Tag Archives: procurement software

How P2P will Become the Technology of the Future

Discover the value that a procure-to-pay (P2P) system can deliver to your business today and over the next five years.


The evolution of procure-to-pay (P2P) has accelerated dramatically over the past few years. And we can expect the pace to pick up further over the years to come. Originally, procure-to-pay / purchase-to-pay technology was seen as a way to connect procurement to finance via accounts payable, and as such it started life in the form of expensive and rather inflexible bolt-ons to on premise enterprise resource planning (ERP) systems. No wonder that for many years, P2P did not have the greatest of reputations, even among procurement professionals.

In the early 2000s, dedicated eProcurement systems emerged. Yet, many large enterprises still do all their purchasing and accounts payables through their ERP systems, even though this leaves much of the process highly dependent on paper in the handling of purchases orders, requisitions, goods receipts and invoicing. Or, in one word, routine. Many ERP implementations even lack a requisitioning facility and a means to communicate electronically with suppliers.

As to accounts payable, in many organisations that do not have a dedicated, built for purpose procure-to-pay solution, vendor invoices still arrive by mail or email and the data must be keyed manually into an ERP or other finance system. If the benefits of touchless invoicing were not already apparent, they have certainly become so in the wake of the Covid-19 pandemic.

The other major issue that continues to plague many organisations is our old friend, maverick spend (or off-contract buying), which is especially likely to occur when anyone looking to purchase items needed for everyday use is confronted with bureaucratic obstacles. Shopping online and submitting an expense report is much easier than submitting a requisition or purchase order that takes ages to process. Without a dedicated P2P system, maverick spend is difficult to monitor effectively. It results in lost money as employees buy at retail prices when you should be securing handsome bulk or wholesale discounts.

(Although worse than that, it forces happy-go-lucky procurement professionals into the role of jobsworths …)

And heaven knows, after years of online shopping with the likes of Amazon, corporate buyers expect the option to order online and enjoy an e-shopping experience comparable to the one they enjoy as private consumers. They expect an experience that is user-friendly, intuitive, and frictionless. Running low on stationery? Simply pick items from a catalog, review the shopping cart and place the order. And maybe pay with a V-card (single user account) number.

This can all be done via a procurement department’s P2P solution – against contracts negotiated with preferred suppliers. The P2P solution allows end-users to shop and track orders as easily as if they were shopping online, with the added benefit that all the information the procurement department needs is captured too, giving greater transparency. Plus, if the P2P solution is integrated with upstream processes such as contracts management and sourcing, the ability to monitor supplier performance against negotiated terms and non-price terms and conditions.

What you should look for in P2P now

A few years ago, people were still asking if procure-to-pay automation is worth it. I think that case has now been definitively answered. Especially if you wish to demonstrate the value of procurement – your value – to the business.

A P2P software suite integrates and automates the entire back-office lifecycle of requisitioning, purchasing, receiving, paying, and accounting for indirect goods and services. By creating standard workflows between buyers, procurement and accounting departments, a P2P solution should provide more transparency into, and control over, indirect spend and should create a more congenial relationship between all stakeholders. SaaS technology accessed in the cloud, such as the JAGGAER ONE suite, has made affordable, flexible and technically versatile solutions P2P available. A major advantage of SaaS is the ability to update functionality and innovate continuously without affecting the normal day-to-day operation of the core solution.

What you should look for in future 

Over the coming years P2P will increasingly leverage artificial intelligence, natural language processing and robotic procurement automation to deliver an even better buying experience on the one hand, while further cutting costs, increasing efficiency, reducing risk and improving governance and insight on the other. Generally speaking, you can expect P2P solutions to be more open, network-oriented, autonomous, collaborative and intelligent.

Here are seven trends that I think you can reasonably expect to reshape P2P not in some distant future but between now and 2025.

·   It will be a more collaborative environment for all stakeholders (internal and external) with full compliance, validations and approvals. P2P and MRP systems will collaborate through direct material order and fulfilment; P2P and corporate treasury will collaborate to support cash flow planning and optimize working capital

·   It will be more autonomous by taking charge of routine tasks such as all forms payment management and processing, improving the productivity of the payment process and the financial health of the supply chain

·   It will empower open business networks bringing together the entire community of buyers and suppliers, integrating and accessing external services and market intelligence feeds

·   It will be interactive with smart assistants assisting you through guided buying, vendor management and other chores

·   Enhanced intelligence will enable P2P systems to act proactively on behalf of users learning from and using all data sources and knowledge to make improvement recommendations to all stakeholder activities and the P2P process

·   It will deliver win-win finance programs to buyers and suppliers, for example dynamic discounting and supply chain finance programs

·   The focus of P2P will shift further from savings to value, reinforcing procurement’s profile as a strategic partner to the business

Conversational systems for guided buying and vendor management

Let’s stop calling them chatbots! Digital or smart help organizations will increase efficiency and achieve high levels of P2P user adoption because of their easy interfaces and clear answers. AI combined with natural language processing (NLP) has opened the door to new, more natural, and more intuitive interfaces that stimulate conversation with humans. There are many uses for digital assistants in procurement – too many to list here. However, the central issue is that procurement specialists are increasingly dealing with vast quantities of data, which means that a lot of their time is spent looking for information rather than using it. They will enable procurement specialists to converse with their AI-powered procurement software, which will do the heavy lifting involved in finding the relevant information and making intelligent suggestions as to what actions need to be taken in specific situations.

