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Parker Sproul

Jun 24

The Virginia Public Procurement Act: Enhancing Compliance and Efficiency

By Procurement No Comments

The Virginia Public Procurement Act (VPPA) is essential for any entity engaged in public procurement within the Commonwealth of Virginia.

This legislation not only sets the standards for acquiring goods and services by public bodies but also ensures that these processes are conducted in a transparent, efficient, and ethical manner.

This deeper exploration of the VPPA will highlight its specific mechanisms, the implications for local governments and contractors, and best practices for compliance.

Detailed Analysis of VPPA Provisions

Competitive Sealed Bidding (CSB)

CSB is the preferred method for public procurement under the VPPA. This process begins with a public body issuing an Invitation to Bid (ITB) which outlines the specifications and requirements of the procurement. Bids are opened publicly, ensuring transparency, and the contract is awarded to the lowest responsive and responsible bidder. This method underscores the VPPC’s commitment to fairness and the efficient use of public funds.

Competitive Negotiation

This method is used primarily for professional services where the lowest bid might not necessarily be the best value. It involves issuing a Request for Proposal (RFP), evaluating the responses based on predetermined criteria, and negotiating with the top-ranked offeror. This approach allows more flexibility and is particularly useful when the scope of the project is complex or when the quality and specific expertise of the service provider are critical.

Special Provisions for Construction and Professional Services

Construction and professional services procurements are subject to additional specific provisions under the VPPA. For instance, the act allows for the use of construction management and design-build contracts, which can provide cost savings and efficiency benefits for significant infrastructure projects.

Ethical Standards and Conflicts of Interest

The VPPA sets stringent ethical standards to prevent conflicts of interest and ensure the integrity of the procurement process. Public employees involved in procurement are required to disclose personal interests that might influence their decision-making, and they must avoid any action that could appear improper.

Challenges in Implementation

Navigating Complex Regulations

The detailed and prescriptive nature of the VPPA can pose challenges, particularly for smaller municipalities and vendors unfamiliar with the depth of the regulatory requirements. Misinterpretations or lack of awareness can lead to non-compliance and potential legal challenges.

Resource Constraints

Smaller entities may struggle with the administrative burden imposed by the VPPA, such as maintaining detailed procurement records, conducting market research, and managing competitive bidding processes.

Best Practices for Effective Compliance

Comprehensive Training Programs

Regular training sessions for both new and experienced procurement professionals can help in understanding changes in procurement laws and best practices, ensuring compliance with the VPPC.

Utilization of Technology

Leveraging modern procurement platforms can streamline processes, enhance transparency, and reduce errors. These technologies can help manage documents, track changes, and maintain necessary audit trails.

Proactive Vendor Engagement

Engaging with the vendor community through pre-bid meetings, feedback sessions, and educational workshops can clarify procurement processes and expectations, reducing errors and promoting more competitive bids.

How to Navigate Next Steps

The Virginia Public Procurement Act is a critical framework designed to govern the conduct of public procurement in a manner that maximizes value, ensures fairness, and maintains public trust. By adhering to its provisions, employing best practices, and navigating its challenges effectively, public bodies and contractors can achieve procurement objectives efficiently and ethically, benefiting from a competitive and open market environment.

So, how do you ensure you and organization are set up for success?

 

Integrating Modern Solutions: How SAP Ariba and PREMIKATI Enhance Compliance and Efficiency

Integrating modern procurement solutions like SAP Ariba, complemented by expert implementation services from PREMIKATI, can effectively address significant challenges ranging from stringent regulatory compliance to the need for efficient process management.

Streamlining Procurement Processes with SAP Ariba

SAP Ariba provides a comprehensive cloud-based solution that facilitates both competitive bidding and negotiation processes outlined in the VPPA.

This platform offers tools for electronic bidding, contract management, and supplier management, which help public bodies maintain compliance with the VPPA’s requirements for transparency and ethical standards.

The ability to automate and streamline procurement processes reduces the administrative burden and minimizes the risk of errors and non-compliance.

Enhancing Compliance and Efficiency with PREMIKATI

PREMIKATI’s implementation services can further enhance the benefits of SAP Ariba by ensuring that the system is configured to align with the specific regulations and standards set forth in the VPPA.

PREMIKATI’s expertise in procurement processes and technology implementation enables public bodies to optimize their procurement strategies effectively.

