Spend Matters Premium Content:
Procurement Strategy

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

- March 24, 2015 2:29 AM

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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Procurement Lessons From the Global Soap Project [Plus +]

- March 16, 2015 2:32 AM

D3901L7G93 Last week, we began our 2-part Plus series on the recent ISM national Supply Chain Diversity Summit, held last month in Atlanta. We shared the story of event keynote speaker Derreck Kayongo’s Global Soap Project. Today, we continue this story, covering some of the more important supplier diversity takeaways from the summit and offer our analysis in a subsequent research brief. We also talk more about Derreck’s project, how he got where he is today, how he turned his ideas into a reality and, how organizations can apply these lessons to procurement.

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ISM Supply Chain Diversity Summit Dispatch: A “Clean” Lesson from CSR Initiative [Plus +]

- March 12, 2015 2:34 AM

america-astronaut-astronomy-2422 Last month, the Institute for Supply Management held its national Supply Chain Diversity Summit in Atlanta. I will share more from the ISM event later, but let's go directly to my best takeaway from the event – a tangible, economically sound, life-changing CSR initiative. It came from Derreck Kayongo, founder and leader of Global Soap Project – an initiative that transforms recycled, discarded hotel soap into usable soap for Africa and other countries with limited sanitation opportunities. Find out how Derreck made this idea a reality and how it can be used as an example for procurement organizations.

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Procurement Organization and Structure – Why It Matters For CPOs [Plus +]

- February 24, 2015 2:42 AM

6F1FE6B0BE I spoke earlier this month at a half-day workshop event organized by Oracle and Enrich. The topic was “Future-Proof Procurement – what does the future-proof structure and strategy look like?” In particular, my session looked at the issues around how we structure the procurement function, particularly in large, complex organizations, and how that relates to strategy, culture and operating model. Why does the structure of procurement matter? And how do you design an appropriate structure that aligns with the wider organizational strategy, culture and goals? We answer these questions.

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The CPO’s Guide to Lean & Six Sigma – Part 3 (Applying Lean Six Sigma to Procurement) [Plus +]

- February 5, 2015 2:53 AM

hands holding jigsaw In our previous two segments of this series published on our Chief Procurement Officer website (see here and here), we discussed Lean and Six Sigma individually in terms of their history, their approaches and their relationship to each other. In this installment of this series, we drill down into how to begin to apply Lean Six Sigma to procurement. In this Plus post, we define the process of when the Lean is integrated with Six Sigma and applied to supply management.

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Services Procurement History: Staffing Firm Dominance Faces a Challenge [PRO]

- February 3, 2015 2:39 AM

climb In this Spend Matters PRO research brief, Jason Busch, founder and managing director, introduces the ideas behind why Spend Matters believes staffing firms will begin to increasingly share overall contingent market share with alternative models including the direct hire of freelancers/independent contractors, talent marketplaces, individual “out-tasking,” alumni and shared interest pools and related models. We also provide a readiness checklist for procurement organizations increasingly tasked with managing services spend that will offer a quick, honest assessment to show if they are ready (or not) for new models.

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Services Procurement History: The Rise of the Staffing Industry Model [PRO]

- February 2, 2015 2:33 AM

Business-People-Group-101613CBB33E740E By just about anyone’s numbers, the staffing industry still maintains dominant market share when it comes to placing temporary or contingent labor at companies (and often government agencies and departments). In this multi-part Spend Matters PRO analysis, Jason Busch, founder and managing director, takes a look at the growth of the temporary labor market and how staffing firms emerged as a dominant model – and the context with which they accelerated their growth in recent decades. Finally, he introduces the ideas behind why Spend Matters believes staffing firms will begin to increasingly share overall contingent market share with freelancer models, talent marketplaces, alumni and shared interest pools, independent contractors/consultants and related models in the coming decades and what this means for procurement organizations increasingly tasked with managing services spend.

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ERP and P2P Integration: Key Success Factors For Successful Implementations [PRO]

- December 10, 2014 2:48 AM

1350915816wrses In this Spend Matters PRO research brief, P2P Lead Analyst Xavier Olivera considers the many lessons learned in his work implementing and integrating e-procurement and P2P systems to core financials – as well as the results of our recent research in the area and why companies continually do not take enough time to consider ERP integration strategies. We also recommend steps to steer organizations through successful cloud P2P-to-ERP integrations. Last, we cover key success factors to consider during integration strategy development.

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50 Shades of Pay – Shade 10: Giving the Car Keys to Those Who Own the Cars [Plus +]

- December 4, 2014 2:27 AM

In this latest edition of our 50-part analytics series, we deal with the topic of letting business users analyze their own spending. This might seem obvious, but too often spend analysis tools are developed or purchased by procurement power users looking to do strategic sourcing rather than a broader set of business users, with many of them being casual users who actually own the spend. Certainly, business user should be brought in early as part of a spend analysis requirements definition and solution evaluation, but we have waited until the tenth part of our series because we do find that many procurement organizations do hold off until they have built out a reasonably solid-to-spend cube at the line-item level (by supplier, category and cost center) before they really start turning over the keys of the spend analysis tool to the end users for their own inquiries.

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Where Zycus Can Improve in the End-to-End Procurement Suite Big Leagues [PRO]

- November 14, 2014 2:31 AM

Earlier this week, we published the first in a two-part series offering perspective and recommendations on what Zycus, a procurement suite vendor, is doing right. But no provider is perfect. And Zycus, which has increasingly larger ambitions to become a leading source-to-pay (S2P) provider (versus “just” spend classification, analytics, sourcing, contract management, supplier management and related areas), has some significant work to do in the purchase-to-pay (P2P) arena if it is to go head-to-head against an increasingly busy, noisy and confusing field of incumbents and upstarts. In this Spend Matters PRO research brief, Managing Director Jason Busch and Chief Research Officer Pierre Mitchell provide a candid take on areas of improvement for Zycus. They will also offer their perspective, as an addendum to this series on Spend Matters Plus, on what types of customers are an ideal fit for Zycus today.

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50 Shades of Pay – Shade 9: The Magic Cube (Analyzing it) [Plus +]

- November 11, 2014 6:23 AM

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) [Plus +]

- November 10, 2014 6:39 AM

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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