Tagged Content: Process and Best Practice

CPO Insight: Procurement Transformation – Myth or Reality?

- September 30, 2014 6:27 AM | Categories: Procurement, Procurement Strategy & Planning

What does a "transformation" really take to be successful? I'm writing this from the economy cabin of a very busy London to Dubai flight, on my way to run a couple of workshops in Dubai and Abu Dhabi for the BravoSolution joint venture in the region, Tejari. By the time you read this, the workshop will be completed, and the topic in Dubai is Procurement Transformation - Myth or Reality? One of the reasons we chose this as a topic is that "transformation" has become an over-used expression and procurement has not been immune to its charms. In this Plus article, Pierre Smith talks about what exactly a procurement "transformation" means.

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Aligning Accounts Payable and Purchasing

- September 26, 2014 3:04 PM | Categories: Accounts Payable, Guest Post, Purchasing

Spend Matters welcomes this guest post from Hadi Chemaly, a senior product manager at Verian. Every business strives for a perfect world where accounts payable (AP) and purchasing work in perfect harmony, overcoming different policies and processes. Like most worthy goals, reaching this perfect world is easier said than done. It is common to have AP and purchasing report up to different division managers. These divisions often have different philosophies in handling supplier relationships as well. This creates friction and tension between the two teams, and in extreme situations, results in unhealthy organizational rivalries.

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Fifty Shades of Pay: Shade 5 – Diving Into the Invoice-to-Pay “Transaction Factory”

file1361306993785 In our last installment of this “50 Shades” series on spend analysis, we alluded to the concept of the “transaction factory.” Basically, we’re talking about managing transactional documents like POs, receipts, invoices, and payments with the same rigor that products are managed as they flow through a world-class production facility. For right now, we’ll address the “invoice factory” and “payment factory” since we’re talking about A/P-based spend analysis (for now). Spend Matters' Chief Research Officer Pierre Mitchell continues his 50 Shades PLUS series, this time touching on "Shade 5."

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Collaboration: Taking Procurement to the Next Level

- September 23, 2014 2:29 PM | Categories: Guest Post

Spend Matters welcomes this guest post by Mayank Saxena of GEP. When I look at the world of procurement, there are few distinct pieces that come to my mind. These are (1) Spend Analytics (2) P2P – the procure-to-pay cycle (3) strategic sourcing and category management and (4) contract services. Based on my experience, I have come to realize how collaboration across these teams can work wonders, and there is significant merit to having a single supplier manage the entire gamut of activities. To illustrate what I am saying, Read on to see my examples.

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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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Expanding the Scope of Should-Cost Analysis

- September 3, 2014 2:25 PM | Categories: Analysis, Cost Management, Guest Post

“Should-cost analysis” or “clean sheeting” is an advanced procurement technique primarily employed in the direct material space. The approach involves modeling the raw material and conversion costs of a good, allowing for a better understanding of a supplier’s overhead, profit and manufacturing efficiency. Clean sheeting has traditionally enabled negotiations for specialized products with high costs and limited supplier alternatives.

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Fourth and Final Webinar: Register Today for Creating Leverage From Lethargic Systems

- August 28, 2014 10:42 AM | Categories: eProcurement / Procurement

Join Pierre Mitchell (chief research officer, Spend Matters) and Regine Böhm-Gams (director of P2P product management, Capgemini BPO) for Creating Leverage From Lethargic Systems, the fourth and final installment of this webinar series, outlining eProcurement projects, why they fail, and what you can do to enhance your chances of success. Register here

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Never Forget: In Procurement What Gets Measured Gets Done!

- August 27, 2014 2:29 PM | Categories: Analytics, Guest Post, Procurement

Back in the late 1980s, a big debate broke out among procurement leaders as to how to best measure procurement’s functional performance. Procurement had been seen traditionally as a service function – processing transactions, managing bid processes and negotiating prices and commercial terms with suppliers - but not making significant contributions to business performance or market competitiveness. This post discusses new research from Richard Waugh, vice president, business development for Zycus, on best practices regarding procurement performance and how CPOs can use these metrics to their advantage.

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Procurement Lessons for Small Businesses and Large Multinational Corporations

In the world of procurement, there is a handful of strategies that can be adopted and reused across categories and clients. This can create a redundancy that slows innovation and prospects of future growth. GEP's Sanyam Khurana recently met and talked with the owner and staff of a small bakery in New Delhi and observed that there are many parallels between how this small outfit operates to what is and should be practiced at larger organizations

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Supply Chain Lessons from Walmart’s Meat Recall and Target’s Data Breach

In January of this year, Walmart was forced to recall meat sold at some of its stores in China after the meat was discovered to contain DNA from foxes. In the aftermath, Walmart China’s president and chief executive officer said, “It is a deep lesson that we need to continue to increase investment in supplier management.” Only one month earlier, Target disclosed it had been the victim of a major credit card security breach. These incidents highlight the risks of doing business with suppliers that fail to perform appropriately: potential supply chain disruption, serious reputation damage, and even government investigations related to regulatory compliance.

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Making Friends: How CPOs and CFOs Can Come Together in Harmony

Connecting individuals' roles with the planets of the solar system is nothing new (see: Men are from Mars and Women are from Venus) but we’re taking it one step further with this new, downloadable research paper -- Procurement is from Mars and Finance is from Jupiter: How to Align Planets. In the paper, Chief Research Officer Pierre Mitchell examines how the CPO and CFO can come together for the better of both procurement and finance.

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Best of Trade Financing Matters: David Gustin’s Picks

- August 20, 2014 10:32 AM | Categories: Supply Chain, Trade Financing

Continuing on with “Best Of” Week on Spend Matters, here are some must-read posts from our sister site, Trade Financing Matters. I asked David Gustin to pick a few that are most pertinent to Spend Matters readers or hold most sentimental value. Read on to see what these are!

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