Tag Archives: tech

How Prepared Is Procurement For The Arrival Of The Tech Disruptors?

If A.I. can’t tell the difference between an apple and an owl, can it really take over our jobs?

By PandG/ Shutterstock

The future has arrived. Technology trends have moved from being forecasted, to disruptors to being, well…here! But how prepared is procurement to step up to the challenge? Will procurement evolve to incorporate and embrace these technologies or will we miss the opportunity to be the next Spotify or Uber.

In this article we take a look under the hood at some of the “it” crowd and see how tech disruptors can be repositioned to be enablers.

Automation

Automation has often been referenced as the reason for mass job losses and replacement of people in the workforce. Is this a realistic view of what automation is?

Automation refers to the systemisation of processes to create efficiencies. It is a programme that executes a particular task that is typically something that is repetitive and monotonous (as opposed to A.I. which is mimicking multiple tasks and is attempts to apply causation responses).

Automation can be used to replace menial tasks and ultimately release people to do other things that are more worthy of their time. Automation can help people to repurpose their time and spend it in other areas of their job that can add more value to the business, like stakeholder engagement for example. This repurposed time enables people to focus on the strategic aspects of their role rather than being purely reactive and task orientated.

Blockchain

Blockchain is effectively a filing cabinet in the cloud. It records transactions (a “block”) and each block forms part of a chain. The chain becomes a valuable information source and creates a collective environment where everyone can access everything. It is this network that can revolutionize how we experience things as it can connect previously unconnected parts of a supply chain.

Some examples include customers being able to trace coffee beans used in their morning brew from plantation to cup. Or the ability to trace the cacao plant to a single chocolate bar.  Procurement could utilise this technology to link supply chains like never before and provide true customer centric solutions (be it internal or external customers).

The applications are endless, but are we ready for it? What steps are procurement taking to ready themselves for potential new ways of working?

Artificial Intelligence (A.I.)

This is perhaps the biggest tech taboo of all, the ultimate fear mongering scenario. The term A.I. can imply to some people that technology will be able to create its own intelligence and that the intelligence may keep on evolving – ruling humans obsolete. This is not correct! A.I. technology requires humans to tell it what the world is. Humans are required to create the codes, algorithms and software that make it work.

There are many things that A.I. automation algorithms can’t always get right, like the infamous owl vs apple fail. A.I. requires a human to tell it what is an owl and what is an apple but there are certain subtleties of being human that simply can’t be trained.

While this provides a hearty belly laugh at the expense of the technology, it helps to demonstrate the gulf that exists between A.I. being able to realistically replace humans. A.I. is not a threat to all people in the workforce.

A.I. can be used to enhance the customer experience for example chatbots. It can also be used to programme population of key contract information instead of someone having to manually type it out. The application for A.I. in procurement would create huge efficiencies to enable us to get on with the real work.

Cryptocurrency

The advent of bitcoin changed the basic concept of how we view money. It combined an old world concept with new wave technology. It didn’t burn out or fade away it is still going strong.

The advent of cryptocurrency helps to pose the question of what could be the bitcoin of the future?

Will procurement be able to trade online for goods and services? Why not! It was impossible to imagine bitcoin taking off many years ago and look where it is now. Will contracts for goods and services be required? If the divide between the supply and buyer side of the fence is dissolving then what purpose will contracts serve in the future.

Sore head?

If you have tech overwhelm, don’t worry. This is all you need to remember:

  1. Humans won’t be replaced any time soon
  2. Technology is here and if you haven’t noticed, you’re probably about to be bypassed
  3. Procurement needs to up its game with the incorporation of technology and see it as an enabler
  4. Creative thinking is the precursor to adopting and utilising technology effectively. Release people from menial tasks and engage them in different areas of the business

5 Days Without Technology

I spent five days disconnected from technology; this is how, and what I did instead…

By Africa Studio/ Shutterstock

Irrespective of what time of the day you are reading this blog, there is one certainty. You would have spent some time on line whether it was for business purposes or for personal engagement. If you are anything like me, you would have checked the weather before heading out on an early morning run. Not exactly sure why given we all know what Melbourne is like in winter. Cold! You might have gone with some social media scanning. Liked something on Instagram? So have 3.5 billion others. Checked your facebook? You’ve joined 1.5 billion users. Looking for professional connection or posts of interest amongst LinkedIn’s 575+ million users? Let’s not even get to all of the other platforms that have proliferated. After all, it’s not just the social, social media. Chances are you have also been on email, read the news on line, messaged or What’s App’d a connection, or possibly had a call via Zoom or Skype. Even likelier you have had to make your way somewhere and needed an Uber. Phew, busy morning, even busier day! But with so much to do, isn’t it lucky that it is all there on our smartphones or laptops, smart TV’s, or home assistants,  making our lives so much easier. Or is it?

