The document discusses a study conducted by IBM on chief procurement officers (CPOs) at large companies. The study found that high-performing procurement organizations excel in three key areas: effective delivery of traditional procurement capabilities; influence within their company; and delivering innovative ideas from diverse sources. Only about 15% of surveyed companies demonstrated strengths in all three areas. These top performers focus on procurement fundamentals, collaboration, and developing new capabilities to address emerging challenges.
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
Effects of Good Procurement Practices for Company Financial ManagementNino Mayvi Dian
Procurement is one the most important function in all kind of businesses, because of its direct effect on company’s revenues and financial performance.
SME (Small & Medium Enterprises) mostly treat procurement function not as important compare to sales, operation, & finance functions (except for trading business), because they think this function could be done simultaneously by operation or finance functions, which this isn’t wrong, but it could be more optimized
Your prospect's are more frugal than ever before, requiring quantifiable proof that you are addressing a significant business issue, and that your proposal will deliver tangible bottom-line benefits.
This represents a challenge to your entire sales and marketing process, as a failure to proactively prioritize and justify your solutions can significantly stall or delay purchase decisions.
Do you have the value marketing and selling tools needed to deliver the financial justification today's frugal buyer demands?
In this webinar you will learn the methods used by world class sales enablement / marketing teams to meet the demands of today's economic-focused buyer.
You will learn how to:
- Break the status quo and increase the priority of your proposals via quantifying the "cost of doing nothing"
- Calculate and communicate the unique benefits or your solutions to various verticals and stakeholders
- Quantify your competitive advantage
- Reach higher to assure proposal signoff from CFOs and financial gatekeepers
Staying Strategic How Procurement must Change!Bill Huber
As traditional sourcing techniques become increasingly outdated, the procurement function must evolve to remain strategic, and procurement professionals must acquire new competencies.
You will learn:
How traditional roles within sourcing and procurement are changing
How robotics and other disruptors will impact the procurement function
Emerging requirements for procurement professionals
Specific capabilities and skill sets procurement professionals need
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
Effects of Good Procurement Practices for Company Financial ManagementNino Mayvi Dian
Procurement is one the most important function in all kind of businesses, because of its direct effect on company’s revenues and financial performance.
SME (Small & Medium Enterprises) mostly treat procurement function not as important compare to sales, operation, & finance functions (except for trading business), because they think this function could be done simultaneously by operation or finance functions, which this isn’t wrong, but it could be more optimized
Your prospect's are more frugal than ever before, requiring quantifiable proof that you are addressing a significant business issue, and that your proposal will deliver tangible bottom-line benefits.
This represents a challenge to your entire sales and marketing process, as a failure to proactively prioritize and justify your solutions can significantly stall or delay purchase decisions.
Do you have the value marketing and selling tools needed to deliver the financial justification today's frugal buyer demands?
In this webinar you will learn the methods used by world class sales enablement / marketing teams to meet the demands of today's economic-focused buyer.
You will learn how to:
- Break the status quo and increase the priority of your proposals via quantifying the "cost of doing nothing"
- Calculate and communicate the unique benefits or your solutions to various verticals and stakeholders
- Quantify your competitive advantage
- Reach higher to assure proposal signoff from CFOs and financial gatekeepers
Staying Strategic How Procurement must Change!Bill Huber
As traditional sourcing techniques become increasingly outdated, the procurement function must evolve to remain strategic, and procurement professionals must acquire new competencies.
You will learn:
How traditional roles within sourcing and procurement are changing
How robotics and other disruptors will impact the procurement function
Emerging requirements for procurement professionals
Specific capabilities and skill sets procurement professionals need
A Preliminary look at what trends will impact Purchasing Professionals in 2015. A continuation of popular series of discussions presented globally for the last 5 years by experienced purchasing professional Bill Kohnen. Primarily used as basis for further discussion at conferences and workshops.
Supplier Relationship and Value Management The five programme killers, and ho...Tejari
At the program level, David Atkinson, MD of consultants Four Pillars, provides a model for developing your organization’s supplier management strategy by introducing the five critical questions that will mean the difference between failure and success. For each of these questions, answers are provided that will get you thinking about how you will make Supplier Relationship and Value Management work for your organization.
Strategic Sourcing is a print, apparel and promotional products business that takes charge and helps all sized businesses benefit from scale of economy.
Strategic Sourcing’s platform is twofold; first, our aim is to help all sized businesses. With our association with numerous buying groups, affiliations with overseas manufacturers and internal sourcing structure Strategic Sourcing has the ability to accredit fantastic cost savings no matter the size of the purchase. We have the ability to let small and medium sized businesses make purchases of essential procurement and marketing products they were never able to in the past.
