Pierre Mitchell has officially* wrapped up his procurement myth series over on Chief Procurement Officer. Pierre, our chief research officer, has knocked down 20 myths, one at a time, surrounding procurement, explaining why and how these theories came to be and why they are absolute rubbish. Check out the latest – and final – myth in the series, Supply Management is a Department: Procurement Myth No. 20. In this post, Pierre argues that procurement is more than just a single department within a company, separated from all the others with functions and values that only stay within said department.
Category Archives: Supplier Management
In a recent study conducted by Spend Matters and the Institute for Supply Management that explored the state of services procurement technology adoption and best practices focused on contingent labor, we found that less that 50% of respondents were either using a specially designed solution from their MSP or a best-of-breed vendor management system (VMS) to manage contingent labor spending. The largest percentage of respondents are “kludging” an approach with ERP or e-procurement technology. This begs the question: Why? We search for an answer.
In an increasingly services-based economy, procurement organizations should stay on top of the latest everything as a service (XaaS) trends that are increasingly having an impact on their organizations and ultimately their commercial relationships and agreements. If they aren’t keeping on top of the latest trends with regards to buying services, whether contingent labor, SaaS, BPO/MSP, then they’re not going to really earn a seat at the table with their counterparts in IT, HR, shared services and others. As such, the Institute for Supply Management Services group asked me to do a webinar on the topic this Thursday at 3 p.m. CDT with the help of Mark Trowbridge at Strategic Procurement Solutions. Register here!
Earlier today, Coupa announced its latest module: Coupa Supplier Information Management (SIM). While I will leave it to the supplier management professionals at Spend Matters to cover Coupa SIM in more detail after they’ve seen the product, it’s worth sharing some of the highlights of the announcement before we’ve had a chance to look at the tool given the critical nature of such a module to an integrated procurement suite.
Spend Matters welcomes this guest article by Jim Kiser of GEP. You can't manage what you don't measure. This is an old adage that is still pretty accurate today. Really, if you don’t put in place the criteria to measure something you don't know if it is improving or getting worse. Managing for improvement in today’s business climate is essential, and with regards to supplier performance management, you have to measure to see what is improving and what is not.
Earlier this week at Empower, the annual IBM procurement event, IBM Emptoris and Coupa announced a broader sales and distribution partner agreement, one built on top of a previous partnership between the 2 vendors. The IBM team told Spend Matters that the 2 providers have approximately 6 clients in common right now, including a large financial services client. The partnership goes beyond a distribution agreement from an IBM perspective and also includes joint API-based and pre-built connector development that is in progress.
We recently started to cover McDonald’s recently announced commitment to eliminating deforestation throughout its supply chain. The announcement pays more than lip service to the opportunity, in part because if will cascade across multiple tiers of suppliers rather than just tier-1 or direct suppliers to the fast food giant. There’s also a number of other rather curious elements to the program that warrant further analysis, one of which is contained within the Supporting Addendum McDonald’s Corporation Commitment on Deforestation that explores the difference between how McDonald’s is defining traceability vs. visibility.
McDonald’s recently announced an important commitment to sustainability by moving to eliminate suppliers that engage in any potential deforestation practices in its supply chain. For quick background reading on the topic, see McDonald’s Corporation Commitment on Deforestation pledge. On the surface, the pronouncement would seem to have corporate social responsibility teeth. I share some of the main points the fast food company has made in its new commitment.
Earlier today on Spend Matters PRO, Thomas Kase, vice president of research, wrapped up his 2-part series on Intesource and told our readers why the e-sourcing company should be on their short short list of vendor considerations. Specifically, Thomas dives into Intesource's new supplier relationship management solution, sharing details about the product as well as insight from Intesource's CTO Gabe Gabaldon. Check out the full article here.
Intesource’s New Supplier Relationship Management Solution: Why it Should Be on Your Short List of Vendor Considerations
This is Part 2 of our in-depth look at Intesource and it new SRM solution release. You can check out Part 1 here. So what is the new supplier relationship management solution like? Gabe Gabaldon, Intesource's CTO, shared some details around the latest update to its sourcing solution. In this PRO research brief, I provide some of the highlights Gabe pointed out, such as its emphasis on enterprise-wide rollout, enhanced customer support and cleaner supplier data. I also offer my input on the solution and add key takeaways.
At Ariba LIVE earlier this month, it was mentioned that T-Mobile has done $8 billion in payments to more than 1,000 suppliers through AribaPay – an impressive set of numbers given that Ariba Pay was released back in July 2014. AribaPay is separate from the rest of the Ariba suite and serves as a standalone (yet integrated) payments module that leverages Discover’s payments infrastructure (“rails” in card speak) to provide transparency and visibility into the payment process from both the seller and buyer perspective. AribaPay is embedded as an option in the Ariba Network to complete the procure-to-pay cycle. I provivde a few examples of AribaPay features.
Back in March, I provided an analysis of the Intesource Innovation Conference in Las Vegas. The e-sourcing provider had announced at the event that it was releasing its new supplier relationship management solution, which I had the chance to preview and wrote about in that initial Plus article on Spend Matters. Today, I continue my coverage of Intesource with more in-depth analysis. Intesource is heavily vested in supporting sourcing and procurement for companies in the retail and restaurant business – specifically grocery retail stores.