SIG Speaks Blog

The Truth About Category Management

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With the evolution of procurement and the shift from a reactive, “three-bid-and-buy” scenario to more advanced means of sourcing, Category Management often is a concept best placed at the latter end of the spectrum. This makes sense because if you still quote products and services on an as-needed basis, you likely haven’t introduced the concept of collectively sourcing all spend within the category or subcategory. That reactionary approach may be the result of several things -- lack of support from the business, a misunderstanding of Procurement’s role, an inadequate process or workflow, or a combination of all of the above.

On the other side, many organizations have Category Management structures in place, or at least claim to. From my experience, an organization saying it has a framework for Category Management and an organization actually having such a framework are two very different things. More often than not, organizations will either employ a homegrown version of the methodology or leverage something that’s really not like Category Management at all.

>>Catch up on all the latest topics on Category Management

Category Management can be approached differently based on several factors, including the industry you are in, whether you are service or product focused, what model of procurement you apply (centralized, decentralized, or center led), what drives the most spend in the organization and so on. As a result, I don’t think there is a strict rulebook on how to apply Category Management to your business.

While no two organizations will approach Category Management the same, these best practices should help any organization ensure their unique methodology is effective.

Jennifer Ulrich, Associate Director, Source One, a Corcentric Company

SIG Speaks Weekly Briefing - February 18

Here's your weekly update on the latest thought leadership, networking events and training with SIG. 

Procurement’s Vital Role in Building a Talent Forward MSP Program

As we look into the future of contingent workforce management, and the vision of what a Managed Services Provider (MSP) solution should deliver, we must acknowledge that many of today’s MSP programs are failing to deliver on their original promise. It is time for a change.

Free Industry Research

Coupa Software commissioned Forrester Consulting to evaluate the state of services and contingent workforce management, addressing the unique set of challenges firms face, the kinds of software tools needed to support services spending, and the internal adoption and usage of these tools.

SIG University Open Enrollment

Today’s students become tomorrow’s leaders! Join best-in-class sourcing and procurement teams to proactively manage risk, utilize best-in-class methodologies and activate innovative ideas. Take advantage of a 15% discount if you enroll by March 15th. Classes start on April 15th.

Hailey Corr, Content Manger

Why I’m in Love with Impact Sourcing

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“Impact sourcing results in a more engaged and motivated workforce for companies,
and enables them to increase their global competitiveness.” — The Rockefeller Foundation

You need the work done and there are countries that are disadvantaged, war-torn or underemployed that have motivated, educated workers who can perform the work you need. It truly is the correct choice. Why continue outsourcing to developed countries or countries in which the vast majority of people already have access to the middle class?

Did you know that outsourcing to India is the number one reason it now has a thriving middle class? Are you aware that through outsourcing an entire generation was lifted out of poverty in both China and India? Do you know that when you outsource to a country, it can change the trajectory of people’s lives? In a 2003 speech, Anne Krueger, First Deputy Managing Director of the IMF stated that the impacts of globalization have benefited both India and China by lifting millions of people out of poverty since 1980 and putting tens of millions of people firmly into the middle class. In addition, China has seen their extreme poverty rate fall from 84 percent to about 10 percent largely because of trade, reports the Economist.

Dawn Tiura, President and CEO, SIG

Procurement’s Vital Role in Building a Talent Forward MSP Program

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As we look into the future of contingent workforce management, and our vision of what a Managed Services Provider (MSP) solution should deliver, we must acknowledge that many of today’s MSP programs are broken and failing to deliver on their original promise. These legacy programs have become ineffective, pushing managers and talent into a broken process and creating endless frustration. To the point where, after having squeezed every last penny from the staffing supply chain, they are no longer delivering the best talent to the client.

We call today’s market reality “MSP v1.0” and in many programs it is represented by a command and control mentality where the MSP actively prevents staffing suppliers from speaking to the business managers who have created requisitions for new workers, enforces unrealistic pricing restrictions, and delivers an anemic value proposition through a burdensome and time-consuming process.