Here are some specific ways PREMIKATI supports VPPA compliance:

  1. Custom Configuration: PREMIKATI, with its deep understanding of VPPA requirements, can customize SAP Ariba to align with the specific procurement regulations of Virginia. This includes setting up approval workflows, compliance checks, and reporting capabilities that meet state-specific needs.
  2. Training and Support: PREMIKATI provides comprehensive training to public employees, ensuring they understand how to use the SAP Ariba platform effectively and comply with VPPA regulations. Ongoing support ensures that public bodies can adapt to any legal updates or changes in procurement practices.
  3. Efficiency Gains: By automating routine tasks and centralizing procurement data, SAP Ariba allows public bodies to manage procurement activities more efficiently. PREMIKATI helps maximize these efficiencies by integrating SAP Ariba with existing systems and ensuring that data flows seamlessly across platforms.
  4. Enhanced Vendor Management: SAP Ariba’s supplier management capabilities enable public bodies to maintain a comprehensive database of qualified vendors, manage pre-bid qualifications, and ensure that all vendors meet the ethical standards and transparency requirements of the VPPA. PREMIKATI’s services help to tailor these features to the specific needs of Virginia’s public bodies.

 

The integration of SAP Ariba and the specialized implementation services provided by PREMIKATI present a powerful solution for addressing the challenges posed by the Virginia Public Procurement Act.

This combination not only enhances compliance with complex regulations but also improves operational efficiencies, making public procurement more transparent, ethical, and effective.

 

May 23

Setting Up VC and PE Investments for Operational and Financial Success with SAP Ariba

By Blog No Comments

In the VC and PE arena, startups and young companies are like racehorses, brimming with potential but in need of skilled handlers to guide them to success. That’s where procurement solutions like SAP Ariba come into play, serving as a valuable tool for VC and PE firms to keep their investments on track.

Spend Control: Keeping the Reins Tight

Let’s start with spend control – one of the primary benefits of SAP Ariba. Imagine a young company fresh off its initial funding round, burning through cash like there’s no tomorrow. Without proper oversight, that initial capital infusion can vanish faster than a magician’s rabbit. Enter SAP Ariba, which allows VC and PE firms to set customizable approval thresholds, ensuring that significant expenditures are reviewed and approved by the right people. No more rogue spending sprees, just good old-fashioned financial discipline.

Visibility: Shining a Light on Every Dollar Spent

But spend control is just the tip of the iceberg. SAP Ariba also provides unparalleled visibility into where every penny is going. With real-time data integration and comprehensive reporting tools, you’ll have a crystal-clear view of your spending patterns. This level of insight is invaluable for making strategic decisions and identifying areas where resources might be better allocated.

The R&D Money Pit (and How to Avoid It)

Let’s say you’re investing in a tech startup that’s burning through cash on research and development. While R&D is undoubtedly crucial, it can also become a black hole of spending if not managed properly. With SAP Ariba, you can keep a watchful eye on those R&D expenditures, ensuring they stay within budget and delivering the intended value.

Navigating the Compliance Maze

Of course, visibility and control are just part of the equation. Compliance is equally important, especially for firms operating across multiple jurisdictions with varying regulatory requirements. SAP Ariba’s compliance features help you navigate these complexities, reducing the risk of legal issues and financial penalties.

Rapid Deployment: Time is Money

But what really sets SAP Ariba apart is its rapid deployment and operational efficiency. Time is money in the VC and PE world, and SAP Ariba understands that. With its cloud-based architecture and pre-built templates, you can have the platform up and running in a matter of weeks, not months. Once it’s deployed, the intuitive user interface ensures a smooth transition for your team, minimizing disruptions and maximizing productivity.

The Future of Spend Management: AI, Sustainability, and Beyond

Looking ahead, the future of spend management in VC and PE is exciting. As technology advances, we can expect to see even greater integration of AI and machine learning into procurement solutions, providing more sophisticated analytics and predictive capabilities. Additionally, the growing emphasis on sustainability and ethical sourcing will drive further innovation, with solutions like SAP Ariba leading the charge.

Your Secret Weapon for VC and PE Success

In the high-stakes world of VC and PE, having a robust procurement and spend management solution is more than just a nice-to-have; it’s a necessity. SAP Ariba provides the tools and capabilities needed to manage expenditures effectively, maintain visibility and control, and ensure compliance – all while enabling rapid deployment and operational efficiency. With SAP Ariba in your corner, you can focus on what really matters: identifying and nurturing the next generation of successful companies.

Learn how PREMIKATI and SAP Ariba can help insure your investments.

Mar 19

Procurement Transformation Webinar

By Procurement No Comments

Digital transformation stands as a pivotal shift, reshaping how organizations handle growth and optimize operations.

PREMIKATI brought together industry leaders to share their experiences and insights on this journey, particularly focusing on the implementation and optimization of SAP Ariba.

