Procurement: Optimizing Processes Beyond Purchasing
Operationalefficiencyatnoadditionalcostisthecurrentcorporatestrategybeenpracticedby
severalorganizations.Businessesaretakingsmartstepsbyoptimizingelegantprocurement processinordertoensurethecompetitioninthepresentglobalmarketplace.Anoptimum procurementprocessnotonlystreamlinestheoperationprocessbutalsoaddvaluetothe organizationalbyreducingcostwithoutcompromisingwiththequality.Inaddition,anempowered procurementprocessalsoprovidesbusinessesanopportunitytocomeupwithinnovativeproductsor services.
Organizationsaregoingbeyondtheconceptofprocurementprocessbyadoptingemergingdigitaland advancedanalyticstools.Fromreducingtime,eliminatingwaste,improvingsupplierperformance, minimizingriskstoenhancingprocurementstrategy,procurementprocessisconnectedtoeverytier ofthesupplychainmanagement.Thus,itisnomoreamysterythatthedigitaltransformationof procurementisunderway.
Theevolvingtechnologicaladvancementsaredisruptingtraditionalprocurementpracticeswith moderncloud-basedprocurementsolutions.Thus,managingrelationshipswithsuppliers,maintaining records,evaluatingperformanceandprocessingpaymentshavebecomemoresimplifiedandefficient duetorapiddevelopments.
Consideringthecurrentevolutionoftheprocurementindustry,itthereforecomesasnosurprise thathowprogressiveprocurementprocessesareaddingtremendousvaluetotheorganizationas awhole.
Inordertosupportthewaystodisruptthetraditionalmethodsofprocurementprocesses, InsightsSuccesshasshortlisted“The10MostInnovativeProcurementSolutionProviders, 2018”,whicharedrivingglobalprocurementpractices.
FeaturingasourcoverstoryisPemexProcurementInternational,Inc.,providing procurementservices.Thecompanyofferspurchasing,contractnegotiation,logistic,inspection, andprocessingservices.
ThemagazinelistingalsoincludesBureauvanDijkElectronicPublishing,amajorpublisherof businessinformation,andspecializesinprivatecompanydatacombinedwithsoftwarefor searchingandanalyzingcompanies;ExcellaGlobal,aleadingsourcingagentinvarious countries,servinginteriordesigners,architects,hoteliers&hospitalityindustrytoprocure qualityproducts;NipendowhichisprovidingRoboticProcessAutomation(RPA)cloud-based platformthatstreamlinesPurchase-to-Pay(P2P)interactions;think, anonlinetoolthathelps makeiteasier,cheaper,fasterandmoresecuretobuytheessentialproductsyouneedforyour childcarebusiness;DataSource,aleadingproviderofend-to-endintegratedbrandedsupply chainmanagedservices;ProProcureLtd.,acompanyprovidingwebbasedproduct procurementsolutions;ScienceExchange,anonlinemarketplaceofresearchservices,enabling scientiststooutsourcetheirresearchanddevelopmenttoscientificinstitutions;Sievo,asoftware providerthatanalyzespastpurchases,predictsfuture,andmanagesprocurementsavingsfor companies;Tejari,aprocurementportalthatcouldallowaremoteattackertouploadarbitrary files,causedbytheimpropervalidationoffileextensionsbytheOPPrelimina.
Also,makesuretoflipthroughourarticles,writtenbyourin-houseeditorialteamaswellas CXOstandpointsofnotableindustrypersonalitiestohaveabrieftasteofthesector
Let’sstartreading!
Kedar Kulkarni
PEMEX Procurement International:
Maestro’s Insights
Managing Editor
Anish Miller
Kedar Kulkarni
Contributing Editors
Jenny Fernandes
Hitesh Dhamani
Abhishaj Sajeev
Executive Editor Assistant Editors Bhushan Kadam
Visualiser David King
Art & Design Director Amol Kamble
Associate Designer Shubham Mahadik
Art & Picture Editors Belin Paul
Co-designer Sapana Shinde Khanna Jayant
Senior Sales Manager Passi D.
