Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week. Check in with us every Monday to stay up to date with the latest supply management articles.
Nick Heinzmann, Spend Matters, 10/5/2017
Many Procurement organizations still rely on manual, paper-based methods for their accounts payable processes. This not only wastes time, but could pollute data and leave companies vulnerable to fraud. An overly aggressive approach to AP can also damage - even destroy - supplier relationships. To succeed, organizations need to begin positioning AP as a strategic arm of their procurement and sourcing efforts.
Michael Lamoureaux AKA The Sourcing Doctor, Sourcing Innovation, 10/5/2017
The Doctor's holistic analysis of the sourcing process continues. This week, he addresses the tactical methods many organizations still apply their analyses. Countless hours are still spend manually collecting market pricing data and historical spend numbers. While humans certainly need to review and verify these figures, the hard work should be delegated to an automated spend analysis system. These can even help identify "hidden costs" that suppliers might attempt to get past the buyer. Next up are the negotiation and contracting stages.
Taking Control of Your Unmanaged Indirect Spend
Scott Dever, Spend Matters, 10/3/2017
Identifying and managing untapped areas of indirect spend is a great way for Procurement groups to deliver value, drive savings, and increase their influence across an organization. Top of the tail spend provides perhaps the greatest opportunity for improvement. Good spend visibility here can help identify and create new categories. Bringing all spend under management will prove crucial for Procurement professionals looking to become forces for change throughout their businesses. Their efforts will consolidate supply chains, increase competition, and reduce risk.