Click below to watch the video

Play Video

Highlights and Key Takeaways:

 

The Journey Begins: Ascend Elements and the SAP Ariba Onboarding Experience

Rodrigo Almeida, Supply Chain and Purchasing Director at Ascend Elements, shared the narrative of a mid-market, high-growth company embarking on its digital transformation journey.

Ascend Elements, a burgeoning player in the electric vehicle (EV) battery recycling industry, faced the challenge of managing rapid growth and the complexities of scaling operations. The need for a structured procurement process became evident as the company transitioned from informal methods to a more organized approach.

Almeida’s recount of Ascend’s journey with SAP Ariba sheds light on the critical role of digital tools in managing procurement in a fast-paced environment. The company’s move to adopt SAP Ariba was driven by the necessity to streamline sourcing events, contracts, and purchasing activities. This transition marked a significant step towards establishing a robust foundation for Ascend’s procurement operations, enabling the company to manage its explosive growth effectively.

The Evolution of Digital Procurement at Howard Hughes Medical Institute (HHMI)

Pamela Harris, Procurement Technology Manager at HHMI, offered a perspective from a large enterprise that has been utilizing SAP Ariba for over a decade. The Howard Hughes Medical Institute, a leading medical research organization, embarked on its Ariba journey to enhance its procurement processes and has since been optimizing the platform to meet evolving needs.

Harris highlighted the institute’s journey from initial adoption to continuous improvement, emphasizing the importance of evolving with the technology to meet the changing demands of the business and its workforce.

The integration of SAP Ariba with other systems, like Workday, and the adoption of new modules like Guided Buying, have been part of HHMI’s strategy to enhance efficiency and user experience. This iterative approach to technology implementation has allowed HHMI to refine its procurement processes continuously and adapt to the dynamic landscape of medical research.

Strategic Implementation and the Road Ahead

The conversation with Almeida and Harris underscored the strategic nature of implementing SAP Ariba and the importance of a phased approach. Both organizations recognized the need for a structured plan to integrate Ariba into their existing ecosystems effectively.

For Ascend Elements, the rapid implementation was a necessity to support its fast growth trajectory, while for HHMI, a more gradual approach allowed for continuous adaptation and optimization.

The discussion also revealed the common challenges faced by organizations at different stages of their digital transformation journeys. Ascend and HHMI emphasized the importance of change management and stakeholder engagement to ensure the successful adoption of new technologies.

They highlighted the need for ongoing evaluation and adaptation of the system to align with organizational goals and market dynamics.

Lessons Learned and Best Practices

The panel provided valuable insights into best practices for implementing and optimizing SAP Ariba. Key lessons included the importance of clear objectives, executive support, and effective change management. Both speakers stressed the need for continuous communication and training to facilitate user adoption and to maximize the value of the investment in SAP Ariba.

Additionally, the discussion highlighted the importance of aligning technology implementation with business strategy. For Ascend Elements, SAP Ariba is a foundational tool supporting rapid growth and operational scaling.

In contrast, HHMI utilizes Ariba to sustain innovation and efficiency in its procurement processes, ensuring that the organization remains at the forefront of medical research.

The Future of Procurement and Digital Transformation

Looking ahead, the journey of digital transformation in procurement is ongoing. As companies like Ascend Elements and HHMI continue to evolve, the role of technology in enabling efficient, scalable, and effective procurement processes becomes increasingly evident.

The insights shared during the event underscore the potential of SAP Ariba and similar platforms to transform procurement, providing organizations with the tools they need to navigate the complexities of modern business landscapes.

 

The experiences of Ascend Elements and HHMI with SAP Ariba offer valuable lessons for organizations at any stage of their digital transformation journey. The key to success lies in strategic implementation, continuous optimization, and the ability to adapt to changing business needs.

As companies continue to navigate their unique paths, the insights from industry leaders provide a roadmap for leveraging technology to drive growth, efficiency, and innovation in procurement and supply chain management.

Oct 16
SAP Ariba LoB Award Finalist

PREMIKATI recognized by SAP 5 Years in a Row

By Press No Comments

Trailblazing the Path to Procurement Excellence: PREMIKATI Earns Finalist Spot for SAP’s Esteemed Global Intelligent Spend & Business Network Partner Award in 2023

In an era where digital innovation and excellence hold the keys to business success, PREMIKATI is thrilled to announce that we have been named a finalist for the SAP Global Intelligent Spend & Business Network Partner Excellence Award for 2023.

This is more than just an accolade; it’s a testament to our unwavering commitment to reshape the future of procurement.

A Benchmark of Excellence

Being named a finalist is no small feat, especially when you consider that SAP’s award exemplifies peak performance within the vast SAP network.

