Skip to main content
0
Category

Procurement

Sep 05
Premikati SAP Ariba Gold Partner

Kickoff Time: What Procurement Pros Can Learn From Football Season

By Procurement No Comments

Summer is winding down, school is back in session, and a chill is in the air – that can only mean football season has arrived!

As both college and professional teams take the field this fall, there are valuable insights procurement professionals can gain from the gridiron.

Even if you aren’t a devoted football fan, the lessons from this beloved sport can help take your procurement game to the next level.

Build a Championship Team

A “dream team” procurement organization isn’t built overnight like a top football program. It takes a thoughtful draft strategy, constantly evaluating needs versus available talent. Creating depth and competence across the function requires mixing promising rookies with veteran players who know how to do the job.

Procurement managers must regularly assess gaps, recruit standout new team members, and develop rising stars.

Investing in training and development will strengthen the bench. And just as a football team strives for unity, a collaborative, tight-knit procurement group will outshine a disjointed roster.

Be Ready for Any Play

Broken plays and audibles are par for the course on the football field. Running backs have to quickly change direction to dodge tackles. Quarterbacks adjust on the fly and find new targets downfield. Procurement pros know things sometimes go differently than planned, too.

Supply chain disruptions, new regulations, mergers and acquisitions, emerging tech, and shifting stakeholder needs can force changes to supplier timelines, agreements, and processes. Like skilled players, procurement teams must think fast, pivot, and adapt to the dynamic environment.

Mastering the art of agility turns challenges into fresh opportunities.

Go Deep on Analysis

Coaches and players spend hours reviewing game film, analyzing strengths and weaknesses, tendencies, and patterns. This intensive prep work is vital in forming a winning strategy. Procurement should adopt the same laser focus when assessing suppliers and markets.

Detailed spend and risk analysis will spotlight sourcing priorities to tackle. Digging into customer feedback and usage metrics will pinpoint where demand is headed. And performance data will indicate which suppliers are all-star players versus underperformers.

Just like coaches mapping out plays, solid analytics position procurement to make the right moves.

Teamwork Scores Big Results

On the football field, it takes cohesion, communication, and coordination across the team to score. Hand-offs, blocks, fakes, catches, and more – every player fulfilling their role is critical to driving the ball down the field.

Procurement wins when there is alignment across the business, too. Including stakeholders early, maintaining open dialog, and earning buy-in helps procurement execute sourcing strategies smoothly.

Cross-functional collaboration also provides a more accurate view of organizational needs and the best path to meet them. Unified teamwork is a proven game-winning approach.

Foster a Championship Culture

The best college and professional football franchises have a winning tradition that sets a tone of excellence and continuous improvement. Players and coaches set high standards and do whatever it takes to achieve them.

Procurement groups can also establish cultural benchmarks, adopt best practices, and create an environment where team members feel valued and motivated to succeed. Whether it’s celebrating cost-saving wins, advancing skills through training, or giving back to the community, creating procurement team pride and unity will pay dividends.

Keep Eyes on the Prize

Of course, every football team is laser-focused on one ultimate objective – to win the league championship! Though the season is long, every practice, play, and decision aims to inch closer to the prize.

Similarly, procurement needs to keep the big-picture goals on the scoreboard. Is it cost mitigation, risk reduction, user satisfaction, or sustainable supply chains? Despite day-to-day tasks, maintaining perspective on desired outcomes and aligning strategies to get there will ensure procurement eyes the right prize.

So, as you follow football this season, notice lessons from the gridiron that could raise your procurement organization’s game.

With preparation, adaptability, analytics, teamwork, culture, and strategic vision, your procurement program will be positioned to score big wins all season long!

 

Need a procurement game plan? Talk to the team at Premikati!

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 05

The Power of Automation: Unleashing Efficiency with SAP Ariba Commerce Automation

By Procurement No Comments

Businesses today are realizing the urgent need for procurement and spend management innovation. Key decision-makers, particularly those in finance and procurement, seek solutions to streamline processes, boost efficiency, and improve organizational visibility. This is where SAP Ariba Commerce Automation enters the scene. 

 What is SAP Ariba Commerce Automation? 

SAP Ariba Commerce Automation is a solution designed to supercharge your procurement processes through powerful automation. Its primary goal is to enhance operational efficiency and ensure a steady supply chain by improving spend visibility and fostering efficient collaboration with suppliers. 