Business Development Manager
Peter Collins
Marketing Manager John Matthew
Business Development Executives
Steve, Joe, Alan, Anup
Sales Executives
David, Kevin, Mark, Suraj
Technical Head Jacob Smile
Technical Specialists Amar, Pratiksha
Digital Marketing Manager Marry D’Souza
Online Marketing Strategists Alina Sege, Shubham, Vaibhav K
SME-SMO Executives
Prashant Chevale, Uma Dhenge, Gemson, Irfan
Research Analyst Chidiebere Moses
Circulation Managers Robert, Tanaji
Database Management Stella Andrew
Technology Consultant David Stokes
sales@insightssuccess.com
Corporate Ofces: September, 2018
Insights Success Media Tech LLC 555 Metro Place North, Suite 100, Dublin, OH 43017, United States
Phone - (614)-602-1754
Email: info@insightssuccess.com For Subscription: www.insightssuccess.com
Insights Success Media and Technology Pvt. Ltd.
Off. No. 513 & 510, 5th Flr., Rainbow Plaza, Shivar Chowk, Pimple Saudagar, Pune, Maharashtra 411017
Phone - India: +91 7410079881/ 82/ 83/ 84/ 85
Email: info@insightssuccess.in For Subscription: www.insightssuccess.in
Theprocessofprocurementcanbevery complicatedforcompanies.Ittakesagood amountoftimeandresourcestosetupateam fullofexpertise;abletoretrievethedesiredoutputfrom theprocess.However,thewholeprocesscanbehandled byathirdparty,aprocurementserviceprovider.The veryideabehindthearrangementistosavecostandtime ofthecompany.Procurementservicesenablecompanies togetqualitygoodsandservicesatalowercost, enhancesefficiency,andabettercontrolonlogistics.
Theteamprovidedundertheservicesistrainedtomake thebestdecisions.Itisproactiveandhasexcellent communications.Therearemanycompaniesproviding topnotchservicestoallkindsofenterprises.Oneofthem isPEMEXProcurementInternational.
FormerlyknownasIntegratedTradeSystems,PEMEX ProcurementInternational(PPI)isanaffiliateof PetróleosMexicanos(PEMEX)andwascreatedasa resultofPEMEX’sstrategytoestablishacloserpresence ininternationalenergymarketsandtodevelopdirect relationshipswithkeysuppliers.Foundedin1994,it startedwithamissiontogeneratevalueforPEMEXby providingintegratedSupplyChainManagement solutions.Inthespanof24years,thecompanyhas shownflexibilityinadaptingachanginganddemanding
environment,bothinternationallyandinMexico,in termsofPEMEX’sregulatoryframework,international industrypractices,andoverallmarketconditions.The companyhasalsodevelopedmorethantwohundred strategicagreementswithkeyindustrypartnersand producedover1,700contractualrelationshipswith suppliersallovertheworldbyworkingunderconditions ofinnovation,quality,efficiency,andcompetitiveness.
DeliveringEfficiency
PPI,onbehalfofitscustomers,negotiateslong-term
“
PPI
generates value to its customers
by
providing international procurement solutions through innovative integrated supply chain management based on quality, efficiency, and competitiveness principles.
strategicagreementswithkeyplayersintheOilandGas Industry,particularlyOriginalEquipmentManufacturers (OEMs)andprovidersofcriticaltechnologyfor PEMEX.Basedonhistoricalexpenditure,demand aggregation,andPEMEX’spurchasingpower,the agreementsestablishcommercialandlegaltermspriorto purchasing.Whenthedemandforthegoodsandservices arises,theprocurementactivitiesbecomejustamatterof preparingthepurchaseorderfromanauthorizedprice list,obtainingapprovals,andreleasingitelectronically tothesupplier.
PPIcontractsthroughdirectassignment,restricted tendering,andinternationalopenbiddingmechanisms. Additionally,oncecontractshavebeenexecuted,PPI expeditesdeliverieswithsuppliersandperformsquality inspections,ensuringallconditionsaremetbefore shipping,andhandleslogisticsandforwardingthrough thirdpartyserviceproviders.
