Spend Matters SolutionMap, an extensive independent benchmark of procurement technology providers has been published multiple times for the last several years. Procurement professionals have been using these SolutionMaps to track market development and disruptors, assess provider capabilities based on their needs, and identify their best-fit provider shortlist. So how did Xeeva fare on the 2020 spring release? On the latest Spend Matters SolutionMap release, Xeeva was ranked as a solution leader in both the Spend...
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We recently held a webinar with Spend Matters about ways procurement organizations can put a stop to spend leakage. Before explaining how to stop it however, it is important to define what it is – and why traditional definitions may not be enough. Read on or watch the short clip below to learn about some common definitions of spend leakage from our Chief Strategy Officer, Steve Griffiths, and our VP of Automotive Practice, Amarish Kapadia! ...
Let me just start by saying: what a year! From racial and social justice to the novel coronavirus, the global economy and organizations of all sizes and across all industries were disrupted in some way or another. People everywhere were forced to adjust to new personal and professional challenges. It’s been a transformative year, to say the least, and that’s been true for our team as well. They say hindsight is 20/20 but what we’ve...
As a new Xeeva Spend Analytics customer is being onboarded, we often get asked “what happens to my spend data?” After the hard work of collecting all the details has been done and a complete data set has been handed over to the Xeeva team for processing, it’s common for you to wonder what exactly we’re doing with your data. You may hear that it could take several weeks to organize, cleanse, and categorize your...
“What will the future look like?” has become the question of 2020. At this year’s OESA Automotive Supplier Conference, industry experts and senior automotive executives joined virtually to discuss how the industry will continue as it settles into a new norm and focuses on the future once again. Following the event’s theme of “Journey Back to the Future,” the 3-day conference consisted of a variety of conversations that included the industry impact of the coronavirus,...
With the advent of SaaS applications, companies have been able to take advantage of quick implementations and a short time to value. However, exchanging data among a new SaaS application with other SaaS and on-premise applications is sometimes an afterthought. This is especially common when a business unit decides to use a cloud software application to solve an urgent business problem without a representative from IT involved. Connecting IT systems properly for the exchange of...
We recently attended the ProcureCon MRO virtual event that brought together senior-level maintenance, repair, and operations (MRO) procurement innovators representing some of the world’s largest manufacturing companies. Although the event was held behind computer screens, industry experts, practitioners, and solution providers gathered virtually to discuss the various ways organizations have been impacted, how to better manage risk, and how to proactively respond for the future. Read on to learn our most valuable takeaways. Now is...
The supplier is a third-party vendor that provides goods, materials, and services to your organization. It seems obvious to choose the suppliers that are cost-efficient and easy to work with – however, with the growth of technology and global economies of scale, organizations are spoiled by having so many suppliers available in the market. It can be hard to choose the best supplier to fit your needs, and at the same time, one supplier may...
Procurement activities and improved spend management have always been competitive factors for an enterprise. Managing key supplier relationships and costs contribute directly to bottom-line profits. Controlling indirect spend can introduce various cost-saving opportunities and help organizations improve their operating costs. Three areas in which companies try to curtail spend management are reduction in spot buys, controlling maverick spend, and managing tail spend. Each one can be optimized to yield better results for organizations, and having...
In what’s become our new normal, category and commodity managers, procurement directors, chief procurement officers, and others in the procurement and sourcing departments joined virtually for ProcureCon Indirect in late July. The theme of the event was “Coping with New Procurement Realities and Applying Lessons from 2020” with many of the sessions focused on procurement’s role in reopening post-COVID, cost savings, building resiliency in the indirect supply chain, and best practices to reshape procurement. Thinking...
The rise in digital transformation has led to a massive increase in data as the systems used at a company continue to grow. In fact, the 2019 Deloitte Global CPO Survey showed that 59% of CPOs believe analytics in procurement will have the most impact on their businesses over the next two years. As data grows exponentially, procurement leaders today are dealing with: Increasing data complexities Poor master data quality The inability to generate analytics...
At Xeeva, we know that our customers’ success in using our products is vital for our success. So when it comes to product releases, we want to make sure that those who use our spend management software are in the know and properly prepared for any upgrades that may occur. In this blog, we’ve laid out some of our most frequently asked questions around product release upgrades to help our customers have a better understanding...
