Tagged Content: Process and Best Practice

GSA Schedule 70: The Federal Government’s Amazon

- May 22, 2015 2:36 PM | Categories: Guest Post, Public Sector, Spend Management

Spend Matters welcomes this guest article by Dan Warn, VP at BravoSolution. Last year Congress passed the Digital Accountability and Transparency Act (DATA Act), designed to expand the amount of federal spending data available to the public. The federal government is now under tremendous pressure to improve spending transparency, cut costs and be more efficient than ever. For many agencies, attaining these goals might feel like a considerable undertaking, however, it’s also an opportunity to look for a better, more strategic approach to procurement.

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Deloitte’s Take: Procurement Compensation in Talent Management

- May 22, 2015 6:11 AM | Categories: Analysis, Procurement Commentary, Procurement Research

Two hands of businessmen passing a stack of dollars As the old saying goes, you get what you pay for. The same can be said of recruiting the best procurement talent into an organization. Spend Matters is continuing to feature excerpts from Deloitte’s recently published paper: Procurement Talent Management: Exceptional Outcomes Require Exceptional People. Today we take a glance at Deloitte’s thoughts on the compensation equation. Read on to catch a glimpse at the new research paper and find out why we think compensation matters at all levels of procurement.

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Deloitte’s Take: Virtuous Churn in Procurement Should be Welcomed, Not Feared

3S8PYJ7U5O Our exploration of Deloitte’s paper Procurement Talent Management: Exceptional Outcomes Require Exceptional People continues today with exploring the concept of “virtuous churn” within procurement. Looking at procurement as a “temporary home” within an organization rather than a singular career destination is essential when considering the type of talent structure and program that procurement leadership teams – ideally with the support of HR – want to nurture and build. As the paper states: “Churn can be virtuous – Formal job rotation programs for future senior leadership positions, or even senior finance positions, are increasingly putting procurement and supply chain on the rotation list. What better place to develop commercial, operational, analytical and collaborative skills all in one department?

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Thoughts on the Kail Netflix Case: Should Procurement Look at the CIO as a Thief?

1129141-2590-D31A-40A871BEE07DC548 You can now add “Former Chief Information Officer of Yahoo Inc.” to the list of titles for Mark Kail. It is a list that already has “Alleged Procurement Fraudster” on it. Less than a year after coming on board, Kail has left Yahoo, Inc. The tech company said Kail departed to “pursue other opportunities.” However, the move comes amid a lawsuit against the IT expert, filed on behalf of his previous employer Netflix. What does this mean for procurement? The Spend Matters Analyst Team pipes in with their thoughts and recommendations for how procurement can handle fraud within the company, but outside of the function itself.

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How to Mentor and Manage Procurement Talent: A View From Deloitte

96E1A8F1CB Not enough has been written on getting the procurement talent equation right or fundamentally changing the function from the inside out. Spend Matters is continuing to feature excerpts from Deloitte’s recently published paper: Procurement Talent Management: Exceptional Outcomes Require Exceptional People. Today we explore Deloitte’s views on mentoring procurement talent. As stated in the paper: “High-potential staff can become high performers
by learning both the mechanics and the art of the procurement trade. Anyone can comprehend a process, but invaluable learning can be gained by working alongside highly skilled teachers, mentors, colleagues and trusted third parties in an apprenticeship model. Top chief procurement officers (CPOs) often cite mentors who helped shape their careers and instill the importance of strong execution.

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Now It’s Time For Implementing the ‘The Big Idea’ in Procurement: Tips From Rio Tinto CFO Chris Lynch

board-cubes-game-2923 copy At the Procurious event in late April in London, Rio Tinto CFO Chris Lynch gave one of the most useful talks I’ve heard to date on implementing big ideas in procurement. We’ve previously explored his thoughts. Today, as we conclude this series, we will discuss how to implement big ideas successfully (remember, few ideas get to this stage, at least those with management- and even board-level support!). Above all, in implementing big ideas, Chris suggests keeping things simple and introducing the bare minimum of complexity into the equation, at least as those from the outside (of procurement) can see it.

