Yearly Archives: 2015

Center Led Procurement: An Introduction

One of the hot topics in sourcing today is the trend toward center-led procurement organizations. This is where strategic decisions are coordinated centrally while transactional activities are decentralized across the organization, especially in large enterprises (>1 billion dollars). Today we are going to compare and contrast center-led procurement with the traditional centralized and decentralized models of procurement, and review some of the advantages of the center-led model. A classic decentralized model of procurement, where each business, functional or geographic unit … More

Empower managers with P2P process improvements

Overhead cost control, reduction and compliance with agreed budgets—They’re on every organization’s agenda, yet few have the processes and solutions in place to achieve them. In this blog we look at the issues and the solutions. Getting overhead under control. Whether it’s a new calendar year or a new fiscal year (or both), now is the time to make your spend control and reduction resolutions, and put the steps in place to make them a reality. Of all the factors … More

Resolutions For All

Sorry to say it, but that time of the year has arrived. And if you are like me, taking stock of the accomplishments of the past year along with being aware of what has transpired around you are important steps in preparing resolutions for next year. I am of course talking about pondering business challenges and imperatives as opposed to personal imperatives like reducing my cholesterol level… A big and growing part of awareness these days comes from social media. … More

Selecting buy- and sell-side technology that supports an enterprise approach

All too often, evaluating procurement and legal departments’ technology are centered on solving a specific problem. Typically, they’re related to sourcing events, departmental contract management, supplier optimization or spend analytics. In order to maximize ROI, however, such technology implementations should be considered as part of a broader enterprise strategy. This would also help stakeholders across the organization develop and extend their strategic potential and business impact. In a recent conference in France, we saw many customers who have focused heavily … More

Why procurement is buying into the power of Big Data

Purchasing at the best price, at the optimum time, from the right supplier. Automatically. That, in a nutshell, is what is driving the wholesale embrace of Big Data by procurement professionals and organizations, according to Mathieu Neu, writing in French industry publication Decision-Achats. Recently, the procurement game has changed significantly, with e-procurement tools getting better and better at automating strategic purchase decisions that result in significant spending cuts and budget optimization. A few major players are leading this digitalization of … More

Optimizing Strategic Sourcing Efforts – Insight From Research: Part 2

These are exciting times for procurement professionals. But consistently, most procurement leaders feel they should be doing better. Unlike last year’s Ardent report on “The State of Strategic Sourcing,” respondents in 2015 see as obstacles technology systems and processes rather than staff or talent challenges. Moreover, they feel that they can drive improvements that propel procurement forward through effective use of collaboration and enabling technologies, something that best-in-class are doing better than their peers. Survey respondents note that a strong … More

Buying turkey doesn’t have to be like rocket science!

One irony that historians note is that turkey was most likely not eaten on the first Thanksgiving. But tradition is what it is, and turkey is on the menu today. With that being said, there is a lot of turkey to be had this year. Let’s start with some numbers: According to the NTF (for the non-turkey experts, this is the National Turkey Federation), 228 million turkeys will be raised in the U.S. in 2015. As everyone probably knows, the … More

“e pluribus unum”

While I’m certainly not one for unbridled patriotism, I’ve always had a soft spot for the motto “e pluribus unum.” It could be that it takes me back to my days of high school Latin but that does not fully account for the sentimental impact of the words. The translation, like most from Latin, allows for a bit of nuanced interpretation. The range of translations typically include “One out of many” or “One from many,” and the one favored in … More

Optimizing Strategic Sourcing Efforts – Insight From Research: Part 1

Strategic sourcing suites are widely used by many in procurement today. Recent research from Gartner notes that majorities of large U.S. and Western European-based companies have invested in one, and rarely buy an e-sourcing application by itself anymore. As a technology, eSourcing has been around for over a decade. But to enhance functionality beyond RFx and reverse auctions, most purchases of strategic sourcing today also include integrated spend analysis, contract lifecycle management and/or supply management solutions. Moreover, as a result … More

Smart ROI – the real value of the P2P

In this blog, we will explore the most efficient way to Determine™ the ROI of a Procure-to-Pay solution. In the first part of this blog, we will look at the steps to calculate an exhaustive TCO. In the second part, we will look at the potential savings associated with P2P. In his last article, Xavier Olivera — editor at SpendMatters.com, enlightens us on the importance to calculate a holistic TCO. The article lays out a number of questions to drive … More

How a Contract Management System helps the Strategic Sourcing process:

How a Contract Management System helps the Strategic Sourcing process: Many procurement professionals deploy eProcurement tools for the RFx functionality. They’re often thinking about streamlining their sourcing process, standardizing response formats to facilitate rapid analysis and improve record keeping. There’s another benefit, though, and that’s the contracts management capability that often comes as part of the package. Contract management tools should not be overlooked; they provide the kinds of value that CFOs and internal audit groups appreciate. Some examples: Automated … More

Why General Counsel and Procurement are Initiating Best Practices with Contract Management

Last week, Determine hosted a webinar on how General Counsel’s role has evolved beyond legal responsibilities. Research shows that businesses have an increased focus on contract management and many factors are contributing to this trend. Macroeconomic indicators such as increased M&A, stricter regulatory environments and increased supply chain risk factors are pushing businesses to amplify their reliance on strategic relationships, and focus on ways to avoid or mitigate the impact of contractual disputes. With the rise of the customer-driven enterprise … More

Determine is Bringing Innovation Through Experience & Modernity – Series 3

To understand the trend in technology and how Determine is addressing it is by looking at this from the persona of the company. Organizations want to be smarter by being able to collaborate in new ways using a common platform approach. Taking this concept as part of adopting solutions is something Forrester Research has looked at around the concept of a smart process applications. According to Forrester, what defines a smart process application is the ability to: Import or embed … More

Reducing Costly Errors with e-invoicing

The evidence has been accumulating since the mid-1960’s that electronic invoicing, or e-invoicing, has been saving its users considerable time and money. Respondents to a 2012 global e-invoicing study by The Institute of Financial Operations found that 56% of businesses using e-invoicing spent considerably less money processing invoices than those businesses using manual systems. So why isn’t every business using e-invoices today? For some businesses it’s simply a matter of inertia.  For other businesses however, there’s a lingering concern that … More

Determine is Bringing Innovation Through Experience & Modernity – Series 2

With the release of the new name, Determine demonstrates that our unity is not just marketing. The strength of the Determine platform is based on experience and forward thinking design. In fact our differentiators could be thought of as two pillars, where the first pillar is depth of our capability based on experience in design. Our depth of experience in strategic sourcing means that our sourcing solution has executed 100,000s of auctions and RFx projects. It means that the technology … More