Last year I had the opportunity to be in Asia for a trip that was intended to be a holiday. It seemed smart to tie in business meetings to make the most of the fact that I was in the region. I rescheduled work commitments, let colleagues know I was away and shared my itinerary with family and friends. There was no question of whether I would take my phone and my laptop with me. After all, that’s what the modern day break looks like and with the business tied in, it wasn’t even an option to think about leaving even my laptop behind.

Admittedly and somewhat proudly, I can admit that by the end of week one the laptop had not exactly been in overdrive. It languished after a couple of video calls and a handful of emails. The phone was a different proposition altogether. Rides to organise, destinations to get to, places to eat to check out, messages to family. A combination of business and leisure that made the time not just busy but always-on.

Fast forward another week and an opportune trip for work has unexpectedly taken me to Myanmar. The great thing about being digital that we all know, is that anywhere, anytime, can make all sorts of options possible. So when a friend suggested staying a little longer and exploring what is a fascinating country, I was in. Able to work from anywhere, subject to time zones and availability, makes so many things possible. Wi-fi and mobile data (which can be a financial minefield) make the possible, practical. 

Sounds like a great trip so far, but where is the disconnect you may be wondering? Well that’s got something to do with a trip to a place in Myingyan. You most likely have no idea where that is, and that’s ok, as neither did I. What I did know was that it was wonderful eco-lodge nestled in the heart of a village that offered a unique opportunity to immerse yourself in local life. What I didn’t know until we got there? There was no wi-fi.  I had just arrived for a 4 night stay in a picturesque, but remote village, without a way to get on-line except for a very inconvenient overseas mobile data plan. So what I did I do? I messaged everyone to share the contact phone number and let them know I would be out of touch for the next few days. And then I put my phone and my laptop away.

When I got back to Melbourne a few weeks later and was telling friends about my experience, responses ranged from humour, to dismay, to fascination; How did I survive? How did I spend the time? And unexpectedly from others Would I do it again? Here are the three things I shared with everyone that have stayed with me even now

1. Nothing beats personal connection

It seems simple enough and we all know it to be true, but the flipside of technology means that we often choose to digitally engage with someone instead of actually talking to them. Staying in this wonderful place, talking to the people who lived and worked there, and wandering through the local village created an interpersonal connection that would not have otherwise been possible.  There was laughter, compassion and empathy as well as intellectual challenge and thought. It took me back to being in Greece during the GFC and talking to people about the impact on them. Understanding that a country is its people, and not always its government is something we forget.

2. Your perspective drives your context

For those who know that I have been known to buy a pair, or five, of designer shoes in my time, the idea of me spending time in a remote village with no wif-fi, dirt roads and mosquitos seems unfathomable. The bet may have been that I would have been in desperate need to get back to the city and return to something a little more ‘normal’. What in fact happened, was the opposite. I was humbled by the simplicity of those I met, their stories, and their community and it serves as a wonderful reminder to me even today, that we all define the context we operate in, and what we choose to call a challenge or opportunity.

3. Make time to think, plan, act

Free from reaching for my phone, checking emails, the weather (yes, I did attempt a run on those very treacherous roads), I was able to be completely present every day through every interaction. And it was a valuable way to create space in my mind for things I had been putting off, challenges I needed to work through in my head, even ideas I wanted to explore more but did not have time to think about. Going old school with pen and paper (although I did take photos of my notes) inspired me to refresh and get clarity on what I needed to do when I got back home. All the work was done and well thought through without the distraction of the competing priorities we often have to manage.

It was not a complete surprise to reach the end of the stay and realise it wasn’t enough time so the four nights actually became five. Who would have thought that would be the case on day one. And finally getting to the next destination? I’m pleased to say that it took another day for the technology to really come on again.

Still Trying To Understand Blockchain? Here’s The One Thing You Really Need To Know

Blockchain is so much more then cryptocurrency, and despite the scepticism, it is here to stay.

