Procurement Metrics - Premium Content

Ask the Expert: Top 10 Benchmarks in Procurement [Plus +]

Our next Ask the Expert webinar for Spend Matters Plus/PRO members is this Thursday, July 25, from 10-10:30am Central and features Pierre Mitchell on the Top Ten Benchmarks in Procurement. What's the good, bad, and ugly around procurement benchmarking? What metrics should you consider, and what are the pros and cons of each? If you can only pick 1-2 benchmarks to consider, what should they be? What are the top industry trends? Spend Matters PRO/Plus members, click on through to register.

Supplier Management Data Collection: 75+ Company Level Fields [Plus +]

Today, we present an unedited (and true laundry list) of 80 or so of the most foundational fields you should collect and continuously update on all of your suppliers. If you’re not doing this today, in an automated manner, please prioritize it. Your procurement organization and extended areas of the business (sourcing, supplier diversity, legal, sales, etc.) will thank you!

New Procurement Metrics: Cost Per Outcome in the Private Sector (Part 2) [Plus +]

If you set out to buy an outcome in procurement – be it lower unit cost on a TCO basis for a given SKU or service or an increase in supplier diversity spend – it’s always possible to define the costs that go into the result. There could be internal labor costs, third-party services/contractor costs, software costs, switching costs, fixed costs (e.g., capital equipment, tooling), supplier development costs, material costs – and many others. Historically, within in procurement, we’ve considered some of these costs elements mid-stream in the sourcing process where we model and forecast supplier cost structures to help in negotiations.

Analytics at the Core of P2P and E-Invoicing: Bridging the A/P, Finance and Procurement Gap [PRO]

One of the key elements of advanced analytics is not just increasing dataset complexity (e.g., adding more and more source data, like back-end financial systems and card-payment data) but rather exploring the key intersections and trending of the combinations of assets. “Big data” is almost a misnomer in this context. The queries and visualizations that sit on top of slices of the underlying dataset combinations are even more valuable.

Analytics at the Core of P2P and E-Invoicing: Basware’s Transformative Effort [PRO]

For many P2P providers (aside from those with robust spend analysis modules that extend beyond GL and invoice-centric analysis), analytics has been a bolted-on afterthought. It’s included in the solution as a standard set of reports, or it’s an inexpensive – yet often somewhat useful – add-on buried in the price sheet. Regardless, analytics are historically of secondary concern and certainly not a selling point to users, who are more interested in the process, workflow, processing, routing, validation, matching, integration and other components of the e-invoicing and eProcurement applications. Analytics? Just give me some reports.

Our Evaluation Process: An Optimal RFP For E-Sourcing Solutions [Plus +]

We recently reached out to sourcing solution software providers with a round of questions to understand how they position themselves in the marketplace: how do they deliver value to clients, where are their differentiators, etc. – so we can deliver the highest quality shortlists possible to readers like you. Today we're offering an insider's look into our internal sausage-making process in the spirit of full transparency for our PRO audience – sharing the RFP spreadsheet we sent to the solution providers a few months ago.

BravoSolution: Category-Specific Advanced Sourcing and Analytics (Part 2) [Plus +]

In terms of their product roadmap and investment, BravoSolution is heavily focused on specific functional and architectural areas and configuring various cross-suite elements in new ways to develop highly specific category solutions for large spend areas. Bravo told Spend Matters that the integrated focus investment areas (including category specific business centers) are designed to “bind together sourcing through compliance.” There's a highly business centric approach to these investments (as we'll explain as our series concludes in more detail) with mapping these investments directly back to improving client operating margin and EPS contribution versus just identifying savings. Today's analysis will focus on the execution of their modular design, and we'll explore these financial linkages in the final installment of the series.

What Marketing Analytics Can Teach Us (Part 2) [Plus +]

Spend Matters PRO will soon publish our technology coverage taxonomy for the procurement landscape, something we’ve been hard at work creating (and debating) internally the past few weeks. In the broader area of analytics and spend/supplier information management, on a generalized basis (obviously layered with category specific nuances for marketing and other categories), we see combined capabilities coming together to help companies solve big data challenges.

What Marketing Analytics Can Teach Us (Part 1) [Plus +]

I recently had the chance to catch up with Ryder Daniels, founder and CEO of Capsaicin, a specialized analytics provider that develops targeted solutions for specific categories (and delivers them in a private label manner for clients who then resell them to some of the largest Global 2000 companies in the world). In insider circles (i.e., the agency world), Capsaicin is best known for its solutions to tackle complex marketing spend by creating new levels of awareness and performance management for CMOs, marketing teams, procurement and agencies of record (we’ll explore these capabilities later in our series).

Iasta: Innovating in the Procurement, Finance, and Supply Chain Analytics Market [Plus +]

In strategy and footprint, Iasta appears closest to BravoSolution, a provider that has also prioritized a combination of organic solution development, high-touch customer sales and account management, and surrounding sourcing and procurement transformation services under its solutions umbrella. Yet Iasta is anything but copying from another singer’s songbook, despite the logical comparisons. Rather, Iasta is pursuing a strategy with different elements intersecting in various ways to point them down a somewhat unique path. Before exploring these, though, let’s step back for a minute and review Iasta’s capabilities and background.

Procurement Information Architecture Part 3: Analytics [Plus +]

The biggest predictor of success of procurement organizations’ ability to make the best technology/business trade-offs and ‘pick the right tool for the job’ is having someone within IT and within procurement who is specifically tasked with an architect role to ensure that procurement is able to attain the elusive ‘long-term quick-fix’ solution. If nobody is the designated driver, then decisions are, at best, sub-optimal. Having effective IT/procurement governance goes beyond this discussion, but it is a key success factor. For example, IT may have some budget (and sunk costs and unused licenses) that procurement may be able to access, and there might be a broader IT initiative that procurement can use to latch onto for its own purposes.

What Keeps CPOs Awake at Night: How CPOs are Measured (Part 2) [Plus +]

Today we’ll look at what other measures may be used to assess and reward procurement directors, CPOs and similar. This is obviously relevant for those individuals: if you can have some input into designing the measurement parameters for yourself and the function, then that gives you the opportunity to come up with a balanced approach that reflects the contribution you make to the organisation. But it is also something we believe solution providers should understand. If you are selling to a CPO, understanding how (s)he may be measured can be an important factor in terms of how you position your offering. If your product can directly address a key area of measurement, that’s an obvious benefit to the CPO client.