The digital transformation is well underway, making the investment into modern technology a necessary ascension for organizations with a hankering for longevity. The source-to-pay landscape is no exception. If we look at Sourcing (a stepping stone in upstream procurement) in particular, automating its processes can improve savings identification, increase collaboration, build stronger supplier relationships and align supplier, corporate and financial goals.
Evolving beyond savings.
Last month we concentrated a lot on looking at the ways (and why’s) procurement teams can and should be more supplier oriented. Not surprisingly, that supplier-centrism also applies to your strategic sourcing processes. That requires a holistic focus to integrate analytics, contracts and supplier information, and the technology to make it work.
Everyone makes mistakes. Just don’t make these.
You’re an experienced sourcing or procurement professional. You’ve been through umpteen sourcing events, worked across a number of industries, did tours of duty in companies of all sizes. And yet, once in a great while, you still have the inevitable forehead slap moment and the inner cry of “why did I just do that?!” It happens. Whether you’re an industry veteran or just starting out in your career, the following seven sourcing project errors — sophomoric as they seem — are common. And easily avoidable.
Building on the value of cross-process, enterprise-wide solutions.
In the world of source-to-pay, the ROI of strategic sourcing strategies is only as good as the resulting contracts and subsequent contract compliance in purchasing. Creating strategic value from contract management entails choosing an enterprise Contract Lifecycle Management (CLM) solution that is cross-process, not process-based. More and more companies are coming to realize that contract management needs to cross through the entire organization from buying all the way to selling. Does yours?
If necessity is the mother of invention, then reinvention must be the offspring of a continuous improvement process. Back in flight school, there was an industry group with a major professional education component, whose slogan was “When you’re good, you’re always learning.” The more source-to-pay professionals and practitioners I meet, and the more research and whitepapers I read, that same slogan could easily apply to procurement, sourcing and contract management, as well. As one Determine customer sagely told me at a recent User Group, “Comfort zones makes me uncomfortable.”
Instead of “recycle, reuse, retread” let’s talk about a reboot.
Memorization is a frontage road: It runs parallel to the best parts of learning, never intersecting. It’s a detour around all the action, a way of knowing without learning, of answering without understanding.”
— Ben Orlin, “When Memorization Gets in the Way of Learning,” The Atlantic, 9 September 2013
Face it sourcing, CPOs just aren’t that into you.
Last week, the team from Ardent Partners shared the results of their research: CPO Rising 2018: The Age of Intelligence in a webinar with Determine. This year’s report includes input from 324 participants, 62% of which are Director level, VP level, or C-level. No one industry accounted for more than 13% of the research data, although approximately 70% of the responses were from large (>$1B) companies in North America.
For strategic procurement, customer success metrics are measured in two categories: efficiency and effectiveness.
As I mentioned in Part 1 of this series — Do you have a strategic relationship with your technology provider? — I recently joined Determine as Senior Vice President of Customer Success. On March 14 we held our West Region User Group in Laguna Beach, which brought together valued customers to share their experiences, feedback and ideas about our solutions and Determine as a company. That openness and reinforcing of trust are critical components to establishing a sustainable Customer Success Management program .
Strike now while the eSourcing opportunity is hot – Trump tax law changes offer a unique saving opportunity.
I recently read this brilliant analysis about the impact of the Trump tax law changes. I couldn’t help thinking that this offers a unique one off saving opportunity that I would like to share with my procurement colleagues.