By Dean Drobot/ Shutterstock

I’ve had a blog on blockchain on my mind for a while. As far as business buzzwords and hype, it has to be right up there with the best of them. Everyone is talking about it, or asking about it. Questions can be quite generic ranging from what exactly is it, what does it do and do I need to care about? And then then are the questions of scepticism and challenge including; is it even real, and does it even do anything? Amongst all of that, is the one we have all heard, or perhaps been the one we have actually asked; that’s got something to do with bitcoin, doesn’t it?

Ah, bitcoin.  We’ve all heard about it now and many who have followed the heady rise have had the dream of making millions from the cryptocurrency. Hitting dizzying heights of USD$19,000+ in 2017, we were all wondering why we had not invested in 2016 when it was hovering around the USD$600 mark. Thankfully, we were able to quickly congratulate ourselves for not being susceptible to the whims of the market when it fell to USD$3,000 earlier this year. And if you’ve been watching it over the last few months? Well it’s back at USD$10,000+, so you may be either celebrating or experiencing another round of FOMO.

So, what has all this got to do with blockchain? For many, the two are essentially the same, or the mention of one prompts an association with the other. If you only feel like you need to know one thing about blockchain, it should be that it is not bitcoin. Is it connected to bitcoin?  Yes, in so far that the technology that underpins bitcoin is what we call blockchain. But blockchain is so much more then cryptocurrency, and despite the scepticism, it is here to stay. Here are a few other considerations that may be helpful once you make the disassociation from bitcoin:

Understand the maturity level

The demand and potential for blockchain application saw Venture Capital firms invest more then $1 billion in blockchain start ups as early as 2017. McKinsey classifies blockchain as being in the Pioneering stage of technology development. While there are a plethora of use cases that have been identified by organisations and also by governments, many are at ideation stage. Others have progressed to proof of concept stage. As with anything that is new, there has not been enough time to implement at scale and observe the impact across a whole industry or organisation. That is a question of time and opportunity more than likelihood or value, and there is no doubt that as the technology matures and more experimentation takes place, the more we will learn. The prediction from many industry leaders is that it will become as ubiquitous as the internet. Until then, it is important to manage expectations around what it can and will do. 

Know what to use it for

As with many emerging technologies, the temptation to pioneer and innovate has led many organisations to force a solution of blockchain into a problem or opportunity that it may not be right for. We need blockchain or blockchain will solve this is a refrain that has been heard in many a meeting across industries and geographies. And it could be exactly right. But the important thing to remember is that the principle of value and outcome applies to all new technology, even one as cool as blockchain. Work out what problem you are trying to solve; if it involves many parties, transparency, and trust, it may be exactly what you need. The financial sector has been leading the way with blockchain in KYC (Know Your Customer) initiatives to improve detection of fraud and integrity of financial transactions. In addition to the commercial benefits of mitigating monetary losses, banks and other financial institutions are also expecting to realise efficiencies from process savings. With savings of between 20-30 per cent estimated, it is an experiment worth undertaking.

It will change industries and practices

Blockchain provides a level of transparency, validation and security that has been needed, but has not been able to be achieved previously. Why are these important?  Questions of origin and ownership have become increasingly important as we become more digital savvy. In some processes, it has always been a critical dependency with onerous and time consuming operational activity to execute it. Property is a great example of this. Do you have a right to sell this property, will I be the legal owner if I proceed with the transaction?  In other cases, it may be a factor in a decision making process. As a consumer, how do I really know where this food item has come from? Is it really organic, or is it simply a marketing strategy? Luxury brands like Louis Vuitton and Dior are leveraging blockchain as part of an offensive strategy to deal with counterfeit goods. Initially applying to new items, the eventual intent is to be able to authenticate the item through the resale process and therefore manage it throughout its lifetime.

So, is blockchain more then bitcoin? Absolutely. And while it is still in its very early stages, keep watching. As a technology, there is no doubt that it in its infancy but this should only temper expectations and not prevent experimentation.

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“I Just Don’t See How Blockchain Can Apply To My Business”

Blockchain naysayers are echoing the words of short-sighted CEOs in the early 1990s who refused to recognise the disruptive potential of the Internet. American Blockchain Council Executive Director Jack Shaw demonstrates why businesses need Blockchain as a cornerstone of their digital transformation strategies.

Business Technology Futurist Jack Shaw is a keynote speaker at Procurious’ upcoming Big Ideas Summit in Chicago. Register now as a digital delegate.