Visionary’sChronicle
SalvadorEscobedoisthePresidentandCEOofPPI sinceMay2017.Heestablishedanoverallstrategic directionforthecompanyinwhichtransparencyand ethicalvalues,compliancewithapplicableregulations,
“
PPI ensures the most favorable commercial conditions achieved through aggregated demand and direct relationship with manufacturers and service providers avoiding intermediaries.
androbustqualityandinternalcontrolsystemsarethe keypillars.Salvadoralsoprioritizedincreasingthe numberofstrategicallianceswithkeysuppliersand serviceproviders,vastlycontributingtothe improvementoftheagilityfortheinternalreviewand approvalprocessforsaidalliances.Inadditionto strengtheningPPI’scorporategovernanceprinciplesand purchasinginstruments,coretotheprocurement activities,Salvadorhasalsocontributedtotheincrease ofPPI’spurchasingoperations,which-asaresult-lead togreatersavinglevelsforitscustomers.
We
are committed to the satisfaction of our customers by continually improving our services through innovation, quality, efficiency, and competitiveness.
JourneyofEminence
Themotivebehindthecreationof PPIwashighdegreeofdependence ontechnologyandservicesforthe procurementoperationsthatwerenot locallyavailableinMexico.By managingrelationshipswithits partners,PPIhasbeenableto identifyopportunitiesandimplement newprocurementinstrumentsto addresstheprocurementneedsofits customers.PPIfacilitates communication,earlyidentification ofrequirements,andevaluationand applicationofnewtechnologies;all
whileprovidingcontinuous monitoringofkeyactivitiesofthe supplychainfrombeginningtoend. Allofitispossibleduetothe experienceandknowledge accumulatedthroughoutmanyyears ofoperation,specializedworkforce, andtheimplementationofbest practicesforthemanagementofthe company.
EliminatingObstacles
PriortotheMexicanEnergyReform, theregulatoryrequirements applicabletothepublicsectorin
Mexicodidnotallowforpractical innovationstotheprocurement process.Balancingthecompliance withMexicanregulationswith internationalcommercialpractices wasdifficultanditinvolveda demandingeffortfromPPIto communicateandnegotiatehighly sophisticatedcommercial requirementswithsuppliers.
AfterthewidespreadofEnergy reformsin2012,PEMEX implementedvariousmeasuresto simplifyitsadministrativeprocesses andmaketheoveralloperationsmore efficient.Theregulatoryframework changedcorrespondinglyaspartof theefforttoturnwhatwas,until then,anoilmonopolyintoa competitiveworld-classorganization. Inclosecoordinationwiththe
PEMEX’sProcurementOffice,allwithinthenew regulatoryframework,PPIiscontinuouslyworkingon innovatingandmodernizingitsoperationstobetterserve itscustomersinthemosteffectiveandefficientway.
SignificantMilestones
Theimplementationofcontractualagreementswiththe strategicpartnershasbeen,andstillis,oneofthebiggest achievementsofPPI.Itenabledthecompanytoofferthe clientsflexibilityandagilitytosolvetheirprocurement needs,duetopre-negotiatedtermsandconditions. Moreover,ithasgivensuppliersenoughvisibilityofthe goodsand/orservicesthatmightinterestPEMEXinthe short-,medium-,orlong-term.PPIisabletoexpeditethe informationexchangewithitsclientswiththehelpofthe developmentofcustomtransactionalsystem,whichwas donewiththepurposeofincorporatingbusinessrules specifictoPEMEX’sprocurementprocessandPPI’s processesthatsupportit,inadditiontointegrating electronicallywithPPI’sclients’systems.
Allofthis,hasbeendoneunderstrictqualitymeasures forwhichthecompanyachieveditsoriginalISO9002
standardcertificationin1996,lessthantwoyearsafter thecompanywascreated.SincethenPPIhasbeen developingandimprovingthequalitymanagement systemthroughmultiplecertificationsand,inMayofthis year,itsuccessfullycompletedthere-certificationaudit forthenewISO9001-2015standard.
DistinctiveApproach
PPIcoversthefullcycleoftheprocurementprocessin anintegratedmanner,frombeginningtoend.Thisallows theclientstohavefullvisibilityoftheiroperations.The company’sextensiveexperienceontheprocurement regulationsapplicabletotheenergysectorinMexico, togetherwiththebestinternationalcommercialpractices, havebenefiteditscustomersthroughouttheyears. Moreover,PPI’sbilingualandmulticulturalpersonnelis abletoovercomeanyculturalorlanguagebarriers betweenitscustomersandthesuppliers,inaframework oftransparentandethicalbusinesspracticesthatare compliantwiththeapplicableregulations.
