Influence, commercial sense and commercial excellence
In the increasingly virtual corporation, it's the support functions that knit everything together. Well - the strategic elements of them anyway. The process-driven parts have either been outsourced, or are so securely locked away in their silos that they have other, bigger problems to solve.
Spend Matters: Why humans win over machines and speed in outsourcing
Spend Matters feature our very own Richard James, Category Director for Professional Services in their hot topic of procurement outsourcing. We look at what companies should consider when looking for a procurement company to help with outsourcing.
“The fish rots from the head”. Strong words from a recent FT article rounding up a series of accounting issues besetting large companies in the UK. Following a discussion between Proxima and respected commentator Stefan Stern; Stern argues that boards need to open their eyes to all activities in their business (from top to bottom) – but without getting involved in day-to-day tinkering.
Following my previous post, exploring the importance of social media for procurement, this post aims to address the second topic covered in the Financial Times piece - the impact of ‘big data’ on supplier management practices, and why it is essential that this concept is not ignored.
3 reasons social media is important to procurement
I recently read an interesting article in the Financial Times that discussed how social media and big data are being used to help solve supply chain issues and improve supplier management practices at a number of large companies.
By now you will already be familiar with our corporate virtualization research, showing that the average company now spends around 70% of its revenues with suppliers. But what does it mean for your business, and how can you uncover the opportunities that this trend encourages?
At Proxima, an essential part of our work is making sure our finger is on the pulse of opinion and sentiment in our clients’ markets. It means that our advice and strategic development work is contextualised correctly within the environments in which our clients operate, which in turn enables us to find the best solutions to their challenges.
One world, one business model – the impact of globalization
We were chatting to a management thinker the other day – a former CFO, as it happens – and he said something so compelling, yet so simple, that we were stunned. “The problem with the runaway success of MBA schools is that we’re developing a global corporate monoculture,” he said. “We’re concentrating risk in similar places around the world.”
Panel session to discuss HBR article; Corporate Virtualization
Following on from our recent Harvard Business Review coverage, we’d like to invite you to join us for an online panel session – discussing practical perspectives and pragmatic insights into the trend of Corporate Virtualization.
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.
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.
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.
Corporate virtualization - 100 years in the making
2013 marks 100 years since Henry Ford was faced with the dilemma of producing his latest invention, the Model T Ford, on a large scale - in an efficient, low cost way. His answer was to invent the first mass production assembly line. In doing so, Henry Ford revolutionized the world of manufacturing. Over the past 100 years, following this monumental milestone, business has changed beyond recognition.
The changing nature of business (pt 5): Introducing the Profit Enhancement Index
We've already seen how non-labor costs are 4.8 times higher than labor costs. But our analysis of FTSE 350 data also reveals the potential enhancement to profitability that can be brought about by proportionally lower reductions to the non-labor cost base.
The changing nature of business (pt 4): Sources of profitability
Our research shows that in the FTSE-350, labour consumed on average 12.9% of revenue in 2011. In contrast, non-labour costs consumed 68.3% of revenue. The difference between these two percentages suggests that bringing non-labour and third-party costs under greater control represents an opportunity for leaders to make more meaningful improvements to their profits than the traditional focus on labour cost.
I've had numerous conversations with CPOs in my time who have said they are very proud of achieving a 10x, 20x, or even 30x ROI on their team cost. And research has claimed that world class procurement functions achieve a ROI twice as high as the average. But both of these measures are not only far too simplistic, they are misleading and are forcing the wrong behaviors in our business leaders. And here's why...
European Business Review: Outsourcing, debunking the myths and unveiling the realities
Proxima explains that there are firmly entrenched misconceptions that surround outsourcing, and they are holding many companies back from maximising the potential benefits from this fundamentally important tool.
My most recent post in the Redefining Procurement Series talked about how outsourcing has risen to be a key element in how businesses operate today. I will now discuss one specific type of outsourcing - Procurement outsourcing, (also known as Procurement BPO).
We are quickly approaching the end of our Redefining Procurement Series, with the final chapter focussing on Procurement Outsourcing. Today's post aims to set the scene for the subsequent posts in the final chapter.
Guy Strafford, Chief Client Officer at Proxima explains for such a widely adopted business process, outsourcing is often misunderstood. Many business professionals are failing to appreciate the potential benefits.