It’s another Flashback Friday here on Spend Matters. You don’t want to risk missing out on another one of our most popular Ask the Expert webinars of all time: Providers Who Actually Get to the Root of Risk & Compliance. As Thomas Kase, vice president of research, warns in this webinar from our archives, risk is lurking ahead for every procurement organization regarding finances, performance and compliance. You need to manage this risk to avoid the consequences. How do you do this effectively? And, which solution providers offer the best tools to help procurement organizations tackle risk? (Hint: Check out the webinar!)
Category Archives: Risk Performance and Compliance
There’s no shame in taking a page from the book of the tried and true. If imitation is the sincerest form of flattery then it certainly helps if that imitation also translates to hard savings. Take for instance the recent case study we completed with AGCO on its supply chain risk management solution. It worked and we’re here to give you all the details: A Case Study in Global Supply Chain Risk Management: How AGCO Implemented an SCRM Solution to Save Millions by Thomas Kase, vice president of research for Spend Matters, is now available for FREE download. Get your copy today!
In this second part of our 10-part series on contract lifecycle management (CLM), we describe our CLM framework first in business terms to set the right context before we start describing solution requirements that will lead to solution approaches and providers. The term “CLM” itself is actually somewhat limiting because it describes the workflow surrounding the contract lifecycle rather than how contracts can be used to support broader enterprise initiatives and relationships. We’ll cover this in the “commercial performance management” layer of the framework (e.g., diving into obligation management as a key multi-faceted competency) and also how CLM connects to 7 key buy-side process areas and 10 enterprise areas. We'll also examine core CLM requirements, covering 11 contract lifecycle processes and 6 contract information management areas, as well as do some initial discussion of underlying technical platform components. Let’s dive in.
Policy Meets Procurement and Category Management: Analysis and Implications of the Supreme Court Striking Down EPA Regulations
In a late June ruling, the US Supreme Court struck down Environmental Protection Agency directed regulations for limiting mercury and toxic emissions from coal and oil power plants. From a procurement and supply chain vantage point, the ruling is arguably the most important decision the nation’s highest court has made in the past decade. Not only does it cut to the very heart of procurement’s mission to manage costs, but it has direct linkages with energy sourcing and category management. The decision also highlights the need for procurement to work more closely with public affairs and public policy teams inside their organizations. This Spend Matters PRO brief analyzes the implications of the ruling for procurement and supply chain organizations and provides recommendations for manufacturers and non-manufacturers alike on how to take action around policy and regulations.
At its customer event this week, Beeline shared a number of benefits that companies can expect to realize from engaging freelancers compared with contingent staffing resources. These include increasing the available talent pool, lowering costs by at least 13% and more. Spend Matters takes a look at these benefits and explores the potential risks (and how to avoid them) when it comes to engaging with a contingent freelance workforce. Also, stay tuned as we continue to provide coverage from the Beeline conference this week!
Consumers are constantly looking to Apple as a thought and product leader for the devices they need to run their lives. But businesses too can follow Apple’s lead and, more specifically, procurement organizations can glean risk-treatment cost reduction tactics from Apple’s contract terms for their suppliers. Join us Thursday, June 25 at 10 a.m. CDT for the webinar, Understanding Risk Exposure: An Analysis of Apple’s Contract Terms For Their Suppliers. Pierre Mitchell, chief research officer at Spend Matters, will be joined by Tim Cummins at IACCM and Ulf Zetterberg at Seal Software. Register today!
Contract management is undergoing a transformation, moving from the back of the procurement kitchen to nearly taking center stage. A good part of the reason is the corporate transition from a more passive "risk viewed as lack of compliance" efforts toward a more dynamic and comprehensive approach to risk management. This approach doesn't just examine legal clauses as such. Nor does it merely ensure that agreed upon prices and SLA deliverables are met, although those reasons are obviously part of the equation. There’s more to it – much more. In this Spend Matters PRO research brief, we begin by reviewing the core components of CLM systems, and then we explore the path to predictive contract negotiations, delving into the intersections of big data, predictive analytics and contract management.
Today’s the day! We’ve been talking for weeks about how supply chain risk management is best exemplified by AGCO, the world’s largest manufacturer of agricultural machinery, and its risk management solution powered by riskmethods. In fact, AGCO’s risk management was awarded as the “Excellence in eSolutions” winner, showing just how effective it is. Join us this afternoon at 1 p.m. CDT for the webinar, Award-Winning Supply Chain Risk Management at AGCO with Thomas Kase, vice president of research at Spend Matters, and Jan Theissen, director, Strategy & Methods, Global Purchasing & Materials Management at AGCO. Register here!
Over the past decade, supplier management solutions have evolved dramatically. Many started by serving as basic tools to meet data gathering needs for both procurement- and accounts Payable-led supplier onboarding to becoming effective instruments supporting sourcing initiatives. More recently, these solutions have even started to turn risk management initiatives from a lagging rear-view mirror exercise to a forward-looking assessment process that helps corporations stay on top of their third-party risk exposure. But what is next for these solutions? At Spend Matters, we think it is a fairly low-hanging fruit to more actively bring in contractual data into your SLM or third party management solutions. This is precisely what Hiperos is aiming to accomplish. The provider’s latest release is taking aim for the first time at this area, joining a set of related – although not yet directly competitive – capabilities from Apttus, Seal and others.
Exploring Apttus: A Next-Generation ‘Ariba’ and ‘Siebel’ Wrapped up in One for Procurement and Sales?
This is Part 2 of our PRO analysis of Apttus. It is easy to make the argument that what Coupa has done in building out a fully integrated source-to-pay (S2P) suite is to take a few cards from the Ariba playbook and simply improve on the overall user experience and value proposition for a cloud-native world vs. one ported from the initial web business applications era (the same could be said, albeit with different nuances for different, high-growth vendors in the S2P and P2P sectors including Ivalua, BuyerQuest and others). But are Coupa and other next generation Ariba competitors bringing something actually “new” to the table – a fundamentally different value proposition? Not yet, at least in our book. But Apttus, a high-growth provider that comes from the sell side, which we started to preview earlier this week, appears poised to do something truly radical for procurement suites. This Spend Matters PRO analysis marks the continuation and final installment of our initial coverage of Apttus and why procurement organizations (and others) should be paying very close attention to what is about to come.
Procurement has increasing access to multiple levels of insider information. And just as we have seen enforcement impacting procurement and supply chain activities centered on FCPA compliance, it is likely an increasing set of activities tied to potential information leaks in the capital markets area will come under more scrutiny as well. In the first installment of this Spend Matters PRO research brief examining the potential for insider trading based on procurement information, authored by Thomas Kase, vice president of research, we covered lessons from other areas of the business as well as introducing the types of insider information that could be acted on by those inside the company or shared with external hedge funds or other parties. In this installment, we explore what you need to know about the potential for procurement and insider trading based on increasing data availability within procurement and supply chain organizations and key action steps you can take to prevent breeches.
Have you considered the potential for insider trading violations and the ensuing lawsuits that could arise from access to procurement information? Perhaps this hasn't even entered your mind. With increasing data availability (spend data, supplier risk/management information, demand data) at the fingertips of procurement professionals and others in the organization, the opportunity to access information that could be used to provide an "advantage" in the capital markets has never been greater. Traditionally, such information (if available at all) was available solely to company “insiders” who could only trade within certain windows (and with other restrictions placed on them). In this multi-part Spend Matters PRO analysis, Spend Matters Vice President of Research Thomas Kase explores the growing potential of procurement-related information to create the opportunity for insider trading information.