No matter the industry, managing spending is always a fundamental focus for any executive team, and nothing impacts spend as much as variation in the purchase price of goods and services. Purchase price variance (PPV) is one of the key metrics – arguably the most important metric – used by procurement teams to measure the variation in the price of purchased goods and services. It is a prime measure of how effective the procurement team...
Spend Matters SolutionMap, an extensive independent benchmark of procurement technology providers has been published multiple times for the last several years. Procurement professionals have been using these SolutionMaps to track market development and disruptors, assess provider capabilities based on their needs, and identify their best-fit provider shortlist. So how did Xeeva fare on the 2020 spring release? On the latest Spend Matters SolutionMap release, Xeeva was ranked as a solution leader in both the Spend...
In contrast to direct procurement, indirect spend includes everything that goes into running a business that isn’t directly tied to the end product, such as maintenance, repairs, and operations (MRO), marketing, facilities, consumables, fleet, freight, travel and IT. Although it can make up as much as 50% of a company’s total purchases, it doesn’t often get the attention it should. The problem with ignoring indirect spend, however, is that you could be missing out on...
We recently held a webinar with Spend Matters about ways procurement organizations can put a stop to spend leakage. Before explaining how to stop it however, it is important to define what it is – and why traditional definitions may not be enough. Read on or watch the short clip below to learn about some common definitions of spend leakage from our Chief Strategy Officer, Steve Griffiths, and our VP of Automotive Practice, Amarish Kapadia! ...
Last week, we joined Chief Procurement Officers, heads of indirect, and maintenance, repair, and operations (MRO) category managers from top 500 manufacturing companies, as well as the world’s most innovative startups at ProcureCon MRO in Atlanta. It was a great chance to soak up a wealth of MRO-related knowledge from industry experts, as well as share our own. Read on to get our day-by-day takeaways. Day 1 Some of the common themes from the day,...
Many organizations struggle with poor procurement spend visibility or lack it completely. Think about the old adage, “you can’t control what you can’t measure,” and you’ll realize that this is an ongoing challenge with large enterprise organizations. Without visibility into what your organization is spending, you have no way to control it. The top, and the most obvious, reason why most organizations struggle with spend management and compliance is that the majority of procurement spend...
Xeeva welcomes this guest post from Matthew York, Senior Research Analyst, Ardent Partners. For the past two decades, the modern manufacturing facility has become highly automated, employing robots to assemble automobiles and other large and complex consumer goods – sometimes without any direct human intervention (i.e., “lights-out manufacturing”, a hallmark of Industry 4.0). But as these robots and robotically-driven assembly lines age, they need regular maintenance, repair, and operating (MRO) services and supplies. Service calls must...
Xeeva welcomes this guest post on spend visibility and strategies for success from Andrew Bartolini, Founder and Chief Research Officer, Ardent Partners. Ardent Partners recently published its 14th annual “State of Procurement” research study, CPO Rising 2019: #ValueExpansion. And what was true when this series started remains true today – that there may be no greater advantage for the modern enterprise than comprehensive spend visibility and an ability to take action on it. While collaboration,...
We recently had the opportunity to chat with Charlotte de Brabandt, Institute for Supply Management’s (ISM) 30 Under 30 Rising Supply Chain Stars 2017 Megawatt Star and member of ISM’s Thought Leadership Council. During our discussion, we chatted about the impact of technology on the future of procurement, and how to prepare for these inevitable changes. Check out a snippet from our interview below, and you can also listen to the full 30-minute audio interview here! XEEVA:...
During a recent webinar, our Chief Strategy Officer, Steve Griffiths, shared a simple 3-step process for identifying maverick spend. Read on or watch the short clip below to learn what this process is! If you want to learn more about maverick spend, you can watch the full webinar here! Related: Why is maverick spend a problem for procurement organizations (and when is it not)? In a traditional way, if you want to get your hands around...
In a recent webinar with Hugo Evans, Vice President at A.T. Kearney, talked about the impact emerging technology is having on procurement with our SVP of Growth & Business Development, Vikas Shah, and one of our Customer Success Managers, Marisa Pierron. During their discussion, one topic they covered was how organizations can start implementing emerging technology. Want to know what steps you should take first? Read the transcript or check out the clip below to...
