Procurement Metrics - Premium Content

Diving Into the Hackett Performance Exchange: Automated P2P Benchmarking for SAP and Oracle ERP Users [Plus +]

One of the key techniques to process improvement is performance benchmarking. For those firms that use Oracle and SAP ERP applications, particular those running single instance environments, The Hackett Group offers a hosted performance dashboard for P2P (and other processes – but P2P is the only procurement-specific one) called The Hackett Performance Exchange. It is a subscription-based solution that marries Hackett’s procurement and finance benchmarks for P2P with data extracted from a client’s SAP (ECC) or Oracle (E-Business Suite) ERP system to provide the firm with a monthly view of their performance relative not just to themselves (i.e. trending), but also to top quartile performers (and peers) from Hackett’s ongoing benchmarking database. Read on for Chief Research Officer Pierre Mitchell's analysis of the service.

Tungsten/OB10 Releases Networked, Invoice-Based Spend Analytics: Impressions and Implications [PRO]

Earlier in the month, Spend Matters had the chance to catch up with the team behind Tungsten Network’s new spend analytics offering (note, OB10 is now Tungsten Network). The solution is quite different from just about any other approach to spend analysis in the market today. It’s not perfect and it’s not a full replacement for other spend analysis tools – yet. But it very well could be the future of how procurement and finance organizations together look at spend and supplier analytics on a near real-time basis using network data exhaust rather than taking an ETL- or batch-based approach to manually extracting data from systems (in the case of Tungsten, network data is updated hourly). Moreover, the model could prove initially to be a complement to other solution approaches while ultimately upsetting the entire analytics apple cart based on a different philosophy and approach to actively capturing highly granular line-level invoice information. Jason Busch, Managing Director of Spend Matters, covers Tungsten analytics for PRO subscribers and provides a list of recommendations to potential customers.

Benchmarking the Procurement Benchmarkers – An Insider’s Guide (Part 3) [PRO]

In part three of Pierre's four-part series on benchmarking procurement benchmarks, he examines two larger consulting organizations, A.T. Kearney and Accenture. Beyond A.T. Kearney's ROMSA benchmark is the company's AEP study (Assessment of Excellence in Procurement). AEP is primarily an assessment around procurement capabilities, with some level of measurement surrounding performance. Additionally, Pierre explains the mixed bag that is Accenture in regards to benchmarking and how their recent acquisition of Procurian affects their benchmarking capabilities.

Benchmarking the Procurement Benchmarkers – An Insider’s Guide (Part 2) [PRO]

In Part 1 of this series, we began our coverage of the procurement benchmarking market (starting with non-profit providers such as CAPS Research and APQC) and also dove into some of the organizational questions and issues to consider before embarking down the benchmarking path. In this second installment, we will review some of the major commercial service providers in the market and their respective offerings. Read on for our analysis (including strengths, weaknesses and differentiators) of The Hackett Group (Hackett) and Corporate Executive Board (CEB). Hackett and CEB are big annual checks to write. But are they worth the annual investment? And what can you expect to get out of the relationship? Let us peer behind the ivory wall, as we help you decide which are the best fit for your organization as we continue our analysis that "benchmarks the benchmarkers".

Benchmarking the Procurement Benchmarkers – An Insider’s Guide (Part 1) [PRO]

Here at Spend Matters, we’ve been on a bit of a Procurement Performance Measurement kick lately. We started with a three-part series on A.T. Kearney’s ROSMA metric, and then we did a three-part series on improving procurement scorecards, which was then followed up by a deep dive on Implementation Considerations in Quantifying and Tracking Hard Cost Savings. One of the things that we mentioned a few times was the importance of linking external benchmarks into a procurement scorecard – and that we would follow up with a piece on procurement benchmarking firms. And so here we are. Before jumping into procurement benchmarking solutions in the market, it is critical to highlight the perhaps obvious statement to that you should know why you are benchmarking before you start looking for providers.