Through machine learning the digital assistant will be able learn about your preferences and your organisation’s policies and procedures. A good example is guided buying, whereby a person who needs to buy something will interact with procurement via a conversation conducted by a digital assistant. Based on the procurement strategy (preferred suppliers, preferred items, contracts in place, history of purchases, etc.), the digital assistant will propose solutions, perhaps looking through huge volumes of catalog entries to identify specific products or suggest alternatives.

Digital assistants can also be deployed for handling queries from suppliers, avoiding a lot of back-and-forth correspondences. I think they will become more engaging and human-like in their interactions with you. That, after all, was the original promise of artificial intelligence. But nobody’s perfect, so if the digital assistant cannot find the right answer, it can of course direct the user to a genuine flesh and blood procurement professional (you, for instance).

What innovations would you like to see, or expect to see, in procure-to-pay over the next five years? Let us know in the comments below! Keep up with the latest innovations at the 2020 Global Big Ideas Summit.

Procurement Needs Less Processes – As They Are Slow, Boring And Self-Centered

Perhaps the best way to get things done is, ironically, to abandon the myriad processes we established to get things done!

I’ve discussed with a number of CPOs during the last months on how they have managed procurement during COVID-19. One recurring answer is along the lines of “we broke all of our processes and went to wild-west-mode.” Now, many say this with an interesting combination of sadness and pride. Sadness that they had to give away the great processes perceived to be the basis for any professional procurement organization. Pride and excitement of how procurement teams were able to improvise, work hard, and survive.

There shouldn’t be sadness for the breakdown of processes. This period has shown that processes are slow, boring and self-centered – and that we can live and thrive with much less of them. Many processes are manifestations of control-freak, risk-averse mediocre management but I admit there are cases where they can be beneficial.

Occasionally processes are great – when they allow for (almost) complete automation. For example, it’s great when routine tasks are mapped out as a process and automated to save people’s time and attention. Even in this case I see process more as a tool to enable (software based) automation rather than as the end-game.

Sometimes, processes can be helpful guidelines for a less experienced employee, and/or to facilitate coordination in teams. If you’re doing a supplier risk evaluation for the first time (and if it needs to be manually done), it may be good to have a process description to guide through the first steps. In these cases, processes should be seen as a learning method. Having consistent vocabulary and descriptions of a process helps communication and coordination across individuals.

Those are the exceptions. In most cases processes bring many hidden costs to our businesses.

Why procurement needs less processes

Processes are, almost by definition, designed to cover all sets of actions taken. This tends to lead to complex multi-step processes that often include a number of bottlenecks in the form of approvals and reviews. Whenever something bad happens in a company, management often asks “how we can prevent this from happening again.” The answer commonly is “let’s create a process.” Over time, there are more and more complex processes in place, gradually suffocating the organization and its creativity.

All this put together brings on a number of problems with processes:

  • Things get slow – there are so many steps to cover and so many approvals that getting even a simple task done takes a lot of calendar time. I believe this is the reason that lot of processes were broken during COVID-19: they were just way too slow to create a meaningful result.
  • Things get boring both for managers and the people driving the processes forward. CPOs often talk of a talent shortage in procurement. How to fix this? Definitely not by trying to reduce our exciting work to a process-led obstacle course. Nobody ever said “I just completed a 15-step sourcing process and that was the greatest moment of my life.” People don’t get excited about running processes but, unfortunately, they may get overly excited designing them. People get motivated about purpose, outcome, creativity and freedom, but not about executing processes. If we provide processes as tight guidelines on how to do things, we don’t get talent. Once we get real talent, we definitely can’t keep them with strict processes. It’s equally bad for managers – their job becomes one of reviewing and approving. Approving POs, business cases, vacation requests, what not. The brightest people who have worked hard, learned a lot, and would have a lot to give become rubber stampers.
  • Processes are also very self-centered. They assume that we can dictate the timeline – it may make our own lives more plannable, but it also takes out any options to leverage the opportunities that are coming up. Say, for example, you follow a strict quarterly business review cycle with suppliers. If supplier collaboration happens only through process-driven reviews, you are not leveraging opportunities coming up in between.

