Spend Management Content

Managing Your Tail Spend on Amazon Prime Day (Good Luck)

According to a recent study, about 47% of organizations' total spend is unmanaged. Zycus surveyed 725 procurement leaders and found that even though just over half of them considered their total spend under management, only 19% considered spend management to be a "key focus area" over the next year. But of course, cost savings remains a priority, based on the report's findings. Also, tail spend is still a nagging issue. And although platforms such as Amazon Business have made it their mission to help solve some of the issues above, man are those hard to focus on when Prime Day comes around!

Six Best Practices for Procuring Marketing Services [PRO]

I spent some time last week at the first European ProcureCon Marketing Services conference. It was a very successful event, with some 150 delegates from a range of largely blue-chip companies, and representing countries from Finland to New Zealand! My personal involvement with procurement functions trying to get to grips with the marketing spend category goes back some 25 years, and I had some successes and failures in my time as a CPO in several large organisations. It’s a category where procurement has been slow to increase influence, but according to figures presented by the World Federation of Advertisers at the event, we have gradually reached a position where the procurement function is estimated to have between 50-80% spend coverage in the category (depending on the geographic maturity, with firms in Europe at the top of the scale and South America at the bottom).

The All-in-One Telecom Carrier: Good or Bad?

Telecom carriers are quickly evolving to become all-in-one information technology service providers, offering a combination of enterprise IT solutions in addition to traditional wireline and wireless network offerings. Today, most carriers, including market leaders like Verizon and AT&T, now have offerings for data center, cloud computing, and managed network and security. This begs the question: should companies pursue a single vendor strategy for both network and IT services? What are the risks?

People, Processes & Technology: The Cure for What Ails Public Sector Procurement

In my first post, I talked about the prohibitive cost of resisting change for public sector procurement departments. Since then, I’ve read a very interesting article that provides the hard numbers to fortify my comments. According to a report by the US Government Accountability Office (GAO), the federal government could save upwards of $12 billion annually by adopting procurement practices that are commonplace in the private sector. And that’s only the federal government – no mention of dollars being lost by hundreds upon hundreds of local government procurement offices.

Maverick Spend: 12 Ways to Fix Internal Non-Compliance Beyond “The Stick” [Plus+]

In part one of our maverick spending series, Maverick Spending is Your Friend: Don’t Chase It, Ride It, we highlighted that while maverick spending in its own right is generally bad, its root causes often highlight problems with the procurement System (with a big “S”) that, if fixed, improves not only maverick spending, but other areas of procurement performance. In this second part of our series, we will highlight some proven practices to improve maverick spending performance beyond merely chastising malfeasant requisitioners.

Commodity Price Management at BorgWarner [Plus+]

In a Supply Chain Management Review article I penned last year, I talked about some research I had done regarding the integration (or lack thereof) of input cost planning and forecasting to the business plan (including the impact on profit). The figure below shows that 39% of procurement organizations perceive that they do a decent job at mitigating price inflation, but less than a third have an integrated cross-functional process for doing so, and only a fourth of firms use centers of excellence, specialized analytics, and third-party services to help them anticipate future input costs.

Commodity Price Management at BorgWarner

Part 2: Going Deep in Profit Risk Mitigation and Improvement In Part 1 of this post, we introduced the general concept surrounding commodity purchase price risk management. […]

Wedding Planning: Procuring "The" Dress

This post is part of an ongoing series about “procuring” a wedding, Spend Matters-style. See previous posts here: Wedding Planning: Spend Matters Style Procuring the […]