Organizations seeking to realize cost savings in today's global economy should turn to their secret weapon: procurement. Procurement divisions face the same business challenges as others – to do more with less in an increasingly competitive marketplace. But, the fast-moving contingent workforce world is about to get a whole lot more complicated. All firms are competing to see who can manage their extended workforce and spend the best. The fight to realize cost savings across the enterprise has never been more intense. The good news is that new research can help you tap into opportunities to boost your bottom line.
Category Archives: Spend Management
Think of a water-filled dish towel as A/P data and potential value as that water: let this report be the hands that twist and squeeze it completely dry. Pierre Mitchell, chief research officer at Spend Matters, addresses the challenges you need to overcome (i.e. funneling multiple A/P systems into one database). How to Wring Every Bit of Value Out of Spend Data also tackles other critical A/P data points, such as the overall scope of the effort and pinpointing that as early as possible. Pierre is here to save the day, yet again. Get your copy today!
Data ‘Enrichment’ is the Future of Spend Analysis: A Flashback to Our Most Popular Ask the Expert Webinar
It’s another Flashback Friday where we feature one of our most popular Ask the Expert webinars. Today's pick: Spend Analysis and Analytics: Theory and Practice, which was led by Gert van der Heijden, editor of Spend Matters Netherlands, back in March 2014. In this webinar, Gert focuses on the future of spend analysis, which he said would include advanced analytics and better data to improve risk management. Gert predicted “data enrichment” would be the next “buzzword” for procurement and spend analysis. While spend analysis is the basis for every procurement department, he said, that data needs to be “enriched” in order for the spend analytics process to be effective and valuable. Check out the full webinar recording here...
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.
How can finance and procurement better collaborate to improve supply and spend management? Well, Pierre Mitchell, chief research officer, has already giving us a number of ways this can be accomplished in his Chief Procurement Officer series "17 Ways Finance Can Help Procurement." The series is based off a recent snap poll Spend Matters and the Institute for Supply Management conducted on the alignment between finance and procurement organizations. Each new post checks another number off our list. In the last week, Pierre has checked off Nos. 12 and 11 – read on to check out the full articles on Chief Procurement Officer!
Over on Trade Financing Matters, my colleague David Gustin makes a rather astute observation when he notes in his post titled "It's a Fallacy that Procurement Manages ALL Spend", that “in very few organizations does procurement have total control of spend.” David gets his procurement mojo on – especially for a trade finance guy – when he further observes that: “[W]ho is best to understand the compliance issues around a complex bill of materials?…Take this one step further and how do you manage the connected commerce world for direct spend? We know EDI and EDI integrators have been doing it for decades – shout out to companies like GXS/OpenText, Sterling, etc. ..." Read on to see further insight from David and our analysis on this issue.
Yesterday, I had the chance to catch up briefly with Coupa’s President and CEO Rob Bernshteyn about the provider’s recent $80 million funding round, which valued the company in excess of $1 billion. The discussion was actually quite boring, but not in a bad way – Rob is anything but dull. However, there seems to be little change in direction – or even an evolution – of Coupa’s strategy. Rather, it is more of the “high-growth same” if you will – an emphasis on customers, markets (e.g., geographic) and continued suite innovation, in Rob’s words. In this Spend Matters Plus analysis, we share some of the notes from our discussion with Rob as well as our outlook for Coupa Inspire this week and questions that we hope to get answered from attending.
Over on Chief Procurement Officer, we recently began a countdown series of the top 17 ways finance can help procurement. Authored by Chief Research Officer Pierre Mitchell, the series, or wish list, is based off a snap poll Spend Matters and the Institute for Supply Management conducted regarding the alignment of procurement and finance organizations within a company. The series hits on the least important to most important ways procurement would like finance's help improving supply and spend management. (No. 1 will be the most important.) So far, Pierre has hit on tips Nos. 17-15. You can read the full articles over on Chief Procurement Officer, or read on and follow the links.
Spend Matters welcomes this guest article by Dan Warn, VP at BravoSolution. Last year Congress passed the Digital Accountability and Transparency Act (DATA Act), designed to expand the amount of federal spending data available to the public. The federal government is now under tremendous pressure to improve spending transparency, cut costs and be more efficient than ever. For many agencies, attaining these goals might feel like a considerable undertaking, however, it’s also an opportunity to look for a better, more strategic approach to procurement.
Partner enablement and managing indirect spend is a tried and true method for controlling costs. However, direct connectivity still has a ways to go before it gets on the same level as indirect procurement. Pierre Mitchell, chief research officer at Spend Matters, created a nifty checklist for tier-1 manufacturers and procurement professionals to follow in order to execute direct connectivity. Direct Procurement Execution: What’s Changing? is now available for FREE download, but only for a limited time. Be sure to secure your copy today before it goes back behind the PRO paywall!
This third and final installment of an exclusive preview of a forthcoming research series sponsored by BravoSolution that we created for our Spend Matters PRO subscribers. Consider it the “chef’s choice” tasting bite that the chef (that would be me) sends out in advance of the full multi-course experience. We hope you enjoyed it. Please contact me if you have any questions on the topic – and be on the lookout for the full version of the pending series. In Part 1 of this 3-part Spend Matters PRO series, we introduced Category Management 2.0 as “The lifecycle management of spend/supply categories that meaningfully impact enterprise performance” and why it’s superior to category sourcing processes locked inside of an n-step sourcing process. In Part 2, we also began discussing some approaches to take your category management processes to the next level. In this installment, we’ll continue the discussion and wrap up with a few closing thoughts.
As Pierre Mitchell, chief research officer, wrote in Part 1 of his Spend Matters PRO series on the subject, category management 2.0 is "the lifecycle management of spend/supply categories that meaningfully impact enterprise performance." Earlier today, we published Part 2 of this series: How Technology Helps Take Category Management to the Next Level – Category Management 2.0 (Part 2). As the title suggests, Pierre takes us through some approaches to elevate and improve your category management processes. How does a procurement professional do this? Pierre offers some suggestions such as using market informed sourcing and "micro" segmenting your spend into logical categories.