It’s a solution recognized for its innovation and effectiveness, with SAP being recognized as a leader in the 2022 Gartner Magic Quadrant for Procure-to-Pay (P2P) suites for the seventh consecutive time. 

Key Features: A Deep Dive 

SAP Ariba Commerce Automation comes with a suite of features designed to optimize procurement operations: 

  • Regulatory and Business Process Compliance: The solution ensures digital matching of invoices to POs and contracts, thus enabling compliance with regulatory requirements through e-invoicing. Transactions are validated based on configured business rules, reducing manual intervention and exceptions. 
  • Automated Procurement Workflows: The solution automates manual processes, freeing up workforce capacity, decreasing operating costs, and increasing productivity. It also enables digital delivery of POs to suppliers across a business network. 
  • Supplier Portal: The portal allows suppliers to flip a received PO on the network into an invoice, eliminating data entry and other errors. It also gives suppliers a view into invoice status updates, reducing inquiries. 
  • Invoice Status Portal and Transaction Visibility: This feature provides visibility into orders and invoices with a holistic view of spend. It allows suppliers to configure notifications to receive emails when their invoice status changes, promoting adoption for long-tail suppliers through self-service updates and invoice visibility. 

Impressive Benefits 

The benefits of SAP Ariba Commerce Automation are as significant as its features. These benefits include: 

  • Improved Procurement Compliance: The solution supports business process compliance with highly configurable business rules on the network. 
  • Automation of Spend Management Processes: The solution enhances productivity, lowers operating costs, and frees up people’s capacity by automating paper-based and manual processes. 
  • Increased Transparency of Business Spending: The solution provides a holistic view of organizational spending with greater visibility into orders and invoices in one platform. 

Recent Innovations and Future Outlook 

SAP is not resting on its laurels. Recent innovations and planned updates include: 

  1. Guided Buying: The next evolution in guided buying is here. The new capabilities improve the buying experience and leverage AI, intelligent recommendations, and machine learning. This creates a holistic view of what the buyer is purchasing and how it aligns with their organization’s environmental, social, and governance (ESG) goals. 
  1. SAP Central Procurement: The latest release of SAP Central Procurement addresses the challenges associated with centralizing procurement. It delivers the benefits of a uniform, centralized procurement system across all direct and indirect categories — without reworking individual solutions spread across the organization. 
  1. SAP Category Management: A new category management solution, SAP Category Management, is set to roll out this year. It will provide actionable market intelligence and category insights, empowering category managers and procurement professionals to make strategic category decisions. 

 

Statistics Highlighting the Importance of Procurement Optimization 

To underscore the significance of these advancements, let’s consider some compelling statistics: 

  1. Companies that excel at procurement have 20% lower costs, less supply chain disruption, and up to 55% fewer supplier defects (Source: The Hackett Group).
  2. High-performing procurement organizations operate at up to 21% lower labor costs (Source: The Hackett Group).
  3. According to Gartner, by 2023, organizations that have adopted AI in their supply chain management strategy will reduce errors by up to 50%. 

 

From the rollout of SAP Category Management to the enhanced supplier management and the integration of AI and machine learning, SAP is poised to redefine procurement and supply chain management. 

As procurement professionals, we must stay abreast of these developments, leverage these innovative solutions, and drive strategic value and business outcomes in our organizations. 

Jun 01

Macro Finance and Procurement

By Procurement No Comments

Macro Financial Concerns and Procurement in 2023: Are You Ready? 

The year 2023 has presented itself as a period of financial restraint, as the International Monetary Fund (IMF) echoed. Global growth is forecasted to fall from 3.4 percent in 2022 to 2.8 percent in 2023, and a more pronounced slowdown in advanced economies demonstrates a tightening macro-financial landscape.  

Furthermore, the financial sector is experiencing turmoil due to high inflation and ongoing geopolitical tensions, increasing market instability. Despite central banks raising interest rates, underlying price pressures are still proving stubborn, suggesting a prolonged period of financial strain.

 

The Impact on Procurement 

These macro-financial changes are placing a new level of pressure on procurement departments. In this context, procurement’s role has evolved significantly.  

The Chartered Institute of Procurement and Supply (CIPS) outlined key procurement trends for 2023, emphasizing the need for sustainability, timely payment to suppliers, investment in technology, and talent management. 

