Improving and automating the supplier payment process remain top priorities for finance and accounts payable professionals in the year ahead, according to recent research. Tipalti, a provider of automatic supply payment solutions, released the results of its survey aimed at identifying the top supplier payment trends of 2016. It showed 44% of respondents identified streamlining and automating supplier payments as a top business goal for the next 12–18 months.
Category Archives: Suppliers
The world is undergoing a fundamental transformation to a services economy, fueled primarily by the digital disruption happening within our personal lives and within industry. Within business, digital technology is allowing companies to unbundle and rebundle their value chains (i.e., physical goods, information, money and people) in innovative new ways that can make those value chains more valuable by not only making them smarter but also making them more flexible, personalized and on-demand for the customer who craves the ideal of “free, perfect, and now.” And the key concept in making this happen is the concept of the service.
The supplier data and information business is broken. The Spend Matters analyst team came up with this premise when we saw that a number of well-known supplier content and enrichment providers had no reason being on the 50 to Know and 50 to Watch lists this year. Our research and discussions suggest that incumbent providers in this sector have lost the confidence of the market, their clients and even members of their organizations in their ability to deliver solutions that hit the mark. Time has stopped for some — they are selling solutions better suited for the year 2005 than 2015.
A majority of manufacturing sourcing professionals expect to increase or maintain their supply base this year, with buyers looking to source goods from new areas around the world. Nearly 40% of manufacturing buyers surveyed for the latest MFGWatch 2016 report expect to grow their supply base in 2016. Thirty-seven percent said they will maintain their current supply base. The MFGWatch report, which identifies trends and issues in the U.S. manufacturing industry, showed manufacturers are generally optimistic about the year ahead and expect their firms to grow in 2016.
We all hear about the rise of social collaboration in business beyond just posting our résumés on LinkedIn. Many of us are likely using at least a few social tools in our personal lives — Facebook, Instagram, Twitter, Snapchat. Even more are using social tools built on peer-to-peer and crowdsourcing-type models. For example, UberX or UberPool have become ubiquitous as crowdsourcing a method of getting from Point A to Point B using peers rather than professionals. Yet in business — and especially within procurement — social collaboration has been largely limited to the use of LinkedIn or rudimentary collaboration capabilities built into select procurement technologies.
Automakers need to do a better job of working with suppliers to succeed in an increasingly competitive market, according to a new analysis. The North American Automotive OEM-Supplier Working Relations Index Study from Planning Perspectives Inc., a Mississippi-based consulting firm, looked at six original equipment manufacturers and their working relationships with suppliers. None of the automakers received scores on the index that Planning Perspectives considers “good” or “very good.”
Supply chain risk management (SCRM) is becoming a top priority in procurement, as organizations lose millions because of cost volatility, supply disruption, non-compliance fines and incidents that cause damage to the organizational brand and reputation. Bribes to shady government officials, salmonella in the spinach and forced labor in the supply chain can all result in brand-damaging headlines that can cost an organization tens of millions in sales and hundred of millions in brand damage. And while reputation may only be important for name brands, cost volatility and supply disruption affect all manufacturers.
Half of IT professionals are not confident their suppliers have effective security measures in place to protect sensitive data, but many are not requiring suppliers to pass security audits and some even continue to do business with suppliers that fail security standards. These were some of the key findings in a recent report from Tripwire, which provides IT operations solutions. Of the more than 320 IT professionals surveyed, 47% said they are not confident in their business partners’ security measures.
In Part 1 of this series, we introduced supplier management from a process and methodology standpoint before mapping it to various solution areas that are out in the marketplace. Supplier management often is called SLM because of its lifecycle focus, which spans initial analysis (analysis and opportunity identification), planning (sourcing), negotiation (contract management) and execution (performance), and closes the process loop by leading back to the analysis phase of the strategic sourcing cycle as a result of future opportunity identification. Third-party management (3PM), which deals with non-suppliers that are also critical to your organization — such as government agencies, third-party logistics, partners and (media) agencies — is simply the application of the appropriate finely-tuned subset of supplier management capabilities to the third party that needs to be managed for organizational success. And, of course, you also need good supplier information. In this installment we cover what is in scope from a process and information standpoint before mapping to solution categories that are available in the market.
Consumers today are demanding more information than ever before on the food they buy and eat. It’s not a new phenomenon, but it’s an important point for food companies and retailers to take note of, especially as they compete for customers’ dollars and loyalty. A new report, however, has shown nearly two-thirds of consumers don’t think food companies are transparent enough — they want more food production information than they are finding at the grocery store.
A flood of foreign imports and a resilient dollar have depressed commodity prices for the past two years. For many procurement organizations, this may seem like an ideal moment to renegotiate contracts and secure unexpected savings. What lies beneath this opening, however, can wreak havoc on procurement. For every opportunity these depressed market conditions create, they reveal just as many new risks — ones procurement can rarely manage to full effect without the help of predictive analytics.
This is your last chance to join us today at 12 p.m. CDT for Connecting the Dots of Risk, Return and Compliance in Strategic Procurement with Pierre Mitchell, chief research officer at Spend Matters, and Jim D'Addario, senior director, Oracle ERP Cloud. They will discuss how the supplier management lifecycle, sourcing, qualification and contracting can all be joined together to add real value to your organization.