Category Archives: Global Sourcing

Global Sourcing

My Procurement is Your Beschaffung and Their Approvisionnement

“A rose by any other name would smell as sweet.” — William Shakespeare, Romeo and Juliet There is amazing variety in the titles used by professionals in the spend management space. In most cases, those differences are nominal and other than suggesting something about the organization someone works for, or their relative seniority, we know we all do the same thing for a living. One of the advantages of being a process-driven function is that we have the opportunity to … More

10 Reasons eSourcing Fails: Part 1

eSourcing has become essential in best-in-class procurement organizations.  Strategic sourcing improves efficiency, communication, and consistency – all of which are highly regarded in any organization.  As companies implement an eSourcing solution to take them to the next level, they should consider the following potential pitfalls to avoid. 1.    Lack of internal buy-in. A common issue among companies implementing an eSourcing solution and process is the lack of internal buy-in.  You make the decision to move forward with a new process … More

Procurement’s Role in Investor Relations: Part 2

In Part 1, I introduced Procurement’s role in investor relationships. Click here to read Part 1. Today we will dive deeper in investor relationships and what it means for the CEO and CFO.  The problems with many IR departments are not dissimilar to that of many procurement functions 15 years or so ago. They are focused on transactional and compliance task rather than value creation. I would argue there is a case for investors to be regarded as strategic suppliers, … More

Insourcing: When Does it Make Sense to Bring Services Back Home?

While outsourcing continues to grow at a solid pace each year, a number of companies have needed to insource a part of their formerly outsourced services portfolio. The drivers behind these decisions include: a CEO-mandate to change corporate sourcing strategy, a way to remediate a troubled outsourcing relationship, or a healthy look at an old sourcing decision to find the right mix of in-house and outsourced services based on current business goals. Mergers and acquisitions can also drive insourcing decisions. … More

Open Letter from IASTA on SAP/Ariba & Procurement Industry Changes

 Dear Procurement Colleagues, As many of you are aware, the Procurement applications industry experienced a tectonic shift last week on May 22, 2012 when SAP agreed to acquire Ariba. On behalf of IASTA, I congratulate Ariba and its shareholders on their well-earned, well-deserved success. Now I want to take a moment to address what I believe the acquisition means for you and the broader marketplace. While not entirely unexpected, the acquisition has ushered in extreme uncertainty within the sourcing practitioner … More

10 Ways to Drive Procurement Influence Using Advanced Technology: Part 2

In Part 1, I covered Spend Matter’s first idea to enhance procurement’s value to the business. Click here to read Part 1. The second idea to deliver new value to the business is to connect sourcing activity to contracts- implement savings faster and manage compliance. “Contact management is one of these things in the past five years that’s hung outside of procurement,” Busch said. “But we are seeing a newfound focus to use contract management to drive implemented savings.” Procurement … More

10 Reasons to Contact your eSourcing Support Team Part 2

In Part 1, I discussed 5 times when you should contact your eSourcing support lead for tactical advice. Click here to read Part 1. In other situations, you might simply need more strategic advice when planning or working in your eSourcing tool. Here are five situations when you should contact your eSourcing support team for strategic advice: 1. Structuring your event to optimally collect pricing. Collecting pricing should be both useful to you and simple for your suppliers, and you want … More

Drivers of Incorporating Sustainability in Procurement Organizations

Sustainable sourcing — considering environmental and social impacts in selecting and managing suppliers — can enhance your company’s brand, improve operations and drive efficiency while promoting a healthier environment and stronger community. Regulators, consumer groups and customer demands drive sustainability requirements. Trillions of dollars are being invested in green funds, and companies tout their sustainability initiatives through ad campaigns. Risk management experts know that a company’s reputation can be tarnished by the careless environmental actions of its suppliers. Procurement organizations … More

Be “Sourcing Minded” With Your Spend Analysis Approach

Andrew Bartolini emphasized the importance of building and maintaining a sourcing pipeline in his recent blog post titled The State of Spend Analysis in 2012. We often hear our prospective clients and clients mention building a sourcing pipeline as a strategic objective. Bartolini suggests that a “critical factor” in a healthy sourcing pipeline is having spend visibility. I could not agree more. Often, you are a step behind being “sourcing ready” if you don’t know what you are buying, from … More

Is Your Coaching Giving Your Team a Shot at a Big Win? Part 1

In the Procurement world, more credibility leads to continued success. The same can often be said in the world of sports. Kentucky, Louisville, Ohio State and Kansas are heading into the Final 4 this week, hoping to bring home the championship title. However, many schools – particularly smaller ones – are left to hope that one day they’ll accomplish the same feat with less. A lack of resources doesn’t necessarily translate into a lack of expectations. These teams still want … More

Cloud and the Global Sourcing Market: Results from the NASSCOM India Leadership Forum

 When I travel, I like to get out and see the city I’m visiting — especially when the city has more than 20 million people in it. On my most recent trip to Mumbai for the 20th successive NASSCOM India Leadership Forum, I decided to use an open morning to take a city tour. This was no ordinary tour however; it’s known as “Mumbai Local,” and the key selling point is that you get to experience Mumbai like someone who … More

How Procurement Can Strategically Attack Indirect Spend Part 2

In Part 1, I discussed why some companies don’t have a solid control over indirect spend. Click here to read Part 1. In Part 2, I will cover some tips Sindewald shared on how to better manage indirect spend from his years of experience. First, procurement should partner with departments business owners to better understand their needs, supplier relationships and processes. It’s important to show them that you’re not just trying to come in and find a lower price at … More

12 Symptoms That May Suggest a Procurement Transformation

Procurement transformation is often the greatest single driver of sustainable and implementable savings for companies. Yet these programs, by their very nature, often can disrupt aspects of business activity while changing procurement’s overall role and structure under the broader functional and enterprise umbrella. No company should enter a procurement transformation without realizing that such programs will nearly always result in: material turnover of key staff potential turf battles with line of business holders ongoing technology and process change the potential … More

Put in the Hard Yards to Get the Best Out of Your Sourcing Balanced Scorecard

 “Come what may, all bad fortune is to be conquered by endurance,” Joey Barton, English footballer turned Twitter prophet, quotes the ancient poet Virgil. As Barton, and Virgil before him, reminds us: it takes hard work to win results. The balanced scorecard for sourcing promises a lot – to determine, measure and manage a set of predictable outcomes. But, like most treasure, it is the thing of whispers. There’s actually not much of a map to it, and only few … More

Risk management – To Hedge or Not to Hedge (Part 2)

In Part 1, I ended with the statement that procurement “errors” affect the market capitalization, the competitiveness and the well-thought out plans for the business and, that price risk can affect any of the aforementioned. It is therefore imperative for organizations to have a clearly articulated and well-defined plan for (price) risk management. This blog will highlight the traditional approaches to hedging and suggest that organizations ask themselves a range of questions when developing their hedging strategy. Traditional approaches to … More