The world is getting faster and more volatile. In this new world, as the COVID-19 era has proven, processes are just too slow. I truly hope that COVID-19 did not only teach us that remote work is possible, but also that a more action-oriented, exciting procurement world is possible … But more on that on my next blog article.

This article was originally published here – it has been republished on Procurious with kind permission.

Taking Intelligent Spend Analysis to a New Level

Going from data to intelligent spend analysis? Traditional tools just don’t cut it anymore. How do we get from data to tangible, valuable ideas?

Photo by Jason Dent on Unsplash

Supply chain leaders today are being asked to help contribute to business growth and promote innovation while reducing costs. That’s a lot to ask.  Managing expenditures across global organisations has become increasingly complex and involves just about everyone: especially procurement, legal, finance and operations.  

Intelligent Spend Management is about more than classifying and reviewing historical spend. It is also about compliance, governance and mitigating supplier risk, all of which are needed to make informed decisions about future purchasing strategies.

Traditional Spend Management

The main objective of spend management is to identify and exploit savings opportunities and ultimately improve the firm’s profitability. It involves collecting, collating, cleansing, maintaining, categorising, and evaluating spend data from across the enterprise.

Traditional free-standing tools that manage spend analysis, P2P, contracts and supplier relationships are not set up to provide a consolidated view across all spend categories. Often these data sets reside on systems that don’t talk to each other and provide limited information.

What is Intelligent Spend Management?

A strategic, intelligent approach to spend management allows for a unified view and better management of risks across the supply chain and harmonisation of procurement policies and processes. This approach requires all spend data to be centralised so that any analysis efforts are applied to the total organisational spend thereby providing visibility of and control over each spend category. Intelligence means learning from past actions and improving responses over time.

Supply chain leaders can exploit spend opportunities provided by this “big data” to increase their cost savings, decrease operating costs, and reduce risk. To do this they need an end-to-end platform that uses the best-suited technology and the right tools.  These resources need to be applied in such a way as to deliver reliable real-time information that can be used for decision-making. 

Using conventional tools, it is difficult to achieve these outcomes.

Machine Learning

Machine learning is an application of artificial intelligence (AI) that provides enterprise-wide systems with the ability to automatically learn and improve from experience.  Using these new approaches we can learn much from the historical volumes of spend data without human intervention.

We can answer questions related to customer profiles and their spend history, provide explanations for past actions and guide users with recommendations about future purchases.  

What can Intelligent Spend Management deliver?

Intelligent spend management has the capacity to transform any organisation’s data into information that becomes a source of ideas and plans that can be used to grow the business.  

1. Historical data tells a story  

It reveals repeating patterns about users, approvers and suppliers. It also offers insights into which types of requests should be approved automatically and which others call for human intervention. Intelligent technologies that have exposure to a holistic view of spend-related data can provide learnings to continuously improve decision-making across the source-to-pay spectrum.

2. Improved user experience 

Intelligent processes provide a real benefit to users and approvers alike by ensuring compliance with all corporate policies and regulations while cutting down on waiting times and streamlining document approval processes. Supply chain staff and end-users need easy-to-access, reliable, real-time information on supplier performance to make optimal buying decisions.

3. Better market intelligence

To manage spend efficiently and identify new sources of supply, businesses need to interact with data coming from external sources such as from suppliers, government and business associations as well as from internal sources. This includes accumulating industry and economic intelligence automatically from third parties and using it in conjunction with their historical spend data.

“As enterprises embrace an increasing number of partners to compete globally and as value chains grow longer and more complex, they need intelligent platforms not only to extract the fullest value from data but to extend its broadest capabilities.”

Patrick McCarthy, Senior Vice President and General Manager of SAP Ariba and SAP Fieldglass.

Predictive spend analysis in supply chain is still fairly new, but it is becoming increasingly essential in large organisations that have already been exposed to spend analysis tools,  supplier segmentation and relationship management.

An enterprise-wide system that can provide a unified view of spending that brings spend data together from across all sources and categories allows users to make smarter, faster spending decisions. 

Achieving this requires investment in the right IT infrastructure and systems which will really put your spend data to work.

Innovations like AI, machine learning, IoT and blockchain are reshaping entire industries, but this is an opportunity for procurement, not anything to fear. Join Pat McCarthy at the Big Ideas Summit Chicago 2019 tomorrow (Wednesday 18th September) to find out why. Register as a Digital Delegate by clicking here.

How Procurement Professionals Can Look Like Rockstars

Will procurement ever achieve ‘rockstar’ status within an organisation? It’s an idea that hasn’t gained much traction in the past. But help may be at hand from a new source.

Muhammad suryanto/ Shutterstock

Despite the profession’s best efforts, the terms ‘procurement’ and ‘rockstar’ are uneasy bedfellows in a sentence. When you picture a rockstar – Keith Richards, Dave Grohl, Joan Jett, Pete Townshend – they are a free spirit; perhaps anarchic, but certainly someone who lives life by their own rules. Does this sound like procurement to you? No, me neither.

