Procurement

How Procurement Can Enable Insurance Companies to Deliver Value to Claims Management

Posted: 08/22/2020 - 02:36
Author: Tunir Chatterjee
Procurement’s key metric is vendors’ value contribution, not cost.

At U.S. insurance companies, policyholders’ claims represent 70% to 75% of the total cost. This makes complete sense, of course, since policyholder benefits are the sole reason why anyone buys insurance products and services.

The problem is, at insurance companies, procurement is limited to supporting indirect spend — real estate, marketing, finance, etc. — which accounts for less than 10% of the organization’s total costs and severely limits our ability to provide substantive value.

Managing Marketing Procurement Through a Kraljic Lens

Posted: 08/10/2020 - 23:38
Author: Sarah Scudder
Kraljic’s model classifies purchased products and services along two dimensions: profit impact and supply risk.

In a landmark 1983 article in the Harvard Business Review, Peter Kraljic introduced a purchasing portfolio model using a 2 x 2 matrix. The Kraljic model was based on the premise that purchased products and services can vary significantly in terms of importance and risk.  Based on this, procurement professionals should use different sourcing and supplier management strategies depending on the importance and risk profile of each purchase.

Rethinking the Future for Resilient Sourcing and Beyond

Posted: 06/29/2020 - 23:52
Author: Atul Vashistha
Future of Resilient Sourcing

While the COVID-19 pandemic is far from over, enterprises are looking beyond the current crisis with the hope of pandemic-proofing their supply chains and operations to build resiliency. But that view is too limited to build true resiliency. The next global business disruption crisis might be a pandemic, but it might also be something entirely different or so novel it's never been considered. Today's resilient enterprises need to embrace a mindset shift to view risk through a much wider lens.

Procurement’s Calling is to Protect the Business in Times of Crisis

Posted: 06/19/2020 - 05:22
Author: Michael Roesch
Procurement crisis

The coronavirus outbreak is having a profound impact on every business’ supply chain. The U.S. manufacturing PMI indicated the worst contraction in production, new orders, and employment since the 2008 recession. Nearly 75% of companies report supply chain disruptions in March, a number most expect to rise further.

How to Manage the Hardest Part of a New Tech Project – The People

Posted: 06/10/2020 - 23:23
Author: Tania Seary
technology implementation

The business case is signed off and the technical back-end work is complete. Now all that’s left is to implement your shiny new procurement system.

How hard could it be? Quite hard, actually. In fact, if the take-up of your new system doesn’t go well, the whole project could fail.

But don’t worry. That won’t happen to you with these top tips to guide you through the change management process.

Deliver Savings and Technology Transformation in a Recession

Posted: 06/10/2020 - 05:22
Author: Martin Stark
Procurement technology transformation

The primary goal of a procurement function to achieve savings carries greater significance in a recession when obtaining the lowest cost possible needs to be balanced with not compromising the quality of products and services delivered by suppliers. A secondary goal could be supporting major technology transformation projects. These goals are made more difficult when economic disaster strikes.

Applications of Artificial Intelligence in Procurement

Posted: 06/04/2020 - 04:52
Author: Steven Sargent
Artificial Intelligence in procurement

Today, about 80% of large organizations are using artificial intelligence in their core business – compared to about 10% just five years ago. Companies that focus on AI are harnessing opportunities from vast data availability, machine learning and complementary technologies such as cloud, Internet of Things (IoT) and 3-D printing. And they are doing so with a focus on short-term benefits as well as long-term growth. According to Harvard Business Review, if you miss out, the opportunity cost could be as much as 41% of revenue by 2023.

Online Collaboration is Needed Now More Than Ever

Posted: 06/02/2020 - 00:54
Author: Sophie Pope
technology, automation and data acheives business continuity

We know that procurement is often a juggling act! We use decent supplier relationships, purchasing power, and any other tools in our belt to secure best payment terms, highest quality purchases at the lowest price, or indeed best value, to ensure vital continuity of supply against a backdrop of supply chains becoming ever more complex and volatile!

Strategies to Drive Procurement Compliance and Manage Rogue Spend

Posted: 06/01/2020 - 21:54
Author: Dan Anzevino
Procurement Compliance and Spend Management

Compliance is a critical purchasing success factor. Aside from the tremendous amount of financial impact, compliance has other positive outcomes. When employees comply with purchasing through designated supplier programs, it significantly streamlines the supply chain, allowing your organization to be agile and flexible.

THE NEED FOR ONLINE COLLABORATION — NOW, MORE THAN EVER!

Posted: 05/11/2020 - 23:10
Author: Sophie Pope
ONLINE COLLABORATION

In this two-part blog series, we’ll take a look at how to better position organizations in order to improve business continuity and resilience. Part 1 looks at the current state of collaboration between procurement and finance, and what these two teams can start doing to improve workflow, efficiency and bottom-line impact.

B2B Digital Marketplaces: Paving the Way Forward in Procurement and Sourcing

Posted: 05/06/2020 - 05:32
Author: Sharon Ruddock
B2B Digital Marketplace

Growing a recognizable brand while remaining cost-efficient are two key imperatives for businesses as they continue to transform their organizations digitally. Procuring software through digital channels and online solutions is increasingly popular as a way to keep pace with these initiatives.

Making Indirect Spend Take the "Shortest Way"

Posted: 05/04/2020 - 02:26
Author: Julien Nadaud
Indirect Spend

Procurement is famous for our terminology – it is perhaps the one area where we’ve mastered the fine art of marketing. The labels "direct" and "indirect" spend are a perfect example. Direct spend materials are eventually sold to the customer, and therefore they are essential. Very important. The management of direct spend determines the size and health of the corporate top line. As a result, procurement may or may not have access to manage direct spend categories.

2020: The End of Procurement

Posted: 04/10/2020 - 04:46
Author: Amanda Prochaska
Procurement in 2020

A new year and a new decade brings about the end and the beginning of many things. Hopefully the new decade brings an end to the angry woman and cat meme as well as the retirement of the man bun (sorry, it’s not my style). All kidding aside, the new decade brings hope, a chance to renew, a time to reflect and an opportunity to leave the past in the past.    

A Brave New Supply Chain World

Posted: 04/08/2020 - 02:49
Author: Edmund Zagorin
World Supply Chain

To understand long-term transformations in supply chain and procurement technology, supply chain professionals must be able to understand present trends so they can help shape future realities. Experts believe the following predictions are viable hypotheses that we should consider for 2030.

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