Tagged Content: Process and Best Practice

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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Back to School Webinar with Spend Matters

- August 18, 2014 6:17 AM | Categories: Contract Management

It’s that time of year again. Join us on Wednesday, September 3 at 10 a.m. CDT for We Don’t Need No Education (But We Do Need Contract Management), a new webinar from the Spend Matters Team. Peter Smith (Managing Editor, Spend Matters UK/Europe) will be joined by Constantine Limberakis (lasta) and Patrick Stakenas (Selectica) for an informative take on contract management and best practices.

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Attention Retailers – 13 Ways to Fund New IT Projects in 2015 (Part 3)

- August 13, 2014 2:56 PM | Categories: Guest Post, Spend Management

While the rest of us are wrapping up summer vacations, retail IT and sourcing executives are barreling towards the holiday retail season. As we’ve discussed before, few have time to get ahead of the IT and budget challenges that are waiting for them in Q1 2015, one of which is finding the money to pay for new IT projects. It’s a challenge for every industry, but especially for retail where IT innovation weighs heavily on margins and competitive differentiation. Here are the four final areas where IT overspending is occurring within most retail organizations. By taking a hard look at these areas, retail IT and sourcing professionals can turn overspending into funding – often millions of dollars that can be re-directed to IT innovation.

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New Paper Outlines Nuisance Spend, Tail Spend, and How to Address These Issues

- August 12, 2014 6:29 AM | Categories: Learning / Research, Spend Analysis, Spend Management

Tail spend, as it is narrowly defined, does not include the entire bulk of “nuisance” spend that many companies must endure. In a new research paper titled "Re-thinking and Re-claiming 'Tail Spend,'" Chief Research Officer Pierre Mitchell delves into the importance of process design, proper tools, and flexible resourcing models. As he writes, "the idea of ‘tail spend’ doesn’t seem very complicated at first. Run a pareto analysis on your spend categories and suppliers to make a cut off at, say, the 80 percent that represent only 20 percent of your spend. Your numbers will of course vary, but the idea is to find a way to better manage such ‘nuisance’ low-dollar spend that doesn’t detract from your efficiency, or worse yet, from spending time managing the truly strategic spend categories more deeply.”

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8 Key Design Considerations for Optimizing Your Demand Planning Process (Part 2)

- August 7, 2014 2:40 PM | Categories: Guest Post, Supply Chain Management

In the first installment of this series from Josh Peacher of The Hackett Group, he focused on defining the four basic design considerations for optimizing your organization's demand planning process. However, to truly move the needle towards world-class performance, a set of more advanced considerations must be applied. Part 2 discusses four more considerations.

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