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Enhancing and redefining the role of indirect procurement - research findings and results
Part 2: Why businesses struggle with indirect procurement
Retail's best kept secret
Achieving Sustainable Profit Improvement Through Better Management of GNFR Costs
Enhancing and redefining the role of indirect procurement - research findings and results
Part 1: Current Perceptions of the Indirect Procurement Function
Procurement and profitability - the opportunity for UK plc
Analysis of the scale of opportunity that exists for UK PLC
Direct v indirect procurement - research findings
Research on the perceived differences between the procurement of direct and indirect products and services.Events
Time: On-Demand
Presenter(s): Rachael Stormonth, Senior Vice President, NelsonHall
Location: Your PC
Latest posts
'Shareholder Spring' presents silver lining for procurement Reducing Marketers' scepticism of Procurement's value-add Overcoming M&A challenges through centralisation How your business can apply more intelligence to the budgeting process Predictions for procurement in 2022 Understanding the wants and needs of the North American CFO Q1 in review: A need for innovative cost management Can better cost management really improve profitability? Is indirect procurement following the path taken by the HR function? Do you feel procurement is under-appreciated & under-invested in your organisation?Recommended Reading
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The opportunity to deliver enhanced shareholder value remains, even amid darker storm clouds.
A few articles have begun to crop up around Procurement's relationship with various business stakeholders (their customers) - with Finance being a primary focal point. However, another pot has begun to bubble from discussions heating up around the value Procurement teams' can deliver their Marketing department.
Deloitte recently published a high-level report, covering Q1 2012, on what North America’s top finance executives are thinking. This post takes a look at how CFOs can potentially overcome some of the growing challenges associated with new M&A activity during a sluggish economy.
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.
The need for Procurement to better serve their Finance colleagues has never been greater.
The first quarter of 2012 has come to a close, but familiar challenges persist. This post, taken from our latest e-newsletter, looks at some of the themes which clients and many others have raised with us, and from which we have drawn a number of observations.
Many UK businesses are facing deteriorating financial performance as a result of challenging economic times. Now, more than ever, the focus on cost management is at an all-time high as business leaders try to safe guard profits while maintaining competitiveness and generating value for stakeholders.
An excerpt from our upcoming whitepaper takes a comparative look at the HR business partner concept and the changing role of indirect procurement.
Our recent research has found that, in many cases, the traditional procurement skill-sets drive the direction of a procurement function - focussing on year-on-year savings. Too little focus is on influencing behaviours and achieving alignment between procurement and the business units.
I find the days and weeks around the Budget a singularly extraordinary time of year. Perhaps inevitably, I approach the budget from the perspective of how it will affect our clients and partners, but, given the breadth and range of sectors our teams cover, this encompasses a great deal.
Some highlights and stand-out moments from the highly successful 2012 CIPS Annual Dinner.
I thought I would share with you this great animation which shows how media formats have evolved enormously over the last 30 years...
The rebranding process we have recently gone through has given us amazing insight into the relationships we enjoy with our clients, and I'm very thankful for everyone's support and well wishes during the change. It has also enabled us to reflect on what our clients and the wider business community want and need from a procurement outsourcing partner.
We are launching a brand new research and invite all to participate. The study aims to examine the implications and impact of cost management for UK business performance.
LONDON, UK – 20 FEBRUARY 2012. Proxima, Europe’s leading procurement services provider, has today completed its brand transition and its new online presence is now live.
CHICAGO, IL – 13 FEBRUARY 2012. Proxima, Europe’s leading procurement services provider, has today announced the latest step in its expansion plans with the opening of its first office in the United States.
Week two into our transition to our new brand at Proxima, we continue to hear positive feedback and comments. Today we thought we would offer some insight into the creative aspects of our new brand identity.
It is around this time of year that the earnings of individuals in the financial services sector come under close scrutiny and, following the storm whipped up by those of Stephen Hester, CEO of Royal Bank of Scotland, this year promises to be examined more sharply than most.
On Monday 30 January 2012, buyingTeam announced that it was transitioning to a new brand name and identity - Proxima. I have received an influx of commentary around the new name and I thought I would take some time to explain the rationale behind the Proxima brand name.
LONDON, 30 JANUARY 2012: buyingTeam, Europe’s leading provider of end-to-end procurement services, announces today that it is to transition to a new brand and, from 20 February 2012, will be known as Proxima.
Deloitte has just released the findings from their latest CFO Survey. Not surprisingly the results were pessimistic to say the least. The report identified that the single strongest priority for 50% of CFO respondents, who ran UK facing businesses, was to reduce costs.
Today's post is an excerpt from our latest whitepaper focusing on the very uncertain and very volatile world of Retail.
