At the IACCM Europe conference last July, two out of three participants said that their companies lacked a clear, consistent workflow for contracting. Meanwhile, there was wide variation among business units in how workflow was defined. Organizations with effective contract workflow management, however, are achieving superior business results, while those without it too often lose revenue and valuable cycle time during the contracting process.
The IACCM has outlined some of the pitfalls that can arise when contracting workflow isn't well-defined or managed. Primary among these is a lack of clarity about the scope and goals of a contract, which can lead to wasted time, increased risk and, at worst, legal disputes. Combine this with the competitive exposure of protracted negotiations and the poor handling of post-award contract lifecycle management, and your contracts could lose an average 9.2% in value.Continue reading >>
"Big data" and "analytics" are the buzzwords of the day. Or as our friends at Ardent more concisely say, visibility". From the solution provider's perspective, the challenge of delivering on the promise of visibility requires plenty of hard work, collaborating with customers and, frankly, a little trial and error. Prioritizing which critical areas to enable is more often than not the key decision a solution provider must make. Which brings me to this article that I found to be an informative asset as we at Selectica continue to build out our analytics solution. Informative to me as an affirmation of procurement's priorities and I expect informative to all those seeking to drive corporate initiatives.
The three findings cited by Ardent Partners in this article clearly lay out a case for investing in visibility so that Procurement can have the INSIGHT it needs to act. Ardent introduces three areas of visibility as leading indicators of a procurement organization that is achieving or tending towards best-in-class performance. Combined, these indicators are a clear road map for success, putting aside whether you are seeking to be best in class or not.Continue reading >>
It's not news that enterprises are dealing with more contracts and more complexity than ever before. Increasing numbers of stakeholders have skin in the game and creating, executing, and managing contracts plays a crucial role in ensuring a company's profitability. There are plenty of news stories about legal and financial risk involved when contracts are poorly managed.
Yes, contracts can make all the wrong headlines if not properly managed and monitored, as last year's story about Walgreen's botched financial forecast makes clear. The company failed to factor in an upcoming change in the price of generic drugs it sells under long-term contract, and its initial earnings projection was over a billion dollars too high. How did that happen? And how can enterprises avoid these contract fiascos?Continue reading >>
It is the worst question Procurement ever faces. C'mon – you know what question I'm talking about. That horrible, terrible question from Finance for which there is no good answer…
If procurement worked so hard and saved all of this money, WHERE IS IT?Continue reading >>
Terms like eSourcing, ePurchasing, and eProcurement that describe the electronic "source-to-pay" processes have been established for some time, probably a decade or more. But when they become interchangeable, or are used inconsistently within our industry, it makes understanding their differences and why they're important confusing.
Lack of common definition is not just a challenge for practitioners but for analysts as well. For example, Forrester Research notes the definition of ePurchasing as the entire source-to pay-process, while Gartner describes ePurchasing as only a part of the wider procure-to-pay process for indirect procurement.Continue reading >>
I am honored and proud to take the reigns as president and CEO of Selectica. A lot has happened. One thing for sure: Selectica is coming together.
Over the past year, we executed on a strategy to acquire IASTA (spend analysis, eSourcing & supplier management provider) and soon b-pack (procurement software & procure to pay technology) will close. This will enable our customers access to a complete suite of best-in-class, source-to-pay solutions. Now, we can deliver the highest quality and most innovative...Continue reading >>
These days, the world is going paperless for good reasons. However, with contracts stored online instead of in drawers, they can lead to new risks for your business, especially if you operate on a global scale.
Those risks, however, don't outweigh the benefits but they do mean that you have to adjust to some new processes to make sure everything is done efficiently and securely.Continue reading >>
Technology, media, and telecommunications (TMT) regulations have become more complicated over the last several years. The TMT industry is a high-stakes field with a wide array of major players, including cable and satellite networks, social networks, film and television studios, and many others.
Most of these companies are built on cutting-edge technology. They require experienced legal teams to handle consequential disputes and complex deals. TMT in-house counsels tend to be extremely specialized in their industry, and demand specific, configurable tools to address their unique issues. Some of their key responsibilities may include...Continue reading >>
Procurement teams work hard to source, negotiate and monitor deals, maximize supplier relations, manage risk, and control spend. The bottom line is they can save their company money–often, a lot of money.
"In our first year we were able to leverage Spend Analytics from the SmartAnalytics® suite of products, allowing us to save $31.7 million from approx. $300 million in indirect spend–a 10% return!"
— Greg Tennyson, CPO, VSP
Which begs the question: Where should the money saved go? Should it go directly to the company’s bottom line?Continue reading >>
As we move into mid-2015, it is clear that contract management needs are on the rise. Survey after survey from various analyst firms and consultancies tell us that contract management is a growing area of concern.
The main benefits often attributed to contract management are providing efficiency and speed to the contract process through automation. A recent PayStream Advisors study found...Continue reading >>