Tagged Content: L2

Category Management 1.0 – Necessary, but Definitely Not Sufficient!

- September 2, 2015 6:49 AM | Categories: Category Management, Innovation, Research Download

category management Category management has had a good run – a good, long run. But you can’t save your way to zero, and supply markets don’t fall neatly into nice hierarchical spend taxonomies. So procurement organizations are looking for new ways to engage stakeholders and suppliers alike outside of the “sourcing box.” Category management 1.0 isn’t going to cut it anymore. But, what’s next? What does category management 2.0 look like? Is there an example?

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E-Invoicing Programs: Stand Alone or Integrate?

- September 1, 2015 6:39 AM | Categories: Finance, Invoicing, Research Download, Technology

e-invoicing E-invoicing programs and services can stand alone without connections into other systems and processes. But they can also serve as a magnifier and direct enabler for broader accounts payable (A/P) automation, purchase-to-pay (P2P), e-procurement, supplier and third-party management and trade financing programs. In considering how e-invoicing programs can augment or combine with other initiatives, Spend Matters recommends companies consider these 5 factors.

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Category Management is Not Strategic Sourcing

category management Roughly a decade ago, a handful of technology vendors did a great disservice to the vocabulary of procurement by offering targeted extensions to early sourcing suites that enabled a view of category/commodity activity that extended beyond one-off sourcing events and labeling these modules and capabilities as “category management.” Pierre Mitchell, Spend Matters Chief Research Officer, sets out to correct this wrong in the new e-book Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value.

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Spend Matters View: Realizing Accenture’s New PaaS Applications (Part 2)

- August 28, 2015 6:26 AM | Categories: eProcurement / Procurement, Innovation, Technology

PaaS As a follow-up to the first installment in this series highlighting future supplier network-based applications made possible through platform-as-a-service (PaaS) architectures and business models, this second post shares additional business application-type apps that future networks might deliver, including network-based contract lifecycle management capabilities, virtualized environment health safety and safety health environment management, project, portfolio and initiative management solutions and more.

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How Does Trade Financing Fit With E-Invoicing?

- August 27, 2015 6:15 AM | Categories: Finance, Invoicing, Research Download, Technology, Trade Financing

e-invoicing Trade financing is a broad-based term we can use to encompass a range of receivables financing and payables financing techniques. The difference between the 2 types is relatively simple: Vendors are in control with receivables financing program, and payables financing programs are buyer-led. There are a range of common areas of trade financing programs today outside of global trade-centric programs and products. These include: supply chain financing (i.e., an uncommitted credit facility, typically with companies at or near an investment-grade credit rating), dynamic discounting, reverse auctions and auction marketplaces, buyer-led invoice finance, p-cards, seller auctions, factoring and invoice finance. For further information and definitions of these programs, download the Spend Matters Perspective: Understanding How E-Invoicing Fits.

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How Do Supplier Management Systems Fit With E-Invoicing?

- August 26, 2015 6:06 AM | Categories: Accounts Payable, Invoicing, Supplier Management, Technology

supplier management One of the fastest growing areas of the procurement and accounts payable (A/P) technology automation market is a sub-sector that many describe as supplier or third-party management. As with the other areas we have explored, supplier management is an area that has material overlap with e-invoicing. Initiatives for this technology can support the capture and maintenance of a range of supplier management data. However, e-invoicing is not a substitute for broader supplier management programs outside of A/P-specific, vendor file-centered programs. Separate programs, which require their own workflow and systems, may include programs centered on several related factors.

This article is based on content from the Spend Matters Perspective: Understanding How E-Invoicing Fits. Authored by Spend Matters Founder and Managing Director Jason Busch, with input and guidance from Trade Financing Matters’ David Gustin, it provides a foundation for organizations considering or already putting in place an electronic invoicing (e-invoicing) or purchase-to-pay (P2P) program.

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How Supplier Network Systems Fit With E-Invoicing: The Role of P2P and E-Procurement

- August 25, 2015 6:34 AM | Categories: Invoicing, Research Download, supplier networks, Technology

supplier network Separate from supplier networks, e-procurement and purchase-to-pay (P2P) systems enable a range of hard dollar cost reduction benefits by reducing off-contract purchases, lowering purchase volume in general, improving operating efficiency, increasing PO throughput per full-time equivalent and bringing greater spend under management and lower contract rates. 

