Category Archives: Technology / SaaS
Much is made of the importance of Cloud Computing, the endless options for what can be sourced to the Cloud, and the vast dollars that can be saved by moving services to the Cloud. But very little is said about what consideration should be given to specific financial structures and terms of a Cloud-based services agreement. Here are the TPI Top 5 financial considerations not to be overlooked when making Cloud-related decisions: 1. Current contractual agreements should include commercial terms … More
Implementing a multi-provider sourcing strategy across multiple countries requires tight coordination between business units, finance, legal and internal contract management. Success depends on an appropriate commercial structure, well-managed multiple-provider service delivery, smooth invoicing and allocation processes, and optimal service levels. Note these TPI Top 5 questions and their answers, which will be unique to your organization, when considering a multi-provider, multi-country sourcing strategy: 1. How do we create a suitable commercial structure? Cross-border taxes and cross-subsidization are key factors in determining … More
Everyone in procurement knows that spend analysis is important. The problem is they also know that it’s hard. It means getting a lot of data that may come from multiple sources, determining a hierarchical classification system, and classifying each piece of data (usually each financial transaction). You’re also going to need software tools to compile the data in meaningful ways so that you can see spending patterns and identify opportunities for savings. It’s not about getting the data one time; … More
Image this scenario. After some debate, a company finally decides to implement an eSourcing initiative and technology. The relevant software gets acquired and SME consultants are duly engaged. A short time later, there is a large eSourcing kick-off meeting with lots of fanfare and positive noise. Everyone is gung-ho and all seemed to be going well. Yet, six months later enthusiasm within the company has considerably diminished and eSourcing usage and popularity has dramatically decreased. Ultimately, management begins thinking of … More
In the second of the 4 part series, we will dive more deeply into the first possible approach to finding savings in indirect goods and services: Spend Visibility. Although most companies realize how important spend visibility is, many companies struggle with three common issues: 1. How do I build a business case to prove we need visibility? 2. I have an ERP system, can’t I use that? 3. I have a spend visibility provider, but I am not sure if it is giving … More
A recent article from the Iasta Insights sourcing newsletter listed twelve symptoms or indicators that your organization might be ready for a procurement transformation. According to the article, procurement organizations with five or more symptoms were probably ready. Read the complete article here: Diagnosing the Spend Patient: Twelve Symptoms that may Suggest a Procurement Transformation. The very first indicator, reverse auctions have become a strategy and not just a tool or tactic in a broader sourcing program, made me pause. … More
People, process and technology are the core of developing a Center of Excellence, which is the fourth tactic to achieving sourcing credibility. People: Does your team help create the IQ of the organization? • Conduct training to fill in the gaps and implement sourcing best practices to build the “nerve center” for a best-in-class process. Process: Do you have processes in place to build the organization disciple for evolutionary cycles that generate greater spend under management? • Evaluate and map current processes. … More
