The European Food & Beverage Market is in a state of turmoil. Increasingly regular headlines are being published around deficiencies in quality standards and growing contamination cases. The reputation and financial damage of these headlines can be critical for any business operating in an already tumultuous industry (as discussed in my previous post).
New research shows that a growing number of corporates are refocusing their procurement functions away from cost and towards strategic innovation. A sure sign that corporate management's attitudes towards procurement are shifting. (We discuss this further in our upcoming webinar). But are the smart ones just copying the companies that have always understood that this is a key source of value?
Proxima clients nominated for a Procurement Leaders Award
Since our inception, Proxima has set out to change the way procurement is both thought of and conducted at organizations around the world. Today we have more proof that we are successfully moving in that direction.
Following on from Proxima's article highlighting the corporate virtualization research in The Harvard Business Review, Spend Matters have offered their opinion on the piece; describing it as "essential reading for procurement people".
Harvard Business Review recognizes today's leaders cannot afford to downplay procurement
I am pleased to bring you the news that Proxima’s research and thinking on how commerce has evolved, and the implications for modern corporations, is now being recognized at the highest level globally.
Harvard Business Review: Leaders can no longer afford to downplay procurement
Harvard Business Review comment on Proxima's recent research into corporate virtualization pointing out procurement should be treated as a driving force for innovation and viewed as critical partners in the company’s success.
OC&C and Retail Week recently collaborated to provide a report on the UK's retail industry. Proxima's latest research around corporate virtualization was featured to help understand the figures behind retailers' spend.
Real Business: We need to talk about your suppliers
Proxima's Guy Strafford talks to Real Business about how your suppliers could hold the key to better performance this year, and why it's time to start thinking about better management of the supplier base.
Learn how Proxima applied their catalytic thinking right across a multi-billion dollar publishing client, getting right to the heart of what mattered to our client - the level of engagement with gamers. Proxima was able to broaden the supply base which greatly reduced risk and reduced the agency cost base by over 30%, money which could be immediately reinvested in the business.
Benefits for media & entertainment companies from better supply management
With the average media & entertainment business spending twice as much on suppliers than on its own people, I thought I would share some of our industry insights on the benefits of successfully getting your suppliers under control and offer a real life example of this happening at leading video game publisher – Activision Blizzard.
As the global economic recovery gathers pace, more and more businesses are turning their sights from cost reduction to growth. How well an organization’s procurement team supports this shift will materially impact overall business performance.
Any accountant will tell you that more businesses go bust in the recovery from a downturn than in the recession itself. A big reason for this is poor risk management – because managers think they can stop worrying. They can’t.
Business has changed - driven by globalization, technology and changing consumer habits. Executives have had to rapidly adapt their business models, products, and distribution channels in response to these groundswell changes. But the implications of these unstoppable forces don’t stop there. Another impact is that suppliers today are providing an ever-increasing proportion of business activities, many of which used to be delivered by direct employees and internal operations.
Proxima appointed by SAV Credit on five-year outsourcing contract
LONDON, UK - February 3, 2014 - Proxima, the global procurement services provider, announces today that it has been appointed on a five-year contract to manage external supplier costs and relationships for SAV Credit.
CHICAGO, IL - January 21, 2014 - Proxima, a leading international procurement services provider, today announced that the company has launched a formalized effort to help companies in the media and entertainment sector better manage outside suppliers and costs by expanding its online resources to include content, analysis and insight specific to the industry.
Commitment Matters: The case for an integrated commercial service
Tim Cummins' comments on a recent paper from HfS Research, which draws on research by Proxima to highlight the fundamental shift that has occurred in business operations and the challenge this represents to organization and skills.
Outsource Magazine: Q&A with Richard Jones, Proxima et al
Richard Jones, Chairman of Proxima talks exclusively with Outsource. With decades of experience right across the space and with a record of huge success behind him, Richard Jones is one of the most recognisable and respected figures in outsourcing. Richard he is involved at various levels with numerous other ventures and retains a unique perspective on outsourcing and the future of business.
"Corporate virtualization" is sweeping across the global economy, transforming the ‘company’ from what it was – to what it is today, a comprehensive and complex universe of specialist third-party suppliers who are critical but sit outside the organization and all across the planet.
Supplier management is challenging. Gaining the best levels of service, quality, performance and value takes work and relies upon employing the best in class. For marketers, it’s about employing suppliers that genuinely understand your business. And if you motivate them to perform, they will want to deliver.
2014 the year of working the profit and loss harder
CFO.com recently published an article around the Eight Top Issues for CFOs in 2014*. The number one consideration was to ‘avoid choking off revenue growth’ or put another way, focus on growth oriented cost management.
HfS Research: constant focus on savings counter-productive for success
CHICAGO, IL - December 9, 2013 - A new research report released last week from global business analyst firm HfS Research endorses findings from a recent Proxima report into the trend of Corporate Virtualization, affirming that organizations continue to direct more spend outside the organization, relying on external suppliers instead of investing in labor.
Top 5 tips for managing your virtualized/extended enterprise
‘Corporate virtualization’ has taken hold across all large businesses today - the on-going phenomenon of replacing internal functions and labor with suppliers has changed the very fabric of the modern company. It has not been a planned or even conscious decision – but over the last 20 years is has been an unstoppable force.
Mending a fragmented function. Colt Technology discuss how they repaired a disjointed procurement unit
Grahame Ball, Chief Procurement and Supply Chain Officer for Colt Technology Services Group, discusses the challenges behind re-building a fractured procurement function to support increasingly dynamic business demands.
Why are businesses failing to get the most out of their non-core costs? (pt 3)
Part one and Part two of this three part mini-series have covered several reasons why non-core procurement is more complex, wider reaching and changes faster than most people imagine (compared to core or direct procurement). In this post, the final in the series, I will discuss why businesses need to approach procurement in a completely different way.
Why are businesses failing to get the most out of their non-core costs? (pt 2)
Part one of this three part mini-series discussed how non-core procurement is more complex, wider reaching and changes faster than most people imagine. In this post, I explore three further points, namely the necessary skills, knowledge and perspectives required to effectively manage non-core procurement.
Why are businesses failing to get the most out of their non-core costs? (pt 1)
Businesses are failing to get the most out of the non-core costs. Why? Well, simply put, because procurement is failing. But the issue here is far deeper than simply pointing your finger at the team of people in procurement - in fact, I would argue, the problem lies in five very different areas, which we’ll explore below.
Outsourcing is NOT offshoring – why procurement outsourcing needs an alternative approach
The procurement brand has suffered greatly over recent times, at a time when the business need for it has grown. A history of under-performance, detachment from the real business needs and an unhealthy obsession with savings have all contributed to a widespread reputational problem, that ultimately undermines the credibility of the function.
Chief Executive.net: CEOs - don't prepare the pink slips just yet
Conventional wisdom and common sense suggest that the greatest ongoing expense for most companies is labor. However, Proxima's latest research contradicts this claim. Matthew Eatough aims to dispel the myth that keeping labor costs in line will maintain or even boost profitability.
The Competition Commission and statutory audit – a lot of sense and sensibility – part 2
Our previous post discussed three of the seven remedies that the competition commission proposed as part of their ruling around statutory audit rotation. In this post, part two of this mini-series, Proxima's Richard James and Guy Strafford will look at the remaining four remedies and some key questions finance / procurement teams and audit committees should be asking when tendering this high profile service.