This prestigious honor is the fruit of our laborious efforts to not just meet, but exceed the industry benchmarks in intelligent spend management solutions.

Not Just Another Vendor, A True Partner

Our collaboration with SAP Ariba goes beyond the conventional supplier-client relationship.

As an SAP Gold Partner, we leverage cutting-edge technology to drive results that matter for our clients—savings in both time and money.

We are not just vendors; we are genuine partners in your journey toward efficient, streamlined procurement and supply chain operations.

Our Formula for Success: You

Our goal is to empower finance and procurement executives in mid-market and large enterprise companies, providing them with tools that streamline operations and facilitate growth.

Our clients are at the core of our success. Through our Ariba Center of Excellence, we bring world-class consultancy services that enable large enterprises to optimize their procurement functions to the fullest extent.

What’s Next?

We remain steadfast in our mission to revolutionize the procurement landscape, guided by a future-forward mindset.

Being named a finalist for this esteemed award fortifies our resolve to set new standards and create unprecedented value for our clients.

Our vision for the future is one where procurement and finance are not just business functions but strategic assets that propel companies forward.

To read the press release click the following link: Press Release

Sep 29

From Procurement to CEO: 10 Trailblazers at the Helm

By Procurement No Comments

The journey to the CEO’s office can take many paths, with procurement being a less heralded but critically important one.

A background in procurement equips individuals with a robust understanding of cost management, supplier relationships, and operational efficiency – all vital aspects for successfully steering a corporation.

Here we celebrate ten notable CEOs whose procurement prowess paved the way for their ascent to the top:

1. Tim Cook (Apple Inc.): Before becoming the CEO of Apple Inc., Tim Cook honed his procurement skills at IBM and as Apple’s Chief Operating Officer, where he dramatically improved the company’s supply chain efficiencies. His procurement acumen is often cited as a key factor behind Apple’s meteoric rise to becoming one of the world’s most valuable companies.

2. Mary Barra (General Motors): Mary Barra’s journey at General Motors (GM) began with procurement and supply chain roles. Her understanding of quality procurement, supplier relations, and operational streamlining later played a significant role in her appointment as GM’s CEO, leading the company through numerous transformations.

3. Lee Scott (Walmart): Lee Scott’s early career in logistics and procurement provided the bedrock for his successful tenure as Walmart’s CEO from 2000 to 2009. His initiatives significantly enhanced Walmart’s supply chain efficiency, echoing the importance of a procurement background.

4. Samuel J. Palmisano (IBM): Before becoming IBM’s CEO, Samuel J. Palmisano gained substantial procurement experience, which played a crucial role in strengthening IBM’s global procurement strategies, significantly impacting the company’s bottom line.

5. Phebe Novakovic (General Dynamics): Phebe Novakovic’s procurement and operations expertise were honed during her early career. As CEO of General Dynamics, her procurement background greatly contributed to improved operational efficiencies and profitability.

6. Alan Mulally (Ford Motor Company): Alan Mulally’s experience in procurement at Boeing significantly impacted his strategies as Ford’s CEO, where he streamlined operations and bolstered supplier relationships, driving Ford back to profitability during a challenging economic period.

7. Inga Beale (Lloyd’s of London): Inga Beale’s tenure in various procurement roles equipped her with the skills necessary to navigate Lloyd’s of London as its CEO through a rapidly evolving insurance market, highlighting the strategic advantage of procurement expertise.

8. Jim Skinner (McDonald’s): Jim Skinner’s procurement background was integral to his successful leadership as McDonald’s CEO. His focus on supply chain efficiency and cost management significantly contributed to McDonald’s global success during his tenure.

9. Patricia Woertz (Archer Daniels Midland): Patricia Woertz’s procurement experience was a cornerstone of her successful tenure as CEO of Archer Daniels Midland, driving operational efficiency and effective cost management which bolstered the company’s global position.

10. David Abney (UPS): David Abney’s early career in procurement laid the foundation for his tenure as UPS’s CEO. His emphasis on operational efficiency and strategic supplier relationships significantly benefited UPS’s global operations.

 

These ten illustrious CEOs exemplify how a strong foundation in procurement can serve as a springboard to the highest echelons of corporate leadership.

Their stories underscore the intrinsic value of procurement expertise in navigating the complex landscapes of global business, demonstrating that the path to the CEO’s office can very well begin in the procurement department.

Aug 15

Premikati Reaches Inc. 5000

By Press No Comments

Premikati Inc. is pleased to announce its inclusion in the prestigious Inc. 5000 list of the fastest-growing companies in the United States for 2023.