Very few procurement functions are not currently going through some sort of digital transformation. Typically, the transformation includes building digital tools to enhance customer engagement, robotic process automation for rules-based activities, the use of big data and analytics to bolster decision-making, IoT integration, moving your business to the cloud, and – for some – bringing cognitive computing on board.

What’s missing from this daunting to-do list? The integration of Blockchain technology.

Jack Shaw explains why Blockchain needs to be a fundamental part of every business’ digital strategy: “Blockchain is unique among emerging technologies. Other technologies, such as IoT, can be extremely powerful as a ‘point solution’. This means they apply at a particular point in the business process, or even at a particular geographical location in the supply chain, to increase accuracy and speed.

“Blockchain, however, provides the infrastructural glue that ties these disparate technologies together into a single, coherent business ecosystem. You can have thousands of participants accessing timely, shared data, which allows you to step back and think about how the whole system can work more effectively.”

Two exciting benefits Blockchain technology will bring to the supply chain

Speed: Shaw talks about the incredible increase in speed of international trade transactions that Blockchain can deliver. “When I spoke at a global big data conference in China recently, a delivery of cotton from Houston U.S.A. had arrived at the local Chinese port three days earlier. With an international shipment like that, the paperwork involved normally takes around 10 days to settle. However, this particular shipment had been arranged with Blockchain and scanning technology, and it took a mere 10 minutes in total.”

Validation of providence: Supply chain professionals know the importance of transparency when it comes to sourcing products. Even if your first, second or third-tier suppliers seem legit, there’s also the risk that something illegal exists further down your supply chain, such as conflict minerals or modern slavery. With Blockchain, every step of the products’ lifecycle can be tracked and validated, all the way back to the extractive industries. As Shaw says, “Lack of visibility will no longer be an excuse.”

Cybersecurity and Blockchain technology

While it isn’t a magic bullet for cybersecurity challenges, Blockchain creates a level of trust that’s well beyond anything that has existed previously. Transactions are readily accessible (and transparent) for those who are authorised to see it, and un-hackable by those who aren’t. Not only are financial transactions more secure through Blockchain technology; it’s also very powerful for protecting data.

Shaw cautions that hackers could still find their way in by feeding incorrect data through in-house systems. “In a way, Blockchain will step up the requirement for improved data integrity. Technology such as cognitive computing only works if the data is valid.”

The Internet of Things (IoT) is another frontline for cybersecurity. “How do you know that the data you rely on to make decisions is actually from a particular device, and that it hasn’t been hacked or spoofed? Blockchain can provide an immutable record that uniquely identifies a data-providing ‘thing’ to ensure that you know your information is coming from that source.”

Shaw gives the example of odometers, where unethical car dealers can hire digital hackers to alter the mileage. Bosch has recently integrated Blockchain technology with odometers which upload digital readings hourly. “You can extend this concept across big data, analytics and cognitive”, says Shaw. “It only works if the data is valid, and Blockchain is one way to ensure that.”

Blockchain technology will be one of the many disruptive forces discussed on 28th September at the Big Ideas Summit in Chicago. Register now (it’s FREE!) as a digital delegate to access all the news and content from the event.

Autonomy, Mastery and Purpose: Why The Young Are Snapping Up Tech Jobs

Job satisfaction comes down to three things: autonomy, mastery and purpose. Does this explain why millennials are dominating in the tech industry? 

Anton_Ivanov/Shutterstock.com

Numerous industries have been accused of many different types of hiring bias and flawed hiring policy.

The service industry, for example, has long been subject to questions about its lack of affirmative action in this area based on the demographic of candidates that tend to be allocated these roles. The same applies even within typically diverse workforces.

Hiring bias at its worst

Few sectors have faced the intense scrutiny aimed at the tech world in recent years, owing to its pervasive reputation for hiring vastly disproportionate percentages of younger males.

A quick Google search of “industry hiring bias” results in almost an entire first page of links to think pieces about Silicon Valley.

There are countless arguments to be made on the subject, many of which rightly focus on the urgency of addressing this gender imbalance. One popular proposal for tapping into the vast, and shamefully underused, female talent pool suggests funding schools to better promote careers for women in computer science.

But if the tech industry is also heavily skewed towards youth, how long would those careers remain satisfying for?

