Category Archives: Spend Management

SciQuest: The New Suite Dimension That Puts the Supplier First

EAFA2E9467 SciQuest has proven to be one of the source-to-pay (S2P) leaders in higher education and life sciences (as well as some public sector areas). The organic traction it has realized in these markets – albeit with increasing competition from ESM Solutions, Periscope Holdings (BuySpeed/BidSync) and Unimarket within higher education and state/local government – signifies that it has been successful even without a fully integrated suite (until now) in its core industries. Currently, with the new integrated suite value proposition and particular strength at the intersection of P2P and supplier management (and rising capability in sourcing), it is likely to be in an even better position to compete in these and new markets. If you’re considering other providers such as Ariba, Coupa, SAP, Oracle and Ivalua for integrated S2P, this analysis will provide context to understand if SciQuest should be added to your vendor shortlist.

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50 Shades of Pay Returns With Some Plumbing, I mean, Procurement Advice

- April 15, 2015 3:09 PM | Categories: Spend Analysis, Spend Management

03F8A942C5 50 Shades of Pay is back! Earlier today, on Spend Matters Plus, we published Shade 14, another high-level spend analysis in the ongoing series authored by Chief Research Officer Pierre Mitchell. This time, Spend Matters analyst Michael Lamoureaux co-authored the piece with Pierre, too. Plus and PRO members, check out the full article here: Maverick Spend Analysis, How to Re-Plumb Your Spend and Savings Flow – 50 Shades of Pay: Shade 14. Pierre and Michael hit on not just how to "patch" the savings leaks in your procurement organization, but how to fix them once and for all.

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Maverick Spend Analysis, How to Re-Plumb Your Spend and Savings Flow – 50 Shades of Pay: Shade 14

industry-pipe-white-2455 (1) In our last edition of the 50 Shades of Pay series, we touched on how to analyze maverick spending and patch a few of the “savings leaks” through reporting and through a fail-safe P2P system. But this is only a stopgap measure, especially if there are no systems that can be set up to “guide” the requisitioner to a specific product from a specific supplier. Why? Even if the preferred supplier meets the need, people are often too busy to look for a contract or read the memo and will generally go back to buying what they want when if they feel procurement has stopped watching over their shoulder. They want to be effective. And if the product from the preferred supplier doesn't meet the need, they will continue to bypass the system at every opportunity, especially if the closet procurement person in them wants to play the “beat the corporate price” game. You can certainly allow this (hotel rooms and rental cars are a good examples) and even have “meet-or-beat” clauses with your suppliers, but most don’t want to deal with the hassle and cost of managing this. The real solution is to identify why they are doing it and then fix it.

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SciQuest Becoming a “Sweet” Suite Team Player

sciquest-228x138 Along with my colleague Jason Busch, I recently spent 3 days at the SciQuest customer conference in Washington, D.C., talking to dozens of customers and sitting through many product demonstrations and breakouts. SciQuest has invested significant money and effort to develop a new integrated source-to-pay (S2P) platform entirely, and the launch of its new version 15.1 signifies a material step forward in this area. This Spend Matters PRO analysis will provide an introduction to SciQuest’s new suite capabilities and roadmap. As I myself was an outsider to this firm before the event, it will be most useful starting from a low knowledge base on the provider as well as for those who may wish to consider adding SciQuest to their S2P vendor shortlist along within Ariba, SAP, Oracle, Coupa, Ivalua and others – and to understand where the provider comparatively fits today.

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Getting Smart on the Services Procurement Information Landscape

64696F92C4 The solution marketplace for services procurement is highly fragmented and is confusing to even expert practitioners and advisors. Given this, it is exceptionally important to become smart about your selections and the reality of actual capability vs. claimed, not to mention a provider’s ability to support process improvements across services supply chain needs. At times, expert industry analysts, managed services provider (MSP) thought leaders and consultants lack context and understanding outside of highly specialized areas to provide credible advice that spans the spectrum of buying and managing professional services.