Sustainability has become a primary concern, as customers are increasingly sensitive to ‘greenwashing’ and demand more transparency about the environmental impact of their purchases. This trend pushes organizations to ensure sustainable practices in their supply chains and avoid falling foul of regulations. 

The challenging financial environment has led to 36% of businesses extending payment terms for suppliers in the last 12 months. This contributes to a vicious cycle that impacts cash flow and liquidity, emphasizing the need for improved supplier relationships and strategic payment practices. 

Investment in procurement technology solutions is also growing. Companies are seeking more consumer-like, intuitively designed, and agile solutions to improve efficiencies and work with leaner staff. 

Finally, with the predicted economic environment, there’s a new urgency to fostering a company culture and strategic problem-solving to attract and retain talent​3​ 

 

Navigating Economic Uncertainty with SAP Ariba 

As predicted by the IMF, the global economic outlook for 2023 presents a complex landscape characterized by financial sector turmoil, high inflation, geopolitical uncertainties, and the lingering effects of the COVID-19 pandemic. In such an environment, businesses need robust, flexible, and intelligent tools to navigate the choppy waters of global commerce. 

With its comprehensive suite of solutions, SAP Ariba is perfectly positioned to help businesses adapt and thrive in these uncertain times. Its intelligent sourcing tool, for instance, allows companies to identify savings opportunities and assess market dynamics, giving them a competitive edge even in challenging conditions.  

As inflation remains high, the ability to efficiently source and manage direct and indirect goods or services within a single platform becomes a crucial advantage, allowing businesses to reduce their time, effort, and risk associated with sourcing events. 

 

Aligning with Sustainability Trends 

Sustainability is no longer a niche concern; it’s a core business priority. Businesses are increasingly under pressure to demonstrate that their operations and supply chains are sustainable to meet regulatory requirements and appeal to increasingly eco-conscious consumers. 

SAP Ariba’s Supplier Management tool can be a crucial asset. It provides comprehensive tools to help buyers onboard, qualify, segment, and manage supplier performance according to parameters that matter to them. This means businesses can drive spending towards preferred, sustainable suppliers, reduce overall risk, and ensure compliance across their entire supply base. In doing so, companies can turn sustainability from a challenge into an opportunity, bolstering their reputation and gaining a competitive advantage. 

 

Embracing Technology for Greater Efficiency 

SAP Ariba is at the forefront of the trend toward increased investment in procurement technology. Its suite of solutions embodies a consumer-like, intuitively designed, and agile approach that can significantly improve business efficiencies. For example, the SAP Ariba Supply Chain Collaboration tool automates the direct procurement lifecycle, reducing reliance on emails and spreadsheets, shortening cycle times, and increasing productivity. 

SAP Ariba Buying and Invoicing further streamlines the indirect goods and services procurement process. Automating and regulating the management of the entire procurement process helps business leaders eliminate errors and exceptions, manage more spending with less effort, maximize savings and profit margins, and respond flexibly and swiftly to changing demands. 

 

Winning the Talent War 

In the predicted economic environment, fostering a strong company culture and attracting the right talent will become even more essential. SAP Ariba’s user-friendly, intuitive design is crucial in this regard. It makes procurement tasks more engaging and less cumbersome, improving employee satisfaction and retention. 

Furthermore, the Guided Buying feature of SAP Ariba makes the procurement process more intuitive and compliant, making it easier for employees to adhere to procurement policies and procedures. This enhances the effectiveness of procurement teams, freeing them to focus on strategic problem-solving and relationship management, which are crucial skills in the modern, complex business environment. 

In conclusion, SAP Ariba is a powerful tool that can help businesses navigate the challenging economic conditions predicted for 2023, align their operations with key procurement trends, and drive significant efficiency and cost savings. By leveraging its comprehensive suite of solutions, businesses can position themselves to survive and thrive in the uncertain times ahead. 

 

In a time of financial restraint and uncertainty, organizations must leverage tools and strategies to help them navigate these challenges. Armed with solutions like SAP Ariba, procurement departments can play a pivotal role in driving cost savings and efficiencies. The time for organizations to act is now – to survive in the current financial climate and thrive in the years to come. 

 

May 25

Navigating the Supplier Landscape

By Procurement No Comments

Unleashing the Power of SAP Ariba Solutions for Optimized Procurement and Risk Management

 

Supplier management has become a critical aspect of business operations for procurement and supply chain executives in interdependent businesses and complex supply chains.