Universal Music and Proxima recently teamed up at ProcureCon to present the rationale for outsourcing procurement and what the experience was like from Universal Music's perspective.
Over the last few days a lot of airtime has been given to the government’s “crackdown” on “excessive charges” levied by airlines, other retailers and even the government’s own agencies to process payments made by debit and credit cards. Consumers, championed by Which, have been rightly up in arms about the fact that these charges seem to bear little relation to the costs incurred and that these organisations appear to be profiteering from these extra fees.
As we approach the end of another year, so too we approach the end of our Redefining Procurement Series. In this post, our final post for 2011, we will look at the potential inhibitors and ultimate benefits of looking externally for procurement support.
Before we dive into our end of year review and given 'tis the season of sharing and being thankful, I (on behalf of everyone here at Proxima) would like to thank each and every one of you for your support and contributions to our e-newsletters, our website and our vision of a world in which procurement has been redefined - from a decentralised, tactical function to a strategic business partner. Collectively, we have made some great progress this year but there is always more to do. We look forward to working alongside you in 2012 as a global business preparing for what promises to be another tumultuous year full of surprises.
Gain share fee models (otherwise known as contingency fee models, or 'no-win no-fee') initially appear attractive to organizations when seeking to engage with a procurement services provider (PSP). However, they are frequently the road to ruin. A closer inspection of such fee models shows why.
It is no secret that UK Retailers are having a tough time at the moment. Although year-on-year sales have increased 0.6%, consumer and business confidence is still low as we enter the festive period. The most recent sign of deteriorating confidence was M&S' announcement that it plans to make suppliers contribute towards its own £600m refurbishment programme.
My previous post, in the Redefining Procurement Series, took a comparative look at the options available to business leaders for managing indirect expenditure more effectively - with outsourcing coming out as a very viable option. Today's post will quickly review the global procurement outsourcing marketplace.
Recently, I have noticed that in certain industries, the accepted norm contradicts logic. Large businesses have an opportunity sitting within their businesses to improve their bottom line through better management of costs. But to date the accepted norm is to not take advantage of procurement.
Last week's post, in the Redefining Procurement Series, discussed why you should even consider outsourcing procurement. The post finished with the challenge most procurement teams face when looking to drive maximum efficiencies and value out of indirect expenditure. This post will take a comparative look at the options available for managing indirects effectively.
Our previous post in the Redefining Procurement Series offered a brief overview of successful Procurement Outsourcing and how it differs from the traditional BPO we have grown to know. This post looks at the fundamental question of why outsource procurement at all?
A brief research snippet and commentary, around indirect procurement's coverage, as we prepare for our Enhancing and Redefining the Role of Indirect Procurement research study presentation.
Some more research tid-bits leading up to the live presentation of the findings and results from our latest Enhancing and Redefining the Role of Indirect Procurement research study.
I thought I would briefly share some thoughts around limitations and pitfalls of consortia buying for Indirect (i.e. Non-Core / GNFR) Categories.
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).
Leading up to the live presentation of the findings and results from our latest Enhancing and Redefining the Role of Indirect Procurement research study, I will be commenting on various snippets taken directly from the research.
With rising fear of another Lehman's Brothers episode, how can procurement influence the stock market?
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.
Dom Del Borrello, Client Director in the Melbourne office of Vantage Performance has recently published a thought piece around change management - highlighting 8 ways to influence change. I thought I would bring 8 additional ideas to the table.
If the past 18 months have not been hard enough for UK retailers, this last week of rioting and looting has added insult to injury.
A lesson in customer experience and the rise of near-shoring
Part one discussed the importance of strategic planning and some tools that can be used in developing your strategic plan. We now look a little deeper under the surface and dig into the actual make-up of your procurement operation.
Over the past few months, I have used the catch-phrase ‘strategic business partner’ repeatedly – looking at developing the capabilities within the procurement operation around leadership, stakeholder engagement, communication and talent management.
During times of boom in the media sector, effective procurement was a ‘nice to have’. Now, it is playing an essential role in enabling operators to face challenges, survive and thrive.
Shared characterstics of CFOs and CPOs; The Procurement Outsourcing Supply Market
Prerna Dhawan, Assistant Manager at The Smart Cube asked (via Linkedin) "Any KPIs or metrics that can be used for tracking the performance of a service provider?"
While investment banking has been somewhat off limits to purchasing professionals, applying procurement disciplines to this area can add significant value to a business.
Surrounded by business closures, law suits and a plethora of compliance / regulations, many C-level executives have reprioritized risk mitigation and aversion tactics much higher up their agendas. Increasingly, given that virtually anyone in an organisation can purchase something, there is a growing need for procurement to get involved in big ticket items as well as educating stakeholders about the impact of risk on business objectives.