Even now, after all the efforts to make procurement a strategic partner, moving from transactional purchasing to strategic buying or strategic sourcing, the image of procurement remains the same. A profession that’s very traditional, process driven, compliant (not that this is a bad thing) and just maybe a little … boring.

Although some progress has been made, rockstar status is still a ways away. While there are huge, global names that have come from the profession, the name recognition is still an issue. You know Sheryl Sandberg, Bill Gates and Tim Cook, but do you know who their CPOs are?

Have you heard of Bo Andersson, formerly GM’s ‘Mr Purchasing’? How about Jennifer Moceri, CPO of global drinks giant, Diageo? Without wider recognition of what these rockstars have achieved, very few people outside the profession will be able to understand much about what procurement can deliver.

Collective rather than Individual?

The profession has spent so long trying to create ‘rockstar’ CPOs and leaders with global profiles that it may have lost sight of the true aim – to elevate procurement as a whole. When it comes to being a ‘rockstar’, the one thing that nearly all the greats have in common is a group by their side or backing them up. And it’s in this power of the collective that procurement’s ultimate success may lie.

For the collective profession it’s about understanding what the business needs, aligning a procurement strategy with the overall business strategy, and then delivering on this. Procurement will be treated as a strategic partner when it has earned the organization’s trust as a value-adding operation.

It might be an unpopular move, but the first thing that’s going to be on the agenda is savings. The drive in procurement has been to promote an agenda that covers more than just savings – efficiency, compliance, risk management and supplier development are just a few.

However, without even realizing it, the majority of these elements underpin savings and cost reduction. The trick is to not get too focused on savings to the detriment of the wider strategic agenda. Supplier consolidation and centralized procurement are a couple of approaches which tick both the savings box and that of the wider strategic aim of adding value.

Procurement Solutions – Your Backing Vocals

Rather stretching the metaphor of the rockstar and the band, it’s important to understand the tools available to help create your own procurement version of the Traveling Wilburys. Rockstar status won’t happen in isolation and that’s where procurement solutions and procurement consulting can take to the stage.

The best procurement solutions can help turn your data into a major strength through the power of spend analytics. Software can help organizations understand who they are spending their money with, how much they are spending and, most importantly, if they are getting what they have paid for. It makes spend visible, facilitating a greater understanding of how cost optimization and spend management will work within the wider procurement strategy.

As with any band, it’s important to pick a software solution that acts in harmony with existing systems, processes and how it will work once it’s been implemented. Given that employees are the ones who will be using it on a day-to-day basis, it’s critical that the solution is user-friendly, and that employees are trained fully.

Even the great rock bands (Queen, Black Sabbath, the Beatles) sometimes need to bring in external experts to push them on to greater things. For procurement it’s no different and the choice may be to engage procurement consulting organizations to assist.

These consultants can assist with software choices, implementation and running. But Group Purchasing Organizations (GPOs) go one step further, offering contract monitoring, spend management and collective buying power through their membership network.

This can help drive savings targets, aid supplier consolidation and all the other positives that organizations want from their procurement teams. Put simply, they help transform procurement from an undiscovered and unappreciated talent to a global rockstar!

Visit UNA to learn more about the benefits of Group Purchasing Organizations.

Intelligent Spend Management – Your Next Smart Move

Photo by Val Vesa on Unsplash

Bringing it all together by bringing Intelligent Spend Management to the business.

If you’re just buying office supplies, you’ve probably got a good idea what you’re spending on paper and pens. But odds are your budget goes beyond a few reams of ultra-white printer stock. And while you are specifically tasked with procurement, you actually help hold the reins and hold influence on multiple categories of spend — from direct and indirect goods, to services, contingent labour — even T&E.

True, this spending is spread out across your organisation and, yes, in many of these categories, spending is more decentralised than ever with employees all over the company buying what they need when they need it. And, it’s true that all of this spending and all of these categories aren’t even in your charge.

However, the business needs you to help bring all that spend under control across all those categories, so you can not only reduce costs, but also help your company:

  • Manage supplier performance holistically
  • Diminish delivery and reputation risks across the board
  • Improve compliance and enforce purchasing policies equally in all categories
  • Increase productivity across procurement and throughout the entire company

Changing Expectations

Organisations are expecting this and more from procurement.

  • They want you to collaborate with finance and supply-chain leaders and address spend management across the business.
  • They’re expecting you to bring more spend categories under control, to unify how you manage suppliers across all categories, and to help bring direct and indirect spending together with services and T&E to increase visibility into all your spend.

They want more, and there’s an easy way to deliver and manage every source and every category of spend in delivering one, unified view.

