Category Archives: Risk Performance and Compliance

SEC Conflict Minerals Rule Violates Free Speech, Says U.S. Appeals Court

- April 14, 2014 3:48 PM | Categories: Breaking News, Risk Performance and Compliance

The free speech issue has made its presence felt in the SEC’s conflict minerals rule as a U.S. appeals court struck down parts of the regulation attributed to public companies being required to reveal if their products contain minerals from the Democratic Republic of Congo – a particularly combat-heavy part of Africa. The parts of the regulation struck down by the U.S. Court of Appeals for the District of Columbia Circuit were primarily related to violation of free speech. According to a report from Reuters, the appeals court did not strike down the conflict minerals rule altogether.

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Does Procurement Truly Appreciate the Value of P2P?

Are people in your business actually buying against the contracts you spent so much time negotiating? When Xoomworks' Simon Hurst poses this question to procurement practitioners at conferences, the answer he gets often is that there is another team taking care of it. Achieving this is partly down to having a solid and well-implemented Purchase to Pay (P2P) system, or even better a fully integrated Source to Pay (S2P) system with contract management. Having the ability to turn your sourcing event into an awarded contract and catalogue that can then be purchased against is immensely powerful and also allows you to track spend against your contracts—in other words, compliance.

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Ask the Expert: Providers Who Actually Get to the Root of Risk & Compliance

- January 28, 2014 9:02 AM | Categories: Ask the Expert, Risk Performance and Compliance, Solution Providers

Warning – this webinar is for those who have realized that most actual risk lurks in areas where visibility is poor. We will disappoint anyone just looking for a clever algorithm around analyzing publicly available financial information. What our VP of Research Thomas Kase will take a look at is a few providers – most small, some more established – that offer a different take on extracting risk information out of procurement data. In no particular order, providers and solutions will include: Cortera, Lavante, Seal, Coupa, MyBiz, Vortal, and SciQuest. Plus and PRO members, join us this Thursday, 1/30 from 10-10:30am Central. Registration is after the jump!

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Risk Management – Standing Still, Looking Backwards Trying to Look Forward (and Vendors You Should Get to Know)

- November 26, 2013 11:02 AM | Categories: Risk Performance and Compliance, Supply Risk Management

Consider the phrase “risk management” switching to “compliance management” – a change that would be far more productive for everyone. As part of your supplier onboarding (and ongoing performance management) processes, if you pull a report from a credit agency, look at those numbers, and then check off your list, have you really “managed” any risk? Risk management must change. It is tempting to gaze into the rear view mirror, the warm and fuzzy certainty of audited financials, or at least a cuddly third-party data provider to snuggle with and to point the finger at in case something goes wrong. Just don’t think you’re “managing” any risk. Here are some more robust approaches, along with our vendor recommendations.

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Considering the Broader Intersections of Services Procurement with Purchasing and Risk Management

- October 23, 2013 11:03 AM | Categories: Innovation, Risk Performance and Compliance, Supplier Management

Having been in recent discussions with a number of practitioners and consultants engaged in procurement compliance and risk management areas, it would seem to me that services procurement intersections with broader purchasing and supply chain activities are becoming better known. Indeed, services procurement (including but not limited to contingent labor) has many touch-points with existing procurement and supplier management processes. But only recently, it seems, have organizations been prioritizing and recognizing the importance of linking these areas together, including the following.

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Three Software Virtualization Licensing Pitfalls – And How To Avoid Them

There are many benefits associated with software virtualization. In fact, the global virtual desktop market is projected to reach 49 million units by the end of 2013, up from around 500,000 units in 2009. Revenue is also expected to skyrocket, representing more than 40 percent of the professional PC market. By virtualizing software, organizations can run multiple operating systems and applications on one physical machine and across multiple processors or cores. This allows employees to do more work on fewer machines as well as reduce IT costs and time associated with managing infrastructure. However, like with any licensing metric, the devil is in the details.

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Five years after Financial Armageddon – Lessons for Procurement Leaders

- September 24, 2013 2:44 PM | Categories: Finance, Guest Post, Risk Performance and Compliance

On Sep 15. 2008, Lehman Brothers filed for the largest bankruptcy in US history. The 160-year-old firm had over 25,000 employees and $600 billion in assets. A few hours later, Bank of America swept up Merrill Lynch in a fire sale. Over the next several days, there was a domino effect around the world. Credit markets seized up, money stopped flowing through the veins of the global financial system, stock markets crashed, and many large companies saw imminent insolvency. Five years later, there is insight to be gained by reflecting on the causes of the crisis, the diagnosis, and the efficacy of the solutions pursued by different entities. Here are three observations and lessons from the crisis.

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Supply Chain and Risk Management: Understanding the Latest in Systems and Technology

- August 14, 2013 11:21 AM | Categories: Risk Performance and Compliance, Supply Risk Management

The sixth concept that I introduced in my “what’s next” presentation at ISM’s Risk Conference in Chicago this summer was the importance of “understanding the latest in technology and how to take advantage of systems that sit within the network.” I suggested that internal systems will not go away to help manage risk (e.g., spend analysis with credit-derived vendor risk information), but rather they will become of secondary importance compared with the systems that sit between companies – which will truly offer a transformative experience for procurement and risk management teams.

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Supply Chain and Risk Management: Lawyers Get Their Day and Regulation Beckons

The fourth theme that I suggested as part my “what’s next” presentation at ISM’s Risk Conference in Chicago this summer was “Lawyers get their day (but remember what Shakespeare said) and regulation beckons.” Granted, lawyers profiting from risk and new regulations is a combination that few of us can get excited about. But it’s important to realize that there is certainly a “mixed” side to the vast amounts of information and insight we will generate from networks and platforms that exist between companies in the future – and that have already come into play with solutions such as SAP Supplier InfoNet.

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Supply Chain and Risk Management: Developing Multi-Tier Visibility Into Risk Factors

- August 6, 2013 10:21 AM | Categories: Risk Performance and Compliance, Supply Risk Management

The third idea that I suggested as part of the ten items in my “what’s next” presentation at ISM’s Risk Conference in Chicago was “Developing Multi-Tier Visibility Into Risk Factors” as a central element of risk programs. This requires going a few steps beyond doing the 80/20 rule on top suppliers. For one, procurement and risk management teams must consider not just their largest suppliers (especially in a direct materials supply chain), but also smaller ones as well. Then it also requires understanding overall exposure under the tier one level based on multi-tier supply chains and supplier relationships.

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China is Sneezing – Will the Global Supply Chain Catch a Cold?

Talks of a Chinese economic slowdown and the demise of Chinese manufacturing are premature. China’s economy is set for a soft landing, but that is natural given the long-term shift in growth strategy. In terms of manufacturing, we need to measure competitiveness not only on labor costs but across entire supply chains. Other countries need to be part of one’s global sourcing strategy, but China will continue to play a key role for the near future. Also, its growing affluent middle class offers a huge market potential, making China crucial across both supply and demand levers of the global supply chain.

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Supply Chain and Risk Management: Learning to Piggyback to Get Budget

One of the ideas I suggested as part of my “what’s next” presentation last Friday at ISM’s Risk Conference in Chicago was the importance of “piggybacking on other initiatives and budgets (e.g., Conflict Minerals) to build integrated systems.” I suggested during the talk that many of the same solutions we use across the supplier management and spend/supplier analytics – not to mention sourcing and supply chain areas – are also extensible to supply chain risk initiatives.

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