INDIANAPOLIS, INDIANA, UNITED STATES, August 15, 2023/EINPresswire/ — Premikati, a beacon of innovation and a dominant force in procurement management consulting is elated to announce its inclusion in the Inc. 5000 list of the fastest-growing companies in the United States. This highly sought-after distinction places Premikati among a select echelon of forward-thinking organizations that are not only shaping business trends but also pioneering unexplored avenues within the industry.

Inc. 5000 Reward
The Inc. 5000 list represents companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital, and seemingly intractable hiring challenges. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household names gained exposure as honorees on the Inc. 5000 list. Companies are ranked according to their revenue growth rate over three years. To qualify for the 2023 Inc. 5000 list, companies must have been founded and generating revenue by March 31, 2019. They must be U.S.-based, privately held, for-profit, and independent as of December 31, 2022. This year’s Inc. 5000 companies have added 1,187,266 jobs to the economy over the past three years.

“Our place on the Inc. 5000 list is not just a testament to our growth but a validation of our commitment to relentless innovation and excellence,” affirmed Marisol Buchanan, CEO of Premikati. “We see this recognition as both an honor and a challenge to continue pushing the boundaries of procurement technology and client satisfaction.”

The Culture

Premikati, with its diverse team of procurement professionals and deep-rooted expertise in SAP Ariba™, has been at the forefront of technological advancements. By merging traditional procurement wisdom with modern technological tools, Premikati crafts solutions that transcend ordinary boundaries, ensuring client success.

In recent years, the company has not only demonstrated significant growth but has also unveiled groundbreaking innovations that reinforce Premikati’s status as a visionary leader in the industry. The inclusion in the Inc. 5000 list exemplifies the company’s unwavering focus on creative problem-solving, customer-centric approaches, and dedication to cultivating a culture of continuous innovation across a variety of industries, including Life Sciences, Consumer Products and Goods, High-Tech, Wholesale Distribution, Healthcare, as well as the Private Equity space.

“The future of our company is incredibly bright,” continued Marisol. “With a dedication to inventiveness and adaptability, we look forward to further enriching our portfolio of services, venturing into new markets, and maintaining our reputation as an industry trailblazer.”

About Premikati
Premikati is a leading procurement management consulting firm, specializing in entire procurement business and legal process outsourcing and implementing SAP Ariba and Icertis software. In Indianapolis, Indiana, Premikati’s commitment to innovation sets it apart, offering tailored solutions that marry the latest technological advancements with timeless business wisdom. Premikati paves the way for clients to achieve growth through efficiency and insight.

Jul 10

Procurement Contracts

By Procurement No Comments

Procurement contracts are more than mere pieces of paper requiring a signature; they are the bedrock of successful business transactions and play a vital role in procurement.

What is a Procurement Contract?

A procurement contract is an agreement between a buyer and a supplier to manage a project. This agreement obligates the supplier to provide the necessary materials and services at an agreed price, providing the foundation for successful project execution.

The Procurement Process: More Than Just Buying

The procurement process often starts with the buyer, who must determine whether a potential supplier can meet their needs. Through this process, the most suitable supplier for a project is selected, helping to minimize procurement fraud and misunderstandings down the line.

Why Are Procurement Contracts Important?

Procurement contracts are crucial to business transactions. They contain all negotiated terms and conditions, including payment details, a list of orders, delivery schedules, and correction measures. By fostering trust between the buyer and supplier, these contracts safeguard both parties from fraud and misrepresentation, ensuring smooth project management.

Advantages of Procurement Contracts

  1. Transparency: Procurement contracts establish transparency between the buyer and supplier, preventing deception and building a solid relationship. Full disclosure of prices and receipts strengthens the bond between both parties.
  2. Clarity: With everything stipulated in the contract, misunderstandings are minimized. Both the buyer and supplier understand their obligations, promoting cooperation and diligence in their performance.
  3. Legal Protection: Both parties are liable to perform their duties under the contract. Legal actions can be taken against a party that intends to defraud, providing safety in every business transaction.

Different Types of Procurement Contracts

  1. Fixed-price Contract: This is the most common type of contract used in business transactions. Regardless of any internal or external factors, the price set during the signing of the contract remains constant until the project ends.
  2. Cost-reimbursement Contracts: Here, the buyer agrees to pay the supplier for the direct and indirect costs of the project. The supplier only gets paid once the expenses have been validated, placing much of the risk on the supplier’s side.
  3. Time and Materials Contract: This type of contract reimburses the vendor for the materials and time spent on a project. It is most commonly used on projects that are not easily quantifiable.

With the rise of technology, procurement processes are becoming increasingly streamlined and data-driven, leading to optimized spending and reduced risk.