Unfortunately, the systems most businesses use to manage all of these different spend processes can create barriers between spend categories and keep people from working together. Intelligent Spend Management, on the other hand, is a strategy designed to bring those barriers down, so you can get visibility into and control over each and every area of spend. In one place.

Why Intelligent Spend Management Matters

Intelligent Spend Management means comprehensive policy and supplier management. This gives you oversight over indirect and direct suppliers while bringing that same level of discipline to services/external workforce suppliers as well as key travel suppliers.

And, integrated with your ERP system, an Intelligent Spend Management solution creates a common set of spend data — a hub where you can unify and clarify the information. You’ll also be able to:

  • Capture and centralise once-invisible spend like p-card transactions, non-PO invoices and direct travel bookings that used to slip through the cracks in your systems
  • Apply sourcing best practices consistently to all of your suppliers across all categories
  • Centrally manage supplier risk as well as tax and other regulatory requirements

It brings you best-in-class control of each spend category. This means you can manage the entire procure-to-pay process for direct and indirect expenses from a single solution. Imagine being able to:

  • Deliver a guided user experience that makes it easy to follow policy
  • Give users a simple way to make procurement requests, plus tactical purchases directly from suppliers
  • Ensure the suppliers you source, the prices you negotiate and the terms you establish are pulled through right to the point of purchase, so policy compliance becomes everyday practice
  • Capture data from across the process and use AI and machine learning to automate mundane tasks and serve up insight-driven recommendations at critical decision points
  • Strengthen supplier relationships and, ultimately, get more innovation from suppliers to improve how you work and what you deliver

And you can bring that same level of precision, efficiency and user experience for services, your external workforce – and the same level of control.

Presenting a Unified View

You get a unified view of spend. The Intelligent Spend Management solution connects procurement spend data with data from across spend categories, giving you a single, near-real-time view — without having to piece together reports from disparate systems.

This means you, your friends in finance and your supply-chain peers can see where every bit of your budget is going, and help the organisation:

  • Ensure that all spending is in line with corporate policy and priorities
  • Get up-to-date views into your KPIs, so you can adapt accordingly
  • Manage discretionary employee spend before it gets away from you
  • Feed this spend data back into supplier management and fuel stronger negotiations

Intelligent Spend Management breaks down the silos, so companies can control spend across the board.

This is about procurement, but it isn’t simply for procurement. Intelligent Spend Management enables you to work across categories and bring all the data together — so you can bring confidence to your company by bringing certainty to your spending.

This article was written for Procurious by Drew Hofler, VP of Portfolio Marketing for SAP Ariba & SAP Fieldglass.

5 Big Procurement Challenges Addressed by Enterprise Contract Management Software

This article was originally published on the Icertis blog.

Procurement is a complex part of global business that carries serious commercial and regulatory risk. These risks are especially pronounced when a company does not have an effective way to centrally manage its contracts.

In a recent survey conducted by ProcureCon, leading procurement officials were asked about contract-related challenges they’ve faced that caused revenue leakage, increased cost or financial penalties. Here were the results:

A critical component to tackling each of these issues is enterprise contract management software, which sees contracts as live documents enshrining all risks and obligations incumbent upon an organization.

Indeed, good risk management begins with good contract management. With enterprise contract management, you can identify and manage risk throughout the contract lifecycle with proactive insights. A configurable risk model helps track risks across different categories, such as financial, contractual, performance and third party.

Let’s look at how each of the above challenges is addressed through contract management software.

Challenge: Higher operations costs

Finding: 43 per cent of respondents said higher operations costs have hurt their procurement organisation.  

Because contracts are the foundational element of modern commerce, they govern every procurement action and transaction a business undertakes. With the power of a modern contract management system with an ability to seamlessly integrate with procurement systems in place, an enterprise can gain unprecedented control over spend.

Through full visibility into all their commercial relationships, contract management software ensures that cash flow is complying with corporate plans, and allows executives to continually monitor money moving in and out of the business at all levels of the supply chain.

Challenge: Slow contract creation and approval

Finding: 46 per cent of respondents cited slow contract creation and approval as a challenge.

With enterprise contract management software, users can accelerate and optimize the contract authoring process. For example, users can self-service contracts with pre-approved clause libraries, eliminating the need for legal to get involved at every level of the authoring process but still control contract language.

Configurable notifications alert relevant stakeholders for revisions, redlines, and approvals, ensuring nothing gets missed. And robust, highly configurable rules increase flexibility while driving quicker approvals and execution.

Challenge: Unclaimed entitlements/lost or untapped revenue

Finding: More than half of respondents cited unclaimed entitlements or loss of untapped revenue as a challenge.

Best-of-breed contract management software draws on artificial intelligence (AI) tools that index and “interpret” every entitlement in each contract across the enterprise, allowing users to achieve the full potential of negotiated contracts through better enforcement of commercial terms.

