As both procurement experts and suppliers understand, sourcing a product is more involved than simple physical acquisition. Considering the plethora of product recalls that seem to be constantly in the news, it’s clear that making sure products meet certain standards can be challenging if the right monitoring systems aren’t put in place.
Let's face it, defects are not always physical or tangible: more and more, especially as markets become increasingly globalized, companies are building labor standards, fair trade requirements, and environmental policies into their supplier contracts. This makes it all the more important...Continue reading >>
In viewing the release of our newest sourcing platform during a demo, I tried to discern all the pieces that I saw as unique or compelling. Looking past core features in the sourcing platform, such as RFx, auction and award management capabilities, I saw aspects of the new platform that are clearly distinguishable. Things like a slick and simple UI, collaborative reporting, in-app messaging and other social media, including capabilities for networking, made me think of the evolution of technology and the parallels to how sourcing and procurement platforms have dramatically changed over the past 15 years.
Being smack in the middle of Gen X, I can clearly remember when I got into the workforce after graduate school, where mobile phones were dumb, having a laptop meant lugging around 10 lbs. of silicon and plastic, and collaboration was a face-to-face activity on a white board...Continue reading >>
There is a reason that contracts are full of legal language. They are, after all, legal documents. But the fact that contracts are legal documents is all the more reason to make sure that language is precise. When contract language is imprecise, or worse, incomplete, the door opens to ambiguity and misinterpretation that could lead to disputes.
I've seen a lot of contracts, and know nothing is worse than foggy language. Believe it or not, good contract management often has to start with actually cutting words from your contracts...Continue reading >>
In March of 2014, Matthew Eatough, CEO of Proxima Group, wrote an article for Harvard Business Review discussing what he called 'corporate virtualization'. The concept is based on research that found that, on average, "69.9% of corporate revenue is directed toward externalized, supplier-driven costs." The fact that such a large percentage of corporate revenue is spent with external business partners is surprising enough, but the study also uncovered that the percentage increased by 4% from 2011 to 2014, marking a clear trend towards more reliance on suppliers rather than less.
These findings should have completely rocked the world of procurement, and opened the eyes of C-level executives hesitant to embrace the full value proposition of a strategic procurement function. And yet, they changed little for the vast majority of organizations. But why?Continue reading >>
If you're reading this, you already know the importance of contracts to any organization. Just about every business transaction involves contracts, so it's important to make the most of them. Here are three reminders of how to use CLM to help you work smarter, make deals faster, and be better informed to make intelligent business decisions and ensure compliance.Continue reading >>
I had the opportunity to read “Strategic Sourcing: Lessons Learned” recently published by the Aberdeen Group. You can download it for free at the following link: http://www.aberdeen.com/research/9814/RR-strategic-sourcing-lessons.aspx/content.aspx
It is interesting that many companies are holding onto old technologies when the proliferation of new technology to support their sourcing environments is abundant. Given the numbers from the Aberdeen survey...Continue reading >>
Just a couple of days ago, Gartner published its Magic Quadrant for Strategic Sourcing Suites, February 2015. We are proud to note that we have been recognized by Gartner as a visionary in the latest report moving from the leader’s quadrant into the top portion of the visionary quadrant, we take into account our adjustment from the previous report in July 2013. The elimination of many other vendors from the pool should also be noted.
One could argue the changes in the quadrant landscape over the course of a year may be dramatic. We at Selectica/Iasta see this as a unique opportunity to accelerate “our vision” by focusing on...Continue reading >>
In my last post, I talked about the results of an Iasta Efficio survey that showed the two top priorities for sourcing teams in 2014 were:
Previously we discussed the benefits and importance of having tools and methods to reporting on savings Analysis: How Procurement Teams Demonstrate ROI (Part 1 of 2). Now we’re ready to move on to the second priority.Continue reading >>
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:
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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.Continue reading >>