Making the switch to outsourced strategic procurement is not as simple as handing tasks and responsibilities to a third party. It requires wholesale change that starts from within. Someone in procurement needs to lead that change, and it may or may not be the CPO. What procurement needs to do is to find the catalysts in their midst.
Supplier Relationship Management (SRM) is all the rage and for a good reason. Far too many “strategic” contracts have been developed (especially outsourcing contracts) that do not include sound SRM practices.
It’s good to see that virtually all of the major advisory firms are now incorporating solid governance frameworks into their contracts. Software companies are also making inroads, such as Old St Labs and SirionLabs
Like most people, coffee is one of the most important rituals in my morning routine. There’s something about the aroma and taste that kick-starts my ability to have a great day. So, imagine my surprise when I found out that a favorite coffee shop was closed before I had to jump on an early-morning flight home. The employees were in the shop, but the gate locked out coffee aficionados, like me, who really needed that jolt of caffeine.
With the increased use of technology around the globe, the world is more connected than ever before. The capabilities of technology are improving quickly, so more and more employees are working with increasingly advanced technologies.
When a function or even a full department is outsourced to a managed service provider (MSP), the scope of work, requirements and service needs can at times be hard to nail down, especially as the relationship with the MSP evolves over time and the needs of the business evolve. This is particularly true in the case of IT Managed Services – an area with frequent need for outsourcing due to resource constraints and/or technical expertise and an area where it is critical that services continue uninterrupted.
When considering Robotic Process Automation (RPA), a lot of adopters have made the strategic call that they want to create their own RPA capability internally. They want a Center of Excellence (CoE). It can be a comprehensive CoE or it could be components that are stitched together with other third parties, for instance. They want analysts that can identify and scout for good processes for automation and change. Or, they have the need for configuration, testing, ongoing monitoring of the automation, as well as maintenance and support.
Nobel laureate Richard Thaler understands the “human” side of economics. He’s a founding member of behavioral economics and most recently won the 2017 Nobel Prize in Economics Sciences.
Alignment to business needs during the Request for Proposal (RFP) phase of any sourcing event is critical, but perhaps more so when it comes to capital building projects given some of the changes procurement professionals face within their stakeholder community. In most companies, the plant facility's engineering teams are composed of lifelong veterans within the industry who have executed numerous projects – some successful and others, well, not so much. This inconsistency of results tends to make these individuals rather risk adverse and fixed in a traditional way of thinking.
Robotic Process Automation (RPA) tools are being widely adopted across a wide range of enterprises and industries. By executing narrowly defined, repeatable tasks, RPA bots can drive dramatic productivity increases and significant cost reductions. For as little as $10,000 to $15,000 a year to deploy and maintain, a single bot can perform the routine, administrative tasks of five to ten people.