How Tiger Could Have Made Better Use of Spend Management Technology (Part 1) …

Joy here, Gentle Spend Matters Readers. Methinks Jason doth oink too much. Jason would have you think him a rakish, man-about-town ladies' man, telling the pros how it's done. So that we don't hurt his feelings, we'll indulge his delusion, and pretend to forget that right now Jason is on a Disney cruise with his two kids, whom he adores, and his wife, whom he worships. And who could teach Mrs. Tiger Woods a lesson or two about making revenge look like an accident.

I know that everyone has already beaten Tiger to a pulp, poaching away at the bush meat left in his libertine forest (one almost wonders if he'd trade his famous green Masters jacket for a ... well, go spell it out yourself on Urban Dictionary). But I can't resist getting in one last blow (don't even think about it, you sick readers) as it pertains to his various escapades and Escalades in the context of procurement and supply chain. So without further adieu, let's examine how Tiger might have made better use of Spend Management technology to either further his indulgent motivations, or to show more ... some ... ANY restraint.

Spend Analysis: Tiger could have used a spend-analysis tool in numerous ways, slicing and dicing "vendor" information to make more informed sourcing decisions. (He would, however, have had to use a custom taxonomy to weed out women with cheek rings; UNSPSC does not go that deep, as far as I know). Moreover, he could have applied spend analysis to get at the true supply risk inherent in his activities. For example: if he knew the credit risk (or score) of his potential suppliers, he might have been better able to forecast the true price of buying their silence. Moreover, using spend analysis, he might have optimized his working capital by establishing favorable payment terms; Tiger might have easily saved a few bucks by securing early-payment discounts …

Sourcing: Sourcing is where the rubber (one would hope) hits the savings and relationship road. After all, sourcing is not just about a transactional exchange of information (or ... something else); it's also about defining the right RFI format, identifying the proper short list of suppliers, and deciding how best to negotiate with them (e.g., multi-round affairs vs. simply taking out the driver for a quick whack). Moreover, if he had access to Ariba's patented overtime reverse-auction technology (which nearly put Emptoris out of business over a lawsuit that ended up costing investors far less than Tiger will have to pay to his soon-to-be-ex-wife), he'd have been able to drive to an even deeper level of transparency and openness in his relationships. And don't get me started on how someone like Tiger could have, when under pressure, applied multi-attribute bidding to make better decisions in light of supplier-performance variations and defect rates.

Optimization: Many people lump optimization in with sourcing. Not me, especially when it comes to teaching Tiger to make use of Spend Management tools. Optimization can help companies make very complicated decisions under pressure, ultimately deriving the best possible outcome based on a unique set of constraints. Honestly, Tiger totally missed the spend boat on this one. He should have used optimization from the start to make a more informed make vs. buy analysis on the first wife. (It might have been cheaper to rent vs. own, if you know what I mean.) Optimization also would have enabled a better allocation of business among the various vendors involved rather than over-concentrating spend in just one area or under-concentrating it somewhere else. And if Tiger wanted to get really sophisticated, he might have run various scenario analyses to design an overall better supply chain (where best to locate his girlfriends) to optimize around remaining undiscovered (not only by his wife, but by the press and the women themselves -- what, you think this stuff is simple?) while reducing the distance necessary for him to travel to keep his "dates."

Contract Management: Contract management is one area where Tiger could not have taken advantage of anything related to Spend Management; in fact, he should have avoided paper contracts entirely (plausible deniability) or even implied contracts (such as giving diamonds to a $15K-per-night hooker). Moreover, he should have gotten better advice on that $300 million pre-nup. (I mean come on, she helped get some endorsements and she looks hot in a swimsuit, but $300 million? I suspect his wife was much smarter about getting good advice about stabilizing her supply chain.) But maybe I'm wrong here. Maybe what Tiger could have really used is a more advanced contract-management system with clause libraries (with specific terms and payments based on height, weight, IQ, number of tramp stamps, and the likelihood of appearing on E!) to have made his overall contracting more efficient. Moreover, if he had thought to deploy it, he might have really understood what was meant by the phrase "lifecycle" as in CLM, realizing many contracts really are worth the paper they're written on. He also might have avoided the chance of any non-compliance with his clearly anti-supplier diversity policies (but more on that in Part 2 of this series …)

Jason Busch

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