Tagged Content: L2

Mastercard and Basware – Exploring Payments and Discounting (Late Payment Impacts)

The Spend Matters team recently sat down to digest a very comprehensive study, Creating Payment Energy – Unlocking the Value of B2B Payment Networks, (n=1,000+) conducted by MasterCard and Basware on the topic of payments from both an AR and AP perspective (see our background coverage on the study here). As our analysis of the research continues today, we will turn our attention to the impact of persistent late invoice payments.

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Mastercard and Basware – Exploring Payments and Discounting (A Tragic Irony)

Earlier this month, the Mastercard and Basware teams shared with Spend Matters and Trade Financing Matters a very comprehensive survey-based research study the two firms (and partners) had completed over the summer months. The study, based on responses from more than 1,000 finance professionals (on both the accounts receivables and accounts payables side of the fence), provides a very global view of where cash management and payments stand today (respondents from 10 countries are represented in the data set, and each country had approximately 100 responses). The survey participants were best represented by the SMB market segment (e.g., only 11 percent of respondents had 5,000 or more employees). In a series of posts exploring the data and findings, the Spend Matters team will highlight some of the more useful elements that the research surfaced as well as select analysis and recommendations by the authors. We’ll share some of our insights as well.

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Live on Thursday! Jason Busch Gives an Oracle ERP Procurement Update

- September 15, 2014 12:03 PM | Categories: Ask the Expert, ERP

You may have noticed a lot of Oracle coverage on Spend Matters PRO lately, but why read the site when you can listen to Jason Busch talk about Oracle live? Plus/PRO members and procurement practitioners are welcome to join us on Thursday, 9/18/14, from 10-10:30am Central as Jason gives a quick overview on the state of ERP procurement today, an update on Oracle's procurement product lines, areas of innovation within Oracle procurement (yes, there's some pretty cool stuff), and expectations for OpenWorld and beyond. This webinar is sponsored by Enrich. Register here!

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Woodbrowser: Exploring a (Highly) Category-Specific Procurement Approach to Softwood Lumber

- September 15, 2014 2:30 AM | Categories: Procurement, Procurement Strategy & Planning

With each passing year, there are fewer categories in which supply chain transparency (including visibility into total cost at different tiers) is not rising – often considerably. But the lumber industry is one in which total cost transparency is blurred through an intermediary-led brokerage model that has evolved little for over half a century. Woodbrowser is hoping to change this. With the support of one of FreeMarkets co-founders, Sam Kinney - probably one of the most authoritative experts on real-world market mechanisms and market design (and, in full disclosure, a friend and mentor) - Woodbrowser is hoping to shake up the economics of the lumber market.

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Webinar to Outline Best-in-Class Procurement Suites, this Friday!

Join us this Friday, Sept. 12 at 11 a.m. CDT for The Best-of-Breed vs. ERP Debate is Dead: So What Really Matters in Best-in-Class Procurement Suites? Register here

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WEBINAR this Friday! The Best-of-Breed vs. ERP Debate is Dead

- September 9, 2014 10:29 AM | Categories: Ask the Expert, Best Practice, ERP, Technology

If the debate is dead, what really matters in best-in-class procurement suites? Join Pierre Mitchell (Chief Research Officer, Spend Matters) THIS Friday, 9/12/14, from 11-11:30am Central to find out. Pierre says: "There is an old debate about tightly integrated ERP vendor suites and deep functionality from niche best-of-breed providers. We’ll say it: that debate is dead. ERP vendors (and other providers) now have fragmented application portfolios, while many best-of-breed vendors have integrated suites. Still, ERP isn't going away, and procurement needs to get best-in-class information capabilities that move at the speed of the business – not the IT department." This short-format webinar, sponsored by Ivalua, is open to all procurement practitioners - so register now!

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Accenture Spend Trends Report: MRO Category Intelligence – Not One Category, Not One Opportunity (Part 1)

- September 9, 2014 6:24 AM | Categories: Analytics, Category Intelligence (Indirect)

For many companies, maintenance, repair, and operations (MRO) represents a single (and large) area of procurement spend – often one which is rarely as proactively managed as it could be ( likely resulting in great savings on certain items and price gouging by suppliers on other SKUs that make up for all the savings in other areas). But MRO is not a single category. It spans everything from janitorial and cleaning supplies to fasteners and electrical products. But MRO typically has one thing in common – the majority (if not all) spend goes directly through distributors which may (or may not) perform value-added activities rather than to manufacturers.

We’ve covered MRO extensively on Spend Matters as of late, including taking a closer look at how to segment MRO spend and appropriate sourcing strategies in different areas. We’ve also looked at Amazon’s potential in the market, among other areas. See our list of related research at the end of this post for our most recent thoughts on the topic.

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Accenture Spend Trends Report: Insurance and Risk Category Intelligence – Exploring the Total Cost of Risk

Procurement’s historic role in many companies is based on waiting for activities and requirements be tossed “over the wall” by the business as product and service lines, as well as taking action only when internal requirements change or are added (e.g., tracking new information such as diversity status, risk, environmental, and regulatory compliance areas, etc). Yet staying passive is a recipe for sub-optimizing sourcing and total costs results in new or changing areas given the time pressure to execute on activities when a new trigger occurs. One such area that is explored in the Q2 Accenture Spend Trends Report is the changes within insurance and risk management.

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Spend Matters Reaches 10,000 Posts!

- September 5, 2014 2:42 AM | Categories: Commentary, Spend Humor

In scientific notation, 10,000 is written as 104 or 1 E+4 or 1 E4. It is the square of 100 and the square root of 100,000,000. If you were to draw a polygon with 10,000 sides, it would be called a myriagon. Ten kilometers (aka Sheena’s favorite distance to row and one of Jason’s least favorites to run) are equal to: 6.2 miles, the side of a square with an area of 100km2, and the radius of a circle with area 314.159 km2. Why are we dorking out over the number 10,000? Because this, what you are reading right now, is Spend Matters’ 10,000th post to go live on the site.

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New Site! Public Spend Matters Europe is Officially Launched

- September 3, 2014 6:28 AM | Categories: Public Sector, UK/Europe

On Monday, when much of the U.S. (including Spend Matters) took the day off and went to barbecues or did whatever people do on Labor Day, Public Spend Matters Europe had its official launch. Public sector procurement has become more and more core among the topics we cover. It was time to have a separate site focusing on procurement in the European public sector. Check out some screenshots of the new site, or, if you prefer, go straight to Public Spend Matters Europe!

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Strategic Sourcing and Driving Spending with Small Businesses Don’t Have to be in Conflict

- September 2, 2014 2:28 AM | Categories: Commentary, Strategic Sourcing, Supplier Management

Regardless of whether it’s public or private sector, I would argue that the basics of strategic sourcing (i.e., aggregate and consolidate spending with fewer suppliers to create leverage in negotiations and more strategic relationships overall) are in conflict with the drive to encourage supplier diversity. But they don’t have to be. Here’s why: strategic sourcing does not only have to focus on demand aggregation and sourcing strategies based on driving down price with tier one suppliers.

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Purchases: Don’t Take Supplier Ethics Too Seriously, Let Them Buy You a Cup of Coffee

- August 29, 2014 2:00 AM | Categories: Commentary, Friday Rant, Supplier Collaboration

In my years of researching and assessing sourcing sophistication and approaches inside procurement organizations from around the globe, I’ve noticed there’s a universal bent – except perhaps in the most corrupt developing markets – to begin to discourage biases to/for one supplier or another in the sourcing process at the early stages of procurement maturity (after, let’s say, a base “stage zero”).

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