Procurement

SIG Speaks to The Sustainable Procurement Pledge Founders

Investing into sustainability, therefore, means investing in the future of a sustainable, responsible and inclusive business continuation.

What is the Sustainable Procurement Pledge and how did come about?

The Sustainable Procurement Pledge (#SPP) was born out of passion and is driven by a shared sense of responsibility. #SPP addresses people, not organizations. We are ultimately the ones who constitute organizations and who are making daily decisions in our workplaces. The biggest lever to have a positive impact is therefore with us! #SPP primarily addresses those who are connected to the Procurement function, procurement professionals, academics and students, but does not exclude anyone outside this area of activity. Those who feel concerned by the #SPP messages can start and join right away!

The idea was ignited by the Global Climate Strike on September 20, 2019. Adults and children, from all walks of life, made a clear statement and we were reminded about our prime responsibility: to leave our home, our ONE planet, in the same condition as it was entrusted us.

There are many great and profound sustainability initiatives already. They typically involve companies, governments, institutions and top leaders. However, we rarely see initiatives that address individuals. And yet, we all have the power to make impactful everyday decisions and gradually change the world. We fundamentally believe that many small changes ultimately lead to a big change?

Stacy Mendoza, Digital Marketing Manager

The Year's Best Articles in Future of Sourcing Digital

Read the best-performing sourcing and procurement articles from 2019.

2019 was an amazing year for sourcing. We witnessed greatness as the Future of Sourcing Awards showcased some of the most innovative projects, individuals and teamwork the sourcing industry has seen. The pages of Future of Sourcing, SIG's sourcing and procurement thought leadership publication, gave great insight into trends and best practices of the year as well. Below are the top articles of 2019 from Future of Sourcing that you don't want to miss. I hope these give you inspiration and motivation to innovate processes and implement change inside your organization in 2020.


 

How Digital Technology Will Transform Talent Acquisition

Today, intelligent automation and machine learning are boosting productivity and optimizing a wide range of back-office operations. How are these emerging technologies changing the way we find talent? Helen Castor gives us some insight.

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6 Best Practices for Successful Last Mile Delivery

The growth of e-commerce is fueling the parcel delivery market. Learn more about best practices in the crucial stage of the delivery: the last mile.

READ MORE >>

Hailey Corr, Senior Marketing Professional

Calling all CPOs

New research delivers groundbreaking insights into services procurement.

What’s keeping you up at night? CPOs today are under continued pressure to reduce costs and find new sources of value – and of course, manage risk.

At the same time, CPOs want to become more strategic advisors to the business. We’ve found the perfect opportunity to help you achieve those goals and more.

As a CPO, you probably manage millions of dollars’ worth of spend on services. Think of all the money your company spends on consultancies, IT services providers, marketing agencies, law firms, accounting firms, facilities management companies and more. These services providers operate across the enterprise, perform vital work and deliver enormous value.

You manage the contracts and rates for these services, but beyond that, how much attention do you pay to that spend? Do you know whether these services providers are delivering high-quality work? Do they hit deadlines? Is your business getting good value for money?

Most of us are guilty of under-managing services providers. That’s one of the key findings from a groundbreaking new research study published by SAP Fieldglass in collaboration with Oxford Economics, titled Services Procurement Insights 2019: The Big Reveal.

>> Build a world-class risk management team! Learn emerging practices, take control of critical relationships, spearhead effective governance. <<

Molly Spatara, Global VP, Brand Experience, SAP Ariba and SAP Fieldglass

Why Secure Sourcing Starts with Automation

Automating supplier-related processes benefits businesses.

Growing economic uncertainty, geopolitical unrest, and emerging cyber threats mean that security and risk management are now critical boardroom priorities. If that weren’t enough, businesses today are not only accountable for the factors that impact them directly, but they’re also responsible for those that impact their suppliers.

