Choosing the best suppliers is a major part of procurement’s role in a business. However, according to Peter Smith, chief research officer and managing director of Spend Matters UK and Public Spend Matters Europe, too few procurement professionals take this responsibility as seriously as they should. In one of our most popular webinars, Ask the Expert: Evaluating Bids and Tenders, Peter focuses on this complex and challenging procurement role. Spend Matters Plus and PRO can view the full recording in this post. It's a great opportunity for procurement executives and other members of a procurement organization to be reminded how best to go about selecting a supplier and securing a contract, and it serves as a refresher as to why this process is so important for a business.
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Relationships take work, and building trust is an important part of any relationship. This is true, too, when it comes to suppliers and buyers. Can you trust your suppliers to adhere to the terms of the contract? What does it take to reach this level of trust? To help practitioners form ideal relationships with their suppliers, Spend Matters brings you another one of its most popular Ask the Expert webinars of all time on this Flashback Friday. Back in April 2014, Peter Smith, chief research officer and managing director of Spend Matters UK and Public Spend Matters Europe, led the webinar, Trust or Track the Supplier – Contract Management Dilemmas. In it, Peter asks, “Do we trust our supplier or do we carefully track their performance?” The answer: It’s a bit of both. “Trust has to be earned,” as Peter points out.
So far in our contract lifecycle management (CLM) series, we have discussed how the process can generate truly exceptional results when implemented correctly, and we have introduced a “wheel” framework that defined the processes and requirements for a core platform needed to support the end-to-end contract lifecycle in a modern supply management organization. In our last post, we provided a review of the solution space in an effort to understand what types of solutions were historically required in support of the CLM process. This understanding is important because no current solution supports the full CLM process well – as defined in our framework – on the buy-side and within a broader enterprise context. In this post, we will map each of the relevant components included in core buy-side technologies to the CLM framework because it helps one understand not only how these solutions support CLM, but how a specific CLM tool often needs to hook into this technology.
Contract Lifecycle Management 101: Part 3 – Mapping the Upstream and Downstream Contract Phases [Plus +]
So far in this series, we have introduced contract lifecycle management (CLM) – a process that is not only the key to procurement success, but the key to organizational success. We also have introduced the CLM platform model that provides the foundation for end-to-end CLM, which we will be discussing in more depth in this series. At a high-level, this consisted of the contract information management (CIM) repository, the core contract process/workflow management capabilities and 4 key aspects of (commercial) performance management that the CLM platform must support. This is a great start toward a definition of CLM, and the platform to support it, but we find that in order to fully understand what a CLM solution is in our context, we first have to map the solution space by defining the relevant process areas (i.e., pre-contract upstream and post-contract downstream) and then map them to the applicable software functionality areas that make sense for those processes.
In this second part of our 10-part series on contract lifecycle management (CLM), we describe our CLM framework first in business terms to set the right context before we start describing solution requirements that will lead to solution approaches and providers. The term “CLM” itself is actually somewhat limiting because it describes the workflow surrounding the contract lifecycle rather than how contracts can be used to support broader enterprise initiatives and relationships. We’ll cover this in the “commercial performance management” layer of the framework (e.g., diving into obligation management as a key multi-faceted competency) and also how CLM connects to 7 key buy-side process areas and 10 enterprise areas. We'll also examine core CLM requirements, covering 11 contract lifecycle processes and 6 contract information management areas, as well as do some initial discussion of underlying technical platform components. Let’s dive in.
Intesource’s New Supplier Relationship Management Solution: Why it Should Be on Your Short List of Vendor Considerations [PRO]
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.
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.
Spend Matters is pleased to feature this guest post by Mickey North-Rizza, VP Strategic Solutions at BravoSolution. April 24, 2015, marks the release of the long-awaited Apple Watch. The hype around this new product is quickly gaining momentum and shipments are expected to reach 4.8 million units in Q1 and up to 9 million in Q2. These high projections could have some serious ramifications for the supply chain, especially since Quanta Computer is said to be the sole manufacturer of the watch. In light of these factors, significant supply and demand issues are expected.
As the e-procurement sector has matured, industry- and category-specific innovation has left a significant amount to be desired. The vast majority of e-procurement and P2P solutions today are generic rather than specialized, leaving unmet needs in the market. As one example, mining, energy, oil & gas, utilities, chemicals, heavy equipment, construction and related sectors collectively spend tens of billions of dollars per year on maintaining existing facilities (let alone capital expenditure to build new ones), which are not addressed effectively by traditional e-procurement solutions in MRO and related areas. This Spend Matters research note shares some of the innovations that one decade-old name in the sector, jCatalog, is bringing to e-procurement through addressing complex MRO and plant/facility buying scenarios.
Supply Risk Management in Mexico: Tips and Analysis For Multinational Procurement Organizations [PRO]
Supply risk management continues to be an important topic of not just debate but practice, too, within global procurement organizations. And on a more frequent basis, supply risk management efforts are extending “south of the border” for North American companies, as manufacturers continue to emphasize a more prominent role for Mexico and Mexican suppliers in their global supply chains. In this Spend Matters PRO analysis, we explore how Mexican companies are managing supply chain risk. We also share survey results from a recent study in the region and provide tips and lessons learned for multinational procurement organizations that are increasingly sourcing and manufacturing in the region as well as general supply chain risk management best practices.
Innovation has become one of the very hottest of hot topics in procurement circles over the last couple of years. At the recent ProcureCon conference in Berlin, it was covered over several sessions, with a number of CPOs giving us the benefit of their views and experience around supplier innovation and how to capture it. Based on this wealth of input, what conclusions or thoughts can we draw from the 2 days of thinking and talking around the topic? Here are some key take-aways that CPOs and others might want to consider.
Supplier Relationship Management (SRM): there is probably no other solution set in supply chain these days that is sold in so many incarnations – it’s a wild list of acronyms: SM, SIM, SLM, SRM, VRM, SBM, 3PM, even VMS. Some are truly meaningless labels that mainly serve to please the marketing managers that had to choose one over the other – others carry more weight and imply certain functionalities. Let’s look at the acronyms.