It is no wonder that many hiring managers are frustrated with their organization’s contingent workforce program, and as a result, many legacy MSP program stakeholders discover huge amounts of rogue spend taking place outside of their programs. We’ve even seen recent examples where procurement and HR stakeholders have become so disenchanted with their MSP program providers that they are actually considering taking the draconian step of shifting their programs in-house.

It is clearly time for a change.

Hay's Talent Solutions

SIG Speaks Weekly Briefing - February 11

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Here's your weekly briefing of the latest thought leadership, networking events and training with SIG. 

New Speakers Announced for the Midwestern Regional SIGnature Event

The Midwestern Regional SIGnature Event will take place on March 6 at the beautiful Minneapolis Central Library downtown. The impressive line-up of speakers includes Nancy Brooks, Vice President of Procurement Commercial Office with Best Buy; Rohan Ranadive, SVP, Head Intelligent Automation at BB&T; Linda Tuck Chapman of Ontala; Shirley Hung, a Vice President with Everest Group; Clare Horn, Process Excellence Lead of Virtual Operations; and Dawn Tiura the President and CEO of SIG. Join us for a full-day of thought leadership and networking. This is a free event for buy-side participants and their team! Visit our website to see the agenda and register. 

Free Industry Research

When critical supply chain partners are financially weak, they become more likely to be the source of unpleasant surprises. Such supplier problems can damage a company’s brand reputation and sales. To avoid surprises, companies can leverage risk management strategies and predictive analytics to gain visibility into latent supply chain risks. 

SIG University Open Enrollment

SIG University continues to certify the most well-rounded procurement professionals in sourcing, supply management and third-party risk management. Take advantage of a 15 percent discount when you enroll by March 15. Classes begin on April 15.

Stacy Mendoza, Digital Marketing Specialist

Best Practices and Resources for Presenting at Industry Events

A man gives an industry presentation to an audience.

Presenting at an industry event is an important step in any professional's career. It is also an excellent opportunity to promote, showcase and reward a team for a job well-done. But most importantly, it is a critical factor in keeping an industry relevant, competitive and strong. Every professional worth their salt should consider it their duty to share their successes and failures.

Of course, in order to present at an industry event, you must first submit a proposal in the form of a session abstract. Sourcing professionals are well versed in writing business cases and category strategies, and we have all read our fair share of good and bad proposals. However, when it comes to writing a speaking proposal, many sourcing professionals don’t give it the time or energy it deserves. These abstracts are often used as written to describe your session, and if the goal is to share your thought leadership, you will want to make sure your abstract gets your audience’s attention. Consider the following five tips to write a compelling proposal for your next industry event.

Why present?

To write a good proposal, first define your objective for presenting to help drive the format and content. You may decide to present to showcase you or your team's achievements and thereby gain recognition. Or you may use the opportunity to establish yourself as a thought leader on a particular subject. Presenting in a room of peers or potential clients can also help you better understand the trends in your industry and the needs of your customers.

Mary Zampino, Senior Director of Global Sourcing Intelligence

SIG Speaks to Shirley Hung, Vice President, Everest Group

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Shirley is a Vice President on the Business Process Services team with Everest Group. In this role, she advises senior stakeholders of global services including enterprises, service providers and investors in their strategic mandates and initiatives. She shares her take on the digital transformation – what companies need to do to stay relevant and the trends she’s seeing in the market and the industry.  Shirley will share her expertise on this topic at the Midwestern Regional SIGnature Event in March and the Eastern Regional SIGnature Event in September.

Your presentation at the Midwestern Regional SIGnature Event is about buying digital services for your enterprise--why is this such an important topic?

Digital transformation is impacting entire business value chains. Companies that do not have a plan to migrate from traditional models to focus on digitally led solutions will become irrelevant and obsolete. How organizations approach the building of their digital capabilities can result in real market differentiation, and a large part of that strategy depends on how they partner with global service providers and vendors.

The swift evolution of the digital landscape means procurement and sourcing teams must understand the implications of buying digital services so they can support their business and functional customers in obtaining the best outcomes from their digital strategies.

