Category Archives: Spend Management

Procurement Helping Reduce the Cost of Insurance Claims

- January 27, 2015 2:02 PM | Categories: Guest Post, Spend Management

The claims department is the heartbeat of every insurance company, but it also is the largest expense. It is normal for up to 80% of total premiums collected to be spent on claims payments and the costs associated with settling these claims. If an Insurance company can reduce their claims costs, it can provide them an excellent competitive advantage over the competition. However, there’s a fine line between reducing your claims expense and ensuring that your policyholders have a positive claims experience.

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Catching the Central Procurement Unicorn

- December 11, 2014 2:11 PM | Categories: Procurement, Spend Management

Spend Matters welcomes this guest article from POD Procurement. It is widely believed that achieving aggregation of an organization’s spend requires centralized procurement. This is incorrect. Achieving aggregation requires individual demand used collectively to secure higher supplier discounts. We will now explain the subtle but important difference.

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Focusing on Efficiency with the AT Kearney 2014 ROSMA Benchmark Report

- November 19, 2014 6:29 AM | Categories: Analysis, Learning / Research, Procurement, Spend Management

Earlier this week, we began our series analyzing the new AT Kearney 2014 ROSMA Benchmark Report, “Building the Brand of Procurement and Supply.” I first talked about the context and how the report analyzes ROSMA’s scores. Then, in a Plus post, I dove deeper into our analysis of the report, and I shared some of its highlights. Today, I’ll talk efficiency – what firms are the most efficient and why.

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Where M&A and Procurement Intersect – Accenture Spend Trends Q3 2014

- November 19, 2014 2:24 AM | Categories: Analysis, Spend Analysis, Spend Management

1382905346986fy The macroeconomic outlook in the quarterly Accenture Spend Trends Report is unfortunately likely to fly above the heads of many of those for which it was intended. Chief procurement officers (CPOs) and other executives – as well as the next generation of analysts and category managers – are likely to appreciate every word of it (as do we)! But few old school buyer and supply chain types enthusiastically or proactively follow GDP price trending, sentiment indicators and the like. However, at least the heart of Accenture’s category analysis will apply to them.

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Results and Additional Analysis of AT Kearney 2014 ROSMA Benchmark Report

- November 18, 2014 6:45 AM | Categories: Analysis, Learning / Research, Procurement, Spend Management

In the previous installment of this series, I outlined the background and approach for the 2014 AT Kearney Return on Supply Management Assets (ROSMA) benchmark report that can be found here. In this installment, I’ll not only highlight some interesting learnings, but also even enhance the analysis a bit based on the data in the report. The report highlights the basics of the ROSMA model, but I wanted to show a complete model that illustrates the mechanics of it a little more deeply.

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Don’t Put the Veil on Your Tail (Spend)

- November 11, 2014 2:36 PM | Categories: Guest Post, P2P, Spend Management

In today’s day and age, procurement folks have to be vigilant about their spend. The spend in question here is the strategic big dollar spend, for the simple reason that higher the spend, higher the savings when negotiated well. In some cases, while concentrating the efforts on the big savings, we let go of the small dollar spend. One should look at the top 5 spend categories. Miscellaneous items may not stand out in the large chunk of data, but when cumulated, they result in a chunk of money (to the effect of about 15-20% of total indirect spend) and may result in the top 5 categories of spend. More often than not, these have been put under a veil far too long. From my experience, here are some of the simple steps and strategies that one could look at to effectively manage this tail spend...

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50 Shades of Pay – Shade 9: The Magic Cube (Analyzing it)

- November 11, 2014 6:23 AM | Categories: Spend Management

In Part 1 of this Shade 9 Plus article, we discussed building your “spend cube.” Now that you have done that, the real fun begins: finding savings opportunities! Certainly, finding sourcing savings is where most start. The most popular analysis of course is evaluating spend fragmentation within a category across suppliers at the enterprise level, the regional level, the cost center level, the business unit level and so on. Since there is so much information out in the public domain (and from providers) on various spend reports that you can run off of this spend cube (e.g., including time as another dimension to support multi-period spend trending), we won’t re-invent the wheel, but do want to make a few points...

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50 Shades of Pay – Shade 9: The Magic Cube (Building it)

- November 10, 2014 6:39 AM | Categories: Spend Analysis, Spend Management

In this installment of our 50 Shades of Pay series, we finally dive into some of the gory critical details of building out the “magic cube” of spend visibility. Actually, it’s not that magical, and it can be more than 3 dimensions, but let’s keep it simple for now. The cube provides the data to answer the question, “How much did we spend on what with whom?” What we’re focusing on with this installment in the series is getting the data “on what” by classifying line-item level detail data into a spend category taxonomy.

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Webinar Recap: How Catalogs Benefit The Sourcing Process, Lead to Savings

OLYMPUS DIGITAL CAMERA A couple of weeks ago, we had a very interesting webinar about the evolution of catalogs and their benefits in the sourcing process to realized savings. Laura Lee, VP of procurement at CEMEX, joined us for the event, as did Pierre Mitchell, chief research officer at Spend Matters, Jessica Warren from Hubwoo and myself (from Spend Matters México y America Latina). One of the things that grabbed my attention was the number of participants that registered for the webinar ­– over 400. Seems that this is an important topic for practitioners.

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Global Market and Future Goals: BravoSolution’s New CEO Speaks Out – The Spend Matters Interview (Part 3)

- October 9, 2014 2:49 AM | Categories: Spend Management, Supply Management, Technology

13900884393bkpr-1 Jim Wetekamp, BravoSolution’s recently appointed CEO, is no stranger to the depths of procurement solutions and technology. Jason Busch, Spend Matters founder and managing director, first got his taste of Jim’s handiwork when he was working for a competitor to FreeMarkets, Atlas Commerce, which was acquired by VerticalNet. Jim has since focused on a variety of solution and commercial areas as that original entity morphed into something that would have been difficult to imagine at the time of the original analyst research into the procurement market. In this three-part interview series, Jason and Peter Smith, managing director of Spend Matters UK/Europe, delve into Jim’s and BravoSolution’s current focus in global markets and its future plans.

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Expanding Into Upstream Supply Management: BravoSolution’s New CEO Speaks Out – The Spend Matters Interview (Part 2)

- October 8, 2014 10:02 AM | Categories: Spend Management, Supply Management, Technology

1410735813pl8ep Jason Busch, founder and managing director of Spend Matters, has known BravoSolution’s new CEO Jim Wetekamp for nearly 15 years, meeting around the time when they both first entered the procurement market. In this three-part interview series, Jason, along with Peter Smith, managing director of Spend Matters UK/Europe, quiz Jim on his background and discusses BravoSolution’s current position in the market and it’s ambitions. Also see Part 1 of the interview as well.   Spend Matters: What is the largest solutions-focused opportunity for BravoSolution today? Jim Wetekamp: This very much depends upon a market-by-market case since each region is different. However, […]

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BravoSolution’s New CEO Speaks Out – The Spend Matters Interview (Part 1)

- October 7, 2014 10:54 AM | Categories: Spend Management, Supply Management, Technology

file000489793623 Spend Matters Founder and Managing Director Jason Busch recently sat down with BravoSolution’s new CEO Jim Wetekamp at his office in Chicago. Peter Smith, managing director of Spend Matters UK/Europe, was also part of the discussion via teleconference. In this three-part series, Jason and Peter asked Jim to provide some insight on his background for our readers, where he sees BravoSolution today and opportunities for the future. Enjoy!

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