Hugo Evans, Vice President at A.T. Kearney, recently joined Vikas Shah, our SVP of Growth & Business Development, and Marisa Pierron, our Customer Success Manager, for a webinar about how emerging technology is impacting procurement. One of the key points they touched on during their discussion was specific areas of procurement organizations that will be affected by emerging technology. Want to find out more? Watch this clip or read the transcript below, and make sure you...
We recently held a webinar featuring Hugo Evans, Vice President at A.T. Kearney, Vikas Shah, our SVP of Growth & Business Development, and Marisa Pierron, our Customer Success Manager, in which they discussed the impact that emerging technologies are having on procurement. Watch the full webinar to learn more, but for a sneak peek, check out this short clip or read the transcript below! VIKAS: How do you see emerging technology changing the landscape of...
We recently held a webinar in which our Chief Strategy Officer, Steve Griffiths, and Institute for Supply Management's (ISM) Managing Director of Global Operations, Lane Burkitt, discussed the impact technology is having on maverick spend. One of the points they touched on during their discussion was why maverick spend can be such a problem for procurement organizations – and in what instances it’s not a problem. Want to know more? Watch this clip or read...
In our recent webinar with Institute for Supply Management (ISM), Lane Burkitt, ISM’s Managing Director of Global Operations, and our Chief Strategy Officer, Steve Griffiths, talked about ways technology can eliminate maverick spend. To learn more, check out this clip or read the transcript below (and if you haven’t checked out the webinar yet, click here to watch the whole thing)! Both of you have mentioned a lot about technology and how it's shaping...
Recently, we co-hosted a webinar with Institute for Supply Management (ISM), and it was full of great insights! ISM’s Managing Director of Global Operations, Lane Burkitt, chatted with our Chief Strategy Officer, Steve Griffiths, about how technology is solving one of the biggest challenges that procurement organizations deal with: maverick spend. One of the highlights of the webinar was their discussion about the reasons why maverick spend occurs. Watch the informative clip or read the...
If you work in indirect procurement, you’re definitely familiar with the problem of imperfect procurement data. Data that’s “imperfect” is unstructured, incomplete, or inaccurate, and is a result of any number of factors – including multiple ERP systems that don’t communicate with each other, widespread locations that operate independently, and people not following the correct process. When you have imperfect data, it’s impossible to accurately understand how your organization is doing or discover ways you...
This year’s OESA annual conference began with Julie Fream, OESA’s CEO and president, reviewing the event theme: “Transform. Innovate. Lead.” She warned that the automotive industry is transforming and if you don’t follow suit, you risk getting left behind. This message was further relayed throughout the day when Neil Boehm, VP of engineering at Gentex said, “you have to change with the times or you won’t exist,” when discussing the impact of new technology. The...
In the first two chapters of our tale, we explained how to differentiate AI from the buzzword and explored how the state of AI is currently only at a basic level. But not all artificial intelligence is created alike. More advanced AI, the kind that can deliver real results for your organization, is more than just a fairy tale. Going beyond helpful Of course, any kind of AI is capable of helping you. Automation can...
It seems that these days, you can’t go anywhere without hearing about artificial intelligence (AI). It really is one of the hottest buzzwords right now. But as we looked at in the previous chapter of our tale, a lot of the buzz around artificial intelligence is nothing more than that: a whole lot of noise. Lots of tech companies claim their products have AI. However, most are only using it at the most basic level,...
We’ve all fallen victim to flashy marketing that makes big promises but doesn’t deliver on them (and often doesn’t provide any results at all). Remember the Shake Weight that everyone thought would give them toned arms with minimal effort? That just made you look ridiculous. Or the blanket that promised to save your marriage? That didn’t work, and now it’s collecting dust in your linen closet. Or what about the electric grill that claimed to...
We’re not like a regular procurement software company, we’re a cool procurement software company. And according to their 2018 report of Cool Vendors in Procure-to-Pay Applications, Gartner thinks so too. That’s a pretty big deal, and we’re psyched that Gartner is telling the world that we’re just as cool as we already know we are! For those of you who aren’t familiar with Xeeva already, let’s break down three reasons why we believe Xeeva was...
