What Can Your Procurement Data Tell You?
You might not realize it yet, but your procurement data can tell you a lot. It’s not just numbers either, it can tell you a story about what is going on within your organization -- and even further afield.
You might not realize it yet, but your procurement data can tell you a lot. It’s not just numbers either, it can tell you a story about what is going on within your organization -- and even further afield.
CPOs are always looking for new ways to increase internal advocacy and improve strategic value to elevate the role of Procurement. As the lead of an organization’s financial vision, CFOs can support their counterparts in Procurement by helping them achieve this goal.
For CFOs looking to build up that relationship, we suggest starting the conversation by focusing on building a strategic procurement plan aligned with Finance’s working capital strategy.
Jane Zhang and Naz Rahman, ETCH Sourcing
The value creation challenges we faced decades ago are the same that organizations still grapple with today. The main difference, however, is that the rate of innovation is accelerating daily. So, although studying the past should be a part of your strategy, we need to be careful it does not become a comfortable crutch. We cannot chart a path forward by looking backwards.
Without a doubt, international business travelers face a high risk of cybersecurity breaches. If you travel for work, you’ll likely have to do business on more than one device, including laptops and smartphones. If your trip is for pleasure, you might use a phone or tablet to share special moments and keep in touch with folks back home. The information on your computer or mobile device is sensitive, and you don't want it to fall into the hands of the wrong person.
In today’s business world, time isn’t just money. Time is everything. To achieve a competitive advantage, procurement teams must complete their business objectives with more agility than ever.
But what does more agility in purchasing and contracting practices actually mean? How can a business adapt its existing operations to keep pace with industry leaders and mitigate high-level risk without sacrificing quality, compliance or reliability?
Inflation is a word that has been on the minds of every procurement team in 2021. We are seeing a sustained period of supply shortages and price volatility of the kind that most commercial professionals will not have experienced in their working lives. In one way or another, it is having an impact on virtually every business.
Global trends, including the COVID-19 pandemic, have taught procurement professionals the value of identifying supplier red flags and mitigating the risks they may pose before it’s too late. To do this, some organizations are making local buying their top priority, while others are committing to consolidating their supplier lists or further diversifying as their needs demand.
Any smart procurement executive knows that you need to spend money to make it. You might find people who believe you can start and operate your business without any significant investments. But that approach can lead to challenges of its own.
The best-performing procurement organizations traditionally operate at a lower cost than typical procurement organizations (i.e., peers), while also providing greater strategic value and overall effectiveness.
Recently DATAMARK, Inc., held a webinar on Business Continuity Planning. The three panelists discussed what was missing or did not receive sufficient attention in business continuity plans and the repercussions it can have for businesses worldwide.
The panelists were largely in agreement that many plans fall short when assessing the human impact of a potential disaster such as the COVID-19 pandemic. Most plans tend to place a disproportionate emphasis on physical things like buildings, transportation arteries, communication networks and data centers.
Suppliers are mission-critical partners for business success. Unfortunately, too often, an “arm’s length” relationship creates problems that are revealed only after it’s too late.
When suppliers feel conversations only occur after poor performances, the opportunity to have a productive, collaborative conversation may already be over.
Risk plays a role in every decision that is made by every business – and the supply chain is certainly no exception. Every supplier choice, contract negotiation and procurement transaction involves an unavoidable element of risk.
But just because risk can never be fully eliminated, that doesn’t mean it’s ok to leave it up to chance. Effective supply chain risk management demands continuous attention, careful planning and thoughtful execution.
Sourcing leaders today operate within an intricate web of interconnected buyers and suppliers from around the globe. When awarding parts of a business, companies must weigh more than the cost of what they buy. Prospective suppliers have to be viewed through multiple lenses. Prioritizing cost savings alone may seem like a clear win for your bottom line, but it can lead to missed opportunities to capitalize on other forms of value that suppliers can extend.
With 80% of an organization’s sustainability impact intertwined in its supply chain, businesses will need to identify where they can work with suppliers to realize their corporate purpose ambitions. On average, over 90% of an organization’s carbon footprint sits in “scope 3,” mainly in its supply chain and product lifecycle. Defer that logic across the wider scope of business initiatives, and you uncover a better understanding of where most sustainability lies.