The rise of near-shoring and procurement as a competitive differentiator.
Small marketing agency perspective on the arrival of the 'super-procurement' team.
The surge in crude oil prices driven by tension in Libya has forced many organisations, that are high consumers of oil or reliant on oil, to look further across the energy sphere towards alternative energy options.
If I can, for a moment, direct your attention back to one of my previous posts around reducing stakeholder scepticism. The post talks generally about how to better engage with your stakeholder, gaining their buy-in, enabling you to increase your influence over their budgetary decisions. This is the first step towards being seen as a strategic partner of the business.
Procurement education begins with relationships!
The impact of e-commerce and technology on brick-and-mortar retailers and their supply chains.
My last post in the Redefining Procurement Series closed with the question “who is this business partner and where do they come from – someone inside the business or external to the organisation? From a Procurement background or not?”. This is actually part of a much wider question of - how are organisations, post economic crisis, structuring their procurement operation?
The 'Vision 2020' report is clearly a well researched and insightful piece of analysis by Ariba, but what does the future hold for procurement professionals?
I thought it worth sharing some comments on a few clippings that landed on my desk over the past week.
With recent reports that sales volumes dropped 1.4% between May and April this year, it is clear that customer’s willingness to spend is still battered as we emerge from the economic recession.
My past 2 posts in the Redefining Procurement Series were focused around the need for procurement to develop high levels of Stakeholder Communication Skills. However, the fact of the matter is there is a shortage of people with the right skills and experience to successfully communicate with the wide variety of stakeholders that exist within any business. Given your average category manager’s role is to go out into the market and get the best value for money, there is no wonder the internal communications element has fallen by the wayside.
I thought it worth sharing some comments on a few clippings that landed on my desk over the past week.
My most recent post in the Redefining Procurement Series placed procurement as a hub within the business highlighting interconnectedness with other key stakerholders. We will now delve into the thrilling second part, looking at developing stakeholder buy-in (we will focus on developing buy-in from individuals in the next post).
I thought it worth sharing some comments on a few clippings that landed on my desk over the past week.
Picking up where the UK Retail Series left off last, I asked - given the enormous opportunity that can be had through better management of GNFR within the retail environment, why aren’t GNFR improvement initiatives on every retail Board member’s agenda?
My last post in the Redefining Procurement Series finished by stating that the key to being a great leader is understanding your stakeholders needs and drivers and adapting your approach and metrics to their unique needs.
Following on from my first post in the UK Retail Series (in which I asked how can UK retailers look to safe guard themselves over the coming 2 years?), I would now like to look a bit closer at the importance of the supply chain.
Up to now, our Redefining Procurement Series has looked at procurement’s trajectory towards a leadership role within an organisation and touched on the who, what, when and why. Now we will look at the how – how can procurement be seen as a leader, an influencer, an advisor and a trusted/respected strategic business partner?
I have recently read with great interest the latest Ernst & Young ITEM Club report, which forecasts UK consumer spending growth rates slowing to 2.0% p.a. until 2020, which (no doubt) will have major implications on UK retailers top-line growth figures
Pensively looking back at SSON’s European Shared Services & Outsourcing Week, a thought crossed my mind.
For many years the procurement community has been talking about how it’s about to get a seat at the board, yet somehow it hasn’t got there yet – why?
Last week Proxima attended SSON’s European Shared Services & Outsourcing Week to find out how high procurement really is on the outsourcing community’s agenda and what the opportunities are for greater focus on procurement within global business services.
Who is responsible and accountable for leading procurement's charge towards the board room?
Looking back over the past three years, UK Plc (as well as global business) has seen some radical changes in light of the economic crisis – most notably how cash flow and costs are managed across the business.
Proxima, in association with NelsonHall are conducting a major research assignment into the current and future role of procurement. The research will include the perceptions of CFOs and CPOs from FTSE 250 companies (across industry sectors and regions).
Procurement as an indispensable, strategic partner of the business – how far off are we?
Coming off the back of what was a turbulent year for everyone in the pharmaceutical industry, not only were poor economic conditions forcing everyone to batten the hatches, but new stringent regulatory hurdles and looming patent expiration dates have caused the entire industry to look inwards and either insulate or expand.
A recent article (http://www.proximagroup.com/source/whats-name), questions the terminology used to describe Indirects or overheads, goods not for resale (GNFR), non-core etc.
The amount paid to bankers will continue to be a hot topic while we wait for more of the banks to report their 2010 results. But less time is spent on why investment banks in particular continue to be able to pay large bonuses, and the implications for UK and global plc.
A recent article (http://www.proximagroup.com/source/whats-name) discusses how 'procurement outsourcing' has come to mean different things.
Prime Minister David Cameron recently promised to increase the government’s network of suppliers from the SME community. So what are the possible benefits and drawbacks of this new approach?
