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Increase spend under management, increase savings

@machinelearnbot

Our previous post discussed the challenges procurement must overcome to improve its productivity. Fortunately, overcoming these challenges and showing dramatic improvements in performance is within reach for most organizations. One specific opportunity is improving spend under management, an effort worth a potential 1-2% of additional savings annually. The average organization has only 55-60% of its spend under management, while best-in-class performers manage close to 85%. If procurement can achieve 5-10% savings on spend under management, an increase from 55% to 75% can generate an additional 1-2% of savings -- and put procurement on a path to exceed its typical annual savings of 7%.


Reimagining procurement for the next normal

#artificialintelligence

The COVID-19 pandemic has put an enormous strain on global supply chains, at times halting manufacturing while shutting down airports and seaports, interrupting delivery of raw materials and finished goods. At the pandemic's onset, procurement departments switched to crisis-management mode to help companies alleviate disruptions, including sourcing personal protective gear for employees and helping smaller suppliers manage their cash flow. Based on our research and feedback from global procurement leaders, we believe that companies can continue to rely on procurement to recover from the current crisis, in much the same way that they used the function to recover from past crises. But for procurement to lead the way, companies will want to reimagine not just what the function does but also how it operates and which new capabilities it will need. Our analysis suggests that procurement could gain the most by focusing its strategic initiatives in five key areas: strengthening supply-chain resilience, zero-basing the design of category value-creation strategies, investing in supplier partnerships and innovation, accelerating adoption of digital and analytics, and transforming to an agile operating model.


Texas Prepares as Harvey Strengthens to Category 2 Storm

U.S. News

State transportation officials were considering when to turn all evacuation routes from coastal areas into one-way traffic arteries headed inland. John Barton, a former deputy executive director of the Texas Department of Transportation, predicted state officials will do this before the storm hits, but said timing and determining where to use it are the key factors. Storms change paths and if contraflow starts too early, supplies such as extra gasoline needed to support impacted areas can't get in, he said.


Artificial Intelligence

#artificialintelligence

Procurement's Digital Transformation Artificial Intelligence and Machine Learning are changing the ball game in Supply Chain & Procurement! Artificial Intelligence and Procurement Can AI improve Procurement? Modern Technology and Talents Whatever the industry, attracting talents is the key to your success! This is Procurement's Golden Age Procurement: The revolution of supplier relationships! Artificial Intelligence & Human Interaction… It's probably not likely, but if you need to stop by a physical…


Artificial Intelligence

#artificialintelligence

Calalog vs Marketplace Analytics is good… How about the Quality of your Data? Artificial Intelligence and Procurement Can AI improve Procurement? Modern Technology and Talents Whatever the industry, attracting talents is the key to your success! This is Procurement's Golden Age Procurement: The revolution of supplier relationships! Artificial Intelligence & Human Interaction… It's probably not likely, but if you need to stop by a physical…