Tools like Icertis and SAP Ariba’s Contract Management Software are revolutionizing this space by providing contract intelligence and services that drive compliance, minimize risk, and maximize business impact.

In an ever-evolving business landscape, understanding and leveraging the power of procurement contracts is a vital strategy for any organization, particularly for finance and procurement executives in the midmarket and large enterprise space.

 

Click here to contact our team

Jul 05

Competitive Sourcing in Procurement

By Procurement No Comments

Effective sourcing in procurement is no longer a luxury—it’s a necessity.

For finance and procurement executives, understanding the intricacies of sourcing is crucial in ensuring a stable supply chain, mitigating risks, and ultimately achieving a competitive edge.

But what exactly is sourcing in procurement, and how does it unlock value for businesses?

Understanding Sourcing in Procurement

Sourcing is the process of finding the most suitable suppliers of goods and services for a company. It’s about balancing cost, profit margins, and competitiveness. The right supplier must offer a good enough price so that the acquiring business can make a profit margin by trading or using the product in their production process, all while considering the actions of competitors.

Although often used interchangeably, sourcing and procurement are distinct but related concepts. Sourcing involves finding, vetting, and onboarding suppliers, whereas procurement deals with the steady flow of goods through the supply chain.

The Importance of a Sourcing Strategy

In order to attain a stable supply chain, it’s important to develop a proper sourcing strategy. A sourcing strategy serves several purposes:

  1. Consolidating purchasing power: A strategic approach to sourcing allows a business to negotiate for lower unit prices through bulk purchases. This can result in higher profit margins or lower selling prices, thereby increasing the competitiveness of a company’s products.
  2. Risk mitigation: By conducting research on prospective suppliers, a company can avoid suppliers who are not a strategic fit, perhaps in terms of capacity, culture, or regulatory compliance. This can protect the company from possible disruptions arising from a supplier’s non-performance.
  3. Scouring the market for opportunities: Strategic sourcing is an ongoing process of searching the market for new opportunities. New suppliers with superior product quality, more competitive prices, or even new production technology may emerge. The role of the sourcing team is to establish contact, gather intelligence, and lay the groundwork for future contracts, helping the business stay competitive in the long term.

The Sourcing Process: A Step-by-Step Guide

The sourcing process can be broken down into seven key steps:

  1. Analysis of Internal Needs: This involves determining the goods and services the company needs to acquire, as well as how much of each item is required based on past requirements and activity growth projections.
  2. Researching the Market: The organization should research the market to find potential suppliers and their offerings. This includes considering logistical costs and the risks that arise from working with each of them.
  3. Developing the Sourcing Strategy: The company comes up with a method of determining which supplier to work with, ensuring both reasonable costs and supply chain stability.
  4. Requests for Proposals and Quotes: Once potential suppliers have been identified, the company will invite them to send in their bids to supply goods or deliver a service. These proposals need to be detailed enough for the sourcing team to assess the supplier’s capacity to deliver.
  5. Negotiating Contracts: After receiving proposals, the company will shortlist suppliers they want to work with based on an objective criterion. This often involves negotiations for adjustment of certain terms.
  6. Onboarding and Integration of the Suppliers: Once a contract is signed, the supplier undergoes a formal onboarding process, which involves setting up communication lines.
  7. Assessment of Results: Sourcing is an ongoing process, and for current suppliers, the company has to monitor their performance against predetermined standards continually. This is a critical part of supplier relationship management.

Sourcing Strategies to Consider

There are several types of sourcing strategies, including near-sourcing, insourcing, global sourcing, sub-contracting, captive service operations, manufacturing, vertical integration, and joint ventures. Each comes with its own set of benefits and challenges.

For instance, near-sourcing can save on cost and time in transportation but may require a higher initial investment. Conversely, offshoring can offer cost savings but often incurs additional time and costs in transportation.

The Power of Technology in Sourcing

The use of technology can help streamline sourcing activities. From gathering information about suppliers and sending requests for proposals to performance benchmarking and assessment, digital tools have revolutionized the sourcing and procurement process.

According to a Gartner survey, 85% of businesses have already implemented, or plan to implement, digital procurement solutions in the next two years.

 

With a proper understanding of sourcing in procurement and the use of strategic sourcing practices, finance and procurement executives can unlock significant value for their organizations.

By adopting efficient sourcing strategies and leveraging the power of technology, businesses can streamline their procurement processes, reduce costs, increase competitiveness, and ultimately drive growth.

