Purchasing is a core part of any business. That means software that can address the whole purchasing value chain and integrate closely with key areas of an organization is a real bonus for companies looking to expand their operational flexibility with suppliers. Applications such as supplier relationship management (SRM) provide the answer, limiting non-value-added work, offering real-time insight and playing a key role in helping companies come to grips with purchasing in a complicated, unstable global market.
Businesses want and need to deliver for their customers, and that’s often done by putting a ton of thought and effort into the last mile of the process to ensure success and customer satisfaction. But, while getting products and services to customers is vital, it’s not the first step.
For that, we need to focus on the first mile — that time in any company’s supply chain process where you can set a solid foundation to work with suppliers, engage services and order direct materials. The first mile is just as important as the last mile for meeting customer commitments, and it’s even more important when it comes to maximizing margin, managing inventory and recognizing revenue.
To succeed, you’ll need to improve your processes by implementing a digital transformation. That involves more than using digital forms instead of paper. To truly transform, real-time data and visibility need to be at the heart of how your company runs. Problems in the first mile need a modern solution.
Ivalua CEO David Khuat-Duy on Tuesday kicked off the procurement solution provider’s customer event, Ivalua NOW 2019 Chicago, with an eye toward maintaining its dedication to serving customers, discussing its latest release and shedding light on its plans for the future.
“We have this long-term strategy of building a very big company with a fantastic product that we can offer to the market. And this is our vision,” Khuat-Duy said. “We don't have a short-term vision, like exiting or doing something different. We have this ambitious vision.”
If your B2B e-commerce system is not yet capable of digitally integrating with your customers' procurement systems, you are leaving a lot of business on the proverbial table. And we mean a lot of business. So let's dispel four common myths about the benefits and challenges of developing and maintaining a punchout-enabled e-commerce storefront. If not done well, it can derail the supplier journey before it even gets started.
Imagine walking into a car dealership and the first question the salesperson asks you is, “How much do you want to overpay?” It’s a ridiculous question, right? No one wants to pay more for a product than they absolutely have to. Yet, this is exactly what too many corporate buyers unwittingly do, every day.
While most procurement managers would likely concede that there was “room for improvement” in their organizations’ MRO spending execution, few have the visibility and analytics capability necessary to accurately measure what their performance level truly is. If they did, my guess is they would be shocked at how often they overpaid for their indirect materials.
Find out what happened when EqualLevel deployed AI in part of its e-procurement solution to find the best prices.
To automate your procure-to-pay processes, your business will need to integrate your e-procurement systems with the online catalogs of your contracted suppliers.
Amazon Business launched in 2015 with a vision to give businesses a simple, personalized and transparent online B2B experience. An extension of this vision was to simplify the integration for businesses connecting their e-procurement systems to Amazon Business, while giving them access to a broader selection of products and sellers.
This article will highlight the best practices for integrating your e-procurement system with Amazon Business.
Procurement departments often cite a lack of engagement from the wider business as a key reason for why they can’t add more value to their organizations. Stakeholders progress workstreams and discussions with suppliers without involving procurement, goes the argument. This is certainly true in many cases, but why do non-procurement colleagues choose to take this approach? Evidence from a recent study conducted by Efficio shows that procurement is not only contemplating this question but believes it has a role to play in addressing the problem.
In 2016, Amazon Business began building a beta feature to allow individual organizations to augment the entire buying experience based on their specific procurement and spend compliance needs. During our development process, procurement managers told us that they needed a solution that would make an employee shop as if “a procurement professional was sitting right next to them,” whereby both the employee and pro would learn from each other during that buying journey. This was at the heart of the beta’s purpose — to leverage technology to give both roles a continuous feedback loop to enable purchasing convenience with scalable guidance. The new feature needed to be customizable and powered by the procurement intelligence of their organization. In October 2018, the beta ended and “Guided Buying” was publicly launched as an Amazon Business Prime benefit.
Spend Matters has analyzed dozens of solutions that span procurement and payables processes. This includes procure-to-pay (P2P), invoice-to-pay (I2P) and accounts payable automation solutions. Yet while each of these technology areas extends transactional capability into payments to some extent, each solution targets this area in a different manner. Some of this has to do with the way individual vendors explain their value propositions to customers and have built products based on their unique vantage point. And in an upcoming series on Spend Matters PRO, we will analyze the ways various vendors make the case for their approach to B2B payments (one model/size does not fit all!)
Today, however, we look at one vendor which is continuing to extend its P2P and I2P software to payments: Coupa. The provider's rapidly evolving solution, Coupa Pay, is unique on multiple levels both for what components it combines and also because it follows Coupa’s “unified” approach – which we will explore in this research brief in more detail.
Coupa Pay targets the payment process in a unique manner, and the combination of payment mechanisms, such as virtual credit cards (v-cards) and early payments, can become more effective through adoption and scale, through such a unified approach that extends the capability of procurement and finance (AP) functions. For Coupa, specifically, this concept falls under the domain of its vision for full business spend management (BSM) which may sound like jargon on the surface, but has some real merit as you unravel the marketing behind it and get into the actual solution.
What’s perhaps most interesting about Coupa’s approach to payments in particular is that the provider has identified the payment process gaps where it can generate better value to the business, rather than just satisfy an operational activity such as payments to suppliers or the reimbursement of expenses to employees.
This Spend Matters PRO research brief explores Coupa Pay — what it is, how it works and where it stands out from competitors.
The Healthcare Group Purchasing Industry Initiative (HGPII)’s 2019 annual Public Accountability Report released Thursday found that healthcare's group purchasing organizations (GPOs) continue to advance business practices that promote growth, transparency and innovation. The annual report also explored the sector's ethics.
Just what is a B2B marketplace and, most important, why would you, as a procurement organization or distribution/business intermediary, want to build one? This Spend Matters PRO series provides insight into these and other questions. Part 1and today’s installment begin by segmenting the market into (and defining) eight business scenarios they can enable that go beyond standard procure-to-pay or storefront/e-commerce enablement, which include “private” and “public” marketplace models.
Thus far, we have explored four models: Digital Trading Company (“buy/sell” models), Extended Bill of Material Orchestration, Group Purchasing Organization (GPO) and Distributor “Value Add.” Today, we turn our attention to four additional B2B marketplace concepts: Procure-to-Pay (P2P) Innovator, New Business Intermediary, Industry Captain and Supply Chain Steward.
For each of the eight areas we provide a summary description of the marketplace concept, technologies (off-the-shelf) that can enable it, selected vendor shortlists, best-fit industries that it can support and best-fit spend categories (if applicable). Later installments in the series will provider deeper insight into the following: what you’ll need to build one, technology vendors to consider capable of providing marketplace technology/infrastructure (based on SolutionMap benchmark data), and whether a marketplace, for procurement organizations, is a substitute (or not) for traditional cloud-based source-to-pay applications.
Spend Matters is involved in technology strategy and RFI projects for organizations building — or evaluating building — marketplaces using “off-the-shelf” technologies. Contact us to learn more.
“I saved you all $5 million,” procurement veteran Roy Anderson tried to tell one CFO he worked for. “To this day, he’s never totally believed that.”
In Part 2 of Anderson’s conversation about his career and digital changes in the industry, he talks about change management, demand management and how he did convince another CFO that Anderson’s team had saved him $150 million.
Anderson, now at Tradeshift, sat down with another procurement veteran, Pierre Mitchell of Spend Matters, to share some laughs and lessons about how the industry has adapted to technology over the last 40 years.
The following is the second of three-part series of their conversation, which has been edited for clarity. Part 1 ran Monday, and Part 3 will run Friday.
