Procurement has increasing access to multiple levels of insider information. And just as we have seen enforcement impacting procurement and supply chain activities centered on FCPA compliance, it is likely an increasing set of activities tied to potential information leaks in the capital markets area will come under more scrutiny as well. In the first installment of this Spend Matters PRO research brief examining the potential for insider trading based on procurement information, authored by Thomas Kase, vice president of research, we covered lessons from other areas of the business as well as introducing the types of insider information that could be acted on by those inside the company or shared with external hedge funds or other parties. In this installment, we explore what you need to know about the potential for procurement and insider trading based on increasing data availability within procurement and supply chain organizations and key action steps you can take to prevent breeches.more ▸
Have you considered the potential for insider trading violations and the ensuing lawsuits that could arise from access to procurement information? Perhaps this hasn't even entered your mind. With increasing data availability (spend data, supplier risk/management information, demand data) at the fingertips of procurement professionals and others in the organization, the opportunity to access information that could be used to provide an "advantage" in the capital markets has never been greater. Traditionally, such information (if available at all) was available solely to company “insiders” who could only trade within certain windows (and with other restrictions placed on them). In this multi-part Spend Matters PRO analysis, Spend Matters Vice President of Research Thomas Kase explores the growing potential of procurement-related information to create the opportunity for insider trading information.more ▸
How much information do you share internally? How much should you share? Who has a need to know? These are important questions to ask as you drive procurement change management and solution adoption throughout your organization. Providing timely information and presenting it in a way that makes the context clear in the hands of the right business users, who can take corrective action before the situation gets out of hand, is key to maintaining a consistent level of performance across the organization. In this Spend Matters PRO research brief, we consider the brewing information clash that companies are likely to face with exploding reams of procurement information available to an increasing number of stakeholders – and non-stakeholders – alike.more ▸
In previous installments of this PRO series, Spend Matters VP of Research Thomas Kase discussed the amount of risk companies face when deploying workers around the globe and what precautions the company and its workers must take. In Part 1, he specifically talked about duty of care provisions, and in Part 2, he continued his analysis of corporate travel risks. Today, he completes the series, offering a number of recommendations companies should take regarding T&E management.more ▸
Identifying And Responding to Risks Faced By A Global Workforce: T&E Meets Risk Management (Part 2) [PRO]
What do companies need to be aware of when managing corporate travel and a global workforce? Spend Matters VP of Research Thomas Kase, who has experience working abroad and is our main source for T&E management, started this PRO series discussing the amount of risk a company faces when deploying workers around the globe, how much money a company should allocated to risk mitigation and what is required under duty of care provisions. You can check it out here. Here, in Part 2, Thomas continues this analysis of travel risks and corporate obligations.more ▸
Understanding “Duty of Care” When Managing Corporate Travel: T&E Meets Risk Management (Part 1) [PRO]
Vendors hawking T&E software that spans travel booking and expense management claim that it is not just about policy compliance, but that it is also about the risk management benefits of actually seeing where employees (or contractors) are and, in the event of an emergency, being able to provide support as quickly as possible. In this multi-part Spend Matters PRO research brief, Spend Matters VP of Research Thomas Kase provides a primer on managing travel and the global corporate workforce, including the requirements and limits of duty of care provisions – and what procurement needs to know and how far it should consider going both as good business practice and under the law.more ▸
Today's Spend Matters PRO research brief covers the cool company that you probably haven’t even heard of, Riskmethods, which delivers risk management that is dynamic, in near real-time, and even forward-looking. It even has a fun user interface. Their solution loads all your suppliers and their locations, shipping lanes, etc., as well as your own company’s locations (as many and as much detail as you see relevant) whether offices, manufacturing, or distribution sites. At the end of the exercise you have your world map with a lot of dots and connecting lines like the one above. The types of tracked factors are pulled in from various publicly available and/or premium content sources and populates your personalized supply chain world view.
Today (August 14) we have invited Riskmethods to a webinar where we will discuss what can be done to understand supply chain exposure to pandemics (the current Ebola issue is obviously front of mind), as well as other risks that are more of a personal nature (crime, violence, geo-disasters like tsunamis) – please join us! What can you do about this issue and similar events that might disrupt your supply chain and/or put your employees and suppliers at risk?more ▸
Ebola is a disease that presents as a hemorrhagic fever. These are not exactly comforting words, as those afflicted bleed profusely (from the inside) and up to 90 percent of those afflicted die, depending on the breakout and treatment. Scary, for sure. But Ebola is not just a virulent killer of people – it is also, potentially, a killer of supply chains.
Let’s move on to procurement issues and see what can be done. First of all, as a starting point there are actually many similarities between Ebola to geopolitical supply chain issues (e.g. extreme kidnapping risks in many areas of Mexico, Venezuela, Afghanistan, Somalia, and other places). But an illness migrates more easily than crime does, and with an incubation period as long as 21 days travellers returning from hot areas have a lot of time to have physical contact with others. Since it is impossible to track all individuals, it seems most prudent to add this to the list of factors (political, natural disasters, geological events, legal, financial, bankruptcies, corruption, crime, violence) that are part of better risk management solutions. In this Spend Matters PRO research brief, VP of Research Thomas Kase looks at how this can be done with an approach based on the solution available from Riskmethods, a Munich-based company.more ▸
We were recently reading a back copy of The Economist and came across a Chevron advertisement that plays up the value of supplier diversity directly with a headline that asserts "big oil should support small business." The individual advertisement is part of a broader campaign intended to make consumers perceive Chevron as an oil and gas firm that also cares about corporate social responsibility (CSR). On a broader level, it also has a message for all of us in procurement and supply chain: what we do has applicability outside of just bottom line savings, risk reduction, compliance, and getting better products to market.
All too often, procurement is caught on the wrong side of the news headlines (supply disruption reduces availability of key products, X number of workers killed in a supplier factory tragedy, etc.) In this Spend Matters PRO research brief, Managing Director Jason Busch and VP of Research Thomas Kase discuss how to flip the cards, using procurement in advertising and marketing efforts. They’ll also provide some thoughts on putting a better marketing spin on what procurement actually delivers – not just for the business, but for customers, prospects, investors and even regulators. Marketing and advertising should be based on procurement successes (and no, none of them involve sourcing or cost savings!)more ▸
Spend Matters Premium Content - Ask the Expert Video Replay
Warning – this session is for those who have realized that most actual risk lurks in areas where visibility is poor. We will disappoint anyone just looking for a clever algorithm around analyzing publicly available financial information.
The topics of supply chain risk and supplier management are perennial favorites at Spend Matters. But the truly nifty thing about technology in the supply risk area compared with other procurement and supply chain technologies is that there is massive innovation occurring behind the scenes – as well as incremental and clever progress. Recently, we informally circulated ideas around the office regarding technology vendors that show where supply chain and supplier risk management is headed. Below we list 10 providers that we recommend companies talk to in order to expand their understanding of risk management today and where it is likely to go tomorrow. In this first installment, we will cover SAP, Cortera, Sourcemap, Seal, and Lavante.more ▸
The typical business challenge when you go to market with an RFP centers on getting ideas for what is possible, and identifying suppliers that either already have these ideas or are willing to work with you toward that end. Targeted activities are often services or complex products where quality, service, or the engineered final product will be different from each vendor responding. We've put together some fresh ideas to an old challenge: conveying your needs in ways that a supplier can relate to and that encourages them to put their best foot forward, with a proposal that goes beyond your wants, and addresses your needs as well.more ▸