 

Click here to contact our team

Jun 29

Bargain-Bin Pants, Procurement, And The Could-Have-Been Gremlin (You Deserve Better, Part 1) 

By Procurement No Comments

You know that one pair of pants that’s been sitting in your closet for, like, two decades? That you maybe wore one time on a Thanksgiving back in 2007, but they were a little itchy and a little snug and the folds fell in all the wrong places giving you that skinny-fat, oompa-loompa-ish appeal? But they’re cute, right? And one day you’re going to fit into them just right, right? 

Those are your could-have-been pants. The intention is that they keep you hopeful, help you look toward a better future where you embody the person who wears those pants—whether that means you have the body, the confidence, or just someplace to go to wear ‘em(Thanks, Covid.). That’s an admirable intention. 

But the reality is that they make you feel like sh*t. You shove them to the back of the closet in disgust, wistfully thinking of all the things that could have been, if only this, if only that, blah, blah, blah, pity party, Ben & Jerry’s, world’s smallest violin, blah.  

The reality is that those pants that looked super good on the hanger and that you got a Great Deal™ on during that super sale—they were never right for you, and they’re holding you back. Just like everybody has (or, at least, has had) those could-have-been pants somewhere in their closet, so does every business have a little money gremlin screeching taunts about, “Wouldn’t it have been nice if you could have hired that new salesperson? Stash back a little savings? Upgrade to that swag new Keurig in the break room?”  That’s your could-have-been gremlin, and it’s eating your business alive. 

Don’t Feed The Gremlins

Gremlins, tiny little agents of chaos that like to dismantle good things at their source. They like to feed on things like lost receipts, manual processes, paper, lost time… all the subtle but pervasive inefficiencies in business that we’ve grown to overlook. But while we keep daydreaming about better business days, the could-have-been gremlin grows and grows. We build next-steps on top of shaky foundations, compound ineffective processes on top of ineffective processes, and, eventually, it all starts spiraling out of control. If left unchecked, your could-have-been gremlin will be dancing in the ashes of your hopes and dreams while you slap up a going-out-of-business sign and start sadly scribbling your way through layoff paperwork.

But maybe it hasn’t gotten quite that extreme yet. Maybe your gremlin is just a wee little guy snooping around for something to sink his teeth into.  Maybe you can still save your business from a fiery death if you can learn these simple lessons: 

  1. It doesn’t matter how cheap something is if it’s not the right thing. 
  2. It doesn’t matter how great something sounds if it’s not what you need.
  3. And daydreams only happen for real, for real as a product of your continued, repeated actions. It’s a series of right choices—saying yes to the right things, and no to the wrong things—that take dreams from haunting hopes to full-on reality. 

To go back on any of these lessons is more expensive than many people realize, because they’re fractal. They spiral. In life and in business. 

If you want to succeed in business, you have to buy the right things at the right price, not the wrong things at a low price. And you have to think about the value of your time (and your employees’ time.) Time is the only currency you can only spend once. Dollars just breed like wild rabbits the more of them you have—there’s no shortage. So, when it comes to procurement, you should have an option that… 

  1. Saves you time. 
  2. Saves you money. 
  3. Both 
  4. Potato 

If you answered C, congratulations! You’re on the success wagon already. So what does that look like in the ‘20s? First off, it means ditch the 90s tech. No fax machines. Fax machine bad. Give the fax machine to some Insta-famous vaporwave artist so they can repurpose into something cooler, because it is not serving you in your business. In fact, all the paper processes have got to go. Paper checks. Paper invoices. Get them out of here. Forget about them. They’re dead to you now. (Just like all those trees, ba-dum-cha!) 

Digitization = good. Flex those techie muscles and get in on this automation thing, all the cool businesses are doing it. Things you can automate include: 

  • Expense reconciliation
  • Receipt capture
  • Supplier indexing
  • Asking for signatures on contracts (P.S. e-signing is love. You def need that.)
  • Spend forecasting by department or category
  • Expense categorization

If you’re shopping on the Premikati Marketplace, you can set parameters for your suppliers. Got an eco-friendly hipster kind of gig going on? Shop local, no problem. Diversity filtering? Yes, ma’am, #shepreneur #girlboss. (By the way, we’re women-owned, too.) Do you need your specific suppliers that you already have but all the perks of Premikati? We’ll onboard ‘em, hakuna matata.  

And it’s super easy to do all your procurement shopping on Premikati Marketplace too, because it’s setup with the same sort of intuitive interface that’s used by Amazon and other online retailers. We even do that virtual cards thing so you get full spend visibility, fraud security, risk reduction, and hella cash back because you can give literally everyone a spend-limited card because you have literally unlimited physical and virtual cards thanks to our partner, Ramp. 

And we’ve got pricing plans to fit any budget, so you’re going to get the right thing at the right price, no surprises. 