Take the recent Quest Diagnostics data breach as an example. Despite Quest’s strong internal cybersecurity infrastructure, the sensitive information of 11.9 million patients was hacked through a third-party billing vendor with subpar security standards. The lesson is clear: a company is only as safe as its weakest vendor.  

Many organizations continue to manage suppliers, contracts, and procurement processes manually or with outdated, clunky technology that is too complicated for efficient use. These haphazard systems are, unfortunately, perfect harbors for risk, but there is tremendous opportunity here. According to a recent McKinsey & Company report, 56% of source-to-pay tasks could be “fully or largely automated using currently available technologies.”

While automation isn’t a cure-all, it does have the potential to drastically decrease overall risk. How? By reducing the “human factor” in supplier management and allowing sourcing employees to focus on more critical projects. In addition to putting risk mitigation at the forefront, automating supplier-related processes benefits businesses in these four key ways:

Chris Crane, Co-Founder, Product, Scout RFP, a Workday company

How Procurement Can Help Tackle Today’s Most Pressing Challenges

Chief Procurement Officers are driving innovation and sustainability.

The pressure for companies to solve society’s most pressing problems is growing exponentially, fueled by the gravity of looming issues such as climate change or social inequality. While the majority of companies have already defined their corporate commitment and social impact objectives, many leaders are struggling to implement strategies that actually achieve their aspirations. Considering that 78% of executives believe their companies are failing to deliver on their social impact pledges, there’s a dire need for companies to drive social innovation across each department and generate positive social change through their day-to-day operations.

Amid the changing business landscape, companies are required to achieve two core objectives: generate profits and elevate corporate social responsibility. Due to procurement’s immense purchasing power, more executives are turning to their CPOs to drive innovation and sustainability – all while generating tangible impacts that benefit the communities they operate in. Here’s how procurement leaders can achieve these objectives and simultaneously generate new business value by adding social impact into their sourcing and procurement process.

Paul Polizzotto, Founder & CEO of Givewith

Talking to Your Tail Spend – Chapter 4: Frameworks to Manage and Find Savings

Find savings and learn how to build a strategic sourcing framework to help you manage tail spend.

This is the final chapter in our tail spend series and we’ve covered some significant ground to understand what tail spend is, why it happens, and the potential issues with ignoring it or managing it in the wrong way. In this final chapter, we'll explore the ways you can find savings in your tail and how to build a strategic sourcing framework to help you manage it going forward.

To get up to speed, you can read the entire Talking to Your Tail Spend series on our blog:

Amy Fong, Principal - Procurement and Purchase to Pay Advisory, The Hackett Group

Talking to Your Tail Spend – Chapter 3: The Potential Risks Lurking in your Tail Spend

Unmanaged tail spend results in significant risks to organizations.

We’ve released a series of articles to answer your questions about tail spend. We started by defining tail spend, discussed how to better work with stakeholders to manage it, and now we’re diving into the potential risks lurking in your tail spend and the problem with taking a scorched Earth approach. To get up to speed, read our prologue, Chapter 1 and Chapter 2 on what this tail spend series will help you accomplish.

What is the risk exposure in my tail spend?

Risk is an increasingly important consideration in procurement and we’re right to think about the impact of risk hidden in our unmanaged spend. The tricky thing about risk is that it can differ across companies, even within the same industry. Supplier financial risk is important to most, but what about brand risk, geopolitical risk in the supply chain, and the risk of payment fraud? Depending on the spend category, IP risk or labor practice risk may also be a consideration.

The starting point, once again, is the spend analysis, with the category manager charged with determining the highest risks for their category. If a category isn’t actively managed, it can be assigned to a risk team for a basic analysis. Given that the average company only actively monitors about a quarter of suppliers for risk, there’s a lot of unwatched suppliers even outside the long tail. Risk assessments are typically driven by supplier spend or a triggering high-risk factor.