Metadata Explained: What it Means for Spend Analytics, Supply Risk, Supplier Performance, and More [PRO]

What exactly is metadata, you ask? It’s all over the media these days. Although not quite metaphysical, metadata is essentially data about data. In procurement and supply chain, especially in areas of risk management – which obviously can take just about any shape or form depending on just what risk means to your business – the opportunity for solution providers to develop additional value from metadata analysis is enticing. This is practically a freebie value-add that allows solution providers to remain far stickier with their clients. Sure, it requires a bit of initial programming and possibly some hardware to really massage the data, but after that there’s really no variable cost associated with this. The benefits can be tremendous – done right, this will be the most power risk analysis and opportunity assessment approach supply chain has ever seen. Read on for discussion of the benefits, use cases, as well as takeaways for suppliers and for practitioners.

A 21-Point Punch List to Diagnose Your Procurement Scorecard [Plus +]

For our PRO members, we developed a full diagnostic questionnaire regarding procurement scorecards, but it’s a valuable topic, so we wanted to at least offer an abridged punch list for our Plus members to consider. After all, “what gets measured gets done.” This is certainly true in procurement. If you want to do the right things for yourself and your stakeholders, you need to measure the right things and do it efficiently. You also need to ensure that you are measuring what your stakeholders want and what you are in fact delivering. It’s a foundational competency.

This Morning! 5 Priorities for Procurement Leaders in 2014 Webinar [Plus +]

Spend Matters UK/Europe's Peter Smith is the presenter for this week's Ask the Expert webinar, taking place today at 10am Central. He'll discuss key priority areas for procurement practitioners (and those who sell to them), so come prepared with questions and discussion points. Plus/PRO members, it's not too late to register!

7 Cultural Habits of Highly Innovative Procurement Organizations (Part 1) [Plus +]

A neighbor and close friend of mine works for a well-known design company, and he and I have spent some time discussing what makes the company successful. He is a highly creative individual, but he emphasized to me that there are some “structural” aspects to the success of his firm. The topic of innovation is very popular in more advanced procurement organizations, so I thought I would take seven of the value statements made at this design company and apply them to the procurement setting based on what I’ve seen at other organizations. This is the first in a two-part article on establishing a culture of innovation. Here are the first three principles.

The Spend Matters Procurement Solution Providers Stock Portfolio is Launched [Plus +]

As we enter 2014, we’ve got a new regular feature for our Spend Matters Plus readers. We’ve looked at all the solution providers in the procurement industry, or as many as we can think of, who provide software, outsourcing, and other services. We’ve tried to identify the main firms that are publicly quoted on various stock exchanges, as opposed to those that are owned by their directors, private equity, venture capital, or other private entities and structures. We intend to use this portfolio for three purposes. Firstly, we will track each firm individually over time and we will feature their financial results and other significant reported events regularly...

Ask the Expert: The Price Tag of Poor Master Data Management [Plus +]

Where is your supplier data hiding - ERP, SIM, CLM, SPM, GRC, SMWBE, HES? All of the above? Think of the many areas where you could be under-performing or even falling behind: Sourcing projects, client expectations, reduced agility, and even geographic expansion headaches. Are you losing to the Joneses – without knowing it?

Join Thomas Kase this Thursday from 10-10:30am Central for some clean-up and organization strategies to ditch the dirt in your data and make it start working for you. Plus and PRO members, click on through to register.

“The Tragedy of the [Un]Commons” with Procurement Master Data (Part 2) [Plus +]

In our last post in this series, we covered some harsh truths around the management (or lack thereof) around data. Today, we offer some advice on how to tackle the problem. Who pays for the clean air in the office? Whose P/L does that hit? Outside the scope of study was how to get an initiative around this under way. The main problem here is the lack of a clear owner, the lack of a designated P/L to charge, essentially the lack of someone responsible for this area. This has allowed the problems to fester and grow more complex. On an ongoing basis, surrounding solutions get rolled out to address specific point problems in organizations, but the root cause remains unaddressed.