PPIstrivestomaintainandstrengthenthestrategic allianceswithkeysuppliers,whichprovidePEMEX
Our mission is to contribute by generating value to the PEMEX Group by providing comprehensive management solutions for the supply chain of imported goods and/or services with innovation, quality, efficiency, and competitiveness.
withthemostfavorableconditionsintermsofprice, availability,quality,andtechnology.Throughthese alliances,PPIcontributesingeneratingsignificant savingsaswellasaddingvalueforPEMEXandallits stakeholders
TowardsExcellence
PPIassurestocontinuouslygeneratevalueforPEMEX byrunninganefficientoperationthatmaximizesReturn ofInvestment(ROI).Moreover,itisdirectingtheefforts toachieveagreaterpenetrationofitsservicesinevery areawithinPEMEXinordertobeabletoaggregate demand,whichcouldresultinevengreatersavingsfor itscustomers.Lookingatthelongtermaspects,PPI aspirestoexpandthereachofitsservicestoother participantsintheMexicanenergysectorthatcould
benefitfromitsprovenexperienceinintegratedsupply chainmanagement.
Additionally,PPIwillcontinuetoexpandthescopeof thestrategicalliancestoachievethebesttermsand conditionsfortheprocurementofgoodsandservicesfor thewholeenergyindustryinMexico,asPEMEX continuestoestablishpartnershipswithmajor internationalplayersforexploration,drilling,production, andtransportationamongotherareas.
CompanyName
BureauvanDijk bvdinfo.com
DataSource data-source.com
ExcellaGlobal excellaglobal.com
Nipendo nipendo.com
PEMEXProcurement International pemexprocurement.com
Management
LouiseGreen CMO
PhilSchoonmaker CEO
VivekAgrawal CEO
EyalRosenberg Co-founder&CEO
SalvadorEscobedo President&CEO
Brief
BureauvanDijkElectronicPublishingisamajorpublisherof businessinformation,andspecializesinprivatecompanydata combinedwithsoftwareforsearchingandanalyzingcompanies.
DataSource,basedinKansasCity,MO,isaleadingproviderof end-to-endintegratedbrandedsupplychainmanagedservices.
ExcellaGlobalisaleadingsourcingagentinVariousCountries, servinginteriordesigners,architects,hoteliers&hospitality industrytoprocurequalityproducts.
NipendoprovidesRoboticProcessAutomation(RPA)cloudbasedplatformthatstreamlines Purchase-to-Pay(P2P)interactions.
PemexProcurementInternational,Inc.providesprocurement services.TheCompanyofferspurchasing,contractnegotiation, logistic,inspection,andprocessingservices.
ProProcure proprocure.com
FrankTreanor CEO ScienceExchange,Inc. scienceexchange.com
Sievo sievo.com
Tejari tejari.com
ElizabethIorns CEO
Johan-PeterTeppala CEO
RichardHogg CEO think thinkprocurement.com
AdamRyan Founder
ProProcureLtd.providesWebbasedproductprocurementsolutions.
ScienceExchangeisanonlinemarketplaceofresearchservices, enablingscientiststooutsourcetheirresearchanddevelopment toscientificinstitutions
Sievoisasoftwareproviderthatanalyzespastpurchases, predictsfuture,andmanagesprocurementsavings forcompanies.
TejariProcurementPortalcouldallowaremoteattackerto uploadarbitraryfiles,causedbytheimpropervalidationoffile extensionsbytheOPPrelimina.
thinkisanonlinetoolthathelpsmakeiteasier,cheaper,faster andmoresecuretobuytheessentialproductsyouneedforyour childcarebusiness.
Looking for or Using an EDI Tool?
A Few Things you ought to Know
A Few Things you ought to Know Looking for or Using an EDI Tool?
Tom Kieley CEO & Co-founder
Werunintomanycompanieswhoareinterestedin implementinganEDItoolorarealreadyusing EDIand“don’thavesupplierpain”.Although therearevalidreasonstoadoptanEDIsolution,beforeyou taketheplungethereareafewthingsyououghttoknow. EDI,atitscore,isdatatransformationbetweentrading partners.