Job satisfaction at the biggest tech firms

This latter question prompted a recent research project by online compensation and benefits analyst Payscale. By gathering data from almost 35,000 workers across 17 of the biggest tech firms in the world – including eBay, Google, Cisco, Facebook, Samsung, Intel, Apple and Microsoft – researchers attempted to gain an overview of how employees’ job satisfaction levels mapped on to various metrics such as median age, early and mid-career pay levels, and total years of industry experience.

When transposed as a series of infographics, the data seems to highlight some marked trends across the board: in particular, workforces with higher average ages in the study group (notably IBM, Hewlett-Packard, Oracle and Samsung) were among the lowest-scoring in terms of overall job satisfaction.

Moreover, many of the same names also placed highly in terms of their employees’ length of tenure with the company and total years of industry experience, while coming in amongst the lower rankings for both early- and mid-career median pay levels. Taken at face value, this immediately presents various possible scenarios.

One natural observation would be that the ‘more satisfied’ workers were often among those being paid the most relative to their experience, which, let’s face it, doesn’t seem much of a hot take.

What appears to be a fairly direct inverse correlation between median age and reported job satisfaction is potentially more interesting, but the question remains as to whether this phenomenon is in any way unique to the tech industry. After all, there’s every chance that the methodology of the study simply benefits companies who have a high turnover of younger, less experienced workers, whose expectations and needs are typically less complex at such an early career stage.

Are millennials best-suited to tech jobs?

When it comes specifically to tech roles, and the fact that they’re so commonly filled by younger-than-average staff (the national median age for a US worker is 42; at Facebook, it’s just 29), many people don’t think it’s quite that simple.

The much-quoted author, speaker and ‘business guru’ Daniel Pink, responsible for such widely read titles as Drive: The Surprising Truth About What Motivates Us, might be chief among them. Pink’s theories around what ultimately leads to lasting job satisfaction focus on the triumvirate of ‘autonomy, mastery and purpose’. In other words, a sense of independence, a feeling of capability, and a genuine motivation to keep plugging away.

Millennials entering the tech industry may be particularly well-placed to tick all three of those key boxes because of, not in spite of, their age. Pink notes that, having grown up in an environment of always-on connectivity that didn’t fully exist 20 years ago, millennials are finding it much easier to adapt as the internet rapidly erodes the decades-old concept of a standard office-based work week.

He also points out that today’s all-pervasive digital culture means new graduates no longer seek to separate their work and social lives to nearly the same extent as previous generations did. As a result, the boundary between professional performance and success in other areas of millennials’ lives is arguably less clearly defined; this in turn becomes an obvious source of general motivation that perfectly suits the thrust and structure of many cutting-edge tech firms.

Combatting age discrimination

The extent to which these sorts of theories hold water is very much up for debate. What we do know is that the debate is heating up: last year, Bloomberg reported that in just eight short years, 226 complaints pertaining to age discrimination had been registered against the top 150 Silicon Valley firms.

While tech employers continue to perform well in global Best Employer lists, the conversation will certainly benefit from some longer-term data as we start to develop a clearer picture of career movement across the wider industry in the coming years.

Long Tail Spend 101: New School Approaches

Procurement ought to care a whole lot about long tail spend and lay out the best way to manage it in the “consumerisation of tech” era…

I have no doubt that agility, innovation, and adding value to the business should be of paramount focus to procurement teams evolving beyond cost-center status. Who wants to be in the back office pinching pennies while the rest of the business struggles to keep up with the new rules of the digital revolution? But as leaders keep one eye on those critical matters, the other must still cover the basics of the procurement practice to deliver the right experience and results. That means continuous tracking and improvement of spend influence, which includes long-tail spend management.

Long tail spend 101

Long tail spend is not strategically managed or under management. This means any spend without a contract framework agreement or negotiated work order. In organisations that have invested significant effort into strategic category management, managed spend tends to be around 80 per cent of all expenditures, leaving long tail spend at 20 per cent. It also includes a small, but significant amount of spend with managed suppliers, which is known as hidden tail. This spend includes purchases made from managed suppliers, but these purchases are outside existing contracts.

The remaining tail spend tends to come from roughly 80 per cent of the total number of suppliers. Often this will be fragmented: ad hoc purchases from multiple suppliers, low-value transactions at one-time vendors, non-purchase order spend, off-contract spend, etc. When all the long tail spend is added together it becomes the biggest overall supplier! This biggest supplier costs you a lot of effort and time, which is not clearly visible within the organisation.

What is the business value of tail spend management?

