Category Archives: Procurement Transformation

Procurement Transformation

What Do Procurement Organizations Need Most? Answer: Agility & Flexibility

One idea that has not changed, nor will ever change for procurement, is the importance of managing cost. In fact, procurement’s raison d’être, headed by the Chief Procurement Officer or other procurement executive, is and always will be focused on controlling cost; but it increasingly requires the adaptability to adjust to the world around it.

Deciphering the latest Gartner Magic Quadrant for P2P

Determine scored No. 1 for out-of-the-box P2P functionality for projects* A recent article in the French procurement magazine, Décision Achat, suggests a closer analysis of the situation in the world market for Procure-to-Pay software companies, such as the one conducted by the global analyst firm—Gartner. Here are some facts brought to light by the Gartner analysis that should catch your attention: About the P2P market. The Procure-to-Pay market generates about $4 billion annually with a growth rate of more than … More

Getting up to speed with all things Determine

With Memorial Day just around the corner, we honor all those who have served our country as we race into summer. The Indianapolis 500 is also gearing up; those of you who visited ISM 2016 saw how we got a jumpstart on that event with our racing-themed booth (see the pictures below!) It was great to see everyone who stopped by, and for those of you who couldn’t make it we look forward to catching up with you soon. Speaking … More

The hijacking of Lean Management or management’s flight from complexity?

“Lean production is a work organization model that favors the development of proactive, competent employees who are prepared and motivated to think and suggest improvements.” — Philippe Hidden behind the magical power of measurement quantified using intrinsically false data, Management is finding itself unable to deliver performance in a complex world within ever more complex organizations. Didn’t Lean Management provide the keys to performance? In the 1990s, didn’t the complexity sciences largely contribute to the revival of the practice of … More

5 Benefits of Punchout Catalogs

What is Punchout? It is a way to connect directly to the supplier’s catalog from an application such as procurement systems and purchase to pay software. Via this protocol, buyers can order from within their purchasing system with a direct access to negotiated catalogs via the web. I recently conducted a survey with our customers regarding the purchasing process trends and I discovered an increasing part of our clients use punchout catalogs (31%). By being compatible with OCI and cXML … More

The Procurement Maturity Curve – Collaboration is value creation – Part 4

In this series of posts, we have looked at how procurement can progress from meeting the fundamental requirement for savings and ensure their continuation through process compliance. We have also considered the potential associated with a shift from an outward-in focus to one that is externally driven, allowing us to position the enterprise to take advantage of the best available options as well as to minimize the risks associated with them. Although this progression tracks an expanding perspective and set … More

A tale of two Visionaries

Determine companies b-pack and Iasta both designated “VISIONARY” in the GARTNER 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement* and 2015 Magic Quadrant for Strategic Sourcing Suites. When Determine set out to establish an industry-leading platform for source to pay, we sought the very best talents to deliver on innovations, to set new standards. We started at the top with b-pack, a “Visionary” in the 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement*, and Iasta, rated “Visionary” in … More

The Procurement Maturity Curve — Managing Risk inside and out – Part 2

In Part 1 of this series we looked at how procurement can improve its risk mitigation role by getting involved earlier in the process, and staying involved. In Part 2 we’re going to compare and contrast the internal/external sources of risk, along with how to keep it in check. Look at risk from the outside in. When procurement looks at each category of spend as being directly influenced by materials markets and varying levels of influence in the supply chain, … More

The Procurement Maturity Curve — Managing Risk inside and out – Part 1

In the past, we’ve taken a close look at how procurement’s maturity curve affects its focus. Two recent posts addressed issues concerning the evolving role of procurement savings, compliance and enterprise alignment. In this blog series, we’ll consider risk. First, we look at supplier risk and methods to monitor and mitigate it; then we’ll examine internal vs. external risk sources. Procurement: Sourcing risk mitigation. After procurement has dealt with the primary internal spend management needs of the enterprise —savings generation … More

Procurement: Achieving compliance without focusing on enforcement: Part 2

In my last blog I discussed how procurement’s evolution has spurred the need for increased attention to compliance. By decentralizing day-to-day purchasing, extending it to organizational “consumers,” the process has been made more efficient — as long as everyone stays within the guidelines. In this post we examine the bigger picture of compliance; that is, aligning procurement processes with broader organizational goals. Improved Compliance Through Alignment Let’s face it, generating savings is not as simple as buying the same products … More

Achieving compliance without focusing on enforcement: Part 1

  In this blog series we’re taking a close look at how procurement’s maturity curve affects its focus. Two recent posts covered procurement’s first priority – savings. Now we set our sights on compliance. First, we’ll examine how the evolving role of procurement has created an environment where increased attention to compliance is imperative; on the follow-up post we’ll explore how to improve compliance through enterprise alignment. Procurement Evolves Procurement’s transition over the last decade from “purchasing” to its current … More

Understanding the Dynamics of Cloud Computing for Procurement in 2016

In a recent Determine webinar I had the chance to talk about procurement trends and the cloud with Mihir Nanavati, SVP of Product at Tradeshift, and Julien Nadaud, Determine’s Chief Product Officer. Considering the two areas, which are changing rapidly and having an enormous impact on each other, it was enlightening to hear what these two experts had to say. Top of the mind, especially for procurement, is to understand the factors around the growth in cloud computing. We discussed … More

2016 Macroeconomic Conditions Impacting Procurement – Savings in the Forefront

[Note: This article was originally posted on CPORising.com. Determine is pleased to contribute regularly to Ardent Partners blog on the topics of procurement and supply management. You can read the original post and other content from Ardent Partners HERE.] Needless to say, the start of year has hardly been one for celebration. Recent volatility in the stock market has been driven by the Chinese bubble economy, oil prices hitting a 13 year low of $25 a barrel, and crisis in … More

Success Story: eProcurement

The Challenge Over the last 10 years, sales of traditional CDs have declined as the music industry converted to digital formats. Within this context, Sony Music Entertainment, one of the world’s largest recorded music companies, needed a solution that would help them get better financial control—specifically focusing on their marketing spend. They decided to consolidate their Global financial systems into one centralized SAP system, to be deployed globally. In addition, Sony Music was looking for a purchasing solution that would … More

Confessions of an IT Director Managing IT Spend

“Who ordered this? We don’t have the budget for it!” I knew our IT budget would be tight this year, so this last $50K upgrade invoice is really throwing my budget totally out of whack. During our last quarter meeting, one of my Project Managers (PM) mentioned this upgrade, but this was not in our original budget nor was it in any approved PO. Hopefully, we can reallocate this to another account, or ask for another budget extension… This was … More