Process & Best Practice Content

Staffing Supplier-Buyer Relationships: What It Takes to Make It Work

Spend Matters welcomes this guest post from Michelle Cox, founder of Believe In You Coaching and Consulting and former senior manager, external staffing and vendor relations at U.S. Cellular.

With more than 11,000 staffing firms that exist in the U.S as of 2016 and more than 28,000 offices, buyers’ options when choosing a staffing supplier to support their organization may seem endless. For years the age-old question from staffing suppliers was, “How do I get in the door at XYZ buyer or managed service provider (MSP)?” During a panel I sat on for my previous organization, I answered this very question and my response was simple: We need to create a relationship, and relationships don’t happen overnight, nor do they exist without effort.

Can the Latest Supplier Relationship Management Tools Deliver the Clinically Integrated Supply Chain?

On healthcare’s supply side, you’ll meet some of the most sophisticated procurement practitioners you’ll find across industry. On the buy side, talking specifically now about acute care providers, however, you have a group that has carried the reputation of “laggard” for as long as anyone has paid attention.

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Driving Sustainability and Compliance (Part 1): Disrupting the Paradigm of the ‘Empty App’

As Pierre Mitchell pointed out in an article earlier this year, the vast majority of procurement technology is focused on the capture and containment of information. Supplier information. Product specifications and prices. Spend and transaction details. These are critical categories of information, but they don’t create value or achieve business objectives on their own. For that, procurement needs something more contextualized to its own company’s situation and designed to motivate action.

3 Ways Ineffective AP Processes are Endangering Your Supply Chain

Procurement organizations tend to focus on the “procure” part of the procure-to-pay (P2P) process; so much so that the second “P” often has to take a back seat. Yet the payments side of P2P offers strategic opportunities that procurement should consider — as well as critical risks that it must take into account. When AP processes are neglected, they can endanger your supply chain, tarnish supplier relationships, and jeopardize supply quality and continuity. Following are three ways those negative impacts can occur, along with recommendations for turning these possible risks into strategic opportunities.

Taking Control of Your Unmanaged Indirect Spend

AnyData Solutions

Spend Matters welcomes this guest post from Scott Dever, vice president of member development at Corporate United.

Targeting areas of unmanaged indirect spend is a key way procurement leaders can deliver value and maximize savings, and ultimately extend their reach and influence. Traditionally, this unmanaged spend has challenged procurement for a number of reasons. Decentralized decision-making and fragmented buying creates a lack of visibility into spending, supplier proliferation and limited opportunities to support competitive sourcing. But increasing spend under management enables teams to realize many worthwhile benefits, including incremental cost savings, supply base consolidation and reduced risk.

Determining the Avoidable and the Unavoidable in Supply Chain Risk

category management

Some supply chain risks are avoidable. For instance, it is feasible and highly advisable to avoid doing business with potential suppliers in certain countries (like North Korea) where doing so would bring all sorts of risk to fruition. But any supplier could suffer from an accidental factory fire. A hurricane or flooding could strike pretty much anywhere in the world, so this sort of risk is unavoidable. That does not mean, however, that we cannot take actions to manage that type of risk better.

A New Perspective for Procurement: Understanding RAP

risk

Although I can’t be sure if risk-aware procurement (RAP) can rightfully claim this year’s mantle for most popular new supply chain management (SCM) acronym, it should be a leading contender. Not that it’s about acronyms, or that building a procurement-led and more structured supplier relationship management (SRM) capability isn’t meaty enough on its own, but when you add in the sizzle of supplier risk management (SRM), well, let me put it this way: Chief procurement officers (CPOs) who “RAP” are embracing one of the more powerful hooks the profession has seen in more than a decade.

Chasing After Procurement Excellence: Findings from A.T. Kearney’s Latest Report

Deloitte Global CPO Survey 2016

World-class procurement organizations see a comparatively threefold higher return on their supply management assets, according to A.T. Kearney’s 2017 Assessment of Excellence in Procurement. The firm has been conducting these assessments every three years or so since 1992, and this is its ninth assessment. A.T. Kearney divides companies into four groups based on their ability to manage external spend: Leaders (7%); Aspirants (11%); The Pack (55%); and Strugglers (27%). The “Leaders” are twice as likely to invest in supplier innovation, risk management and digital technologies like blockchain or automation.

Services Procurement Practitioners: Is It Time for ‘SOW Lite’?

In a time when skill and talent gaps are a serious problem, business hirers are increasingly finding that the gig economy, freelancers, independent professionals and small scale, specialized service providers offer new solutions. Skills, talent and services can be consumed in new ways that are efficient, fast, targeted and effective. But contingent workforce and services procurement organizations today do not provide a means for business users to leverage these resources. Is time for procurement to take the bull by the horns and give business users some new tools to do what they need to do to tap into these resources — and meet many of the goals of procurement?

Supply Chain and Procurement: Risk Management Strategy

Spend Matters welcomes this guest post from Maria Cecília Siqueira, of GEP.

Risk management has been discussed exhaustedly in every business forum in the last couple years. Yet in day-to-day operations, it may still be linked to its origins as a paper process restrained to the legal and compliance departments. Per EY studies, 82% of institutional investors would pay a premium price for effective risk management. Nevertheless, it would be safe to say that today risk management faces the “risk of apathy” with business managers.

Risk Expert Gary Lynch Discusses Hurricane Irma and Supply Chain Insurance (Part 2)

Editor’s note: This is Part 2 in a two-part Q&A. Missed Part 1? Read it here.

The unusually strong and ongoing Atlantic hurricane season prompted us to take a good look at supply chain risk. To that end, we talked to Gary Lynch, founder of The Risk Project (and considered by our own chief research officer Pierre Mitchell as “the best supply risk guru in the world”). In this Part 2 of the Q&A, Lynch talks about different insurances that businesses can consider, which industries are likely to be most affected by Hurricane Irma and why risk can be an asset.

Risk Expert Gary Lynch on Harvey, Irma and Supply Chain Risk and Resilience (Part 1)

risk

Hurricanes Harvey and Irma have come and gone, leaving devastation in their wake and — what’s that? More hurricanes on the way? At the time of writing, tropical storm Jose is expected to become a hurricane and make its way towards the northeastern U.S. Instead of looking at Irma specifically like we did for Harvey, we decided to take a broader look at supply chain risk. To that end, we talked to Gary Lynch, who, according to our chief research officer Pierre Mitchell, is “the best supply risk guru in the world.”