Capgemini - Strategies and Insights for Today’s CPO

February 19th, 2007 at 04:32am David Bush - Iasta

Recently, our European outpost took part in a major SRM research project headed by Capgemini in the Netherlands and Mario van Vliet - Global Supply Chain Lead. As is consistent with many of these studies, there are very clear objectives and areas of focus that should be closely examined and considered by leaders in procurement. For instance, the top three areas of critical focus were: contract compliance, improved spend visibility, and better sourcing process and automation.

This sourcing process improvement was highlighted and discussed further in this quote, “CPOs are also recognising that standardisation plays a major role in critical business areas. Although the survey results showed a strong desire to drive standardisation across the sourcing process, surprisingly, the degree to which auctions and esourcing have been successfully integrated into businesses was lower than Capgemini expected.” Effective adoption of e-auctions has been a continuing topic of ESF and will continue to be addressed over time.

Also of interest to me was the closing statement from the chapter covering Spend Management techniques and objectives:

“…you have to understand what types of saving levels are available; we have defined these as being, identified, captured, delivered and ring-fenced savings. Then, having begun an improvement programme, you will have to deal with a variety of stakeholders. Having a clear understanding of both their needs, and their “wish list” is vital to ensure the acceptance and compliancy of the necessary changes. So, there are more factors than just technology, and its use, that must be taken into account if value is to be generated. The organisational context is vital to focus your efforts. Capgemini’s Spend Management Pyramid visualises the interrelationships of the various elements that enable world class spend management. With all of these elements in line, bottomline savings will logically result.”

Chapter 12 discusses the usage of technology in procurement organizations. The three must haves and most needed tools required by a purchaser are: eProcurement, Contract Management, Supplier Management and eAuctions.

This extensive research is very broad and I plan to highlight a couple detailed components in subsequent posts over the next couple weeks.

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Entry Filed under: Analysts/Research, Functionality, General, Supply Management Best Practices, Technology / SaaS, e-Sourcing Marketplace