ISM 2018 in Nashville, TN was a whirlwind of an event! Thousands of supply chain management professionals spent last week at the Institute for Supply Management’s annual conference, encompassed with 4 days of educational sessions, 2 days of intriguing vendor exhibitions, having hundreds of inspiring conversations, and building countless relationships. From speakers like Arianna Huffington, founder of The Huffington Post, to Dan Bartel, chief procurement officer at ABB, the conference was full of highly informative...
Last week a mix of supply chain professionals were brought together in Boston to learn about digital trends affecting manufacturing and gain insights into why development, digitization, and innovation are important. The event was DMSCA’s annual conference with the theme of “Velocity – Gearing Up Suppliers for New Opportunities in Manufacturing” and we were happy to be a part of it. Our CEO, Dilip Dubey, joined the conference as a subject matter expert in artificial...
Reflecting on the past couple weeks, I am enthusiastic about where Xeeva is and where we’re heading! You may have seen us in the news recently – here, here, here, and here (and many others) – because we had an amazing opportunity to raise capital and partner with PeakEquity Partners, Greenspring Associates, and Morgan Stanley Alternate Investment Partners to grow Xeeva and continue to define the future of procurement. If you haven’t seen the details...
Decisions, goals, and opportunities are all part of any journey. The path you take to reach each of those is important. What matters more though is where you start. That’s what determines if you will make it or not. Every part of life has a foundation that without, it would come crumbling down. For people, it’s oxygen. For cell phones, it’s a charged battery. If either of those were taken away, how long would you...
In Gartner’s recent annual report, they discuss their predictions as to what will have a great impact on procurement and sourcing technology in the coming year and how the market will change over time. One thing that is definitely clear – the procurement and sourcing market is evolving quickly as technology continues to advance. The summary of the report suggests that CPOs, IT leaders, and procurement organizations need to “plan for the impact of virtual...
When it comes to running a successful business or organization, the bottom line is everything. That’s why keeping track of where the money goes after it leaves your organization’s wallet is paramount – but not always easy. With the help of artificial intelligence and machine learning, large businesses and companies can gain a better, uninhibited view of their financial profiles. Together, machine learning and spend data create a powerful blend of intelligent decision-making and, even...
Senior management’s top priority remains the same – drive value for the business. And while indirect procurement manager’s feet are held to the fire to achieve cost reduction targets and improve productivity, many struggle because they are still using outdated tools and technology. Alternatively, for end users, their focus is simply to get their job done right, and as quickly and easily as possible. By applying new technology, insights, and thinking to the challenge of...
It’s no mystery why indirect spend is often ignored. By its sheer nature, optimization has proven to be incredibly challenging. Unlike direct materials which are often highly engineered, associated with a specific set of approved suppliers, and controlled precisely through ERP and MRP technologies, indirect spend is comprised of a highly fragmented group of suppliers that vary by business unit (BU) and plant. These suppliers represent 1000s of sub-categories of goods and services and are...
Technology innovations, especially those driven by advancements in consumer buying, social technology, and big data management, can now be applied to pull together the complex web of suppliers, intangible deliverables, and inconsistent pricing and processes of indirect spend. These readily available technologies can meaningfully simplify the buying experience while optimizing other aspects of indirect spend cost such as supplier fees, terms and conditions, performance specifications, and performance management. If executed correctly, optimizing indirect spend adds...
Strategic sourcing: A disciplined approach to supply market analysis that continuously improves and re-evaluates the purchasing activities of an organization. Strategic sourcing provides the best possible values in the marketplace to produce sustainable savings and reduce cycle times. Sourcing optimization starts from a diverse strategic perspective and usually takes the form of strategic decisions. It is important to identify untapped opportunities to improve vendor access and increase the value of each dollar spent. Drive benefits...
Are your finance operations bogged down in paper and invoice processing delays? Today, as we pause to consider Earth Day, one way that procurement and finance organizations can make a positive impact on conservation and waste reduction is to move to eInvoicing, or paperless invoicing. According to research from Hackett Group, SharedServicesLink.com and others, large organizations process over 10,000 invoices annually per A/P FTE. This is a massive amount of paper. In real terms: 10,000...
According to research from The Hackett Group, accounts payable best performers operate with 62% lower costs per invoice than their peers. This indicates a significant opportunity for companies not considered best performers to make significant improvements to their operations. "AP best performers operate with 62% lower costs per invoice than their peers." Key Metrics to Determine Procure-to-Pay Process Efficiency Price per financial transaction basis Transactions per full time equivalent (FTE) Purchasing’s span of control The...