Secondly, we have built a better mouse trap for independent sales associates that allows the associate to do what they do best and that is sell. Strategic Sourcing has taken the approach of servicing our sales associates with dedicated customer service representatives that handle all back end operations. Starting with quoting, presentations to invoicing, collections and order follow up. With our SOP, MIS back end system we have the ability to embrace our sales associates with the service they truly need and entertain our customer service representatives with a system that will not bog them down with tedious additional system entrees. Our system is enabled to take a quote and use it as a flow through to the final stage of each job. Additionally, we have enabled a better commission structure that promotes our sales associates to strive for superior results.
With our two fold approach we offer a win win business model.
A world class procurement function is one that has a measureable impact on the organisation’s profit and loss and adds real commercial value. Find out how effective use of innovation and smarter working can help you get there.
Presented by: Gerard Chick, FCIPS (Optimum Procurement) at PfH Live 2014
S2 p strategic opportunity-s2p-implementation-0113-1Dr Gordon Murray
Addressing S2P (Source-to-Pay) is necessary for organisations today in order to reduce transaction costs, but that alone is not enough to drive real cost reduction and bottom line profitability. To derive the maximum benefit, organisations need to seize the opportunity created by the disruption of a S2P implementation to radically transform the way in which procurement is carried out throughout the organisation. This paper provides suggestions on how to make the most of the opportunity created by S2P implementation and makes recommendations on how to maximise the benefits,
Supplier Relationship Management Srm Research 2010 2011salleijn
This fifth SRM Survey marks Capgemini Consulting’s continued efforts to understand the trends and issues affecting organizations when implementing a SRM solution and provides insights for executives on issues and trends across the Procurement profession. Capgemini Consulting has surveyed 100 SRM vendors over the last five years, with this edition surveying twenty vendors with a global geographical scope and worldwide implementations. These vendors represent a broad range of applications that provide full coverage for all sub-processes to niche players supporting only a selected functionality
A full copy of the report can be downloaded from:
http://www.capgemini.com/insights-and-resources/by-publication/supplier-relationship-management-srm-research-20102011/
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
The Journey to value: Transforming procurement to drive the enterprise agendaFarid Djaouani
The link between procurement performance and enterprise success is widely accepted and well documented; our 2013 CPO study found, for example, that companies with high-performing procurement organizations have higher profit margins than companies with underperforming procurement departments. Indeed, while many CPOs have led companies to dramatic increases in revenue or impressive levels of profitability, few are adequately recognized for these achievements. Those CPOs—the ones we call procurement role models—drive top-line revenue, bring innovation into the company and improve competitive advantage. They contribute to overall enterprise success and, as a result, certainly deserve a seat at the corporate leadership table. To identify procurement operations worthy of such praise, as well as to understand the underpinnings of their success, the IBM Institute for Business Value and Economist Intelligence Unit surveyed 1,023 CPOs from organizations with annual revenue in excess of US$1 billion. We also took a close look at the 100 companies that achieved the most impressive revenue and profit performance relative to their industry peers so that we could understand the strategies and actions that account for their uniquely valuable contributions to the enterprise.
A Preliminary look at what trends will impact Purchasing Professionals in 2015. A continuation of popular series of discussions presented globally for the last 5 years by experienced purchasing professional Bill Kohnen. Primarily used as basis for further discussion at conferences and workshops.
Supplier Relationship and Value Management The five programme killers, and ho...Tejari
At the program level, David Atkinson, MD of consultants Four Pillars, provides a model for developing your organization’s supplier management strategy by introducing the five critical questions that will mean the difference between failure and success. For each of these questions, answers are provided that will get you thinking about how you will make Supplier Relationship and Value Management work for your organization.
Strategic Sourcing is a print, apparel and promotional products business that takes charge and helps all sized businesses benefit from scale of economy.
Strategic Sourcing’s platform is twofold; first, our aim is to help all sized businesses. With our association with numerous buying groups, affiliations with overseas manufacturers and internal sourcing structure Strategic Sourcing has the ability to accredit fantastic cost savings no matter the size of the purchase. We have the ability to let small and medium sized businesses make purchases of essential procurement and marketing products they were never able to in the past.
Secondly, we have built a better mouse trap for independent sales associates that allows the associate to do what they do best and that is sell. Strategic Sourcing has taken the approach of servicing our sales associates with dedicated customer service representatives that handle all back end operations. Starting with quoting, presentations to invoicing, collections and order follow up. With our SOP, MIS back end system we have the ability to embrace our sales associates with the service they truly need and entertain our customer service representatives with a system that will not bog them down with tedious additional system entrees. Our system is enabled to take a quote and use it as a flow through to the final stage of each job. Additionally, we have enabled a better commission structure that promotes our sales associates to strive for superior results.
With our two fold approach we offer a win win business model.
A world class procurement function is one that has a measureable impact on the organisation’s profit and loss and adds real commercial value. Find out how effective use of innovation and smarter working can help you get there.