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Spend Matters UK Hosts Webinar with Sievo

- April 2, 2015 9:51 AM | Categories: Learning / Research, Spend Management, Technology

1202141-2590-D31A-404E6034C9DED1CD On April 16, Spend Matters UK will hold a webinar with spend management software provider Sievo. Peter Smith, Spend Matters UK chief research officer and managing director, will lead the audience through key issues related to savings measurement and talk about a case study demonstrating what credible savings analysis can do for a procurement organization. You can read much more about the webinar on the Spend Matters UK site here. Or, sign up for the webinar here.

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Cross-Functionally Manage and Govern External Relationships – 10 Services Procurement Secrets (No. 5)

Lady-Holding-the-Sun-Sunrise-0315144F7400397E Within both direct materials procurement as well as large IT vendor relationships, program governance, management and orchestration go hand-in-hand with overall vendor performance management, and ultimately, the outcomes one can achieve with the contribution of third parties. Yet in the realm of services procurement today, the ability to cross-functionally manage and govern large external relationships consistently and effectively is a skill that procurement has all too often abdicated to others (e.g., MSPs) and/or not entirely embraced internally.

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Model and Manage Total Costs – 10 Services Procurement Secrets (No. 3)

dollar wallpaper Modeling and managing total cost is an important best practice for procurement organizations expanding their services procurement efforts. In the direct supply chain, cost management is religion. From modeling the total cost of individual parts or components – including raw materials, labor, value-added elements, etc. – to factoring in inventory carrying costs and general working capital, total cost is the direct procurement king. But in services procurement, we typically only build limited visibility into total cost both from the buyer and the provider (cost breakdown) perspective.

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How to Sell MRO Spend to Your Organization

1129141-2590-D31A-40A871BEE07DC548 Earlier today on Spend Matters PRO, we published Part 2 of a series focused on MRO spend. Authored by Jason Busch, founder and managing director, and Pierre Mitchell, chief research officer, the series explored MRO-specific procurement. Today's article, Building a Business Case for Addressing Complex MRO Spend in Asset-Intensive Industries, looked at how to create a case for investing in MRO items, and Jason and Pierre also offered their recommendations for procurement organizations to begin their MRO initiatives.

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Building a Business Case for Addressing Complex MRO Spend in Asset-Intensive Industries

Brick-Wall-10211351BDAC83D7 Asset-intensive industries such as mining, energy (including oil & gas), utilities, chemicals, heavy equipment, construction and related sectors can meet, exceed or miss earnings expectations based on the availability of key assets and facilities in their portfolio, from plants to rigs. To maximize up-time and availability and to minimize the time to overhaul specific assets, many have invested in specialized solutions to manage plants and other facilities. Yet in the vast majority of cases, organizations have not prioritized specialized procurement solutions that could drive substantial savings, risk reduction and other benefits, sitting alongside asset and facility solutions including Maximo/IBM, SAP PM/MM, IFS, Ventyx, ABB, Oracle Asset Management, Intentia, Infor EAM and others. This Spend Matters PRO brief, the second in a series, explores MRO-specific e-procurement use cases for specialized investment in this area. Today’s analysis centers on building the business case for specialized investment in this area and provides recommendations to organizations on how to get started.

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For Your Pleasure: 50 Shades of Pay is Back!

- March 20, 2015 10:49 AM | Categories: Learning / Research, Spend Analysis, Spend Management

42EEF15DFA Pierre Mitchell, chief research officer at Spend Matters, returns with his 50 Shades of Pay series. For “Shade 10,” Pierre hands the reins over to GEP for Giving the Car Keys to Those Who Own the Cars. This analytics-based report lets business users assess their own spending, and the results, as always, will surprise you. Get your free copy today!

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Push for Open Architectures and Networks in Indirect Spend

tumblr_nbrszqSNYw1qfirfao1_1280 Finally, we come to our last recommendation in this series of how to make indirect spend more effective: providing an open architecture that will allow procurement and business users to access multiple communities and networks including supplier-led models, GPOs, BPOs, MSPs and related intermediaries. When pushing for open architectures and networks, we must keep in mind the following guiding principals...

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