Whenyoustartdiggingdeeperintothecapabilitiesthere arenobuilt-inanalytics,collaboration,orscoringofbuyers orsuppliersandultimatelynostrategicvaluetodrive supplierperformancetomeetyourbusinessrequirements. OneofthenumberoneissueswithEDIisthetotalcostof ownership.EDIisexpensivetoimplementforboththe customerandsupplier.Thetoolitselfisnormallyexpensive butmaintainingitcanbecostlytocustomizeanduse countlessmanhoursforupkeep.Ifthereisachangeinthe ERPsystem,typicallyachangeisneededintheEDItoolas well.Changesindocuments,i.e.invoices(EDI810)and purchaseorders(EDI850)orpurchaseorder Acknowledgements(EDI855)canbreakEDItransmissions causingdowntimeandexpensetoallparties.
Anotherchallengecanbesupplieradoption.Themain reasonyouinvestinatoollikeEDIiscloserbuyerand supplierrelationshipsandvisibility.Whenyouaska suppliertoadoptaheavytoollikeEDIandpossiblymake thempayfortheopportunitytodoso,youcancreate frictionasopposedtobringingthemclosertogether.Also, feworganizationshavesuccessfullyimplementedEDIwith 100%oftheirsupplierchain.Whichmeansyour organizationwillhavetomanagetwoprocurement processes.AspecialoneforyourEDIsuppliers,anda separateoneforyournon-EDIsuppliers,i.e.‘supplier collaboration’viamanualemailcommunication.
Regardingcommunication,EDIsystemtransmissionsare limitedtoanauthorizedsetofdocuments,rulesand transactions.Othercommunicationshavetobehandledby traditionalsiloessystemslikeemails,spreadsheets,and phonecalls.Ifyouneedtopullin,pushout,orexpeditea purchaseorder,thenyou’llneedemail,notEDI.Plus,when EDIprocessesbreak,allorderprocessingcompletely STOPSandrequiresITinvolvementtoresolve,whichcan becostlyandtimeconsuming.Thelastthingtokeepin mindwhenconsideringanEDItoolisevena1-centpartby anonEDIsuppliercancompletelystopproduction.
Yoursupplychainisonlyasstrongasyourweakestlink(or weakestvendor),sosuppliersnotusingEDIcancripple production.Eventhoughyoumaybeusingorconsidering EDI,yoursupplychaindeserves100%coveragewitha processthatisdrivingyoursupplierstooperateatthe highestlevelasitrelatestoyourchangingdemand.
About the Author
Tom Kieley, is a CEO and Co-founder of SourceDay. As a veteran business owner, Tom knows how to recruit top talent and build a lean team to manage growth. He is also good at conveying company vision and goals to employees, partners and anyone else interested in PO management. But it’s the execution of that vision that makes him such an asset for SourceDay. Tom wears many hats, but his priority is maintaining
key relationships and providing oversight across SourceDay. His decade plus of experience in product management and operations, hardware and software sales, and supply chain management fosters his creative ideas around how best to achieve
the goals that lead to company success.
Omnichannel Agent and Customer Engagement Solutions
Simplify and personalize the customer experience, empower agents and achieve business success with one workspace for all channel interactions, application integrations, and CX reporting.
TheWorld’sMostPowerful ComparableDataResourceon PrivateCompanies BureauvanDijk
Torunasuccessfulbusiness, youneedtounderstandyour customers.Ifyoucouldseethe detailsoftheirspending,turnover, managementchanges,andmore,you’d haveabusinessadvantage.
Thefirstchoiceforprecise, standardizedinformationonprivate companiesandcorporatestructuresis BureauvanDijk,aMoody’s Analyticscompany.Thecompany specializesinprivatedata,andthe toolstosearchandanalyzeit.
Foundedin1991,BureauvanDijkis committedtodeliveringtherichest, mostreliableprivatecompany informationonthemarket,saysits CMO,LouiseGreen.
ASurefireIndustryLeader
Thecompanyhasover160information providers,includingregulatoryand othersources.Clientscansortthedata usingBureauvanDijk’scustomizable software.
