Tagged Content: L2

Beyond the Approved Invoice: How B2B Networks Can Enable Event-Triggered Trade Finance

- January 26, 2015 9:56 AM | Categories: Analysis, Invoicing, Learning / Research, Trade Financing

From a financing perspective, having an approved invoice from an investment grade corporation is the equivalent of having an emotionally intelligent and highly responsible son or daughter graduate from Harvard Business School or Wharton. The combination of factors is a strong predictor of a successful financial outcome in the future. But few of our children will achieve all of these elements together – the same is true of all of the individual triggers available for trade financing as well.

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2015 Will be the Year of the Chief Buzzword Officer

- January 23, 2015 2:28 AM | Categories: Commentary, Friday Rant, Procurement

The 2015 prediction season is thankfully winding down. We, too, are wrapping up our predictions, many of which are really a continuation of some 2014 predictions, and, like other predictions, are updates on some trends that get extrapolated forward. We don’t fashion ourselves as “futurists,” and if we did, we’d have to incur Dr. Lamoureaux’s wrath on the topic and also on predictions in general. Anyway, prediction season is a good time for providers and pundits to invent new buzzwords that try to encapsulate a trend, but more specifically, also try to support a new concept or marketing push that they like. So, for an analyst firm, this might go something like: “Supplier Management is dead: Long Live Supply Base Management!” or “It’s time for Procurement 4.0!”

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Deloitte’s CPO Study: Changing Chief Procurement Officer Behavior

- January 22, 2015 6:20 AM | Categories: Procurement, Procurement Commentary, Procurement Research

Deloitte’s 2014 CPO survey helps to validate a number of evolutionary trends (e.g., decreased focused on savings) that those close to the procurement market are seeing. But it also goes a step further by exploring the different behaviors that top CPOs are engaging in. We’ll be exploring these behaviors and related findings from the analysis – as well as providing additional commentary – in the coming weeks. But in the meantime, I asked Deloitte’s Brian Umbenhauer, principal and US sourcing and procurement leader, and Ryan Flynn, principal, to share some of their perceptions on the study.

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Deloitte’s CPO Study: Top Takeaways and Separating Out Top-, Bottom- and Mid-Tier Performers

We continue our initial exploration of Deloitte’s 2014 CPO survey today, sharing more takeaways from a recent interview with 2 of the study’s architects, Deloitte’s Brian Umbenhauer, principal and US sourcing and procurement leader, and Ryan Flynn, principal. The conversation brought a number of not-so-surprising findings to light – and at least one zinger.

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Deloitte’s CPO Study: What’s Changed Over the Year?

- January 20, 2015 6:57 AM | Categories: Learning / Research, Procurement Research

Deloitte recently published its 2014 CPO survey, an annual quantitative analysis that we’ll be digging into on Spend Matters in the coming weeks. But before sharing some of the top findings and our own analysis, I thought I would go straight the source and ask the Deloitte team to highlight what stood out to them the most in the current report. Deloitte’s Brian Umbenhauer, principal and US sourcing and procurement leader, and Ryan Flynn, principal, took the challenge. In this multi-part series, we’ll be sharing some of the highlights from our discussion. Today, we start with Brian’s observations on what’s changed the most year-over-year.

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Lessons from the NFL – Why Procurement People Need to Learn from Seattle and Russell Wilson

- January 19, 2015 10:24 AM | Categories: Analysis, Procurement, Procurement Commentary

Please forgive an Englishman for commenting on your US national game, but I am a genuine American football fan - I remember supporting the Patriots back in the early 1990s when they were truly the worst team in the NFL for a while. Last night I sat up until midnight UK time watching one of the most dramatic games (not “the best” in any technical sense, but certainly dramatic) as Seattle beat Green Bay in overtime in the NFC Championship game. And there were some takeaways, I thought, that all of us in procurement and beyond might note.

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CSR is Practice – Chipotle Runs Out of Suppliers With Capacity

As is common in many "sustainable" and "diverse" areas in procurement (they are often grouped together and managed by the same director), it is hard to find suppliers with capacity. This is an evergreen topic among all supplier diversity professionals – how to get small and diverse firms to scale. Suppliers need capacity if they want to work with Fortune 500 firms looking to maintain a consistent customer experience nationwide. Chipotle has already found this out with its beef. And now, Chipotle has pulled pork from the menu at 600 of its restaurants across the country – not because of trichinosis outbreaks, but because of supplier practices.

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EDI Failures: Why Advanced Ship Notifications Are Limiting Trade Finance

- January 14, 2015 6:28 AM | Categories: Trade Financing

Electronic Data Interchange (EDI) remains the lifeblood of corporate supply chain data flows today. Indirect business networks and e-invoicing networks, such as the kind proffered by Ariba, Basware, Tungsten and others, are tiny by comparison in terms of documents and dollars changing hands. Yet EDI isn’t perfect. Advanced ship notifications (ASNs) is one area where EDI still comes up short, especially as a system of record and trigger for trade finance. In his recent white paper, “On-Demand, Event Triggered Finance With Network Models – A Game Changer?,” my colleague David Gustin provides a number of reasons why the ASN has not become a reliable trigger for financing, especially compared with approved invoices.

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Commodity Watch: Oil Prices Hit New Low This Week As Supplies Continue to Grow

- January 13, 2015 10:16 AM | Categories: Commodities, Industry News

Last week oil prices fell to a near 5-year low. But this week, they have slid even further, reaching 6-year lows. As of Monday, benchmark West Texas Intermediate was down 4% to $46.46 a barrel, and Brent crude hit $48.12. West Texas crude prices have plummeted 57% since last June. Gasoline prices, too, are down considerably from last year. Regular grade gasoline now averages $2.13 a gallon. In January 2014, prices averaged $3.31. What does this mean for procurement? Read on...

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Invoicing Discounting, Dynamic Discounting and Self-Funded Corporate Programs

- January 12, 2015 6:06 AM | Categories: Invoicing, Trade Financing

Self-funding has been the primary mechanism to date for corporations to fund invoice discounting and dynamic discounting programs (which explains, in part, why Taulia has been growing so quickly, since they started this model). But how do companies self-fund invoice discounting programs? In a recent white paper, “On-Demand, Event Triggered Finance With Network Models – A Game Changer?,” my colleague David Gustin explains how self-funding programs work in practice.

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Walk the Walk and Download This New, Free Piece of Trade Financing Matters Research

- January 9, 2015 8:06 AM | Categories: Learning / Research

A lot of hot air comes from supply chain finance and exploring new avenues to finance commercial transactions, but where can you separate empty talk from tangible solutions? David Gustin, executive editor of Trade Financing Matters, published a new piece of free, downloadable research that should help: On–Demand, Event Triggered Finance With Network Models – A Game Changer? Download this free paper today and find out whether on-demand, event triggered finance with network models is the difference maker in successfully managing your risk.

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2015 Spend Matters Prediction: Empty Seats

- January 8, 2015 6:33 AM | Categories: Procurement, Procurement Commentary

Our next procurement prediction: Empty Seats. For all the time, cost and effort procurement organizations are putting into managing the contingent workforce and broader services procurement, there remains a fundamental disconnect between purchasing and HR when it comes to solving the broader talent problem still plaguing so many organizations. In 2015, we expect more of the same.

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