Zycus Content

Natural Disasters – Procurement Preparing for the Unmanageable

Spend Matters welcomes this guest article by Diptarup Chakraborti, AVP Marketing, Zycus. This is the second in a series of articles produced by Zycus dealing with the impact that natural disasters can have on the procurement function. Today we are looking at the steps that procurement professionals can take to minimize the impact of natural disasters on their internal operations. The threat of natural disasters is as real as it is unpredictable. Our organizations, and indeed our procurement teams, simply must understand the threat disasters pose and ensure that they are adequately prepared to deal with them. Below is a list of considerations and steps that procurement teams should look to implement internally to minimize their exposure to the harms and disruptions of natural disasters.

Procurement’s Vulnerability to Natural Disasters

Spend Matters welcomes this guest article by Diptarup Chakraborti, AVP Marketing, Zycus. As a result of efforts to reduce costs, increase service levels and improve product quality, our supply chains now cover a greater a geographic distance than ever before. While the decision to outsource and shift production away from traditional, high-cost economies in the US and Western Europe reaped significant cost benefits, they have also left organizations open to a far greater risk with regards to the stability and vulnerability of their supply chains. Never before has supply chain risk sat so physically far away from those that are meant to be managing it. Our increased reliance on global sourcing as an avenue of competitive advantage means that our organizations now carry a far greater exposure to the impacts of natural disasters.

Procurement Technology: Drivers and Barriers to Effective User Adoption

Spend Matters welcomes this guest article from Zycus. Procurement technologies, intended to facilitate and support the sourcing and management of goods and services, have evolved significantly over the last 15 years, and new applications are constantly being developed. However, the effective adoption and use of electronic procurement technologies (EPTs) is still a “black box” for many companies, and postulated benefits remain elusive. Many practitioners are overwhelmed by the proliferation of EPT offerings, are faced with user adoption resistance and are questioning the efficacy of EPTs.

The State of P2P: Less Than Halfway There

Spend Matters welcomes this guest post by Richard Waugh, VP of corporate development at Zycus. After 15 years (or more) of e-procurement or procure-to-pay (P2P), the progress made by first-generation adopters in the use of tools to automate ordering of indirect materials and services is, on average, only halfway – or less – toward realizing e-procurement’s true potential, according to the results of a new P2P benchmarking market study conducted by Zycus. A sobering picture emerges of the current state of P2P, based on the responses from over 450 global procurement organizations, due to the fact that the average performance hovers at or below the 50% threshold. That is, most organizations capture 50% or less of indirect spending through a compliant P2P process – spending with preferred vendors at negotiated pricing – and have accurate line-item visibility to just 45% of their indirect spend.

When Procurement Goes the Hub and Spoke Way

Spend Matters welcomes this guest post from Diptarup Chakraborti, AVP Marketing at Zycus. While organizations today are keen to implement an effective procurement strategy by streamlining key elements in the source-to-pay process, many of them face roadblocks because of the complexity involved in integrating different processes into the supply value chain.

Procurement’s P2P Pet Peeve: Bad Spend Data

Spend Matters welcomes this post from Zycus. During a recent Spend Matters webinar entitled,“Forget the Amazon Metaphor - P2P Needs to Be More Like a GPS,” attendees were polled regarding their greatest challenge with Procure-to-Pay (P2P). While there were a fair number of votes for oft-cited issues such as spend compliance or user adoption, what stood out is the fact that the biggest pain point actually focused on the by-product of P2P – accurate spend visibility (or lack thereof) – the biggest challenge for more than one third of webinar attendees.

Never Forget: In Procurement What Gets Measured Gets Done!

Back in the late 1980s, a big debate broke out among procurement leaders as to how to best measure procurement’s functional performance. Procurement had been seen traditionally as a service function – processing transactions, managing bid processes and negotiating prices and commercial terms with suppliers - but not making significant contributions to business performance or market competitiveness. This post discusses new research from Richard Waugh, vice president, business development for Zycus, on best practices regarding procurement performance and how CPOs can use these metrics to their advantage.

Six Sigma Sourcing (and Procurement) – A Bridge Too Far?

Six Sigma, the process measurement methodology originally developed by Motorola and popularized by GE, has far-reaching applications beyond its manufacturing roots. Applying the discipline of Six Sigma to improving sourcing and procurement processes will undoubtedly produce systemic and sustainable business process improvement. But the bigger questions for procurement leaders to address in considering Six Sigma are these: What level of performance is realistic, which projects would produce the most benefit, and what enabling technologies will be required to apply the DMAIC principles (Define, Measure, Analyze, Improve, Control) of Six Sigma effectively?

Spring Cleaning Time in the Procurement Household: A Checklist

Spring cleaning is just as appropriate for most procurement organizations as it is for each household. Here then, is a checklist of procurement’s spring-cleaning chores, with potential to yield far more than just a little loose change in the sofa and better visibility than Windex applied to windows obscured by streaks and grime. Zycus's Richard Waugh covers contracts, spend analysis, supplier management, and more in this guest post for Spend Matters.

Directing the Procurement Movie

When a movie is a box-office success and sets the cash register ringing, the people behind the making of the movie are elated. Likewise, when savings generated by procurement is recognized by an organization’s top management, the chief procurement officer can’t stop smiling. But that’s the end result. What goes on behind the celluloid and behind the procurement numbers is a completely different picture. Remember the movie about Alfred Hitchcock? In this guest post, Diptarup Chakraborti of Zycus rewinds the movie “Hitchcock” and shows you what goes on behind the scenes and why procurement can connect with movie making.

Zycus Exclusive Report Highlights Procurement Technology Adoption Trends and Best Practices

We recently published “Pulse of Procurement 2014,” an extensive survey of over 300 global procurement leaders to benchmark technology adoption strategies and highlight measurable business results achieved by top performing organizations. The study, conducted in Dec. 2013 and Jan. 2014, canvassed global organizations that consisted primarily of large enterprises, with 80 percent that reported revenues in excess of $500 million annually. Three-fourths were headquartered in North America. The vital signs – or key findings of the study – point toward continued healthy returns for procurement organizations investing in innovative and integrated procurement-focused solutions. Here are a few of the leading indicators.

Add Some Olympics to Your Sourcing Events

According to historical records, the first ancient Olympic Games can be traced back to 776 BC. They were dedicated to the Olympian gods and were staged on the ancient plains of Olympia. If today’s sourcing managers observe closely, they will be able to find a lot of commonalities between the Olympics and Reverse Auctions. Wonder why? Here are some lessons borrowed from the Olympics that will also serve you well in a sourcing event.