Are you prepared for a successful procurement transformation? As procurement organizations become increasingly more strategic, many struggle to fully understand how their current procurement operations rate relative to operational and financial benchmarks. Even those that do understand what “good" looks like still have to perform a gap analysis, develop their vision and strategic roadmaps, and then deploy the right resources to execute the plan. "Many organizations struggle to understand how their procurement operations rate." At Xeeva,...
Formulation of a supply risk strategy is essential for a company to perform at its optimal potential. Failure to construct an appropriate strategy can turn your risk into reality. Some may argue risk in the indirect and MRO world is less risky. But in fact, shutting down a factory line due to lack of critical tooling is just as bad a shutting it down due to lack of direct materials. "Formulation of a supply risk...
Most folks that don’t know e-procurement will think of it simply as purchasing necessary goods and services in the most cost-effective manner. However, what most don’t think about is the importance of the buying experience (much more than making it Amazon-like) and the specifics that go on behind the scenes. When using e-procurement for the P2P process, buyers (requesters) rely heavily on the accuracy of the catalogs to provide the most informed information. They also...
How many clients with indirect spend do we run across that conduct strategic sourcing, develop pre-negotiated contracts, and implement savings plans that can’t get those savings flow to the bottom line? Answer: all of them. Related: Supply risk defined in supplier relationship management When it comes to locking in cost reductions from hard-fought sourcing engagements, companies don't just identify opportunities, but rather they implement savings. Here are 5 tactics to drive compliance and benefits to...
We're in the home stretch now... The spend under management (SUM) framework provides executives with a simple outcome-based model to drive the necessary changes in their organization to capitalize on the significant savings opportunities available to most organizations. The benefits of moving to best-in-class under the SUM framework include: Alignment of indirect spend objectives with core financial metrics Defines and details actual spend at a granular level utilizing robust spend analytics Defines enterprise objectives by...
In our last post. we discussed adopting spend under management (SUM) and the first of five principles. Here are the other four: 2) Purchase through a formalized requisition to purchase order approval process. The purchasing processes of an organization should be governed by policies and procedures that are complete and enforced universally. Simply having them in place is a starting point but the key issue is enforcement. Are all the spend areas incorporated? Does my...
So now that you know what spend under management (SUM) is, how would you go about adopting such a framework? SUM is built on creating a partnership between indirect procurement and operations along five key operating principles across sourcing, contracting, buying, and spend decision-making. At its foundation is executive leadership with joint operating targets established between indirect procurement and the operating groups they support. The actual SUM model measures the maturity of the organization across...
Ever wonder why many companies view indirect procurement as a non-strategic back office function? Maybe it’s that indirect practitioners often focus too narrowly on measuring cost savings from indirect spend sourcing initiatives and lose sight of how those initiatives impact core financial metrics such as total cost of ownership (TCO), operating profit, working capital, and cash flow, among others. Therefore, adopting a well-structured indirect spend management framework that establishes that connection can bring real value...
There are many challenges for achieving supplier rationalization and standardization. A typical tactic deployed by procurement organizations is trying to reduce the variety of similar items that the organization purchases. The reasons for this rationalization go beyond cost savings and can include: Supplier diversity initiatives Supply mitigation and management Going green Ultimately, standardizing is not as easy as it may first appear. Take, for example, an organization with multiple manufacturing plants, each of which buys tens of...
Setting up systems to monitor supply risk management and supply chain visibility can preempt future performance issues that your organization may encounter. Predictive financial performance monitoring tools are often of value to companies monitoring the activities of their suppliers – indeed, recently one large global manufacturer was able to prepare for the impending bankruptcy of a major supplier due to their predictive analysis, indicating that the supplier was developing cash flow issues. Related: Supply risk...
Supplier relationship management is the discipline of strategically planning for, and managing, all interactions with third-party organizations that supply goods and/or services in order to maximize the value of those interactions. In practice, supplier relationship management entails developing closer, more collaborative relationships with key suppliers in order to uncover and realize the new value and reduce supply risk; but what exactly is “supply risk”? George Zsidisin, assistant professor of supply chain management at Michigan State...