‘‘ We capture and treat private company information for better decision making and increased efficiency.
ProcurementTrendsandChallenges
ultimatelyresponsibleforthebehavior ofitssuppliers.
So,oneofthebiggestchallengesinthe industryistonotfallfoulofthe regulationswhilsttryingtonegotiatea gooddeal.
Toovercomethischallenge,an organizationshouldunderstandwho theirsuppliersare,astheycan’t manageriskuntiltheyknowwho they’rebuyingfrom.Theyshouldalso haveenablers,liketechnologyand data,inplacetosupporttheir procurementprocesses.
DataandAnalyticsSoftwarefor ProcurementSpecialists
BureauvanDijkproductsmostoften usedbyprocurementspecialistsacross theglobeare:
BureauvanDijk’sOrbisistheworld’s mostpowerful,comparabledata resourceonprivatecompanies,with informationonaround300million companiesacrossallcountries. Standardizeddataispresentedin customizabledashboards,toensure thatsupplierscaninterpretitquickly andworkmoreefficiently.
Procurementusedtobeacost-focused function,withthemainaimofgetting agooddealfromyoursuppliers. Now,procurementisalsofocusedon riskmanagement.Supplychain managementregulationsandthe ModernSlaveryActareagood indicationofhowprocurementis changing.Anorganizationisnow
Orbis: theworld’smostpowerful comparabledataresourceonprivate companies.Ratherthanjustproviding informationBureauvanDijk standardizesitsothatitcanbeglobally comparedandunderstood.Orbis providesanenormousdepthof informationwhichcustomerscan searchandfiltertofindwhattheyare lookingfor.
Procurement Catalyst: isatooldesignedtohelpcustomers managetheirsupplierrisk.
Thesolutionhassomeastonishingfeatureslikegroupspend analytics,whichshowsyouwhenyouarebuyingfrom multiplecompaniesinthesamegroup,andsupplier dependency,whichshowsyourspendasapercentageof eachsupplier’sturnover.
ByusingProcurementCatalystyoucanseethedistribution ofyoursupplierbasebylocation,sizeorfinancials.This makesiteasiertocheckthatyouhaveabalancedsetof suppliers.Italsohelpsyoutospotanysupplierrisks.You canalsokeepupwithadversenews,changesinownership, financialweaknessandchangesinmanagement,andscreen suppliersagainstsanctionlists.
Insummary,BureauvanDijkcanhelpyoutobetteruse yourcorporatespendingpower,assessandmonitor financialhealth,sourceandbenchmarkalternativesuppliers andmanagereputationalrisk.
AddingValuetoSupplierData
BureauvanDijkbringssupplierdatatolifethrough customizabledashboardsthatdeliverrobustmarket intelligence,aswellasspendandriskreports.Procurement Catalystisapowerfulbusinessinformationtoolthatgives youamoretransparentviewofyoursuppliers–both existingandpotential.
Data is at the core of Bureau van Dijk’s mission, and providing its customers with the best quality of data is its most important objective.
Financialstrengthmetricsareprovidedwiththetheory behindtherecommendation.Predictiveindicatorsand projectedfinancialsalsohelpprocurementspecialiststo assessacompany’sfinancialstrength.
BestQualityData
Inthecomingyears,BureauvanDijkwillcontinuetofocus onbuildingthebestpossibleglobaldatabaseforcompanies, whichtheycanusetoachievemoresuccessthan everbefore.
Louise Green CMO
How Implementation of
Procurement Impacts the Supply Chain Excellence
Procurementisanimportantconceptasitistheprocessoffinding,agreeingtermsandacquiringgoodsandservices orworksfromanexternalsource,mostlyviacompetitive biddingprocess.Theprocessinprocurementisusedto makesurethatthebuyerreceivesgoods,servicesorworksatthebestpossibleprice,withoutsacrificinginquality, quantity,timeandlocation.Procurementactivitiesareoftendividedintotwodifferentcategories,directandindirect procurement.DirectProcurementreferstothepurchaseofgoodsandservicesthatbecomepartofwhatyourorganization sellstoitsexternalcustomers.Whereas,IndirectProcurementconcernswithpurchaseofgoodsandservicesthatdoesnot becomepartofwhatyourorganizationsellstoitsexternalcustomers.
