Procurement Content

7 Habits of Highly Successful Consumers of Procurement Services [Plus+]

services sector

In Part 1 of this series, we laid out the challenges that practitioners face in getting more value from a complex procurement services market. To address these problems, it’s important that practitioners:

  • Evaluate the spectrum of procurement services holistically to see how the sectors and the players are evolving individually and also collectively. SaaS providers are increasingly baking industry/category content into their products while consulting and BPO providers are similarly productizing reusable knowledge into lighter footprint service offerings.
  • Have a market map to help evaluate the provider types and emerging trends. Doing so can help you actively participate in shaping the provider market rather than just accepting the current ‘menu choices’ of traditional service offerings.
  • Know themselves in terms of not just their current budgets, but also their current capabilities and what is truly important to them as internal service providers. Are you looking for results on-demand, or are you looking to build your own bench capabilities?
  • Develop an internal operating model that makes it easier to consume these services and also get a better ROI from them so they deliver value over the long-term and not just the duration of a project. World class procurement organizations do not spend money needlessly on program du jour services that don’t “stick” and get baked into their internal processes.
To assist procurement organizations (and providers) in this regards, it’s important to first understand the market drivers that will shape the market evolution, which we lay out. Finally, we pinpoint 7 habits of highly successful consumers of procurement services.

What it Takes to Be a High Performing Procurement Team: NEW Webinar Announcement!

Do you have what it takes to spearhead a high performing procurement team? Join Pierre Mitchell (chief research officer and managing partner at Azul Partners, Inc., Spend Matters) and Brett Cornell (vice president, value consulting at SciQuest, Inc.) on Thursday, November 10 at 11 a.m. EST for Benchmarks and Best Practices of High Performing Procurement Teams. They'll cover how to:

  • Build the best business case by discerning and prioritizing goals that have a clear value scorecard to share with stakeholders
  • Use technology as a key enabler to achieving your organization’s goals
  • Align your team’s solution strategy to create sustainable, value-producing results
  • Enable your technology to elevate decisions from reactionary to orchestrative
Sign up here!

CPOs (and Practitioners, Plus/PRO Members): Pay Heed to Today’s Webinar!

Chief procurement officers, practitioners and Plus/PRO members are strongly encouraged to attend today's webinar, An Oracle ERP Procurement Update. This pop-up event will take place at 10 a.m. CDT and will discuss ERP procurement as it stands today, innovations within Oracle procurement and expectations for OpenWorld. Register here.

Centralized vs. Decentralized Procurement: No Debate Necessary

Earlier this year, my colleague, Peter Smith, penned a very thoughtful paper exploring the age-old concept of centralization and decentralization with a modern twist and set of observations and recommendations: Centralise or Devolve Procurement? Why not Both? How Technology is Enabling New Operating Models. In the coming weeks on Spend Matters, we’ll take a look at some of the highlights and observations that Peter makes in his work, starting first today with what he aims to achieve with his effort. We’ll also include additional observations and commentary as we explore some of the elements of his analysis in detail.

Spend Matters Launches SupplierNet™ and New Spend Classification Schema: ISO133700

Spend Matters is launching SupplierNet™, a global vendor onboarding and classification database – a single source of truth for all supplier master data, globally, updated on a real-time basis, 24/7, with 99.999% availability. SupplierNet™ is rolled out as an extendible platform, that plans to integrate 3rd party data content from sources like Lexis-Nexis.

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.

Exploring A/P and Procurement Best Practices at P&G: Lesson 8

Lesson 8 is "Whoever has the best hand wins." While this adage pertains most literally to poker, the procurement lesson is really about finding the best resources (e.g., internal vs. external) to execute procurement processes, whether they are "steady-state" or transformational. Processes might be executed by salaried staff, contingent labor, BPO firms and/or suppliers themselves. There is even a rise of a category we have begun to cover on Spend Matters called “procurement managed services,” which falls somewhere in between consultancy, skilled contingency and BPO work.

Capital Equipment Sourcing: Pitfalls to Avoid

Procurement professionals who participate in the sourcing decisions for capital equipment often face several challenges: how to measure and derive value (especially when historical precedent is not available), how to gain the trust of the business stakeholders (especially the plant production and engineering ones), how to gain an “even place” at the negotiation table with the suppliers, etc. In attempting to address several or all of these challenges simultaneously, procurement professionals lose on more than one count. There are a few important pitfalls that need to be avoided to ensure success in the sourcing efforts of capital equipment.

Exploring A/P and Procurement Best Practices at P&G: Lesson 6 (Part 2)

For companies like P&G, GE, J&J, etc., there will always be a tension and trade-off between opportunities at the business unit level versus the corporate level. Functions like procurement will need to walk the fine line between both rather than swinging wildly from one to the other. Procurement must help the business units and functional partners get more value from their supplier spending individually, and also look for cross-BU opportunities not just by spend category, but also by risk type, opportunity type (e.g., supply chain financing), region, corporate-wide program, etc.

Exploring A/P and Procurement Best Practices at P&G: Lesson 6 (Part 1)

Trade-offs exist everywhere, especially in regards to the trade-off of cash, cost, service and risk. “Service” is broadly defined, starting with the end customer and aligning back through internal stakeholders and back to suppliers. We discussed the cash versus cost trade-off above. But it could just as well be trading off raw material inventory levels (cash) vs. inventory (service) level performance vs. the cost of replenishment. Similarly, the trade-off could be between the relentless search for innovation and revenue traded off against the costs of creating that growth.