Our supplier relationship management software delivers procure-to-pay excellence
Due to the challenging economic conditions of the last few years, many CPO’s have reverted to the old school methods of procurement achieving savings through squeezing suppliers and contract re-negotiations. We feel this trend is unfortunate as the economic situation currently creates numerous opportunities for procurement organisations to achieve savings while creating long-term, sustainable relationships with suppliers.
How can procurement organisations respond to the need for short-term savings while simultaneously focusing on long-term supplier development? We developed the “Seven Strategies for Future Procurement”, which is a practical framework to assist CPO’s in creating best-in-class procurement organisations. Regardless of the maturity of the organisation, these strategies should be included in the strategic plans for the coming years. Below is a high-level look at the “Seven Strategies for Future Procurement”:
Closed Loop Procurement
Many procurement organisations are still struggling to master the basics: spend visibility and sourcing and contract compliance. Establishing closed loop procurement is a major achievement and an end goal in itself for most procurement organisations. This strategy involves optimizing the basic infrastructure for procurement, from source to pay, in processes, organisation and supporting IT systems.
Hybrid Organisation Models
At a functional level, we see a trend towards hybrid organisational models that combine the benefits of central coordination with improved business collaboration. At a category level, we see further differentiation in organisational models depending on business, category and supply market specific characteristics. A one-size-fits-all organisation design is no longer good enough.Gain all of the benefits from different organisational models and shape your own future procurement organisation.
Supplier Value Management
Leading procurement organisations manage collaborative supplier relationships to extract more value from the supply base. Creating value is on every agenda, but capturing this value is difficult. Utilizing a hybrid organisation model, you will be able to manage different categories in a diverse manner. It is our belief that innovation is the driver for creating value. Use Innovation Driven Procurement (IDP) to accelerate the pace of innovation within organisations by leveraging the innovative power of the supply base.
Supplier Risk Management
Increased dependency on external suppliers, volatility in raw material and energy prices, shortage of key materials, currency imbalances and global financial crises have all made companies recognize once again the importance of supplier risk management and overall resiliency in the supply chain. Looking at the outlook for 2012, we believe risk management will become even more important in the year ahead. Risk management will be central to procurement, combining risk, innovation,sustainability,preferred customer strategies and supplier management. End-to-End Supply Networks Leading procurement organisations manage multiple supply networks that differentiate service characteristics by product / market segment. Managing complex supply networks requires pipeline visibility and alignment of planning and control across multiple tiers of suppliers.
For years we have seen that CPO’s around the globe indicate that talent is the fourth biggest challenge for “marketing” procurement within their own organisation. We strongly believe that talent will be the key driver of success for procurement organisations in the years to come. Leading companies have recognized talent as the key enabler for further developing the supply management function and are investing heavily in attracting, training and retaining top talent.
Supplier Relationship Management Solutions
Enforce procure-to-pay best practices that reduce procurement costs by enabling supplier communications, streamlining operations and improving cost management.
- Cut process costs and speed cycle times by automating procurement and leveraging workflow.
- Deepen and enrich supplier relationships by facilitating electronic transactions and collaboration.
- Act strategically by utilizing data visibility across suppliers and the procure-to-pay cycle.
- Reduce TCO by unifying systems and data sources with a flexible platform.
Effectively manage catalog data and integrate with business processes, as well as support complex hierarchies.
- Automatically synchronize master data information and distribution capabilities.
- Create central data and conduct ongoing data quality checks.
- Implement capabilities for cleansing, loading, aggregating and searching data.
- Support intelligent image management and web/print publishing.
- Exchange trade item data with retailers via data hubs.
Empower employees throughout your organization to purchase the goods and solutions they need.
- Simplify shopping for casual users.
- Enable end users with an easy-to-use wizard.
- Drive contract compliance with a flexible, business rules-based approval workflow.
Gain visibility into organization-wide demand and leverage automated and integrated sourcing processes.
- Gain visibility into demand for goods and solutions from multiple back-end systems.
- Aggregate, spend and streamline the bidding processes.
- Collaborate with suppliers to capture faster and more efficient savings.
Centralized Contract Management
Drive spending with preferred suppliers and global buying power by leveraging centralized contracts.
- Realize savings by tracking usage and driving compliance to negotiated terms.
- Track contract performance and compliance to agreed-upon terms and conditions.
- Extend centralized contracts to back-end ERP systems while controlling updates and renewals.
- Develop a center of excellence model for utilizing centralized resources.
Use out-of-the box reports to monitor purchasing activities, measure contract compliance and gain insights into organization-wide spending and sourcing needs.
- Identify opportunities for better compliance.
- Gain operational spend insight.
- Leverage data access across SAP SRM and SAP ERP financials.
- Ensure proper access with role-based permissions.