Tagged Content: L2

P2P and Procurement Applications: The Cloud Ain’t So Simple

- July 30, 2014 10:25 AM | Categories: Cloud, Commentary, Procurement Strategy & Planning

Earlier this month, Procurement Leaders published a blog post titled: Has The Cloud-Based Solutions Market Turned A Corner In 2014? Citing the case of a relationship between Accenture and SAP/Ariba to deliver “a new cloud-based solution … designed to transform the delivery of procurement and finance and accounting (F&A) business services to its customers,” PL then raises the question of whether “the hype around the cloud signaled a wider shift in the market.” But the cloud isn't so simple. There is a range of vendors (including SAP/Ariba) selling solutions that can be configured in a hybrid manner in which data is stored and delivered through different applications in a virtualized manner.

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When Policy and Supply Chain Traceability Requirements Do More Harm Than Good

Are we becoming a victim of our own supply chain policing, in that regulatory requirements are driving us to make sub-optimal decisions? In a must-read column in Sourcing Journal Online, Stephan Lamar, executive vice president at the American Apparel & Footwear Association (AAFA), presents the case for how the avoidance of one material in shoes and apparel led to potential non-compliance in another areas.

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Taulia Raises $27 Million, Valuing Company at 15X Trailing Revenue (Roughly)

We continue to be surprised at some of the funding rounds and public company valuations in the sectors of procurement and trade financing (receivables and payables financing). However, Taulia is one of the few vendors that I’d bet my own money on to grow into what is a curiously high valuation based on historical – even historical tech – norms. It’s my estimate that the recent Taulia valuation round was done on a valuation multiple roughly around 15 times trailing top line numbers. I base this multiple on a napkin sketch of Taulia’s current accounts and business activities (including program adoption) and a WSJ blog pegging the overall valuation at $200 million.

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Supply Chain Cops (and Robbers): On Conflict Minerals Compliance in Secondary Industries

In a Sourcing Journal Online column that’s a must-read for any industry, Stephan Lamar, executive vice president at the American Apparel & Footwear Association (AAFA), frames the costs and hassle of conflict minerals legislation for the industry he represents. As he writes, “although [the legislation] was aimed at the electronics industry, which is a massive user of these materials, the broad reach of the regulation has ensnared our industry as well. For the past 18 months, U.S. footwear and apparel companies have spent thousands of dollars and hundreds of man hours in a desperate effort to come into compliance.”

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Has Supply Chain Policing Gone Too Far?

Is Dodd-Frank really necessary (and if it was wouldn’t it have been implemented yet)? Why do most of the most successful supplier diversity programs we can point to have little focus on adhering to requirements for government contracting and more on doing what is right by customers and growth market segments? And perhaps most serious of all, why does China care about REACH/ROHS and even clean energy when they can’t police their state-owned companies? Nor can they go after suppliers that these organizations purchase from for behavior that would be aberrant in more civilized countries – labor practices, counterfeit and often dangerous materials/substances, theft of IP and other trade secrets, and just about any other supply chain risk infraction you can point to in recent news headlines.

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Looking at Supply Chain Risk Like an Insurance Provider: Do Business Here, Not There

It would be great to have a supply chain risk silver bullet that highlighted specific suppliers that present riskier prospects. That would be financial risk variables, broader supply chain exposure, political risk (of site/factory/host countries), and more. Short of this risk management panacea or expensive one-off analysis, the 2014 FM Global Resilience Index is a fascinating starting point, at least as it pertains to both country specific risk and the overall factors that contribute to supply chain risk.

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Procurement Provider Net Promoter Study

- July 17, 2014 11:11 AM | Categories: Analytics, Commentary, Procurement Research

We’re launching the first round of an ongoing “benchmark” survey that gauges procurement provider satisfaction scores for six different procurement process areas. In each, we measure importance, level of automation, currently selected vendors (as well as current/planned technology approaches), and of course the satisfaction score used to generated a promoter score. Depending on the answers to the questions, we also ask a few follow-on questions (e.g., what were the biggest reasons for low promoter scores) and finish off with some questions on major gaps with existing provider offerings (in addition to emerging technology areas). The first 100 qualified practitioners to participate get their choice of three incentives!

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Looking at Supply Chain Risk Like an Insurance Provider: Evaluating Risk Elements

- July 17, 2014 9:39 AM | Categories: Supply Chain Management, Supply Risk

FM Global recently released their Global Resilience Index of countries covering supply chain risk elements associated with geographies. As they call it, the index is “an equally-weighted composite of nine core variables that affect business resilience to supply chain disruption.” In other words, the study is not just about supply chain risk itself, but the ability of countries (and organizations) to withstand the shock of supply chain risk.

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Supply Chain Risk From an Insurance Provider’s Perspective: “The Shot Heard Round the World”

- July 15, 2014 10:26 AM | Categories: Commentary, Supply Chain Management, Supply Risk Management

I was recently at an analyst event for a software company and sat across the table at a breakfast with a technology researcher who covered the market for insurance companies. I asked the analyst, who had spent over 20 years in the industry, what it was like to look at solutions from an outsider’s perspective and what trends she sees as shaping the market. Almost on cue, the topic of discussion shifted from underwriting and claims management to that new topic of general procurement and finance interest: supply chain risk management. Given her generalist insurance background, I had no idea what to expect when I queried her on the subject, but what I heard back was as expert – or more – than anything I’ve heard from a non-insurance perspective.

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Contract Management and Manufacturing: On Industrial-Specific Use Cases for CLM

- July 14, 2014 10:30 AM | Categories: Contract Management, Supplier Management

Many questions we get regarding contract management suggests that most practitioners and consultants think of contract lifecycle management software as a somewhat generic set of capabilities that work across industries without significant tailoring, customization, or configuration. But in fact there are a number of specific use cases for manufacturing environments. And there are also more advanced use cases in manufacturing.

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The Role of Rhetoric in Supplier Negotiation: A Rebuttal

- July 10, 2014 6:32 AM | Categories: Commentary

I usually don’t find myself so vehemently disagreeing with an essay than I did with an article published in Inside Supply Management from spring, titled “Creating Negotiating Excellence.” The author, a procurement practitioner at a financial services firm, makes the case for creating negotiating centers of excellence (not a bad idea on face value, mind you). But the argument she makes in favor of it speaks to a view of supply chain that I think misses the point in terms of what can make good negotiations truly great.

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Using Contract Management to Build Third-Party Visibility and Manage Supply Risk

- July 9, 2014 10:29 AM | Categories: Contract Management, Supply Risk Management

Many organizations implement contract management solutions to create efficiencies in the contract authoring and implementation process while also reducing risk. Others use contract management as a means to drive compliance and notify stakeholders of opportunities to take action (rebates, timing of sourcing events, etc.). But going beyond these areas, contract management technology can also play a key role in tracking suppliers and other third parties, as well as help manage supply risk.

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