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incentivisation

Perverse Incentives – Prime Contractors Must Be Incentivised Appropriately

Peter Smith

- April 25, 2017 7:30 AM |

Categories: Procurement good practice

We came across an interesting example of perverse contractual incentives the other day which seemed worth a discussion here. It featured a “prime contractor” type […]

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Procurement Research

Spend Matters research is based on a year-long editorial calendar, exploring bigger picture areas and issues.

New! Everything You Always Wanted To Know About Your Spend Data (But Were Afraid To Ask)
In this briefing paper we take a look at how spend analytics, and smart and creative use of the source data, can help organisations answer some of those tricky, complex, or even embarrassing questions relating to procurement expenditure. We look at questions such as: How do I get to the bottom of tail spend? and How much corruption really goes on my organisation?

New! Geo-political Risk - An Informed Global View Is Essential
The fifth of our short papers outlining key supply chain risk areas looks at geo-political risks, which include war and revolution as well as labour disputes and the like. Clearly, this sort of risk event can be amongst the most serious in terms of implications for buyers.

New! "Man-Made" Risk - Different Risks Require Thoughtful Strategies
This is the fourth of our short papers outlining key supply chain risk areas. This examines "man-made" risks, a broad category that ranges from fires and explosions to strikes and labour disputes. All can have a serious impact for customers of the firms affected, so effective risk management is vital.

New! Natural Disasters – How to Mitigate Unavoidable Risks
This is the third in a series of short papers outlining the supply chain risks that can have the most devastating effects on your business. This paper examines the risk to suppliers (and ultimately the buyer) of a natural disaster - a risk type that is mostly unavoidable but one against which you can mitigate.

New! Corporate Image & Compliance at Risk: How to Mitigate the Hidden Risks Lurking in Your Supply Chain
This is the second in a series of short papers outlining the most important supply chain risks. In this paper we examine supplier reputational risk, the impact it can have on customers and ways in which to mitigate that risk.

New! The Most Effective Ways to Mitigate Supplier Financial Risk
This is the beginning of a series of short papers outlining the most important supply chain risks. In this first paper we look at supplier financial risk, the impact that can have on customers and ways to mitigate that risk.

New! Supply Chain Risk – Getting To Grips With n-Tier Visibility
In this briefing paper, we look at supply chain risk, and in particular the risks that emerge from beyond the first-tier (the direct suppliers to our organisation). We include ideas on how to gain greater visibility of the whole supply chain or network, and what to do once we have it.

New! The Merger – A Procurement Story
A short novel in four chapters. It follows and scripts the daily lives of two CPOs whose businesses have been recently merged: the one, a fully tech-savvy, source-to-pay function, the other, relying on personal expertise and hands-on manual processes. We learn of their opposing challenges and how they resolve them -- together.

Contingent Labour Review: Key Procurement Priorities (Part 2) - Tomorrow’s market and how to manage it
This is the second part of a paper that draws on the real issues faced today by procurement teams managing the growing area of contingent labour spend. It takes these challenges, explores what they might mean for the future of the market, and makes recommendations for procurement professionals to get most value out of their expenditure.

The “consumerisation” of corporate systems - Can business procurement technology learn from the consumer world?
What makes the best in consumer buying technology attractive and effective? This paper examines how procurement can ensure that corporate buying systems apply the best thinking from the consumer world, and why this will bring benefits for everyone.

Contingent Labour Review: Key Procurement Priorities (Part 1) — Setting the scene for change
This paper draws on the real issues faced today by procurement teams managing the growing area of contingent labour spend. It analyses market structures, maturity levels and makes recommendations for senior procurement executives.

Should Mid-Market Organisations Invest in eProcurement Systems? – The Key Questions Answered
This Q & A style paper looks at why the time is right for mid-sized firms to consider investing in purchase to pay technology, and answers the questions typically asked by CFOs and CPOs.

Improve Your Procurement Negotiation Skills
The work of behavioural psychologist and Nobel Prize winner Dr Daniel Kahneman suggests some winning techniques. How to use priming, attitudes to risk and anchoring to your advantage in negotiations!

Full Value Buying: Moving Beyond Price Negotiation
We look at range of procurement mechanisms that can drive better value, and then consider two aspects in more detail - demand management and specification - which can drive far greater benefits than a pure price focus!

What Defines Complex Sourcing – and Why Does It Matter?
In this briefing paper, we look at the factors that contribute towards making a sourcing process or task “complex” – and explain why that matters to procurement functions and people.

Case Study: Procurement in SNCF demonstrates its value to the organisation
In this case study, we take an honest, detailed look at how France's giant national rail network, SNCF, implemented Sievo's spend management solution.

Three Occasions When Procurement Should Spend More
In this paper we look at why cost reduction isn’t always the right strategy, we introduce the concept of a Value Category and solve an age-old procurement problem (with Maths)!

More Research

Decoupling Creative and Production Procurement – Handle with Care!
What are the key factors to consider when deciding how to structure marketing services supply chains? Read about the opportunities – and risks – here.

Centralise or Devolve Procurement – Why Not Both?
Find out how technology is enabling procurement to keep control of what matters, whilst devolving authority to local users and budget holders.

Managing Complex Categories; Beware the Complexity of Standardisation!
Standardisation is rightly a seen as a key tool to drive CatMan benefits – but it needs to be approached carefully, particularly for complex categories. We explain how to avoid the main traps.

Contract Management – Making the business case for investment (part 3)
In the final part of this series, we look at the risks that can be mitigated through effective contract management, and pull together final thoughts on the topic.

Also Available

Demonstrating Corporate Social Responsibility in the Marketing Services World

A Seat at the Top Table

Contract Management – Making the business case for investment (part 2)

Choosing the Right Tools – How Procurement Can Better Align with Both Trade and Brand Marketing’s Needs

Contract Management – Making the business case for investment

What Does Usability Really Mean? Making Software Selection Decisions and Getting Behind the Rhetoric

Putting the Supplier at the Heart of Procurement Thinking

Indirect Category Sourcing Savings: Fact or Fiction?

The Four Faces of Procurement

Is your Supplier Selection Process a Source of Competitive Disadvantage?

Balancing internal and external service provision – key decisions for procurement professionals