Monthly Archives: November 2008
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Unit testing procurement performance measurement
Posted on November 19, 2008 by hudgeon in VendorManagementI’d like to see an study showing the percentage of performance measurement initiatives that last longer than a year. I bet it’s not high. My working theory is that the designers of performance measurement initiatives are too ambitious at the outset and set up measurements that never get used and therefore eventually stop getting collected [...]
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Measuring procurement performance: Does it need to be complex?
Posted on November 16, 2008 by hudgeon in VendorManagementSpend Matters recently linked to an article published by the W.P. Carey School of Business. The article, in the section “Handling challenges”, made the following observation: Handling challenges But while companies can achieve great success with their metrics programs, measuring purchasing performance effectively is not without challenges. Particularly for large, global companies, measurement programs need [...]
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Not your grandmother’s spend analytics
Posted on November 13, 2008 by hudgeon in VendorManagementI’d always been taught to do spend analytics the same way. Start with a data dump from your AP system. For illustration purposes, imagine we have a million rows of data. First, categorise every row as “Other”. (This allows you to claim that you have categorised 100% of your data and you’re only on step [...]
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Want innovative supplier relationships? Set the right environment
Posted on November 12, 2008 by hudgeon in VendorManagementA Dutch community has recorded a 44% rise in birth rates 9 months after a helicopter accidentally cut power transmission lines into town. “It was cold in the houses. They [the townspeople] went to bed early to keep warm.” Inadvertently, Maasdriel created an environment conducive to producing babies. If you want your suppliers to produce [...]
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Performance measurement tips from search marketers
Posted on November 11, 2008 by hudgeon in VendorManagementMeasuring performance is hard work. It’s not just hard work in sourcing / vendor management; it’s hard work in every industry. The key is measuring outputs rather than inputs and the challenge lies in the diverse nature of the outputs. Here’s the search marketing perspective on the nature of the outputs: To effectively measure real [...]
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The first casualty of recession is long term planning
Posted on November 11, 2008 by hudgeon in VendorManagementWith everyone talking recession, I’ve been asking colleagues over the past couple of weeks whether they’d rather be Coupa or Ariba in this economic climate. Almost unanimously, my colleagues have said Ariba because it’s better to be a more well-known brand in a down-turned economy, but I’m not so sure. Like a body, when an [...]
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John Stuart Mill on the moral benefit of global trade (1848)
Posted on November 8, 2008 by hudgeon in VendorManagementThe economical advantages of commerce are surpassed in importance by those effects which are intellectual and moral. It is hardly possible to overrate the value, in the present low state of human improvement, of placing human beings in contact with persons dissimilar to themselves, and with modes of thought and action unlike those with which [...]
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Procurement leadership – Step out of the box
Posted on November 2, 2008 by hudgeon in VendorManagementThe current economic climate has brought an increased focus on costs across many companies. Procurement managers around the globe see this as their opportunity to step up and deliver value. But it is much more than that: It is an opportunity to step out of the box. If we really want to demonstrate procurement leadership, [...]
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