The Purchasing Process Category

3 Strikes? Your ROI on Purchasing is Out!

Spend Matters welcomes this guest post from David Wadler, CEO of Vendorful.

Some people suggest that the chances of generating good ROI on a major purchase are effectively a flip of a coin. Unfortunately, those odds may be wildly optimistic.

In 2015, the Boston Consulting Group published a report detailing the results of a study about large IT purchases ($10 million or more). The study found that the odds of successful delivery — on-time, on-budget and meeting the specified objectives — were roughly 10%. Put differently, achieving a positive result on such a project would be closer to flipping a coin and getting heads three times in a row.

Catalogs Get No Respect — and That’s a Mistake

catalog

When you think of electronic catalogs, do you get excited? Probably not. My colleague Jason Busch penned a piece on this last week that needed a retort. Although you might not find catalogs very sexy, if you look at the data on how the best procurement organizations use them properly, and the performance uplift those organizations get, you probably would.

Improve Your Negotiation Tactics With Behavioral Psychology

partnership

Our last BravoSolution Real World Sourcing event looked at the latest thinking in behavioral psychology and how it might impact negotiation strategy, approaches and ideas. We looked in particular at the work of Dr. Daniel Kahneman. The author and Nobel Prize-winning psychologist has blown big holes in many economic models and theories, which assumed consumers always behaved logically. Humans, Kahneman has shown, actually behave illogically more often than most would care to admit. This has important implications for negotiation, as we explore in our paper, “New Approaches to Procurement Negotiation – Dr. Daniel Kahneman and Behavioural Psychology Suggest Some Winning Techniques.”

Presenting 3 Best Practices for Sourcing Commodities in 2015

global trade

Are you sourcing commodities on the spot market in 2015? Are you using an index? You might want to take a minute and familiarize yourself with 3 Best Practices for Buying Commodities in 2015 from husband-and-wife team and noted experts Lisa Reisman, CEO of Azul Partners and executive editor for MetalMiner, and Jason Busch, founder and managing director of Spend Matters. This FREE PDF download will provide you with an entertaining argument against conventional wisdom that will lead directly to not only profit, but the highest possible value available for your commodities purchases this year. Get your copy today!

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.

Say Goodbye to Closed Systems with New Purchasing

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: "Closed systems – by design or by technology limitation – will fade and user choice will facilitate an accelerated natural selection away from proprietary applications and networks and those that simply fail to interoperate. Closed system environments will turn users off by limiting choice. Much as Yahoo failed to become the online e-commerce portal – not to mention search tool – of choice because of its proprietary systems, Amazon succeeded because of its open architecture that allowed all participants (tech users, suppliers, distributors, customers, internal Amazon businesses, etc.) to “plug in” via open and published standards."

‘New Purchasing’ Will Bring New User Interface Requirements and Experiences

Spend Matters welcomes this guest article by Vroozi. Harking back to the same adage of “less is more,” the masked complexity in a user interface (UI) represents not just the future of procurement platforms, but the future of all technology. With all of the modern technology turning the wheels behind the scenes, the front-end UI should be a clean, simple, and elegant presentation. This “anti”-interface will become the norm because the days of the busy UIs are already obsolete. Today’s cloud solutions make it so you no longer need to remember how to navigate a complex UI because your mobile device is able to take charge for you.

Last Chance to Register For This Morning’s Webinar on the Future of Procurement!

This is your last chance! Register for our Declaration of the New Purchasing: A Buying Manifesto webinar with Vroozi. It begins at 10 a.m. CDT, but know that if you can’t make it live to register anyway and we’ll send you a copy of the recording and slides of the webinar. An excellent companion piece to this webinar is the that Jason Busch, founder and managing director at Spend Matters, completed with Vroozi. Register now!

The 95 Theses of Procurement

It was 1517 when Martin Luther nailed his 95 Theses to the door of All Saints’ Church in Wittenberg, Germany, calling for reform in anticipation of what’s to come. While we don’t have the grand gesture of nailing our screed to a giant wooden door, we do have an interactive webinar format and informed industry-relevant audience to drive our Declaration of the New Purchasing: A Buying Manifesto tomorrow at 10 a.m. CDT. Jason Busch, founder and managing director at Spend Matters, will be joined by Ivy Montgomery at Vroozi for a guide to the future of procurement, technology advancements in this space and what to expect from the ever-changing landscape of procurement. Register today for this event!

Guided Buying Needs More than an Attractive User Interface

Yes, user interface is important for any program. The user must be able to, well, actually use a tool for it to be effective. No one is arguing that. What Pierre Mitchell, chief research officer of Spend Matters, did argue recently over on our Chief Procurement Officer website is that a "consumerized e-procurement 'guided buying' experience is more than a sexy simple user interface." In the CPO article "Putting the Steak Before the Sizzle in Consumerized B2B E-Procurement," Pierre talks about what truly makes an effective guided buying tool, as well as how to implement one. Make sure to head over to our CPO website to read the full article, or click here.

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!

Declaration of the New Purchasing – A Buying Manifesto

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: Article 7 – Even as procurement masks complexity, it will still show us the optimal path, continuously adapting to the world around us as things change and as we buy. Procurement will become the WAZE of corporate functions, guiding the business (from individuals to business units) through periods of uncertainty and adapting strategies and tactics as the world changes. Much of these changes will be transparent (ideally) to business users, stakeholders and end customers. But procurement will be operating in the background with the equivalent of its own “traffic monitoring” tools, GPS and predictive models – making everything, as close to as much of the time as possible, transparent.