Category Archives: Supplier Performance
How SIM & CLM can save millions of dollars: A Look at the Financial Industry As we continue the series on managing third-party risk—SIM-CLM, it is clear that every organization has a different take on what is most critical to understanding its value. For financial organizations, addressing third-party risk has partly translated into managing a complex workflow of regulations compliance and risk prescribed by regulatory agencies that have been dominating the landscape.
“Risk” Is in the Eye of the Beholder I am still amazed at how the conversation about a broad topic such as risk is dependent on the individual I am speaking with, and more often will just be focused on contract management.
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
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
According to Gallup, supplier relationships are among the most overlooked but most important connections a business can have. Being a “customer of choice” can help mitigate risk, lower costs, and spur innovation. Companies that are great customers benefit from a more reliable supply chain and receive “flexible, non-bureaucratic support” from suppliers during crisis situations. What does this mean for enterprises seeking to improve their relationships with suppliers? Based on their research, Gallup came up with a list of five “core … More
I can rattle of many reasons why teams should consider implementing a modern sourcing solution. Even though each company will have different challenges, needs, and goals; if your team is experiencing any of these eight signs below, now is the time to adopt a modern sourcing solution! Sign #1: Limited Or No Visibility Into Your Company’s Spend If you have limited or no visibility into your spend, you are likely missing out on hard dollar savings. A spend analysis solution … More
“You are only as good as your team” is an oft-quoted phrase and something that procurement chiefs have taken to heart as their personnel numbers have grown. Each and every year procurement chiefs say that one of their key priorities is to improve the skills and capabilities of those in their team. Understandably this focuses on those who sit under their direct jurisdiction, but 2014 should be the year that this mindset changes because purchasing capability extends far beyond the … More
Years ago, Prego televised a commercial for their spaghetti sauce with the catch phrase, “it’s in there.” The commercial went something like this… A father enters the house for a spaghetti dinner and condones his son’s wife for using sauce from a jar. The father continues to talk about garlic, herbs and onions to which the son replies, “it’s in there.” For those not familiar with the commercial, you can view it here. So, how does a can of Prego … More
Football season is upon us! Have you started developing your strategy to pick the winning team for 2014? Many football fanatics have begun their annual Fantasy Football draft preparations – analyzing statistics of players-yards carried, completed passes, and playing time to create the “perfect” football team. Understanding and analyzing the stats of each player is critical for “coaches” when drafting their teams. Creating spreadsheets, scanning the internet, and looking for the most up to date player’s statistics are critical tactics … More
Most of us have a bucket list filled with both personal and professional hopes and dreams. Whether your bucket list includes a sky diving trip on your next birthday or becoming the next CPO of your company, you likely have goals that motivate you on a daily basis. If you lead a sourcing organization and are looking to add some goals to your professional bucket list, here are six accomplishments you can add to your sourcing bucket list: 1) Mitigate … More
Have you ever watched the movie Dodgeball? I had a chance to watch it over the weekend and the famous line stuck out in my mind: “If you’re going to become a true dodgeballer, then you’ve got to learn the five D’s of dodgeball: dodge, duck, dip, dive, and dodge.” So, put your game face on…the same principles can be applied to modern sourcing. If you’re going to become a true Modern Sourcing pro, then you’ve got to embrace these … More
On Sunday, Indianapolis will rev up for The Indianapolis 500, which is the world’s most famous and prestigious auto race. “The Greatest Spectacle in Racing” covers 500 miles (200 laps) on the 2.5 mile oval track. So what can purchasing pros learn from the Indy 500? The Indianapolis 500 isn’t won in one lap – and an auction isn’t won based on price only. Price is certainly an important factor when choosing the right supplier for your business needs, but … More
I’m about to throw you a curveball… How does Procurement Analytics relate to the baseball-themed movie, Moneyball? Well, if you haven’t seen the movie before, let’s recap the story. Brad Pitt stars as Billy Beane, General Manager for Oakland Athletics (A’s). Beane is faced with the challenge of assembling a winning team, but he is handicapped with the lowest salary constraint in baseball. If the Oakland A’s ever wanted to win the World Series, Beane knew he needed to find … More
Procurement professionals often think of themselves as ‘behind the scenes’ members of the organization. This is even more true in the case of procurement teams focused on indirect spend. In one high profile story hitting the news right now, a procurement team may be about to find themselves thrust into the light – and not under happy circumstances. In 2012, the New England Compounding Center was found to be at the center of a meningitis outbreak for selling tainted steroid … More
With the end of the year quickly approaching, many procurement groups are looking at their performance metrics for the year. For procurement groups that haven’t quite hit their savings targets, December 31st is an unwelcome but inevitable date looming on the horizon. Before you resign yourself to your current savings numbers, there might be some things you can do in the last weeks of the year to improve your position. Although there is not enough time left to run additional … More