Executives in all functions and lines of business are driven to create shareholder value, a challenge that increasingly requires them to take calculated risks that often involve the supply chain. From a shareholder’s perspective, nothing destroys the perceived value of an investment faster than negative press, even when it is the unintended result of ‘pushing boundaries’. In some cases, the criticism may not even be due to a company’s own actions, but rather those of their suppliers (or suppliers’ suppliers).
Meeting supplier diversity objectives can help reach larger corporate objectives, too!
Supplier diversity was initially promoted as corporate stewardship for the disenfranchised. Today, it’s considered a competitive advantage. Changing work demographics and emerging markets compel businesses to invest in supplier diversity programs. Yet, most organizations are unable to measure and report on their efforts.
How supplier management is impacting organizations more than ever.
Organizations are starting to adopt a new attitude when it comes to their suppliers – treat them like customers. This seems basic, but the truth is, supplier management is evolving fast; it is critical not only to catch up but to get ahead of the curve.
Linking the Dynamics of Supplier Relationships with P2P.
In an environment of increased regulations and demand for compliance, organizations are placing their suppliers under increasing scrutiny. Yet, managing supplier information is often near impossible given the the inability of organizations to easily tie supplier information to procure to pay (not to mention contracts and enterprise data as a whole).
Good contracts make good relationships.
Interesting snippet from a Gallup article (undated) that I read recently: Gallup finds that customers increasingly expect suppliers to possess the deepest and timeliest information on their most important business issues. These include the economics of customers’ businesses, emerging challenges within customers’ industries and trends within a supplier’s customer portfolio . What’s interesting is that they refer to supplier/customer dynamics as “partnerships” instead of just “relationships.” Optimizing those partnerships requires integrated supplier management and contract management.
3rd-party risk management starts before the onboarding process.
One of the things that stood out the most in our recent webinar with Ardent Partners, CPO Rising 2018: The Age of Intelligence, is the critical role that data intelligence needs to play across organizations. In fact, data visibility and improved analytics stands as one of the biggest strategic goals that CPOs see as holding the most potential to drive performance improvement . While CPO Rising 2018 focused more on leveraging data as a way to add value, when you’re talking about data visibility it’s hard not to think of the risk management potential it represents.
Understanding compliance needs related to the General Data Protection Regulation.
Without fail, my inbox is filled every morning with news, updates, tips and dire predictions about GDPR (General Data Protection Regulation) and the coming impact on companies and their providers. GDPR is an urgent issue, for sure, but the constant barrage of information can be overwhelming. That’s why when I come across a source or article that brings clarity, it’s worth sharing.
If February DetermiNews could be summed up in one word, it would be “contracts.” This month, starting with our IACCM webinar on January 31, looked at contracts and how to best manage them with technology, internal processes and C-Suite level strategic focus. Contracts represent relationships, revenue and risk to every organization. Making sure yours maximize the first two and mitigate the third is what Determine does for a growing number of leading companies across industry verticals.
Financial Services (FinServ) organizations – banks, insurance companies, wealth management firm, wirehouses – are constantly trying to find a balance between regulatory mandates and expectations, and operational efficiency. Massive supplier data breaches seem like they have become an almost regular occurrence (when they’re reported), customer privacy and data laws are becoming more stringent (GDPR), and predatory behavior by suppliers and vendors is an ongoing issue. Certainly, the porous nature of globalization isn’t making things any easier. With all that to contend with, it’s critical to remember that you can pin the blame for risk on third parties, not the responsibility for it.
How to make friends and influence outcomes
Procurement does not have an easy job. We function as the spending conscience of the enterprise. When a contract is going to be awarded, we make sure a careful selection process is followed and that every specification or requirement associated with additional cost earns its place. We ensure that incumbent suppliers deserve renewed business, and push all suppliers to perform their best on behalf of the company. As important as all those things are, it can often leave procurement looking like the “skunk at the garden party” from an internal procurement stakeholder perspective.