In fact, according to a report by Ponemon Institute, 53% of organizations have experienced at least one data breach caused by a third party in the past two years. This statistic alone underscores the urgent need for robust supplier lifecycle and risk management.

Fortunately, innovative solutions are available to help professionals navigate this challenging landscape. For instance, SAP Ariba’s Supplier Lifecycle and Performance solution offers various benefits that help streamline supplier management and optimize procurement processes.

Enhancing Supplier Relationships

A strategic procurement process starts with strong supplier relationships. SAP Ariba solutions provide a unified and comprehensive view of supplier information, which helps businesses work effectively with suppliers and withstand disruptions. This increased visibility can drive spend to preferred suppliers, allowing businesses to manage suppliers based on specific parameters and integrate this information with other SAP Ariba solutions.

Maximizing Savings

SAP Ariba’s solutions can also help eliminate savings leakage. With enhanced visibility and control, businesses can ensure employees buy the right products at the right price, allowing negotiated savings to reach the bottom line.

Simplifying Risk Management

Understanding supplier risk is essential in today’s complex business landscape. 2021 data breaches increased by 17% from the previous year, and it’s predicted that supply chain attacks would quadruple in 2021 over the number of 2020 attacks. SAP Ariba’s Supplier Risk solution simplifies supplier risk management by providing actionable insight into high-risk suppliers and focused risk alerts.

Gaining Deeper Insight

With SAP Ariba Supplier Risk, businesses can act fast with insight into the location of at-risk suppliers, the problems they may face, and the orders and shipments impacted by risk. This solution also allows for intelligent control assessments based on suppliers’ inherent risk, enabling businesses to identify suppliers of greatest concern.

Driving Compliance with Embedded Risk Management

Embedding risk management in the procurement process can significantly improve compliance. SAP Ariba Supplier Risk helps reduce the assessment cycle time from months to weeks, improving compliance through third-party risk assessments for each supplier engagement.

Delivering Business, Environmental, and Social Impact

Businesses today are increasingly held accountable for their operations’ social and environmental impact. With SAP Ariba Supplier Risk, companies can find the causes of risk to enable compliance controls that make a difference and provide responsible plans for supplier selection, onboarding, and contracting.

Proactively Mitigating Risks

SAP Ariba Supplier Risk enables businesses to generate and execute issue management and action plans to mitigate risks proactively. This solution also connects to the source-to-pay process to improve compliance.

Receiving Personalized Risk Alerts

The SAP Ariba Supplier Risk solution automatically tracks more than 200 risk incidents, helping businesses proactively monitor financial, operational, environmental, social, regulatory, and legal risks.

In an era where 65% of businesses find it hard to manage cybersecurity risks associated with third parties and 74% believe that third-party vendor selection overlooks potential key risks, SAP Ariba Supplier Risk removes the challenge from supplier risk management. It empowers businesses to work with suppliers that can keep business moving with less risk, monitoring aspects of supplier lifecycle management that may not have been considered before.

The Future of Supplier Management

As businesses continue to evolve, so does the complexity of their supplier networks. An estimated 60% of organizations work with over 1,000 third parties, which is growing as business systems become more complex. Additionally, 71% of businesses expect to become more reliant on third parties in the next two years.

Given these trends, it’s clear that effective supplier lifecycle and risk management are more critical than ever. Advanced solutions like SAP Ariba’s Supplier Lifecycle and Performance and Supplier Risk solutions can help businesses navigate this increasingly complex landscape, enabling them to make better buying decisions, maximize savings, scale compliance, simplify risk management, and more.

With robust supplier management solutions, businesses can turn procurement and supplier management from a challenging task into a strategic advantage. By harnessing the power of SAP Ariba solutions, businesses can mitigate risks and unlock opportunities for growth and innovation. It’s time to reshape the procurement landscape and transform how we manage supplier relationships.

 

Click this link to contact us.

May 16

Unleashing the Power of AP Automation: A Strategic Move Towards Efficiency and Profitability

By Procurement No Comments

In an era where digital transformation drives sustainable business growth, one area that remains ripe for disruption is Accounts Payable (AP). AP automation is no longer just an option – it’s a business necessity that yields considerable strategic advantages, particularly for mid-market companies. This post aims to provide an in-depth understanding of the myriad benefits of AP automation to executives committed to fostering operational excellence, reducing costs, and enhancing cash flow management.