The software captures the terms of products and services, prices, discounts, rebates and incentives in a structured form after interpreting the entitlements. You can then integrate the data with enterprise systems and help enforce terms for better savings and revenue performance.

You can also avoid missed entitlements or revenue potential. For example, sourcing organizations can automatically check purchase orders against agreed upon contract language to detect incorrect billings issues with regard to slabbed discounts or other innovative payout models.

Challenge: Missed obligations

Finding: 55 per cent of respondents said missed obligations have been a challenge.

Contract management software gives unprecedented insight into these contractual commitments, ensuring nothing gets missed. The same indexing and reporting capabilities used to surface entitlements also capture a business’s obligations to third parties, preventing leakage caused by lost business or penalties.

Challenge: Regulatory enforcement actions

Finding: This emerged as the most common challenge for procurement leaders, with nearly 3 in 4 saying they’re concerned with regulatory enforcement due to noncompliance.

It’s no wonder this was the number one concern, given the serious financial penalties and lasting brand and reputational implications of regulatory violations.

A robust library of clauses and templates goes a long way to reducing ad-hoc, or maverick contracts. Readily accessible templates, combined with a rules-driven workflow engine, helps support compliance throughout every stage of the contract management lifecycle.

Contract management software can cross-check country- or region-specific rules with relevant contracts. Compliance, down to the smallest supply subcontract, can be continually monitored through integrations with external software. Contract management software can even take a preventative role in compliance, via innovative contract creation tools.

Sophisticated contract management software can identify such regulatory enforcement and compliance obligations not just from their own contracting policy and authoring rules but also from customer specific contracts and cascade them to buy-side contracts used for fulfilling commitments. This makes the whole supply chain subject to internal regulatory enforcement and compliance actions.

To learn more about how a modern CLM solution can improve procurement at all levels of the supply chain, download this report from ProcureCon.

Vivek Bharti is general manager of product management at Icertis

The Jaggaer Juggernaught Rolls On

With the recent acquisition of BravoSolution, Jaggaer continues its trajectory of rapid, aggressive growth to contend for the title of the world’s largest spend management solutions company. 

The Jaggaer growth story has been interesting to watch. Formerly known as SciQuest, the company’s announcement about BravoSolution needs to be understood in a long line of acquisitions beginning in 2011:

  • January 2011: AECsoft (supplier management and sourcing technology)
  • August 2012: Upside Software (contract lifecycle management (CLM) solutions
  • October 2012: Spend Radar (spend analysis software)
  • September 2013: CombineNet (advanced sourcing software)
  • June 2017: POOL4TOOL (to add direct material capability and introduce Jaggaer Direct)
  • December 2017: Italmobiliare’s BravoSolution.

The company’s press release says the acquisition will effectively render Jaggaer the “largest independent, vertically focused spend management solutions company in the world”. The solution includes advanced spend analytics, complex sourcing, supplier management, contract lifecycle management, savings tracking, and intelligent workflow capabilities.

As a result, Jaggaer will have over 1,850 customers connected to a network of 3.7 million suppliers in 70 countries, served by offices located in North America, Latin America, throughout Europe, the United Kingdom, Australia, Asia, and the Middle East.

Spend Matters reports that this latest move will make Jaggaer “the No. 2 player to SAPAriba in the procurement technology market by revenue”.

A Spend Management “Super Suite”

Robert Bonavito, CEO of Jaggaer, says that the move “creates a powerhouse in the global spend management space and represents the execution of our strategy to build a Super Suite of fully integrated spend management solutions. This acquisition enables the largest companies in the world to do business with a single partner and cover all of their spend management needs. We have best of breed, fully developed solutions for multiple vertical industries delivering value across the full spectrum of spend types. With our size, financial stability, and expanded infrastructure we can further accelerate product innovation and bring customer value across a vast swath of geographies and industries.”

The CEO of BravoSolution, Jim Wetekamp, commented that Jaggaer is “a bold company on an aggressive growth path. The combined entity will deliver greater opportunities for both customers and employees. The combination will allow increased innovation and provide a foundation for procurement digitalisation that will set the trends and benchmarks for the entire industry”.

What’s next? 

The language used in the press announcement (“covering all spend management needs” and “full spectrum of spend types”) appears to suggest that with the acquisition of Bravo, Jaggaer’s offering is now complete. But is this the peak of Jaggaer’s rapid growth story? As the dust settles and any remaining gaps begin to emerge, users may get a glimpse of the type of solution Jaggaer intends to acquire next.

Are You Ready For The Procurement Rebels And Revolutionaries In Your Team?

We know Gen Z don’t fit into the traditional workplace – but how can procurement organisations embrace these revolutionaries to benefit from their rebellious nature and leverage their innovative approaches? 

