Tagged Content: Process and Best Practice

Tackling Myth vs. Reality in Procurement

CB8PFQR6E9 This week on Chief Procurement Officer, we began our series of dismantling the top procurement myths that exist in the industry. Written by Pierre Mitchell, chief research officer, the series includes a new post every day discussing another procurement myth and why it should no longer exist. It is clear that while some procurement practices worked 20 years ago, they shouldn't be followed today. Pierre tells us why. Check out the beginning of the series, published this week on the CPO website.

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Careful! Don’t Auction Away Your Supplier Relationships

Spend Matters welcomes this guest article by Jim Kiser of GEP. There comes a point when management tasks procurement to save money quickly due to some recent poor performance or profit results to the financials. Either raise sales, cut staff or reduce cost of goods sold in order to get profitability back on track. One way to drive savings quickly is through the use of e-auctions or online electronic bidding events. These events can help to save money but also can have a big trade off; loss of relatively healthy supplier relationships or creating more “arm’s length” styled commercial ties to the supply base for large spend categories.

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Who You Gonna Call? Procurement MythBusters!

android-calling-dialer-3071-364x550 I go to a lot of conferences and have facilitated a lot of CPO panels, and what I always find surprising is not just how many of the same challenges exist, but also the extent that the same conventional wisdom gets bandied around. Perhaps it shouldn't be so surprising. When procurement leaders are looking for approaches or solutions, they will turn to their peers or to traditional sources of knowledge such as consulting firms, membership organizations and so forth. Stay tuned for a multi-part series on SpendMatters Plus that begins sharpening (or discarding) the “old saws” and conventional thinking that are worth re-visiting.

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Why Do We Need Procurement?

- March 21, 2015 7:48 AM | Categories: Guest Post, Innovation, Procurement, Suppliers

Spend Matters welcomes this guest article by Mike Robertson, managing director at POD Procurement. What is the function of procurement? It's an emotive question that generates a plethora of answers. Fundamentally, let us assume, “Procurement is responsible for spending the profits of the organization in procuring goods and services to address the business requirements.” What is the value of procurement? Again, it's hard to quantify depending on who is answering the question, but let us assume it is to “maximize the value of what the business procures,” or to it simply “to spend wisely and save as much as possible.”

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How a CPO Can Take Advantage of Technology – Lessons from a CIO

V0HMOIS7LF This week on Chief Procurement Officer, Pierre Mitchell, chief research officer, continued his series What CPO’s Can Learn From Facebook’s CIO. The series was based of an interview The Wall Street Journal held with Facebook CIO Tim Campos. What lessons could a chief information officer teach procurement? Pierre breaks it down. Make sure to check out our CPO website for the series!

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Where Does the Services Supply Chain Lag the Physical Supply Chain?

Marathon-running-race-people-competing-in-fitness--012514FFBA924F40 It is not overly surprising that the services supply chain lags the physical supply chain (i.e., direct materials) in rigorous management processes. But the delta between relative maturity and sophistication of indirect materials (e.g., MRO, IT) procurement management compared with services spending is perhaps even more suggestive of the comparative immaturity of how organizations are managing the lifecycle of services suppliers and services engagements overall compared with other spend types. Check out some of the details Spend Matters research reveals.

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Managing Supply Chain Risk in Mexico – A Spend Matters PRO Analysis

XBWD547R7K Earlier today, we published a PRO research brief authored by Xavier Olivera on supply chain risk management in Mexico – what North American companies should pay attention to when working with Mexican and Latin American suppliers, and what Mexican companies should keep in mind. Make sure to check out the article, Supply Risk Management in Mexico: Tips and Analysis For Multinational Procurement Organizations, before heading home today.

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Traditional Supplier Portal E-Invoicing Models Made Obsolete by Brazilian Nota Fiscal Mandates

Spend Maters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. As we explored previously, the Brazilian government recently introduced a new web recovery service for required NFe goods and CTe transportation documentation, allowing companies to pull their XML invoicing records back 5 years. The implication is that the government intends to increase its auditing efforts and will severely fine companies that do not adhere to the 5-year invoice archiving mandate. While these fines can be tremendous for unprepared companies, this recovery service also has benefits, such as helping companies to streamline processes and eliminate obsolete e-invoicing solutions.

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Managing Contingent Labor: Common Challenges and Case Examples

- March 19, 2015 6:27 AM | Categories: Analysis, Services Procurement & Contingent Labor

PHE63L27S6 In a recent Spend Matters research study titled Applying Supply Chain Rigor to Contingent Workforce Management, we found companies cited a number of common challenges regarding managing contingent labor relative to the direct supply chain. In this article, we share some of the highlights from the research paper.

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How Unsecured Payable Facilities Help With Bulk Purchase Discounts

- March 18, 2015 8:17 AM | Categories: Procurement Strategy & Planning, Trade Financing

calculating-calculation-calculator-3305 Procurement organizations may be able to take advantage of volume discounts or quarter-end spends with their largest suppliers – if they can make it happen. Procurement may not be able to get the funding to make this a reality as treasury may not want to tap into its revolving credit facilities. So what are you to do? Check out the full article over on our sister website, Trade Financing Matters.

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Tracing Contingent Labor Flow: Demand to Supply

highway-lights-night-1290 Creating a simple graphic to show labor supply types and how they flow through internal and external channels into a business is an exercise in futility – there’s nothing simple about it, regardless of how much one attempts to simplify the various labor, talent and process flow. But we had to at least try! We created a graphic that is as distilled a version as possible to cut through the complexity of supply and demand for various services (and services workers) “consumed” by the business.

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Why Procurement Organizations Can Benefit from Working with Internal Audit – Part 2

- March 17, 2015 2:08 PM | Categories: Finance, Guest Post, Procurement Financials, Sourcing

Spend Matters welcomes this guest article by Santosh Reddy of GEP. I was at a conference recently where nearly 500 professionals from the industry gathered to share their thoughts about the challenges and solutions related to sourcing, procurement and technology in their respective companies. One of the speakers in those sessions touched on the topic of a strong relationship with internal audit that created both the opportunity and work for her sourcing team.

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