Intoday’seconomicenvironment,doingwhatyouhavealwaysbeendoing—evenifyouarebestatit—isnolongerupto snuff.Underpressuresupplychainmanagersmustredesigntheoperationsratherthanjustimprovethemtocontaincosts andproduceresults,despitechallengingcircumstances.Thisprovesthatadoptingphilosophies,methods,and processeselevateanorganizationon“top-of-the-line.”
Ifanyorganizationisimplementingsomeofthesebelowmentionedpractices,theycanseea strongimpactonsupplychainexcellence.
NeedforGoverningSupplyChainCouncil–Agoverningcouncilisestablishedso thatobjectivesandstrategiesofsupplychainorganizationsdirectlycorrelateswith thecorporatestrategy.Thecouncilisalsobeneficialinremovingbarriersto successthatexistinsidetheorganization.Sincethesupplychainorganizationis nowawareaboutthebarriers,theyhavetheopportunitytoperformuptotheir potential.
TechnologyShouldWorkforYou
–Manycompanieschoosesoftware thattheyhopewillmakethemmoreefficient,andthentheystructuretheir workflowsandprocessesaroundthatchosentechnology.Instead,they shouldfirstreviewtheprocessesthatneedimprovement,andonlythen selectthetechnologythatbestsatisfiesthoseprocessneeds.
Bigorganizationsrecognizetheimportanceofanefficientpurchase-topayprocessandhaveadoptedstrategiesandmechanismstogetthe greatestbenefitsfromtechnology.
AnalliancewithKeySuppliers–Bigcompaniesworkalongwith suppliersevenafteradealhasbeensigned.Inmanyorganizationsthese days,itiscalled“supplierrelationshipmanagement.”Butthatonly impliesone-waycommunication(tellingthesupplierhowtodoit).For
moreeffectiverelationshipbetweenbuyersandsellerstwowaycommunicationisrequired.
CollaborativeStrategicSourcing-Strategicsourcingis thecoreofboomingsupplychainmanagement,althougha collaborativestrategicsourcingdrivedeliversbetter outcomes.Feworganizationsalsoincludecustomersin decisionmakingprocess.Thisapproachnotonlyensures accessibilityofsupplies,butalsoresultsinreducing aggregatecost,streamlinedprocedures,andincreased understandingtocustomers’evolvingneeds.
TotalCostofOwnership(TCO)overPrice–Settingupa “TotalCostofOwnership”outlookisanobjectivethatthe supplymanagementorganizationneedstoembraceand sustainthroughouttheentireenterprise.Itwon’tbesimple, however,toconvinceyourcompany’sexecutiveleadership totrulyprioritizevalueoverprice.
ContractsUndertheSupplyChainNetwork-More companiesaremovingresponsibilityregardingcontract managementtothesupplychainorganizationinsteadof leavingitinbuying,legal,finance,oroperations.One advantageofthismoveisthatitensuresthecontracts aregatheredandkeptupinacentralstore. Themigrationofthecontract managementnetworktothe supplychainorganizationalso
permitsthesupplychainleadertomoreviablyusethe company’sspend,especiallyintheareaofserviceswhere thereisahugechanceforcost-reductionandrisk moderation.
EnhanceCompany-OwnedInventory-Theworldwide economicdownturnimpliesthatmanyCFOshavekept inventoryontheirradarscreens,andtheirfinancialteams arecontinuouslysearchingfornewideastoenhancethe bottomlineandreduceworkingcapital.Supplychain organizationsshouldthereforecontinuouslyreviewthe inventoryquantitiesandendeavortokeepthematanideal level.
Lackofplanningandforecastingaredirectcausesof inventoriesthatareoutofstockwiththebusiness'sneeds. Hence,best-in-classorganizationsalsoareplacingmore emphasisondemandplanningandforecastingasother meansofensuringidealinventorystocks.
SetupAppropriateLevelsofControlandReducing
Risk—Supplychainmanagementpoliciesandprocedures oughttofollowasuitablesequenceandstructure,anditis essentialtoreviewthemconstantlyandupdatethemfrom timetotime.
