Afternoon Coffee: Proactis Acquires Esize Holdings BV, Amazon Targeted in Federal Procurement Spat

Proactis announced last week it would acquire Esize, a Netherlands-based provider of end-to-end procurement software, for €15.2 million. The bid to move all of the Defense Department’s data onto the cloud is causing a stir with big-name IT companies, which are saying the contract was tailor-made for Amazon. Afternoon Coffee brings you the latest in procurement and supply chain news.

5 Reasons Supply Base Rationalization Can Be the Enemy of Effective Procurement Spend Management

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Traditionally, procurement organizations have been advised to consolidate their supplier base (with the handful of suppliers with the greatest percentage of purchases), negotiate strong contractual discounts and encourage their employees to purchase from these preferred vendors at the prenegotiated pricing. On the surface, rationalizing an organization’s supply base can seem like an effective way to improve procurement performance. By rationalizing the number of suppliers that enterprises work with, procurement leaders can reduce costs, improve quality and save the time of procurement teams who are too often lost in the arduous process of managing indirect tail spend. However, due to the rise of more advanced B2B e-commerce platforms and highly volatile pricing fluctuations for products, the supplier consolidation strategy is quickly becoming outdated.

Business Intelligence to Transform Procurement