 

The AP Challenge: A Time and Resource Intensive Process

AP processes often contain manual data entry, paper invoices, and lengthy approval cycles. These processes are time-consuming and prone to human error, resulting in late payments, missed discounts, and increased operational costs. The lack of real-time visibility into AP data often leads to suboptimal decision-making, hampering growth and profitability.

The AP Automation Advantage: Transforming the AP Landscape

AP automation technology disrupts this status quo, offering a more innovative, efficient, and cost-effective way to manage AP processes.

Let’s delve into the specific benefits:

  • Time Savings: AP automation drastically reduces the time to process an invoice, leading to faster approvals and payments. This increased efficiency frees up valuable staff time that can be better utilized for strategic tasks, such as analyzing spending data or improving supplier relationships.
  • Reduced Operational Costs: Automating AP processes reduces the need for manual intervention, thereby minimizing the scope for human errors and the costs associated with rectifying them. Moreover, it can also decrease storage and postage costs associated with paper invoices. Calculate your potential savings here using SAP’s Buying and Invoicing Value Calculator.
  • Enhanced Cash Flow Management: With real-time visibility into outstanding invoices and payment dates, AP automation allows companies to optimize their cash flow. Companies can take advantage of early payment discounts and avoid late payment penalties, thereby improving their bottom line.
  • Decreased Rogue Spend: AP automation controls maverick spending by enforcing corporate policies and approval workflows. It also improves spend visibility, enabling companies to identify and mitigate rogue expenditures more effectively.
  • Improved Supplier Relationships: Timely payments and transparent communication foster healthier supplier relationships. This enhances supply chain efficiency and opens up opportunities for negotiation and collaboration.

The Powerhouse Duo: SAP Ariba Buying and Invoicing and Premikati

While the benefits of AP automation are clear, the choice of software and its implementation process is crucial.

SAP Ariba Buying and Invoicing is a robust solution offering comprehensive AP automation capabilities. It streamlines end-to-end procure-to-pay processes, enhances visibility into company-wide spending, and drives compliance and control across the invoice management process.

Yet, the success of any AP automation initiative is about more than just the software. It’s about how effectively the software is implemented and integrated with your existing systems and processes. This is where Premikati offers rapid implementation and deployment services that ensure a smooth and efficient transition to automated AP processes.

Premikati’s expertise in SAP Ariba implementation reduces the time-to-value, allowing companies to experience the benefits of AP automation sooner rather than later. Their robust training and support ensure that your team is equipped to leverage the software’s full potential.

AP automation is a transformative strategy that can significantly improve your business’s operational efficiency, financial health, and competitive edge. With SAP Ariba Buying and Invoicing and Premikati’s deployment services, your business is well-positioned to navigate the AP automation journey successfully.

Connect with us today to talk to our team.

Apr 04

Contract Lifecycle Management

By Procurement No Comments

Contracts are the backbone of modern business. They serve as the foundation for relationships between parties, whether it’s a company and its employees, a supplier and a customer, or a vendor and a partner. However, managing contracts can be a complex and time-consuming process. This is where Contract Lifecycle Management (CLM) comes in.

CLM is the process of managing contracts from initiation through execution, all the way to termination. It’s a crucial component of any business, ensuring that contracts are well-structured, compliant, and ultimately, profitable. In this article, we’ll delve into the key aspects of CLM and how it can benefit your organization.

The Lifecycle of a Contract

Before we delve into CLM, it’s important to understand the different stages of a contract’s lifecycle. There are typically four phases of a contract lifecycle:

  1. Initiation: This is the stage where a need for a contract is identified. It could be a request for proposal (RFP) from a vendor or an employment agreement for a new employee. During this stage, parties define the scope of the contract, identify the key stakeholders, and establish the terms and conditions.
  2. Negotiation: Once the scope and terms are defined, the parties negotiate to reach an agreement. This is where the details of the contract are fleshed out, including payment terms, delivery schedules, and service level agreements (SLAs).
  3. Execution: Once the parties have agreed to the terms, the contract is executed. This involves signing the agreement and exchanging copies with all parties involved. During this stage, it’s important to ensure that all parties understand their obligations and that the contract is compliant with all relevant laws and regulations.
  4. Termination: Finally, when the contract reaches the end of its term or when the parties decide to terminate it, the contract is closed. This may involve a handover of services, payment of any outstanding fees, and the return of any assets.

