Procurement

WFA Research Benchmarks the State of Marketing Procurement

Posted: 10/27/2020 - 05:13
Author: Sarah Scudder
Eighty-five percent of respondents agreed marketing procurement drives improvements, and 76% agreed it provides demonstrated value.

This summer, the World Federation of Advertisers published an illuminating report about the current state of marketing procurement and how the function needs to evolve to realize its full potential. The report is part of an ongoing initiative led by the WFA Global Sourcing Board. The initiative, Project Spring, is “designed to transform the value proposition of marketing procurement.”

The Dangers of Dirty Data and How to Ensure Your Data Has Its COAT on

Posted: 10/23/2020 - 02:11
Author: Susan Walsh
Data accuracy is an investment, not a cost.

We all think we know what dirty data is, but it can mean very different things to different people. At it’s most basic level, dirty data is anything that’s incorrect.

Within procurement, it could be misspelt vendors, incorrect invoice descriptions, missing product codes, a lack of standard units of measure (e.g., ltr, l, litres), currency issues, duplicate invoices or incorrect/partially classified data.

Assessing Multi-Generational Workforce Management

Posted: 10/01/2020 - 05:00
Author: Mark Holyoake
A diverse workforce built on literal generations of knowledge and experience can be a significant benefit to companies.

It would be far too simple to craft an “us versus them” story when it comes to different generations in the workforce today. For example, one could say older workers, like Baby Boomers, are outdated, and Generation Z, today’s youthful college graduates, are the tech-savvy heroes. Or perhaps the Boomers are experienced and hardworking while Gen Z are tech addicted and anti-social.

The Case for Changing the Chief Procurement Officer Role

Posted: 09/30/2020 - 23:19
Author: Purvee Kondal
Within your organization, have an open dialogue to explore how Procurement and the CPO role can evolve.

Procurement Sentiment and Observations

During this pandemic, many organizational CEOs and Board members have become aware of and startled by the inefficiencies and bureaucracies in their Procurement organizations. C-suite executives discovered their organizations were in predicaments with deep and broad implications none of us had previously fathomed. Most of us never imagined we’d need to find new suppliers, support, or transition from current ones to diversify for business continuity at the drop of a hat. 

For Procurement Leaders, True Business Transformation Starts At Home

Posted: 09/11/2020 - 05:26
Author: Gregor Stühler
To be effective, digital transformation must begin with open, honest, and scrupulous self-reflection of your digital readiness by running a maturity assessment of business processes.

Technology has advanced significantly since the days when procurement leaders were only managing RFIs and RFPs among their “little black book” of trusted suppliers. Today, big data and artificial intelligence now offer an expansive view of an entire supplier market and unprecedented access to vast wells of verified data. This advancement has opened the door to a new approach that can completely transform the strength of procurement decisions and enable procurement teams to impact a company’s bottom line in new and sometimes unexpected ways.

Tail spend goes beyond the typical 80/20 rule

Posted: 08/24/2020 - 05:27
Author: Tarek Alaruri
When you think tail spend, don’t just think of the typical 80/20 rule.

Having a sound tail spend management strategy has never been more important than it is today. It’s a key differentiator – and competitive advantage – in a down economy in which cash is king and cutting costs is a high priority. Procurement teams can no longer rely on direct materials for savings—those costs have been negotiated to death.

How Procurement Can Enable Insurance Companies to Deliver Value to Claims Management

Posted: 08/22/2020 - 02:36
Author: Tunir Chatterjee
Procurement’s key metric is vendors’ value contribution, not cost.

At U.S. insurance companies, policyholders’ claims represent 70% to 75% of the total cost. This makes complete sense, of course, since policyholder benefits are the sole reason why anyone buys insurance products and services.

The problem is, at insurance companies, procurement is limited to supporting indirect spend — real estate, marketing, finance, etc. — which accounts for less than 10% of the organization’s total costs and severely limits our ability to provide substantive value.

Managing Marketing Procurement Through a Kraljic Lens

Posted: 08/10/2020 - 23:38
Author: Sarah Scudder
Kraljic’s model classifies purchased products and services along two dimensions: profit impact and supply risk.

In a landmark 1983 article in the Harvard Business Review, Peter Kraljic introduced a purchasing portfolio model using a 2 x 2 matrix. The Kraljic model was based on the premise that purchased products and services can vary significantly in terms of importance and risk.  Based on this, procurement professionals should use different sourcing and supplier management strategies depending on the importance and risk profile of each purchase.

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