The Spend Management Category

Coupa Opens New Middle-Market Front with P2P, T&E Packages on AWS Marketplace

BuyerQuest

Coupa is more aggressively targeting small and medium-sized businesses, using Amazon’s reach and infrastructure to sell its spend management solutions directly online. The San Mateo, California-based provider announced Monday its procure-to-pay (P2P) and expense management (T&E) solutions are now available on AWS Marketplace. Prospective users can now purchase, migrate and begin using Coupa’s spend management solutions directly from Amazon Web Services’ online software store, provided their company fits several criteria.

A Tale of Two Case Studies: Centralizing and Getting Spend Under Management in Fast Food and CPG

Centralization of sourcing operations and overall spend has literally been at the center of debate in a number of ways for procurement practitioners.

A few months ago, our editor at large Sydney Lazarus answered a reader’s question on the very topic. In her reporting on whether centralizing or decentralizing sourcing structures of procurement organizations is the way to go, she wrote that “company size, location, expansion rate, purchasing category and industry are all factors that affect whether a more centralized or more decentralized structure is better.”

Several of those factors played into two case studies from BuyerQuest focusing on how a large quick-service restaurant corporation and a CPG organization used e-procurement technology to confront their centralization challenges.

Almost Famous: Ivalua Acquires Directworks

Confirming the spend management industry rumor mill, Ivalua today announced its acquisition of Directworks. The deal lends serious credence to Ivalua’s tag line — “One Suite. Infinite Possibilities” — as it has the potential to establish Ivalua as the market’s only native, end-to-end S2P solution.

In terms of indirect spend know-how, Ivalua is a thought leader and its software is top drawer. On the direct side, Directworks goes deep, delivering Ivalua an arsenal of hard-won intellectual property based on battle-tested experience.

Taking Control of Your Unmanaged Indirect Spend

AnyData Solutions

Spend Matters welcomes this guest post from Scott Dever, vice president of member development at Corporate United.

Targeting areas of unmanaged indirect spend is a key way procurement leaders can deliver value and maximize savings, and ultimately extend their reach and influence. Traditionally, this unmanaged spend has challenged procurement for a number of reasons. Decentralized decision-making and fragmented buying creates a lack of visibility into spending, supplier proliferation and limited opportunities to support competitive sourcing. But increasing spend under management enables teams to realize many worthwhile benefits, including incremental cost savings, supply base consolidation and reduced risk.

Managing Employee Spend Strategically

BuyerQuest

Spend Matters welcomes this guest post from Guy La Corte, general manager, Americas, at Concur.

Employees have access to and are spending more of your company’s money across more spend categories using more payment methods than ever before. And for finance and procurement managers, it’s increasingly challenging to track spending in a world where employees are paying supplier invoices directly with company checks; booking and managing travel directly on their mobile devices; using their corporate, ghost, virtual, corporate or even personal cards for just about everything; and vendors are marketing directly to them with upgrades and offers. This employee-initiated spend has become the largest unmanaged spend category in almost every company’s financial program.

A New Spend Metric: “Touched Spend” — Do We Need It?

AnyData Solutions

One of our Spend Matters Plus clients, a procurement manager in the energy sector, sent me a note asking about a new benchmarking metric that he recently saw being collected by CAPS research called “touched spend.” He sent me the following definitions below and asked me to weigh in on them, given my tenure at The Hackett Group running procurement research related to benchmarking, for sourceable spend, managed spend and also "touched" spend.

Navigating The Path From Tactical Procurement Analytics to Strategic Supply Analytics [Plus+]

spend visiblity

Spend visibility is foundational to any procurement transformation because to better manage supply, you have to manage spend. Spend is what you pay and supply is what you get, and to manage spend you have to see it. Yet too many procurement organizations work hard to put basic spend analytics in place but don't have a broader vision, strategy and roadmap for strategic supply analytics (i.e., the analytic capabilities to support strategic supply management). We use the term “supply analytics” instead of “procurement analytics” to reflect procurement’s increasing role in managing broader supply outcomes than just its own performance – especially in direct procurement. This Spend Matters PRO article is designed to provide you such a roadmap. It is not a step-by-step, one-size-fits-all approach because every firm will have a different experience. It is, however, a map that can guide you through plotting out your supply analytics journey.

Why Procurement’s Persistent Tail Spend Problem is Now Finally Solvable

Tail spend frustrates many procurement groups. It’s messy, it’s complex and it’s time-consuming to tackle. Inking big deals and keeping stakeholders happy seem like far better priorities for the typical category manager, since that’s how he can turn executive heads and make his daily life simpler. At least, that’s how it used to be. These days tail spend is trending — and for good reason. Here are three reasons why this persistent thorn in procurement’s side is finally getting the attention it deserves.

What’s the Cost of Having a Long Supply Tail, and How Do You Determine the ‘Right’ Supply Base?

tail

We recently put up an interactive Ask Spend Matters box so that you, our readers, can tell us about the topics you want us to investigate. One of the first questions that came in was about tail spend: “What is the cost of having a long supply tail, and how are organizations determining the ‘right’ supply base (number and percentage) as relates to spend?” As Spend Matters Chief Research Officer Pierre Mitchell put it, "This is a great question, but it’s a bit tricky to answer.” Read on to hear his reply!

Designing a Spend Category Taxonomy Properly is Harder Than You Think (Part 2: Go Deep) [Plus+]

category management

We recently had a client ask us if we could offer specific guidelines or methodologies for creating a spend category taxonomy within the automotive and industrial markets. The question resulted in a discussion among a number of us with industry experience. And since we didn’t have any research already published on the topic, we thought we’d invest the time to document our findings. In this second installment of a two-part Spend Matters Plus research series, Chief Research Officer Pierre Mitchell explores how granular procurement should go in creating a spend taxonomy and concludes with practical tips for implementing a program.

Designing a Spend Category Taxonomy Properly is Harder Than You Think (Part 1: Do This, Not That) [Plus+]

category management

We had a question from a client of ours about whether there were any guidelines or an overall methodology to coming up with a spend category taxonomy. It’s a simple question, but there isn’t a simple answer. So, we thought we’d offer some insights to help guide your efforts. But before we say what to do, there’s a quick recommendation on what not to do. In this first of a two-part Spend Matters Plus series, Chief Research Officer Pierre Mitchell explores how to think about creating a spend category taxonomy, pitfalls of incorrect approaches, and how to embrace an approach that cuts across categories and spend types.

Mega Spend Aggregation: 10 Ways to Supersize your Market Basket (Part 2) [Plus+]

category management

In Part 1 of our coverage on this topic, we started our discussion of various techniques to “supersize” your market basket, with an eye toward indirect spend. In this second half, we will now turn our attention to the supply chain for the remainder of the techniques.