Presented by: Gerard Chick, FCIPS (Optimum Procurement) at PfH Live 2014
S2 p strategic opportunity-s2p-implementation-0113-1Dr Gordon Murray
Addressing S2P (Source-to-Pay) is necessary for organisations today in order to reduce transaction costs, but that alone is not enough to drive real cost reduction and bottom line profitability. To derive the maximum benefit, organisations need to seize the opportunity created by the disruption of a S2P implementation to radically transform the way in which procurement is carried out throughout the organisation. This paper provides suggestions on how to make the most of the opportunity created by S2P implementation and makes recommendations on how to maximise the benefits,
Supplier Relationship Management Srm Research 2010 2011salleijn
This fifth SRM Survey marks Capgemini Consulting’s continued efforts to understand the trends and issues affecting organizations when implementing a SRM solution and provides insights for executives on issues and trends across the Procurement profession. Capgemini Consulting has surveyed 100 SRM vendors over the last five years, with this edition surveying twenty vendors with a global geographical scope and worldwide implementations. These vendors represent a broad range of applications that provide full coverage for all sub-processes to niche players supporting only a selected functionality
A full copy of the report can be downloaded from:
http://www.capgemini.com/insights-and-resources/by-publication/supplier-relationship-management-srm-research-20102011/
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
The Journey to value: Transforming procurement to drive the enterprise agendaFarid Djaouani
The link between procurement performance and enterprise success is widely accepted and well documented; our 2013 CPO study found, for example, that companies with high-performing procurement organizations have higher profit margins than companies with underperforming procurement departments. Indeed, while many CPOs have led companies to dramatic increases in revenue or impressive levels of profitability, few are adequately recognized for these achievements. Those CPOs—the ones we call procurement role models—drive top-line revenue, bring innovation into the company and improve competitive advantage. They contribute to overall enterprise success and, as a result, certainly deserve a seat at the corporate leadership table. To identify procurement operations worthy of such praise, as well as to understand the underpinnings of their success, the IBM Institute for Business Value and Economist Intelligence Unit surveyed 1,023 CPOs from organizations with annual revenue in excess of US$1 billion. We also took a close look at the 100 companies that achieved the most impressive revenue and profit performance relative to their industry peers so that we could understand the strategies and actions that account for their uniquely valuable contributions to the enterprise.
Business excellence is not about getting an assessment score by following a model, its about achieving tangible, intangible results of what matters, here is presenting BMGI's approach to Business Excellence. Reach out : prashantj@bmgindia.com for more details
Sales Compensation Solution Acquisition Best Practices ReportDemand Metric
This guide suggests a better process for acquiring an ICM solution. For many companies, sales compensation is the largest component of Sales, General and Administrative (SG&A) costs. The monthly calculation and payment of variable sales compensation is often an arduous, manual process that must accommodate a number of exceptions and changes: rarely does a sales compensation plan start and end a fiscal year intact.
The plan must survive the attrition and addition of sales representatives. It must accurately calculate and pay commissions on time, as there are risks and trust issues involved when it doesn’t. While the sales compensation plan is, theoretically, an enabler of revenue growth, these characteristics prevent it from scaling as the business grows.
This guide will examine the problems that motivate ICM solution acquisition, the limitations of acquiring one through a traditional RFP, a recommended approach, an example project plan and conclude with a discussion of associated risks and rewards.
To obtain this document, visit us at http://www.demandmetric.com/register
5 transformative strategies to unlock more-procurement_value_ardent partnersBravoSolution
The current generation of procurement professionals has witnessed first-hand a period of unrivaled advances for their profession as market forces and new technologies combined to pull procurement to the center of business operations and business results. While the foundation of procurement's future will be built upon the past, the strategies and approaches that drive new successes will be markedly different. This report looks at the transformative strategies that will unlock procurement's next wave of value.
Read the study to find out how successful organisations are able to convert high-level Analytical strategies into actions that truly deliver business value.
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💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
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Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
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CPO Study - Executive summary
1. IBM GLobal business services
Executive Summary
Procurement
Chief Procurement
Officer Study
Improving competitive advantage through
procurement excellence
Like other strategic functions in the enterprise, procurement’s role
continues to evolve. From 2008 to 2012, many companies looked to
procurement to help facilitate aggressive cost-cutting targets necessi-
tated by a global economic downturn. As economic realities continue to
shift, the procurement function must again adjust. To understand what
actions and decisions have led to success in the past, and to derive
insights on what responses might work best in the future, we surveyed
1,128 CPOs from organizations with annual revenue in excess of US$1
billion.