As a procurement manager with very rigid, process driven procurement software in place, how do you plan to manage the potential chaos that will come from the millennials in your current workforce and the Generation Z’s about to enter it?

Firstly, let’s address three ways of dealing with this issue. Do you ignore them, do you suppress them, or do you take time to investigate what these natural rebels and revolutionaries can offer?

Both groups are born entrepreneurs; they mesh work and play together, they’re smart beyond their years and they have a clear picture of what they want from a career.

Technology has been a major influencer in the develop of a new type of professional. It has provided access to vast amounts of information and has become the great equalizer, playing a major role in their disruptive nature at home and at work.

In my experience, I’ve found that both millennials and Z’s are self-starters – they work smarter and harder than you may think and have disproved time and again the “lazy” stereotype. They’re not averse to working outside normal business hours and use their daily commutes or downtime to get work done because they want to complete it promptly.

The tech catalyst

So, we know that millennials and Z’s don’t fit traditional workplace rules, so how can organisations benefit from their rebellious nature?

Technology is the catalyst of this rebellion. It meshes the world of work and play into a single environment; one where users expect the ‘Amazon’ type experience they get at home on Sunday to be mirrored in how they use technology at work on Monday. ­­

What do you say to the team member that walks into your office to tell you that your existing procurement software is drowning the team? They then show you an app they downloaded over weekend that allowed them to create RFQs, connect and chat with suppliers, make decisions and save a ton of their time and your money.

Revolutionaries are born from discontent. They’re frustrated at the status quo, and those who lead them are searching for a better way. It can be a challenging process, but these young rebels – or, to use a modern term: these entrepreneurs – are simply seeking more effective and flexible ways to work.

A new approach

So how would you react to the above scenario? It starts by changing how you approach the thinking behind the solution. This means recognising that innovation is no longer a top-down exercise that remains in the exclusive domain of senior management teams or corporate retreats.

Real innovation today is being driven from the ground up by those rebels within our teams that simply want a better work experience and are not afraid to try new technology or methods to get better outcomes.

It wasn’t that long ago when ‘agile’ was a term used only in software and development teams. I now see sales teams working with scrums and management teams having daily stand ups – it’s just one example of the new way of thinking and doing that is helping business work faster in today’s instant world.

Does this mean that it’s time to let the revolution rise and allow the rebels to take over the organization? Well, not entirely – it’s about getting the balance right.

It’s time for procurement leaders to stop lamenting about being seen as the roadblocks within their organisations and to look to your millennials and Z’s as a talent pool rich with ideas, innovation and passion.

They will challenge, they will make mistakes, but it is time to move beyond the current boundaries you’ve set, and remember – you were a rebel once, too!

About the author

Alan Paul is a thought leader and CEO of sourceit, a technology company that has led the market in the development of simple and easy-to-use sourcing applications for indirect categories.

Sourceit offers three different products for buyers:

  • RFQ – time saving request for quote software for all indirect categories,
  • Market – a specialized procurement and job management application for marketing services, and
  • Catalog – an inventory management and on-demand product/services ordering application.

Visit the website: sourceithq.com

The New Age Of Procurement Technology

Procurement technology went full sail and you eagerly jumped on board. But now 90 per cent of all technology is about to become obsolete. Are you prepared for the new age? 

As the vice president of Basware’s Purchase-to-pay solution it goes without saying that I’m involved in a lot of procurement technology selection decisions. And over the years, I’ve noticed a recurring pattern in the process, across numerous organisations. It tends to play out a little bit like this:

A CPO of a large organisation is at the end of their tether thanks to a messy purchase-to pay process. It’s the age-old story with AP and procurement operating independently, maverick spend with unapproved suppliers, late payments and paper absolutely everywhere.

The easiest, and seemingly smartest, solution to the problem is the implementation of a new purchase-to-pay system, which said CPO requires, being extra savvy, to be a Software-as-a-Service solution. The CPO knows they can get a decent ROI on whichever supplier they choose.

So what’s the problem?

Unfortunately, our CPO is only looking 5 inches in front of their face! It’s no exaggeration to say 90 per cent of today’s procurement technologies will be obsolete in the coming years. And so procurement needs to start looking much further ahead!

Remember Siebel? We can’t either…

You’d be pretty hard pushed to find an organisation that uses Siebel nowadays. You might even struggle to find someone who knows what it is!

Siebel was the cream of the Customer Relationship Management (CRM) crop in the late 90’s and early 2000’s. It was the absolute best at its time.  Hundreds of millions of dollars were spent on licensing and implementing Siebel, with the promise of visibility, efficiency, and improved customer satisfaction.

Fast forward a mere ten years and…nobody uses it.  It turned on a dime thanks to Software-as-a-Service and, more specifically, Salesforce. An enormous technology shift took place, and suddenly Siebel and everything like it was utterly obsolete. More than a few CMO’s were fired as a result.