These systems do this by supporting a range of capabilities, including supplier onboarding, catalog management, supplier portal, workflow/process management, requisitioning, approval/status, order management/visibility, inventory/asset management and supplier connectivity. 
The overlap between e-invoicing solutions and supplier network and P2P capabilities can be significant, especially in the areas of supplier onboarding, connectivity and portal capabilities. Given this, it can be important for procurement and A/P organizations to decide what capabilities of which solution area they want to leverage in case of overlap.

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How Supplier Networks and P2P Systems Fit With E-Invoicing – Defining Networks

- August 24, 2015 6:20 AM | Categories: Invoicing, Research Download, supplier networks, Technology

e-invoicing In our past lives designing, advising and implementing e-invoicing programs with clients, the Spend Matters team has found that far too many people inside procurement and finance organizations are confused about what supplier networks provide and what purchase-to-pay (P2P) and e-invoicing solutions deliver. For example, in many cases supplier networks incorporate e-invoicing capabilities within them; in other cases they incorporate some but not all capabilities.

To understand how e-invoicing programs fit with supplier networks, we should first explore what supplier networks are. Here are a few key points to illustrate how e-invoicing and supplier network capabilities can overlap.

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DC Circuit Court Says Conflict Minerals Disclosure Rule Violates First Amendment

conflict mineral US companies struggling to determine and report to federal officials if their supply chains contain conflict minerals may have felt some relief this week when the US Court of Appeals for the DC Circuit struck down the federal government’s conflict mineral disclosure requirement, saying it violated the First Amendment.

Our sister site MetalMiner reported on this news in more detail this week in its article DC Circuit Rules Against Disclosure Requirement in Conflict Minerals Rule Again, authored by MetalMiner Assistant Editor Jeff Yoders.

“The court’s rulings did not overturn the entire Conflict Minerals Rule, it actually upheld requirements such as having companies investigate whether their products include the minerals and a requirement to file public reports on their investigations, a process that began last year,” Jeff wrote.

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Spend Matters View: Realizing Accenture’s Future Supplier Network Vision (PaaS Fundamentals)

supplier management I’m glad Accenture put supplier networks at the core of its future vision for technology in its recent white paper: Procurement’s Next Frontier – The Future Will Give Rise to an Organization of One. But the supplier networks of tomorrow will look very different than those that are most common today. Tradeshift, which is pitching a future network vision at the core, is perhaps the first active participant in this space today to leverage some of the early thinking and network capability in practice with platform-as-a-service (PaaS) approach.

PaaS is critical to understand how we’ll build and deploy connectivity hubs between buyers and suppliers at all tiers of the supply chain, as well as applications that support communication. But what is PaaS in the context of a network? As I’ve noted previously, future business networks will be supported by cloud computing models that include PaaS, an approach which will become increasingly productized and prevalent starting this year.

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Dispute, Payment and Cash Management – Exploring Accounts Payable Automation and E-Invoicing Linkages

- August 19, 2015 6:36 AM | Categories: Accounts Payable, Invoicing, Research Download, Technology

e-invoicing Dispute management is a central element of any overall accounts payable (A/P) management process or flow. The same holds true for accounts payable automation systems and programs as well as e-invoicing. This is an area where e-invoicing can shortcut manual involvement by pushing invoices back to suppliers if they fail any type of tolerance.

This article is based on content from the Spend Matters Perspective: Understanding How E-Invoicing Fits. Authored by Spend Matters Founder and Managing Director Jason Busch, with input and guidance from Trade Financing Matters’ David Gustin, it provides a foundation for organizations considering or already putting in place an electronic invoicing (e-invoicing) or purchase-to-pay (P2P) program.

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How to Start a Global Supply Chain Risk Management Program (Part 2)

IMUB39JBN1 Yesterday, we shared the first 5 of our 10 tips for getting started with a global supply chain risk management (SCRM) program. This post, based on content from a Spend Matters paper by Thomas Kase, vice president of research at Spend Matters, looks at our final recommendations. We invite all of our readers to download this analysis and our PRO subscribers to speak with our team about how to build their business case for SCRM program investment.

Our final tips for getting started with global SCRM programs include considering interoperability and integration, obtaining c-level sponsorship and tying in HR. Organizations that want an inside track on building or accelerating a business case for investment in SCRM are likely to find the Spend Matters paper, A Case Study in Global Supply Chain Risk Management: How AGCO Implemented an SCRM Solution to Save Millions, useful in their efforts.

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