Stacy Mendoza, Digital Marketing Specialist

This Month at SIG – February

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January saw record low temperatures all over the country and February shows no signs of easing up! Make the most of your time inside by getting caught up on the latest industry research from the experts at GEP, Coupa, Forrester and RapidRatings. Or if you’re itching to get outside the office, consider attending the Executive Immersion Program in New York City on February 7.

Executive Immersion Program with Morgan Lewis

Morgan Lewis Offices, New York City
February 7

The powerhouse team from Morgan Lewis Law will be holding a masterclass on contract drafting, complex negotiations and artificial intelligence in sourcing. Morgan Lewis Partner Edward Hansen draws from his years of experience to discuss the principles of contracting and how to negotiate a transformational deal. You can expect controversial topics and lively discussions.

This interactive masterclass will include direct examples from experienced and innovative industry leaders who focus on information technology-enabled transformation as well as customer and vendor outsourcing deal management. This workshop is specifically designed for business leaders, practitioner sourcing professionals, and in-house counsel who work together to create value for their organizations.

New Industry Research

Addressing the Services Spend Management Challenge

Coupa Software commissioned Forrester Consulting to evaluate the state of services and contingent workforce management, addressing the unique set of challenges firms face, the kinds of software tools needed to support services spending, and the internal adoption and usage of these tools.

 

Stacy Mendoza, Digital Marketing Specialist

SIG Speaks Weekly Briefing - January 28

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This week closes out the first month of 2019 and we hope you are on track to meet your weekly, monthly and quarterly goals. This week, take a dive into industry research on contingent workforce management, explore SIG University's spring courses and get the details on a new masterclass at the February New York Executive Immersion Program.

Free Industry Research

Coupa Software commissioned Forrester Consulting to evaluate the state of services and contingent workforce management, addressing the unique set of challenges firms face, the kinds of software tools needed to support services spending, and the internal adoption and usage of these tools. 

SIG University Spring Enrollment is Open

Although we're in the midst of winter, spring is around the corner! Spring is the time for things to renew and refresh. Why should your professional development be any different? SIG University's spring sessions start on April 15th.

Students and teams who enroll by March 15th will receive a 15% early enrollment discount! Don't leave savings on the table, get started today!

New York City Executive Immersion Program

When: February 7, 2019 at 8:30am - 4:30pm

Where: Morgan Lewis Offices in New York, New York

Stacy Mendoza, Digital Marketing Specialist

Procurement Outlook in 2019: The Shape of Things to Come

The year 2019 in gold with glitter against a dark background.

Another year has rolled by leaving the same writing on the wall, only this time it’s louder and clearer: Digital transformation has well and truly arrived at procurement’s doorstep. 

But up until now, it has merely received a lukewarm welcome.

In 2019, that could change. The winds of digital transformation are slowly but surely turning the wheels of procurement and savvy procurement teams are beginning to acknowledge its benefits. This is evident from how procurement teams are beginning to perceive digital transformation.

Consider this: A recent Hackett Group study titled, 2019 Procurement Key Issues, has revealed that digital transformation is a critical goal for a majority of procurement departments in 2019.

That’s because over the years digital transformation has moved its way up the ladder in the procurement department. In 2018, more than 90 percent of procurement professionals said they believed digital transformation will fundamentally shift the way procurement services are getting delivered within two to three years, according to a Hackett Group survey. Compared with 2017, this is more than a 10-percent increase.

Remarkably, the percentage of organizations that have a formal strategy for digital transformation more than doubled in the last two years, from 32 percent in 2017 to 66 percent in 2018. In the same period, the number of organizations indicating they have the resources to handle the transformation also increased, from 25 percent in 2017 to 46 percent in 2018.

This is a clear indication that in 2019 the gap between the promise of digital transformation and leveraging it to its full potential will narrow.

At the same time, the gap between CPOs who haven’t yet embraced digital transformation and high-performing procurement organizations that have already gained a first-mover advantage will widen. They’ll have a lot of ground to cover to keep pace with the latter.

Zycus

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