What can we expect from the next tech shift?

What can we expect from the next technology shift? We hear about  AI, machine learning and cognitive computing all the time and there’s a lot of concern amongst procurement professionals that it’s going to displace our workforce.

But it’s coming to procurement whether we like it or not. There’s a glaringly obvious application of AI for procurement professionals.

One word: data.

When today’s CPOs try to objectively evaluate the functionality of potential new solutions, they’re often bypassing  a crucial aspect (opting to solely measure tactical functionality); the game-changing competitive advantage their organisation can achieve through the power of the data.  There are two major considerations to be made here.

  1. Is the system architected for centralised data capture?

    The system should be able to capture your data, the data of all organisations using the solution  and, ideally, be able to connect with other solutions.  The more the system is designed for centralised data capture, the better chance you have of being able to take advantage of the latest  data-driven tech changes.

    My advice is that you eliminate anything that focuses solely on you and your data.  If it’s not central, you can be sure you’ll get stuck behind and end up like one of the organisations using Siebel.   But, of course, design alone is not enough.

  2. Does the system actually capture that data?

To capture all of this data, there are three parties that matter: suppliers, requisitioners, and AP. This is where tons of business cases fall apart.

  • Suppliers: To capture data you have to get all your suppliers on the system. Not just your big sophisticated suppliers, every single one! You have to get them connected, or you will fail, if not today then most definitely in the imminent future
  • Requisitioners: Who are the worst employees when it comes to using a procurement system? It’s fair to say that it’s often the sales and exec teams;  the people driving revenue for the company. These groups are only going to use a new procurement system if it’s the easiest and fastest way for them to get their jobs done, which means it has to fit in seamlessly with how they work.   If you don’t give them a system that they want to use, you won’t have them, and again you won’t be capturing the data from their transactions.
  • AP:  This is probably the most important part but so often an afterthought when looked at from a Procurement perspective. Consider how many hundreds of thousands or millions of invoice transactions are processed within your company. Now multiply that by the thousands of other companies out there and you’ll get a sense of how quickly that data can scale. Most P2P systems can’t process all of those different kinds of invoices. And that’s where we end up in Siebel world, yet again!

By committing to finding and using a system that captures all of this data, and does so not just for your organisation, but in a truly centralised platform, procurement will soon be able to achieve the following:

  • Fraud detection
  • Machines that know when you need something. Doesn’t it seem miraculous when Amazon knows what you need and presents it to you when you login?  Let me tell you that it’s not. It’s data
  • Dynamic discounting marketplaces
  • Exceptions handled without any human intervention, based on patterns of prior behavior in the data. This might not be behavior that humans can readily identify, but machines can with ease by crunching all of that data

Procurement would do well to remember that, In today’s world, the big value is in the data, not in tactical functionality.

Eric Wilson is the head of Basware’s Purchase-to-Pay business for the Americas and APAC. 

The Procurement Love Triangle

Love the idea of software solving all your procurement problems? You’d better make sure it’s working in harmony with your people and your processes. 

Paul Blake,  Senior Manager, Technology Product Marketing at GEP Worldwide is a keynote speaker at Big Ideas Summit 2017.  He’ll be talking about digital procurement transformation and why it’s so important for procurement to  adopt  digital-first models. We chatted to Paul ahead of the event to get his take on procurement’s current position.

Describe a perfect client for GEP?

The perfect GEP client is a large company with a lot of complexity in its spend but with a desire to do things better and drive more value into the business.

Do you think cognitive tech signals the end for the procurement profession in the near future?

I don’t.  Procurement has always been driven through human innovation and creativity, but that has often been constrained by the necessities of labour intensive transactional processing and data analysis.  Emerging technologies have the capacity to free the procurement profession from the bounds of document processing to focus more on driving new sources of value.

You’ve been at GEP for five years. What’s changed for the procurement function in this time?

Three major things:

  1. The cloud has come of age for procurement.  The industry can now conduct its entire operations completely independent of any infrastructure considerations.

2.  The unification of procurement and order processing.  Procurement’s remit used to end at the contract, with value realisation outside of their purview.  A single overview of “source-to-pay” gives a much greater ROI

3. The trend toward global harmonization of the supply chain is under threat.  That means increased risk, volatility and uncertainty.  Today, procurement teams need greater reserves of agility and responsiveness to remain successful.

What should we expect from the most successful procurement leaders of the future?

A recognition that procurement has a much broader, collaborative role to play across the entire business.  Reflecting changes in technology, the isolation of business functions into silos is retrograde thinking and a changing world will need a broad-minded approach to procurement operations

What 3 attributes make a great leader?

Education, education, education!

When is software not the answer?

When the question involves people and/or processes!  The three are so deeply interdependent that software itself is never the whole answer.

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