Until recently, the generally accepted figure for how much sourcing organisations can save through managed tail spend has been 1 – 5 per cent (the less mature the organisation, the more the saving). However, analysts at The Hackett Group, concluded that this figure might be higher: as much as 7.1 per cent. High-value maverick buying that should have been strategically sourced was cited as a factor in raising this figure (30 per cent of respondents estimated 10 per cent or more in savings). This underlines the importance of gaining visibility of tail spend.

Apart from up to 7 per cent  savings, what are the other benefits of managing long tail spend? First, by better managing long tail spend, you can significantly reduce the number of transactions and the related costs of procurement, and in other departments such as finance. This will help minimize the number of internal resources (sometimes senior) working with tail spend suppliers to further reduce procurement costs. These savings can be significant considering that the administrative cost of each pound spent can be as high as 35 per cent. Improving the visibility of low-value spend suppliers will create opportunities to identify sourcing savings and supplier consolidation.

Second, increasing strategically managed spend, and managing long tail spend, will result in increased contract compliance, leading to further savings. Added to this, suppliers are more likely to offer increased discounts when they are the sole providers for a specific category, or when a set volume of purchases is guaranteed.

Third, beyond cost savings, managing long tail spend helps eliminate noncompliant suppliers and consolidate larger suppliers, which leads to reduced business risk, and a reduced risk of fraud across the supply chain. This also increases the chance of your organization being compliant to external legislation.

The visibility challenge

One of the main difficulties with long tail spend management is poor data visibility, caused by factors such as complex supply chains; different IT systems and data sources; and, fragmented and disconnected business processes such as sourcing, contract management, and procurement. Also, the sheer number of suppliers, items, transactions, and the high number of business stakeholders can simply overwhelm some organizations.

There are often not enough available resources with the right skills to analyse the problem and set a corrective action plan. Unfortunately, neither strategic category managers nor operational procurement agents tend to have the knowledge or skills to handle the long tail. Organizations that don’t have clearly set policies or well-defined processes are more likely to lack effective control. Part of this process must be constant maintenance to prevent slippage. A good analogy for this aspect is that of keeping a garden. Just as a neat and orderly garden will become overgrown if neglected, maverick spend will creep into the spend cube. This results in a higher percentage of noncompliant purchases, often with low-value transactions and small-volume suppliers.

Finally, there is often a lack of adequate tools to help the organization analyze and manage long tail spend in an efficient manner. A purely manual approach to tail spend management quickly becomes cumbersome and error-prone without the right tool support. There is no quick fix for overcoming these obstacles, but the benefits of doing so are estimated by different sources to be between 15 – 20 per cent through reduced procurement cost, increased efficiency, supplier consolidation, additional sourcing savings, and decreased business risk.

The smart approach to long tail spend management

Organisations should first analyse their spend data with a thorough spend and supplier assessment. This type of spend analysis exercise helps gain an understanding of the current state and will serve as a foundation for a business case in readiness for the next step. The next step is to gain top management and stakeholder backing. To be successful with a long tail spend management initiative, it is necessary to have the buy-in of your C-suite, i.e., the CPO and CFO, by means of a solid business case and clear description of the savings outcome.

Establishing the support of top management will also help with the third step, which is to set-up clear policies and processes to drive the long tail management initiative. This includes compliance policies, preferred vendor lists, no purchase order–no pay policies, etc. The processes should also include automated procurement, with catalog suppliers, as well as spot buy, and free text orders channeled through a tactical and operational procurement team. The next step involves, selecting and implementing the right tool to the complete solution for long tail spend management. Consider an easy-to-use eProcurement system with a good search engine featuring rich content, efficient buying channels, and support for spot buy and tactical eSourcing.

Finally, setting up a dedicated team to monitor long tail spend suppliers is key to a complete solution for long tail spend. Spot buying and operational-free text orders at preferred suppliers will run more efficiently with a dedicated group managing the process. It is also possible to outsource this work to an external team.

In closing, it is important to realise that there is no silver bullet to managing long tail spend. Without clear policies or processes to guide an organisation on what to do and who needs to do it, there’s little that can be done to optimise and manage tail spend. By combining the right tools with the right approach, you can gain an additional level of visibility and savings, and, in turn, greater spend influence.

This post was adapted from the IBX Business Network white paper, Using Long Tail Spend Management to Achieve Savings, published in 2016. Tradeshift acquired IBX in early 2017.