The Benefits of CLM

  1. Increased Efficiency: By streamlining the contract process, CLM can save time and increase efficiency. Automated workflows can ensure that tasks are completed in a timely manner, reducing the risk of delays and errors.
  2. Improved Compliance: CLM can ensure that contracts are compliant with relevant laws and regulations. This is particularly important in industries such as healthcare and finance, where non-compliance can result in significant penalties.
  3. Better Visibility: With CLM, all parties involved in the contract have access to the same information, providing greater visibility into the contract process. This can help to prevent misunderstandings and disputes.
  4. Reduced Risk: By ensuring that contracts are well-structured and compliant, CLM can help to reduce the risk of legal disputes and financial losses. This is particularly important for high-value contracts and those with long-term commitments.
  5. Increased Agility: With CLM, contracts can be easily updated and modified as business needs change. This can help to ensure that contracts remain relevant and beneficial to all parties involved.

In today’s fast-paced business environment, effective contract management is essential. By implementing CLM, organizations can streamline the contract process, improve compliance, reduce risk, and increase efficiency. Whether you’re a small business or a large enterprise, CLM can help you to manage contracts more effectively, ultimately driving profitability and success.

 

For your large enterprise CLM needs, visit our partner Icertis at www.icertis.com

Apr 04

Contracts of Adhesion

By Procurement No Comments

Contracts are essential documents in business and legal transactions. They help to establish the terms of a relationship between two or more parties and can provide a framework for resolving disputes. One type of contract that is becoming increasingly common is the contract of adhesion. In this blog, we will discuss the benefits and enforceability of a contract of adhesion and provide a list of key points to consider when using this type of contract.

What is a Contract of Adhesion?

A contract of adhesion is a standardized form of agreement that is offered to one party with little or no ability to negotiate the terms of the agreement. These types of contracts are typically found in consumer transactions such as insurance policies, software licensing, and car rentals. The terms of the agreement are usually non-negotiable, and the party with less bargaining power must accept the contract’s terms to obtain the desired goods or services.

Benefits of a Contract of Adhesion

  1. Standardization: Contracts of adhesion provide a standardized form of agreement that is easy to understand and use. This can save time and money for both parties involved in the transaction since they do not have to negotiate the terms of the agreement.
  2. Accessibility: These contracts are usually written in plain language, making them more accessible to consumers who may not have a legal background. This can help to promote transparency and fairness in the transaction.
  3. Prevents Surprises: Standard form contracts can help to prevent any surprises or hidden clauses that may be detrimental to the party’s interests.

Enforceability of a Contract of Adhesion

  1. Legal: Courts generally consider contracts of adhesion to be legal as long as they are not unconscionable or violate public policy. In the United States, for example, courts have ruled that such contracts are legal as long as they meet certain standards of fairness and transparency.
  2. Opportunity to Review: Courts will consider whether the party with less bargaining power had the opportunity to review the terms of the agreement before signing it.
  3. Unconscionable: If the terms of the contract are unconscionable or shock the conscience, a court may find the contract unenforceable.

Key Points to Consider When Using a Contract of Adhesion

  1. Understand the terms of the contract: It is essential to review and understand the terms of the contract before signing it. Make sure you understand what you are agreeing to and what your obligations are under the agreement.
  2. Seek legal advice: If you have any questions or concerns about the contract, it is advisable to seek legal advice before signing it.
  3. Negotiate where possible: While the terms of a contract of adhesion are typically non-negotiable, it may be possible to negotiate certain terms. It is worth exploring this option before signing the contract.
  4. Consider the consequences: Think about the potential consequences of signing the contract. Consider what would happen if the other party breaches the agreement or if you are unable to fulfill your obligations under the contract.

Contracts of adhesion can offer both benefits and drawbacks to parties involved in a transaction. While they provide a standardized and accessible form of agreement, the party with less bargaining power may be at a disadvantage if they do not fully understand the terms of the contract. It is essential to review and understand the terms of a contract of adhesion before signing it, seek legal advice if necessary, and consider the potential consequences of signing the agreement.

 

For your large enterprise CLM needs, visit our partner Icertis at www.icertis.com

Close Menu

Contact Us

Call us at: (317) 682 4940
Email us with comments or questions
x