Category Archives: Procurement Transformation
Approaches to expanding procurement value. In anticipation of our upcoming webinar with Spend Matters, Designing the Procurement Factory – Reinventing Procurement Through a Platform, I want to share some initial thoughts around the platform concept. For me, the main difference between a Platform as a Service (PaaS) and a Software as a Service (SaaS) is about the capability of the platform to expand value at any time, using interconnected proprietary solutions. A perfect example is a company most people in … More
In Post One and Post Two we defined the most common procurement technology terms and explored what the various combinations of those terms mean. In this final post we take a look at the changing nature of our profession, and how to describe and comprehend it.
In my previous post, I defined seven of the most common procurement technology terms: cloud, platform, digital, solution, point solution, suite, and legacy system/solution/suite. They are commonly misused or misinterpreted, a fact that (while completely understandable) makes it difficult to have clear conversations about the differences and benefits of available procurement technology.
Procurement technology has changed a lot over the last few decades. The terminology we use to describe the technology we have today versus the technology we want/need in the future, or are reading about in industry literature, has changed as well. Unfortunately, even the most common terms in our field are used to imply a variety of applications and functionality, but often with no clear definition.
Procurement teams facing the constant challenge of measuring and enforcing contract compliance may shudder at the thought that December 15th was National Herding Cats Day. We put a contract in place, and they buy from someone else. We establish a process, and they do whatever they like. It can be infuriating. But, if we approach our internal “cats” with the right attitude, they also present us with unique opportunities to improve procurement’s performance, impact, and influence. Here is some advice … More
A recent stat quoted in a CPO Rising guide titled “The Trends (and Benefits) of Cloud-Based Technology Adoption: CPOs Take Notice” is telling: cloud platform adoption has grown by 37.5% over the past few years, up over 14% between 2014 and 2015 alone. “Chief Procurement Officers love ‘going to the cloud’ because it allows them to focus on what is most important to them: automating and repeating processes, scaling resources, and driving greater value through greater volume.” — CPO Rising Procurement … More
Today, executives in all functions and lines of business are driven to create shareholder value. Nothing can destroy the perceived value of an investment faster than negative press, which can do irreparable damage to a brand. In some cases, the cause of the criticism may not even be due to a company’s own actions, but rather those of their suppliers (or suppliers’ suppliers). When a supply chain extends across the globe, procurement may have to extend the scope of their … More
What value does the Determine Cloud Platform add? How can its Big Data offering assist buyers? And what advantages are offered by the predictive and prescriptive analytics developed by Determine? In mid-September, I was interviewed about recent and forthcoming developments of Determine’s Cloud Platform Source-to-Pay and Contract Management solutions, which cover the entire finance procurement process. The original interview appeared in the French procurement magazine, Décision-Achats. What fundamentally distinguishes you from your competitors? What would you say is the main … More
At the Salon Solutions trade show in Paris on September 21, I shared with attendees Determine’s vision for the future of Procurement Information Systems. What follows is a summary of my key points. Procurement Solutions and Organizations, after some twenty years of development, are now reaching maturity. Even though implementation levels are different from one continent to another, it is still possible to consider what the future might hold. Procurement Solutions will bring three main areas of innovation to Procurement … More
Procurement needs to be familiar with their company’s spend and purchasing habits on a very detailed level. This requires a combination of spend analysis, contract reviews and stakeholder interviews. What they must remember, however, is that procurement does not just need to increase visibility for the sake of their own understanding, but rather to increase the understanding of all decision makers in the organization. This might include helping the CFO see past savings to appreciate the value of process improvements, … More
At the Salon Solutions trade show in Paris on September 21, a Round Table event was held on the topic of BPM (Business Process Management). I was invited along with a number of other experts to present my views on the topic of “How to deploy BPM: a powerful engine driving enterprise digitalization.” Here are some of my thoughts from that discussion: Optimizing processes to improve business performance may not be a new idea in and of itself, but BPM … More
Featured Resource: Procurement, platforms and the future. In the beginning, there were point solutions. Solved a lot of spreadsheet headaches (data misentry, anyone?), but had their own challenges. Enter the solution suite — digitized processes, integrated modules, standardization — and end-to-end automation. Perfect. Almost. As procurement organizations continue to move up the maturity curve, shortcomings in the solution suite model become increasingly apparent. The ability to extract and leverage all data across an enterprise is how procurement will find new … More
Digitization, data, disruption, agility. Procurement is emerging more and more as the driving force behind organizational profitability in enterprises worldwide. From implementing process improvements to re-engineering supplier management structures, procurement has become a center of change because it has learned to adapt, embrace and accelerate with every new development in technology. But there’s always room for improvement. In my presentation with The Procurement Revolution called Six Disruptive Forces & their Impact on Procurement, I am going to be looking at some … More
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.
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