SpendEdge: 5 pro tips for an impactful procurement process
SpendEdge, a world-leading real-time procurement market intelligence solutions provider that helps sourcing and procurement professionals make informed decisions, offers for a more impactful procurement process.
We thought we would share.
Don’t rely on technology to fix all your problems
Technology can streamline workflows and make for easier ways of working. It can also provide you with valuable insights to help you manage risks and make more informed decisions. It isn’t, however, a magic pill. “Investing heavily in technology without training practitioners on how to use it may create a situation in which the platform or program becomes too burdensome to support. Analytics is virtually useless if the end-user cannot interpret the data or attempts to circumvent the procurement process altogether.”
Rather than throwing a bunch of ideas at the wall and seeing what sticks (nothing will), ensure you take a balanced approach when it comes to technology and that you leverage it where the greatest opportunities are.
Don’t just measure cost savings
Cost savings remains and is likely to remain the prime measurement of success for procurement. However, world-class procurement organisations look outside of cost-cutting for efficiency and service improvements and long term cost reduction opportunities, both within the procurement function itself and within the enterprise. Procurement must align their priorities with the organisation’s and develop KPIs to measure the areas they have the most influence over.
Don’t drop the ball on strategic sourcing
Procurement strategies shouldn’t be allowed to get stale. In order to optimise outcomes, strategic sourcing must remain a priority and should be an iterative, dynamic process.
“A significant and often underestimated pitfall within procurement is the extent of their involvement in the strategic sourcing and procurement process. The function needs to be reframed and remain active throughout the implementation phase to deliver savings that impact the bottom-line.”
Leverage Procurement as a Business Partner
“Since stakeholders are directly affected by the impact of any procurement decision, they have high expectations from the procurement process and want them to quickly get up to speed in understanding the specific needs of their function. Consequently, it becomes critical that procurement sets realistic expectations for each business stakeholders’ involvement in the sourcing process, outlining roles and responsibilities to enable accountability and form healthy business partnerships.”
Seek Alternative Solutions
Procurement teams looking to increase their impact on the organisation should look to collaborate with stakeholders and suppliers, leverage innovative tools and identify strategic initiatives. Again, KPIs should appropriately capture procurement’s influence on the chosen strategic objectives.
“By involving themselves early on in a sourcing and procurement process, proactively engaging stakeholders and customising solutions per the department’s needs, the function is successfully able to deliver value and increase their scope of support.”
With expertise in supply market intelligence, spend analysis and benchmarking supply chain risk assessment, and category management, SpendEdge covers a broad range of industries from pharmaceutical and life sciences to transportation.
Coupa Launches US$50 Million Ventures Fund
Operational resilience and agility. Following the events of the last twelve months, companies have focused on these strategic areas like never before. Some, as we’ve noted, have started to wonder whether this trend will continue post-pandemic—or will we go back to the same old supply chain? Not if Coupa Software has its way.
Last week, the company launched Coupa Ventures, a global fund that will invest US$50mn in early- and growth-stage companies that target business spend inefficiencies. “Coupa Ventures enables us to invest in a future where businesses and their suppliers can harness the power of their spend to constantly adapt, transform, and innovate”, said Rob Bernshteyn, Coupa’s Chairman and CEO.
What’s Business Spend Management (BSM)?
Let’s be honest, it doesn’t sound particularly sexy—it sounds like a subsection of the finance department. But business spend management, together with ERP (enterprise resource planning), CRM (customer relationship management) and HCM (human capital management) make up the core operating process of any company out there. When companies spend money, sign contracts, analyse supplier costs, take inventory or budget for the future, that’s BSM. Overall, business spend management is made up of three main areas: procuring materials, managing invoice, and handling expenses. Essentially, it’s the engine of the entire operation.
Why Change It Up?
According to Coupa, the next wave of BSM is now. It wasn’t always this way: in March of 2016, advisory giant Gartner claimed that BSM was dead. At that time, the firm was partly right. Companies couldn’t handle trillions of bits of data by themselves—and they were sinking as the waves of big data swept over their heads.
But recent developments have meant that BSM isn’t fated to die just yet. “The key to optimisation is data—and not just any data”, Coupa stated. The company has supported community intelligence, in which machine learning uses anonymised data from hundreds or thousands of client companies to suggest better spend tactics. This way, companies can get better insight into their suppliers, track supply chain disruptions, and investigate procurement alternatives.
This network effect is part of what makes Coupa Ventures so exciting. Said Eric Christopher, co-founder and CEO of Zylo, “We’re excited to join an expansive ecosystem of customers, suppliers, and partners”.
First Companies in the Ventures Portfolio
- Zylo, a leading SaaS management platform that helps companies manage cloud-based applications, offers visibility into what software is being used, how much is present, and how a company can optimise its software investments.
- SourceDay, a leading supply chain performance solution, bridges the gap between a company’s enterprise resource planning (ERP) and its supply chain network.
At SourceDay, Coupa’s investment is heralded as a chance for the company to really take off. “The investment from Coupa Ventures will...enable our joint customers to save money and leverage supplier performance as a competitive edge”, said Tom Kieley, SourceDay CEO. “We’re honoured to expand our relationship with the Coupa ecosystem”.
Looking ahead, Coupa will capitalise on community intelligence to help its partners make smarter spending decisions. “[Organisations will] place bets on which investments will quickly pay off to accelerate their growth and resilience in the post-pandemic economy”, said J.J. Freitag, senior vice president of Corporate Development at Coupa. “[And] we’re looking to back the best ideas across Europe and beyond to help businesses build back even stronger”.