Amy Fong, Principal - Procurement and Purchase to Pay Advisory, The Hackett Group

Talking to Your Tail Spend: Chapter 2 – 4 Tips to Work with Internal Stakeholders

Advice on how to work with internal stakeholders to manage tail spend

We’re releasing a series of articles to answer your questions about tail spend, starting with the basics so you understand what tail spend is and we’ll progress along the spectrum to help you manage it. To get up to speed, read our prologue and Chapter 1 on what this tail spend series will help you accomplish. In this chapter, we'll explore how to better communicate with stakeholders to get tail spend under control.


“Who purchased you and why?”

This is perhaps the most intriguing question and the right place to start when looking at tail spend. A spend analysis is often the first step in building a procurement capability, and if used on an ongoing basis, it can help to understand what spend consolidation efforts leave out. To accurately capture the full picture, analysis should pull in data from multiple sources, such as purchasing/payment systems, purchasing card data, travel and expense systems, and often multiple ERP systems, even petty cash if local branches still use it.  

Fortunately, there are many helpful tools on the market that range from free-for-use apps to complex software platforms enabled with artificial intelligence (AI). Nearly all of these will help with generating what we call a “spend cube,” which is an analysis, at the line-item level, of global spend. This can include:  

Amy Fong, Principal - Procurement and Purchase to Pay Advisory, The Hackett Group

Who is Spend Matters, what is SolutionMap — and how can SIG members benefit?

SIG and SpendMatters Partnership

As part of Spend Matters' recently announced partnership with SIG, we’re excited to share exactly what Spend Matters brings to the table (deep insights into procurement software) and why that matters Spend Matters 12 SolutionMap Categoriesfor SIG members.

Spend Matters reaches a global audience of procurement professionals and provides coverage of procurement software and services vendors across the source-to-pay spectrum and other areas, like contingent workforce and AP automation. You can find many of the key players in the Spend Matters Almanac, a directory of 500+ vendors and consultants in procurement.

Through SolutionMap, anyone doing a procurement technology selection can explore 12 categories to get a snapshot of those markets for absolutely no cost. Players are ranked in areas like Source-to-Pay (S2P), E-Procurement, Contract Lifecycle Management, Sourcing, Supplier Management and more.

SolutionMap helps procurement organizations save time in their technology RFP processes by relying on the Spend Matters analyst team, who have already assessed capabilities at a granular level, validating them through live demos. Because technology is developed and updated so quickly these days, SolutionMap is updated quarterly.

Carina Kuhl, Chief Marketing Officer, Managing Director, Spend Matters

2020 Vision: Putting Sourcing at the Center of Visibility and Impact

Digital transformation increases data visibility.

Vision is a funny thing. Until relatively recently, humans were at the mercy of circumstance when it came to sight – if you had 2020 vision, you were lucky, but if not, you had no choice but to hope for the best. Then, glasses, telescopes and microscopes were invented. Then, flashlights. Suddenly, we could see very near and very far, and even in the dark. With the right tools, our world was transformed. 

Similarly, visibility in business is transforming with technology. In the past, we used notebooks and spreadsheets to transfer information. Today, we’ve seen customer relationship management (CRM), enterprise resource planning (ERP), and human capital management (HCM) software take off and transform the level of visibility within the business, allowing for unprecedented impact. Now, it’s Sourcing’s turn to transform and break free of spreadsheets and cumbersome legacy tools.

VSP Global Looks to Transform Sourcing

At VSP Global, the largest not-for-profit vision benefits provider in the United States, this sourcing transformation was a key priority. VSP serves over 77 million members by focusing on quality and affordability in eye care insurance, high-quality eyewear, ophthalmic technology and connected doctor-patient experiences.

To continue delivering the best results for their members, VSP Global set out to transform the way it approached the procurement process to drive better business outcomes, increasing stakeholder collaboration and visibility across the enterprise. The procurement team aligned on prioritizing four specific processes:

Stan Garber, President and Co-Founder at Scout RFP

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