Leading businesses see procurement as a value, not a function
It’s not often that a story about new supply chain management software becomes a feature in a publication as respected as The Wall Street Journal. For that to happen, the deployment of said software has to represent something much more significant or herald a trend of highly compelling proportions.
Strategy Eye Digital: Digital ad bubble in danger of bursting
Strategy Eye Digital report on the increasing disconnect between the money spent on digital advertising and the actual return on investment. Highlighting Proxima's latest research: The Digital Disconnect, Strategy Eye Digital take a look at the reasons behind this disconnect and how companies can overcome it.
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.
The Internet of Things - challenging human behaviour
The progress made by humanity in how we communicate has changed the very nature of how we behave – from the advent of the electric telegraph in the 1700s, to the internet being publicly introduced in the 1980s, to Wi-Fi in 1991.
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?
Whilst the Deloitte list highlights some of the important issues, we’ve reached out to our own network (of client teams and readers) and come up with five additional issues that are most likely to make their way to the top of the CFO’s agenda over the second half of 2014.
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.”
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, we thought we 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.
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.
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.
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.
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, we 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, we 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, we 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.
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.
Infographic: Ever wondered about global business’ spend patterns?
Businesses around the world have been on a journey, whether deliberate or not, of cost externalization. A significant portion of any business’s revenues are now being spent outside their own organization. What was once a labor cost, is now a supplier invoice.
Procurement not following rules for success, time for a rethink
Every now and then a piece of fresh thinking comes out that upsets the apple cart. There's a great one in April's edition of Harvard Business Review. It references a study conducted by Deloitte, which identifies what the rules are followed by companies that are truly successful over a long period of time. The research reveals surprising results. And here is why...
Proxima helps Activision Blizzard create value and achieve sourcing success
With pressure to control costs mounting, Activision Blizzard turned to Proxima in 2012 to better manage costs, supplier and partner relationships and sourcing efforts more efficiently. And in just over a year, the partnership yielded significant savings to the business.|
The world of audit is in a state of flux. For a start, the long-standing grumbles about the Big Four (Deloitte, E&Y, KPMG and PwC) dominance in the world of corporate auditing has resulted in debates about regulatory reform domestically and in Europe. Even the Competition Commission is getting in on the act.
Global myths of procurement outsourcing: Myth 3 - PO damages stakeholder relationships
Successful procurement outsourcing hinges on a provider's ability to successfully engage with stakeholders. You can have the world's best sourcing engine, but it's nothing if it doesnt engage well with the business, and deliver what the business needs.
Cost management: lessons from the Sales department
Having spent some time at ProcureCon, it is good to be reminded that many organizations have got over the initial challenge of getting good spend data. Quite a number of CPOs referred to having got to grips with this early in their tenure. However, I think that this is only the start of the journey - not the destination.
Global myths of procurement outsourcing: New series introduction
In this post (part 1 of our latest series), I would like to offer a simple definition of 'procurement outsourcing' and set the scene for why Finance, and other business leaders, should be placing a greater emphasis on managing their cost base.
Driving commerciality through customer satisfaction at Daily Mail
Nick Jenkinson [NJ], Head of Procurement at A&N Media (the B2C division of Daily Mail and General Trust) discusses procurement's changing proposition from process hungry ‘road-blockers’ to customer focused ‘Commercial Enablers’.
Driving Fujitsu’s growth agenda: aligning business supply with business development
Andrew Croston (AC), Chief Procurement Officer (UK and Ireland) at Fujitsu discusses how building business-wide communication, collaboration and relationship strategies into the functions overall operations, procurement has been able to act as a true partner to finance, operations and business development teams – embedding itself into the very core of the business.
How your business can apply more intelligence to the budgeting process
Over recent months there have been several articles written on the topic of Finance and Procurement coming together for the greater good. Following on from this theme, this post looks at what value Procurement can bring to the overall budgeting process.
Part of our job as a service provider is to think about the future of procurement, so that we build solutions to problems organisations don't know they have yet. I want to share with you one major change we predict will occur over the next 10 years.