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What Are You Really Measuring? Effectively Managing Supplier Performance

- May 19, 2015 2:20 PM | Categories: Guest Post, Supplier Management

Spend Matters welcomes this guest article by Jim Kiser of GEP. You can't manage what you don't measure. This is an old adage that is still pretty accurate today. Really, if you don’t put in place the criteria to measure something you don't know if it is improving or getting worse. Managing for improvement in today’s business climate is essential, and with regards to supplier performance management, you have to measure to see what is improving and what is not.

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The Next Step: Getting Support for ‘The Big Idea’ – Rio Tinto’s CFO Chris Lynch Offers Tips for Procurement

FA55F3B0FC As our series featuring Rio Tinto’s CFO Chris Lynch on how procurement can contribute “big ideas” to the business continues, we come to the next step in the process of making big ideas stick: “getting support.” Here, Chris offers a number of concrete suggestions. First and foremost, he suggests finding a “big promoter” higher up the corporate hierarchy while recognizing that people at the top are “very time poor.” Because of this, it is critical to think about how this executive patron will look at the idea with very limited time. Here, procurement team members must realize that executives are “always very time poor,” so it is essential to “give them a context.”

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Deloitte’s View: Attracting and Developing the Right Procurement Talent

horses-in-field-011914350712E346 Spend Matters is continuing to feature excerpts from Deloitte’s recently published paper Procurement Talent Management: Exceptional Outcomes Require Exceptional People, along with our own commentary on the ideas presented in the analysis. Today we explore Deloitte’s views on how to attract the right set of talent into procurement. An excerpt from the paper: Leading procurement functions are aggressively recruiting strong leadership candidates from universities. Businesses are offering attractive compensation and touting the multidisciplinary nature of working in procurement and supply chain. In the consumer packaged goods (CPG) industry, sell-side brand/category managers are often future business unit presidents and CEOs. Buy-side category managers essentially run their own mega-category akin to an entire services business.

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Coming Up With the Big Idea in Procurement: Lessons from Rio Tinto CFO Chris Lynch

QY4LFZWJ9P In late April at the Procurious event in London, Rio Tinto’s CFO Chris Lynch gave a great lecture on how procurement can succeed at implementing big ideas. As we continue to share some of the highlights from his speech, we will talk about the first step Chris observes in making a big idea successful: coming up with a concept itself! When generating the right “big idea,” Chris notes it is important to challenge paradigms through true “intrapreneurship,” (i.e., entrepreneurship inside an existing environment). There should be no shortage of ideas that can come out of procurement, he observes, based on where the function sits.

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‘Help Me, Help You,’ Said the CFO to the CPO

climb-to-the-top-of-a-rockshenandoah-old-rag-Mt--11091446EE765825 There are a number of studies out there showing how financial executives don't always see the savings procurement claims it brings to the business. But is this mainly because finance and procurement are not effectively communicating or are not properly aligned within the company? As Pierre Mitchell, Spend Matters chief research officer, writes in his article, How Would Jerry Maguire Do Spend Management? Procurement/Finance Alignment Series – Part 1 published this week on Chief Procurement Officer: "...[T]he biggest thing here is to get procurement and finance having real conversations about what they need from each other and how to help each other. Just doing that will help identify common objectives that lead to aligned improvement initiatives to jointly create change." Read on, or check out the full article to learn more...

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5/27 Webinar: A Supply Chain Risk Management Model Worth Copying

Poker-chips-060914939385A10F AGCO, the world’s largest manufacturer of agricultural machinery, uses riskmethods to power its supply chain risk management solution as part of their global procurement strategy. The results have been impressive with AGCO winning the “Excellence in eSolutions” award for their “Procurement transformation.” Join Thomas Kase, vice president of research at Spend Matters, and Jan Theissen, director, Strategy & Methods, Global Purchasing & Materials Management at AGCO, for the webinar, Award-Winning Supply Chain Risk Management at AGCO on Wednesday, May 27 at 1 p.m. CDT. They’ll break down just why AGCO’s model for supply chain risk management is worthy of a “best practices” label. Register here!

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