Kick the could-have-beens to the curb and take action on your dreams. Want a differently-shaped body? Diet and exercise. Want to boost your confidence? Join Toastmasters. Get a life coach. Want to go somewhere nice? Google that nonsense, make a plan, grab your mask (Thanks again, Covid), and take your happy behind on to the niceness. You want extra cashflow in your business, a boatload of extra time, and definitely internet cool points? Use Premikati for your procurement. 

It’s not the outdated processes, it’s not the save a few bucks here or there one-off software solution, and it’s sure as hell not your could-have-been pants that are going to get you to your dreams. It’s you, and your choices, and you deserve better.  

So here’s the plan: 

  • Out with the old, in with the new, breathe a sigh of relief. Get rid of the pants. Get rid of those kitchen gadgets that don’t work right while you’re at it. And get rid of your analog processes, outdated procurement software, and your business gremlins. 

With Premikati, you can order what you want, where, when, and how you want it. No IT required. No commitment. And seamless scaling that grows with you (unlike a certain pair of pants). Ready to start with your one-stop procurement solution? We can have you going within hours. Reach out to us today.

Jun 26

Revolutionizing Procurement with Icertis Contract Intelligence

By Icertis and Premikati No Comments

Every cog in a corporate machine plays an important role, and procurement is no exception. As organizations strive for operational efficiency, procurement stands as a key driver for business success.

Yet, one area in procurement often proves challenging – contract lifecycle management. That’s where Icertis comes into play. By providing an intelligent, cloud-based CLM solution, Icertis is not just navigating but revolutionizing the procurement landscape.

The Importance of Efficient Procurement

Before we dive into Icertis’s unique solutions, let’s shed some light on the integral role procurement plays in a business.

A study by Deloitte shows that organizations with excellent procurement practices have 133% greater return on investment than their counterparts. These efficient operations can often be the difference between business success and failure.

Icertis: The CLM Trailblazer

So, how does Icertis fit into this scenario? Here’s the truth: contracts are at the heart of procurement. They define obligations, responsibilities, and performance metrics, and any mismanagement in CLM can lead to wasted resources, compliance issues, and poor supplier relationships.

Enter Icertis Contract Intelligence, the platform that’s making CLM an integral part of the procurement strategy. The platform seamlessly integrates with procurement processes, thus transforming contract management from a cumbersome chore to a streamlined, value-generating function.

Mitigating Risk with Icertis

Risk is an inherent part of any contract, and a robust mechanism to identify, analyze, and manage these risks is a necessity in the modern business world. This is where Icertis truly shines.

Icertis’ risk management capabilities allow organizations to stay proactive rather than reactive. The platform enables the tracking of contractual obligations and adherence, thereby reducing the likelihood of litigation, reputational damage, and financial loss.

Indeed, Gartner reports that by 2023, more than 30% of global enterprises will have automated contract obligation tracking, thus reducing risk exposure by 50%.

Ensuring Compliance: A Central Tenet of Icertis

Ensuring compliance in today’s complex regulatory landscape is no easy feat, yet Icertis tackles this challenge head-on. The platform provides a centralized repository for all contracts and associated documents.

This ensures every transaction, and every procurement activity, adheres to relevant regulations, avoiding the potential of legal entanglements.

Enhancing Supplier Relationships

Managing supplier relationships effectively is key to procurement success. Icertis takes this to a whole new level by facilitating communication and ensuring all parties adhere to their contractual terms. Better-managed contracts lead to more productive relationships and a more efficient procurement process.

Unparalleled Visibility and Control

One of the standout features of Icertis is the visibility it provides over the entire contract lifecycle. With this feature, procurement teams are empowered to make better decisions, improve efficiency, and increase control over procurement activities.

A 2020 Forrester study found that organizations using AI-infused CLM solutions like Icertis experienced a 75% reduction in uncontrolled contractual spend.

Key Benefits of Icertis in Procurement

Icertis provides a myriad of benefits, including:

  • Seamless Integration: Icertis dovetails with your procurement processes, enabling an effective and efficient CLM system.
  • Robust Risk Management: Identity, analyze, and manage contractual risks like never before.
  • Ensured Compliance: Centralized contract storage ensures that all your procurement activities adhere to relevant regulations and standards.
  • Enhanced Supplier Management: Streamline your procurement process and bolster supplier relationships.
  • Complete Visibility and Control: Make better decisions with complete transparency over your contract lifecycle.

 

In a world where efficiency is key, Icertis is leading the way in revolutionizing procurement. With robust risk management, compliance assurance, enhanced supplier management, and full lifecycle visibility, Icertis is delivering an efficient and effective CLM system that every procurement team needs.

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