Every so often my wife and I start binge watching a new series in the age of on demand. The latest show we started is called The Wire on HBO. An acclaimed crime drama series that takes place in the gritty urban inner-city streets of Baltimore, I immediately came to recognize that it’s set in a time before the advent of smartphones, where in an early episode street gang members were seen pawning the latest Nokia 3310 series phone.
The podcast series that’s all about minding your business in contract management and source to pay.
In this episode of our podcast, I had an opportunity to speak with Patrick Stakenas, President and CEO of Determine, about lessons learned over the past year and what’s happening at the intersection of the company and the industry as a whole.
We discussed the confluence of SaaS and suite modularity, with a focus around meeting current market demands and the wider movement to go beyond just “spend management.”
Approaches to expanding procurement value.
In anticipation of our upcoming webinar with Spend Matters, Designing the Procurement Factory – Reinventing Procurement Through a Platform, I want to share some initial thoughts around the platform concept.
For me, the main difference between a Platform as a Service (PaaS) and a Software as a Service (SaaS) is about the capability of the platform to expand value at any time, using interconnected proprietary solutions.
A perfect example is a company most people in our industry are familiar with — Salesforce. The value lies not in the great capabilities of its CRM, but the capability of the platform to be extended and adapted to any customer need. It’s a great foundation that, once correctly implemented, can be used to continuously add value based on any requirement.
Legal, procurement, supply chain—oh my!
Visiting some retail clients during the holidays, I was struck by the impact of the accelerated shift from “bricks to clicks” on procurement, supply chain and legal. It’s no secret that recent holiday shopping sales showed a continuing significant shift to online buying habits. Actual physical toy retailers are nearly nonexistent, mobile phone retailers are all online, booking holidays is a 100% online pursuit, banking, grocery and now urgent purchases are easily accessible for online same-day delivery.
This is not a new phenomenon, but I was surprised by how unprepared indirect procurement or GNFR (goods not for resale) is for this change.
So what is the impact on GNFR, supply chain and legal?
In a recent webinar co-presented by IACCM and Determine (available on demand here), IACCM CEO Tim Cummins discussed the history of global contract lifecycle management (CLM) efforts reaching back to the 1990s. As he pointed out, the CLM approaches of the time had a tendency to overemphasize centralization and standardization for the sake of cost efficiency. Though this strategy did bring some short-term operational wins, it both alienated local users and created regulatory and/or accounting complications for the company and their suppliers.