Part 1 of this blog series introduced common supply chain challenges and resulting spend management opportunities for companies of all sizes. The article then went into the philosophical and functional differences (if any) between the “spend management” and “supplier relationship management (SRM)” monikers. Further discussion was about what exact functional parts of this software category small and medium enterprises (SMEs) might need.

The real question should always be, “Do we manage spending and, if so, what solutions do we use to do it?” To my mind, sourcing, procurement, and spend analysis capabilities cover most of the spend control needs for midsized enterprises. Read the rest of this entry »

My previous blog entry about procurement commandments in a down economy also made me think about whether there are different priorities for the chief procurement officer (CPO) during prosperous economic times. Or, how different are (or should be) the CPO’s strategies in good versus bad times?

Well, the CPO’s fundamental objectives do not change: procure the physical goods and services needed by the company at the best possible mix of price and performance (non-price features). The focus can shift at times from operational streamlining to new product introduction (NPI) to supplier rationalization.

In lean times, however, there will be pressure to do even more with less, postpone large expenditures, and get additional concessions from suppliers (e.g., better shipping rates, rebates, discounts, or better payment terms, etc.). Amid all of this, the CPOs must provide high-quality service guidelines to their employees to encourage the proper use of systems and policies, and to reduce maverick purchasing practices. Read the rest of this entry »

As is the case with white papers, vendors’ press releases (PR) can range from blatant bragging about the “latest-and-greatest” product capabilities (and other marketing “fluff”) to tastefully asserting competence and educating the market about specific issues.

One example of the latter would be Emptoris‘ April 2008 PR on the findings  of a panel of financial and procurement experts that have worked and consulted with leading Fortune 1000 companies. These experts offered their advice to chief procurement officers (CPOs) on actions to take to weather, and even excel in, a potentially uncertain economic environment.

The expert panel participated in a brainstorming session with leading financial, technology and procurement consultants to offer a list of immediate and intermediate steps that companies can take to gain greater control over spending and effectively reduce costs. Read the rest of this entry »