hodel and Chava will tell you, it’s a tough world out there when it comes to traditional matchmaking. The same goes for buyers and suppliers in the marketplace. Just as matchmakers once met with mothers and fathers to match their daughters to prospective husbands, businesses used to pound the pavement trying to find prospective clients, buyers, suppliers and anyone who would take a business card and put it in their pocket full of loose change and car keys.

Why Can’t Procurement Decide What to Call Itself?

I’ve been working at Spend Matters for well over a year now, and I still don’t understand why this profession has such an identity crisis when it comes to deciding what to call itself. At Spend Matters we use “procurement” as our default; other sites in our space call themselves Procurement Leaders, The Strategic Sourceror and My Purchasing Center, to name just a few. How can all of these publications have so many terms for what seemingly should be the same functional area? Help me out, purchasing/procurement/supply management people. Let’s figure this out once and for all.

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Does Your Internal Procurement Team Really Need to Manage Tail Spend Purchases?

Simfoni

Spend Matters welcomes this sponsored article from Simfoni. 

Although each individual tail spend purchase category or supplier may seem relatively small and insignificant, when taken as a whole, the combined tail spend purchases of an organization often equal the amount spent with the company’s biggest supplier, or at least one of the top suppliers. For this reason, it is important that tail spend purchases are properly managed to avoid unnecessary costs, wasted man-hours and non-compliance with internal purchasing rules and standards.

ISM Economic Report Points to Growth in Services Sector During 2016

services sector

Purchasing and supply management executives overall expect economic growth to continue in 2016, according the the Institute for Supply Management Semiannual Economic Forecast released Tuesday. A total of 87% supply management leaders in the non-manufacturing sector are optimistic for the year ahead, predicting 2016 will be better or the same as 2015. Specifically, 47% expect 2016 to fare better for them than 2015 and 40% predict 2016 will be about the same as this year.

Amazon Bookstore Opens in Seattle, First Ever Physical Store for E-Retailer

category management

Amazon announced its Amazon Books store earlier this week. Located at University Village, an outdoor mall in Seattle, the store officially opened its doors on Tuesday. It offers all the benefits of shopping on Amazon’s website — the store’s inventory of books are selected based on customer ratings and popularity and feature a review card with Amazon.com customer reviews.

BuyerQuest — Emerging From Under the Radar With ‘Second-Generation P2P’ [PRO]

BuyerQuest considers itself among a second generation of new procurement solutions providers, after Coupa, which it describes as first generation (not something we’d necessarily agree with, depending on definition). Its definition probably hinges on examining the state of cloud-based solutions today rather than on a much earlier perspective, say, around the time of Ariba Buyer (Ariba’s on-premise solution). What BuyerQuest considers to be a second-generation solution is one that focuses on user experience, usability and application flexibility as part of an e-commerce experience — not just transactional P2P. But what makes BuyerQuest's wares different from what Coupa, SciQuest and others are selling? Read on.

How ‘Always-On’ Connectivity Improves the Buying Process

Spend Matters welcomes this guest article by Vroozi. As Spend Matters and Vroozi wrote in their jointly produced research paper Declaration of the New Purchasing: A Buying Manifesto: “Always-on” connectivity and visibility into activities will yield step change improvement in how and what we buy. The era of “booting up” or “launching” an application to conduct activities is dead. Always-on connectivity means activities will follow us, such as receiving alerts on a smartphone or mobile device rather than having to log in and access a dashboard. This will change procurement activities and buying by providing insight based on role, location and need into different sets of activities and speeding up all processes, from approvals for requisitions to contract implementation that will allow us to implement savings more rapidly after sourcing events.

Back to the Future … of Procurement

gasoline prices

Where we’re going, we don’t need roads – a webinar will do just fine. Jason Busch, founder and managing director at Spend Matters, teamed up with Vroozi for a recent research paper on the future of procurement. Now, that research paper has a nifty little webinar companion of the same name. Join us next Thursday, June 18 at 10 a.m. CDT for the webinar, Declaration of the New Purchasing: A Buying Manifesto where Jason and Vroozi will cover procurement technology as it exists today, as well as what we can expect from it in the future. Register today!