Through our research, we discovered three key points of differentiation
that separate high-performing procurement organizations from the
pack (see Figure 1):
1. Effective delivery of traditional procurement capabilities
2. Influence within the enterprise over purchasing and strategic
decisions
3. Delivery of innovative ideas from a diverse range of inputs
The few procurement organizations that consistently deliver on all
three of these important dimensions, approximately 15 percent of the
organizations we surveyed, offered unique insights into what works best
to move the procurement needle in the right direction. CPOs from
these high-performing organizations maintain focus on procurement
fundamentals, extend procurement’s value through collaboration and
develop new capabilities to address emerging procurement challenges.
IBM Institute for Business Value
Overview
To the uninitiated, procurement may
seem like a “back office” support
function. In fact, it can be a significant
contributor to organizational value
and a driving force behind gaining
competitive advantage. To understand
the links between procurement and
enterprise performance we conducted
one of the largest known survey of
procurement leaders to harvest
insights on what actions and decision
are driving positive results. We found
that to maximize its impacts on the
organization, the procurement
function must have a strong set of
fundamental capabilities, become an
influencer throughout the organization
and embrace innovation. The Chief
Procurement Officers (CPOs) of
organizations that demonstrate these
attributes often have a seat at the
corporate leadership table – while
their underperforming counterparts
are relegated to the more mundane
tactical roles.
2. IBM GLobal business services
Executive Summary
Procurement
Fundamental capabilities form the base of strong procurement performance
– The goal for procurement organizations is to dependably deliver
value to the companies they serve. To consistently deliver this benefit to
the enterprise, the procurement function must, at a minimum, be a
master of the fundamentals. Top performers get these basics right every
time. Regardless of the specific mission any individual CPO has carved
out for his or her organization, the primary mission is to reduce
procurement costs. Advancing this cause depends on a core set of
procurement capabilities that top performers achieve through consis-
tent application of the right performance metrics, effective upward
communication about performance success and standardization of the
processes and procedures that define the function.
Top performers are influential in the organizations they serve – Delivering
traditional procurement capabilities is important, but the hope of most
CPOs is to influence and improve the way the business operates. In this
regard, influence is another key element of procurement performance,
but fewer procurement organizations seem to excel in this area.
Top-performing procurement organizations recognize the value of
collaboration. Compared to their lower-performing peers, these top
performers excel at both internal collaboration – collaboration between
employees – and external collaboration – collaboration with customers,
partners and suppliers.
Figure 1: Top performing procurement organizations have succeeded
in combining three important traits – they are capable, influential and
innovative.
Influential
Innovative
Capable
Influential
377 respondents
33% of total
Top performers
168 respondents
15% of total
Innovative
306 respondents
27% of total
Capable
607 respondents
54% of total
Emerging
429 respondents
38% of total
Source: 2013 Chief Procurement Officer Study, IBM Institute for Business Value.
3. IBM GLobal business services
Executive Summary
Procurement
Top performers bring innovative ideas into the organization – While about
one half of procurement organizations are effective and a third are
influential, even fewer are innovative. Those that are indicated they
look for innovation across a wide range of sources. They achieve results
by staying ahead of change. For example, leading procurement organi-
zations embraced fundamentals like automation and collaboration
before they were common. Similarly, top performers are currently at
the leading edge of risk management, procurement analytics, and talent
management, and we expect the focus on these key three areas will
continue to confer advantage to the CPOs who excel in these areas.
To learn more about how to steer the ship of corporate procurement
in a direction that will drive competitive advantage, download the
complete IBM Institute for Business Value executive report at
ibm.com/business/value/chief-procurement-officer
How can IBM help?
• Business Consulting and Delivery Services – IBM helps CPOs and
the teams they lead formulate and implement programs to respond to
the changing market realities facing the procurement function. We
can help align organizational structure and metrics to improve
performance on the procurement fundamentals, strengthen collabo-
ration and connectedness to the internal and external communities
that contribute to procurement success and help make risk manage-
ment and analytics a defining feature of the procurement function.
• Procurement Solutions – IBM offers a comprehensive portfolio of
solutions that help procurement teams:
- Simplify and automate procurement business processes to drive,
grow and sustain savings, and manage risk and compliance
- Facilitate smoother, more effective partner and supplier interactions
to deliver a globally integrated supply chain
- Analyze spending patterns and past performance to identify and
implement additional savings opportunities, identify volatility and
maximize predictability
To request a full version of this paper, e-mail us at iibv@us.ibm.com
Key Contacts
Business Consulting and
Delivery Services
David Rosselli
david02@us.ibm.com
Kevin Donaldson
donaldsk@us.ibm.com
Procurement Solutions
Lori Webber
lwebber@us.ibm.com
Doug Macdonald
macdonad@us.ibm.com
Global Process Services:
Bill Schaefer
wss@us.ibm.com
Authors
Steve Peterson
steve.peterson@us.ibm.com
Lori Webber
lwebber@us.ibm.com
David Rosselli
david02@us.ibm.com