Tagged Content: Process and Best Practice

Should Middle Market Companies Consider Supply Chain Finance?

- December 18, 2014 2:12 PM | Categories: Guest Post, Supply Chain, Trade Financing

Approved trade payable finance/reverse factoring programs – otherwise known as supply chain finance – have been the domain of the investment-grade or near-investment corporations. But as many bankers compete on price for these programs and the market becomes saturated with solutions (i.e., most big credit quality companies have probably heard 10 or more bank pitches), the question becomes what about the middle market? Can programs work with this segment? Check out this article at our sister site, Trade Financing Matters.

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Prediction 2015: CFOs Rediscover Process Automation

- December 17, 2014 2:22 PM | Categories: Guest Post

Spend Matters welcomes this guest post by Peter Minck, vice president of business solutions at Redwood Software. CFOs and finance departments are always being challenged to streamline what they do. During our work and discussions with global organizations over the past year, we found many manual challenges and repetitive tasks that compromise the effectiveness of finance and accounting teams in many areas. But altogether, no single activity hijacked more effort from finance in 2014 than the financial close.

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IBM 2014 CPO Report: Its Biggest Weakness Is Also Its Biggest Strength

- December 15, 2014 6:24 AM | Categories: Analysis, Learning / Research, Procurement Research

file9021244999056 IBM recently released its 2014 Chief Procurement Officer Study, which boasts an impressive sample size of more than 1,000 senior procurement leaders at firms greater than $1 billion in size. Like the 2013 IBM CPO study, it was led by IBM’s internal research group, The Institute for Business Value, and the execution was outsourced to a third party so that respondent details would be confidential and not shared with IBM services groups. The 2013 CPO study was a fairly traditional one - but the 2014 report is different. Find out why.

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Catching the Central Procurement Unicorn

- December 11, 2014 2:11 PM | Categories: Procurement, Spend Management

Spend Matters welcomes this guest article from POD Procurement. It is widely believed that achieving aggregation of an organization’s spend requires centralized procurement. This is incorrect. Achieving aggregation requires individual demand used collectively to secure higher supplier discounts. We will now explain the subtle but important difference.

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Exploring Supply Chain Risk: Sole Sourcing

- December 10, 2014 6:06 AM | Categories: Analysis, Supply Risk, Supply Risk Management

1414463807otqd6 A recent study by the supply chain faculty at the University of Tennessee, Managing Risk in the Global Supply Chain, highlights one key area supply chain risk many procurement organizations do not often consider as primary supply risk considerations: sole sourcing. Sole sourcing involves working with a single supplier for a given SKU, item or service.

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The Importance of Due Diligence

- December 9, 2014 2:24 PM | Categories: Best Practice, Cost Management, Guest Post, Sourcing

Spend Matters welcomes this guest post by Apurva Malewar of GEP. Emerging demands on leveraging cost-effective and efficient business solutions is not a new one. Sourcing and procurement groups have developed many successful sourcing strategies to identify cost savings, however, when it comes to realizing them, their strategies sometimes fall short. Effective use of technology to track savings compliance and realization, combined with process re-engineering where required, strong SRM program with 3600 feedback, collaboration and innovation are needed too. In this article, I will be sharing my experience of the impact an effective tool can bring to sourcing effectiveness.

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Supply Chain Risk: The Facility Link

- December 9, 2014 10:04 AM | Categories: Analysis, Supply Risk, Supply Risk Management

file6831280608850 When it comes to supply chain risk, most organizations initially begin by considering the overall risk that a supplier might introduce. But examining supply chain risk at the factory or distribution facility (DC) level can be just as important to understand specific risk factors and interdependencies. The supply chain faculty at the University of Tennessee published a study, Managing Risk in the Global Supply Chain, which suggests that 47% of companies do not have backup plans in place for a factory or DC shutdown.

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Supply Chain Risk: Challenges We’re Ignoring, Solutions We Don’t Know About

- December 8, 2014 10:16 AM | Categories: Analysis, Supply Management, Supply Risk, Supply Risk Management

broken-dangerous-lake-1087-849x550 There is no shortage of studies on supply chain risk (I co-authored my first one in the area roughly 12 years ago). But, it would appear that procurement and supply chain managers are not taking action based on what they read (or chose to ignore). A study by the faculty in the supply chain/operations program at the University of Tennessee, Managing Risk in the Global Supply Chain, published earlier this summer, begins by highlighting what appears to be a lack of attention being paid to the overall supply chain risk equation, including all of the available solutions (such as insurance) that can mitigate risk.

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Promoting Dynamic Leadership in Supply Chain

- December 6, 2014 9:01 AM | Categories: Guest Post

Spend Matters welcomes this guest post from APQC. As supply chain becomes a more strategic function and senior supply chain professionals prepare to retire, the need to develop strong leadership capabilities in supply chain mounts. New research from educational non-profit APQC sheds light on which leadership skills are most important to develop and which development techniques will be most fruitful for supply chain professionals.

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What Procurement Strategies Drive Business Value?

- December 5, 2014 1:24 PM | Categories: Learning / Research

Spend Matters welcomes this guest post by Matt McGovern of IBM. IBM’s Institute for Business Value (IBV) recently completed its groundbreaking Chief Procurement Officer Study, one of the largest known surveys of procurement organizations at global companies. IBV surveyed more than 1,000 CPOs and senior procurement executives in more than 40 countries around the world. The goal of the study was to “harvest insights” to better understand the impact of procurement on business performance.

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A.T. Kearney Gets it Both Right and Dangerously Wrong in 2014 ROSMA Benchmark Report

- December 5, 2014 2:41 AM | Categories: Analysis, Commentary, Procurement Commentary

We previously discussed A.T. Kearney’s recently released report titled “Building the Brand of Procurement and Supply,” which summarizes and analyzes its 2014 ROSMA (Return on Supply Management Assets) benchmark metric. In Part 1 of our analysis of the report, we described the methodology and approach of the study. Then, in Part 2, we tweaked the model to fix a bad assumption and to drill it down in a spreadsheet format that shows how the model works with example data (and the assumptions regarding each of the steps).

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The State of P2P: Less Than Halfway There

- December 4, 2014 2:22 PM | Categories: Guest Post, P2P

Spend Matters welcomes this guest post by Richard Waugh, VP of corporate development at Zycus. After 15 years (or more) of e-procurement or procure-to-pay (P2P), the progress made by first-generation adopters in the use of tools to automate ordering of indirect materials and services is, on average, only halfway – or less – toward realizing e-procurement’s true potential, according to the results of a new P2P benchmarking market study conducted by Zycus. A sobering picture emerges of the current state of P2P, based on the responses from over 450 global procurement organizations, due to the fact that the average performance hovers at or below the 50% threshold. That is, most organizations capture 50% or less of indirect spending through a compliant P2P process – spending with preferred vendors at negotiated pricing – and have accurate line-item visibility to just 45% of their indirect spend.

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