Analysis: How Procurement Teams Demonstrate ROI (Part 1 of 2)

As 2015 begins, many organizations are assessing how well they achieved their 2014 goals, preparing the best ways to communicate that success in terms of ROI for the company, and setting goals for 2015. According to an Iasta Efficio survey conducted in April of 2014, the top two priorities for procurement teams in the 2014-2016 timeframe are: Increase the rate of cost savings (identified and realized) Drive wider operational efficiencies through procurement Top Priority: Determining your rate of cost savings … More

How contract management improves supplier relationships

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

CEOs’ top three concerns and how CLM can help

Every day CEOs like me are challenged to realize the objectives they’ve envisioned for their companies. To help ensure their business goals are being met in today’s demanding marketplace, three critical areas of business operations should be considered: compliance, cost reduction, and innovation. Fortunately, a Contract Lifecycle Management (CLM) system can create value in all three of these crucial aspects of the company. Compliance: Maintaining compliance is one of the CEO’s top concerns. While the day-to-day work involved in being … More

A Current Scandal Proves Why Employee Contracts Shouldn’t Live in Spreadsheets

Identity theft is a huge concern these days with estimates of 15 million people becoming victims each year. And if you’re one of the unlucky ones like me – you know firsthand that identity theft can be expensive! Each year, identity theft cases can total up to more than $50 billion in damages, according to identitytheft.info. With these concerns on the rise, it’s no surprise that employees for a large entertainment organization are upset that hackers found pay rates, social … More

Procurement Gone Wild

On February 19, 2015, Paul Shin Devine must surrender himself to the U.S. Marshall Service and begin serving a one-year sentence on corruption charges. He has already repaied $4.5M in restitution and will be on supervised release for three years starting in February 2016. Is Devine a crooked politician? No. A member of the mob? Not even close. Devine is a former Global Supply Manager for Apple. A procurement professional just like the readers of this blog. The difference is … More

Analytics for Everybody: Data & the Circle of Life

I was on a call last week and I heard our Director of Product Marketing, Constantine Limberakis, talking about our vision and strategy. One phrase in particular really stuck out for me. He said, “Our goal is to make sure we have analytics for everybody across the organization.” I wrote down that phrase and tried to dive deeper into that concept. What does “analytics for everybody” mean? And more importantly, in a data-healthy organization – who has analytics and how … More

7 Reasons to Move to ECLM in 2015

In the earlier blog we noted that CLM in the past was based on the inability to completely address the needs of an enterprise due to siloed approaches – so how do we look forward? Contracts are the lifeblood of all business relationships. Today, organizations need the ability to be govern contracts and contract data holistically from a common solution framework to get the best understanding of the obligations that financially bind the entire enterprise. As such, siloed approaches for … More

The New (Old) Battleground: Marketing vs Procurement

“If you had marketers on boards they could put procurement back in their box, which is where procurement really belongs.” I’ll let that statement sink in for a minute… … That bold piece of verbiage came from by Mat Baxter, chief executive of media agency UM, at the Publish conference in Sydney, Australia last week. He was part of a panel discussion talking about the process of selecting media agencies and the relationship that exists between media buyers, publishers and … More

The Future of CLM in 2015

Recently, Selectica hosted a webinar – now on-demand — titled, Creating Strategic Value from Contract Management. Guest presenter Andrew Bartels, VP and Principal Analyst at Forrester Research, Inc. and Patrick Stakenas, Chief Strategy Officer at Selectica had an interesting discussion on the current landscape of CLM. Andrew shared the findings of his recent report and painted the picture of a complicated landscape of solutions in CLM that shows how technology continues to be placed in buckets of functionality, including buy-side, … More

4 Things Procurement Should be Thankful for This Season

As we approach the holiday season, our schedules can become busy and chaotic. It’s easy to get bogged down and forget the true meaning of why we celebrate Thanksgiving. So, in order to energize our hearts and minds, grab some coffee (lots and lots of coffee!) and start counting your blessings! I’ve put together a list of things a procurement pro should be thankful for this holiday season. 1-Technology: Innovative technology helps you overcome the challenges of modern sourcing- making … More

Pushing Sourcing Strategies into Contracts

In the world of Strategic Supply Management, everyone knows that the ROI of strategic sourcing initiatives is only as good as the resulting contracts and the contract compliance in purchasing. Last week, I attended a Selectica webinar — now on demand — titled, “Creating Strategic Value from Contract Management.” Guest speaker Andrew Bartels, Vice President and Principal Analyst at Forrester Research, Inc. discussed the importance of choosing an enterprise Contract Lifecycle Management (CLM) solution that is cross-process, not process-based. He … More

How Much Are Your Contracts Worth?

How much value is your business gaining from your contracts? If a procurement executive asked you what a given contract was worth, you would likely give an answer based on estimated spend value as a result of projected volume, negotiated costs, and term. While this is accurate, it is also a limiting perspective that places more emphasis on the transactional footprint of the contract than what it means to the company’s operations. Patrick Stakenas, Chief Strategy Officer of Selectica, recently … More

Contracts Go Enterprise: Increase Strategic Value of Procurement with ECLM

What can Enterprise Contract Lifecycle Management do for you? We’re glad you asked – and we’re excited to answer that question in Selectica’s upcoming webinar with guest presenter Andrew Bartels from Forrester Research Inc. Now, we realize that relative to other procurement responsibilities and activities, contract lifecycle management (CLM) may not consume much of your day. You have pressures from your executive team to reduce costs. You are being told to provide powerful analytics that share valuable insights into future … More

Communication Key to Driving Value Out of SME Suppliers

There is no denying the value that small and minority-owned suppliers offer to businesses, but securing that value has proved to be trickier for procurement. Small and medium-sized suppliers, and in particular those owned by minority groups, are more innovative and more responsive than their larger counterparts tend to be. For their customers and the procurement teams they work with this means they can benefit from them being more nimble, able to respond quickly to the changing needs of the … More

3 Points for Procurement to Consider as a Modern Organization

How can procurement define itself as a modern procurement organization? Recently at Iasta reSource 2014 in Indianapolis, Selectica’s Erick Mott had the opportunity to interview Marc Hochman of A.T. Kearney about his session on Supply Team 2020. During the interview, Marc shared three key takeaways for procurement teams to consider as a modern organization: Procurement has a huge opportunity to deliver value to their organization. Procurement needs to collaborate and use the same “language” as our colleagues in Finance and … More