Last week, 90 Liberal Democrat councillors wrote to The Times remonstrating about the speed and direction of Government spending cuts. They argued, understandably, that their already ongoing spending reduction programmes had gone overlooked by Central Government and that its annual three per cent budget savings stood at odds with “runaway” spending on Whitehall.
Universal Music teamed up with Proxima to present the rationale for outsourcing procurement and what the experience was like from Universal Music's perspective.
A major opportunity lays relatively unknown and under-exploited for many UK retailers - that is, sustainable profit improvement through better management of GNFR costs.
Proxima conducted a research study, in association with NelsonHall, involving 120 CPOs and CFOs from global FTSE 100 businesses to understand the perceptions, attitudes and desired outcomes of Indirect Procurement within business today.
The first part of our interview with Andrew Collopy [AC], Global Procurement Director, Downstream at BP concluded with a discussion around communicating the benefits of procurement internally and reducing stakeholder scepticism. Part two continues the internal validation conversation plus looks at how procurement can breakaway from it's typecast as a tactical buyer.
In the first part of our interview Tom Kinnaird [TK], Head of Commercial and Procurement Service at WPP concluded with a lengthy discussion around talent management. We now delve deeper into the procurement life cycle, stakeholder engagement and being seen as a value adding operation.
Tom Kinnaird [TK], Head of Commercial and Procurement Service at WPP discusses how applying a pragmatic approach to procurement can achieve high levels of compliance and improve stakeholder engagement.
Dietmar Harteveld [DH], Director of Indirect Material for North West Europe at Siemens discusses how functional calibration and deep stakeholder engagement can help drive savings today and help understand where tomorrow’s value is really coming from.
Sarah Bradley [SB], Purchasing Director at Symington's, discusses the key challenges for the Manufacturing Industry and Procurement's impact on Business Performance
Paul Harridine [PH] VP Purchasing for Europe at LaFarge discusses how an innovative Purchasing operation can deliver value, more than just savings, back to the end customers of the business.
Oliver Colling [OC], Head of Financial Management and Effectiveness at Grant Thornton discusses Procurement's journey, following the footsteps of Finance and HR, towards strategic business importance.
Karen White [KW], Group Procurement Manager at William Hill talks about the need for procurement to get the fundamental basics right and communicate the business benefits better.
James Davenport [JD], Finance Director at Innocent Drinks discusses the challenges today's FD's face in light of increasingly volatile markets and procurement's role in alleviating some of that volatility.
Andrew Collopy [AC], Global Procurement Director, Downstream at BP reflects back on the challenges associated with validating procurement's benefits to internal stakeholders.
Stephen Wills [SW], Director of Group Procurement at AXA Insurance discusses how strategic business partnering allowed AXA to achieve more savings as a ROI year-on-year, while reducing absolute head count.
Frits Van Zijdervelt [FVZ], VP of Finance, European Supply Chain at Coca Cola Enterprises, discusses the intertwined roles of Procurement and the greater Supply Chain.
Tim Cummins (TC), President, International Association for Contract and Commercial Management (IACCM) in a recent interview, discusses procurement’s role in proactively leading the charge towards the boardroom… and not waiting for a golden invitation.
A recent interview conducted with David Powell (DP), Senior Director of Global Finance Processes, AstraZeneca discusses how Procurement has gone from being the poor cousin, to a partner at the heart of business decision making within AstraZeneca.
A Comprehensive Policy And Tight Supply Chain Control Are The Key To Managing Travel Costs For SMEs. Travel is a controllable cost but greater visibility and management of your supply chain are essential.
How to Streamline Purchasing on Facilities Management while Continuing to Deliver a High Level of Service
How procurement needs to evolve - Communication, Coaching and Commercial Skills.
Procurement has come a long way in the past 20 years, but the journey is far from complete. As it heads down the path to success, could its name run the risk of throwing it off track?
The purpose of this research was to find out the perceived differences between the procurement of direct and indirect products and services. It has revealed some fascinating results for procurement professionals
PLC's in the UK are under significant pressure to improve corporate performance to meet shareholder demands for an increased return on their investment. Many organisations have reduced their internal headcount so much that any further reductions would undermine productive capacity - the question is how can UK PLC drive profitability without further reductions...
Proxima (formerly buyingTeam) in association with Procurement Leaders Network investigate procurement outsourcing benefits and speak to several CPOs who are using procurement outsourcing to their benefit.
The challenge for indirects - Companies with operations across a number of different countries are facing new and increasing challenges in indirects. Indirects are hard enough to handle in just one country, but addressing them in many geographies, simply makes the challenges of the variety of suppliers, diversity of stakeholders and the multiplicity of processes even harder.