However,goingtoofarinbuildingpoliciesandprocedures isapossibility.Thisiswhybestcompaniesregularlyaudit theirpoliciesandcontrolstoconfirmthattheyarenot creatingcongestions.
Someorganizationsareinducingsoundtechniquesthat include:(1)Analyzingalltheriskelements;(2)Figureout thechancesoftheriskincidentoccurring;(3)Estimating thedollarimpactonthesourcingdecisioniftherisk incidentcertainlytakesplace;and(4)determinetheorder fordealingwithrisksformonitoringandprevention.
TakingSocialResponsibilitySeriously
-Whilemaking anypurchases,socialresponsibilitiesarealsoconsideredby buyersandconsumers.Socialresponsibilityisdeignedin suchamannersothatitisofmeasurablecorporatepolicies andproceduresthatresultsinfavorofbetterworkplace. Whenitcomestoriskevaluationandpurchasingofgoods, socialresponsibilityplaysavitalroleinbestinclasssupply management.
Acompanythathasameaningfulsocialresponsibility programprotectsoffensivecommentsfromworkers and/orconsumers.
Procurement Automation
Formanybusinesses, ProcurementAutomation(PA) providesasignificant, sustainableandneartermprofit opportunity.
Astoplinerevenuegrowthbecomes increasinglychallengingtoachieve, forwardthinkingbusinessleadersare lookingtodelivermorevaluefrom theirsupply-sidetransactions. However,manybusinessesoperateonpremisesystemsthatmaysolvea specificfunctionalrequirementbutare difficulttointegrateintothewider business.Thisisdrivingthedemand forprocurementautomation technology.
AccordingtoValueneer’sGlobal ProcurementandSCMStudy,80%of companypurchasesbyvolumeare madebyemployees,notby procurementprofessionals.These transactionsaremanualandtoosmall tobemanagedbytheprocurement teamandtoodiversetobesourced throughasinglevendorcatalogue.
A$1bnrevenuecompany,forexample, willmakeover35,000purchasesper year,withoutprocurement involvement.That’s$140mofunmanagedexpenditure.Andalotof sourcingevents,suppliers,approvals, orders,deliveriesandinvoicesto manage.
LegacyEnterpriseResourcePlanning (ERP)issimplytoocomplexand cumbersomeforthistypeofspend,so employeesuseonlinesearch,phone callsandemailtosourceproductsand
servicesfromsuppliers,resultingin poorlyspecifiedrequirements,useof unqualifiedorunsuitablesuppliers, limitedpricenegotiationandwastage.
Theseinefficienciesarecostingupto 30%oftotalexpenditure–orput anotherway,coulddeliver±10% increaseinEBITDA.
ProcurementAutomation
Thekeytounlockingthispotentialis toconsiderthesource-to-pay(S2P) processinitsentirety.Withapowerful andconnectedcloudbasedS2P capability–organizationsconnect sourcing,contractmanagement, inventory,ordering,approvals,receipts andinvoicinginasingle,unified process.
Companiesthereforebenefitfrom increasedefficienciesandreduced costs.Theyconnectbudgetholders, specifiers,buyers,approvers,suppliers, fulfillment,logisticsandfinanceinan intuitiveandcollaborativeworkflow. Procurementprofessionalscansetrules anddefineworkflowinorderto centrallycontrollocalisedtransactions.
Informationflowsbetweenintegrated on-premiseandcloudbasedsystemsin realtime,sobetterdecisionscanbe madequicker.Consumers,retailers, wholesalers,distributors,logistics, manufacturersandrawmaterials providerscanincreasinglyrelyondata flowingupanddownthevaluechain.
WiththerightcloudbasedS2P technologyinplacecontrollinga streamlinedend-to-endprocess,
managementhasrealtimevisibilityof everytransaction,locally,nationally andevenglobally.
Armedwithsuchpowerful information,repetitivetaskscanbe automatedandmorevaluecanbe deliveredtothebusiness.Forexample, asuddenspikeindemandinonepart ofthebusinesscaninstantlyalert financetoexpectincreasedsupplier paymentsweeksaheadoftimeor employeeorderscanbeaggregatedand routedtotakeadvantageofprenegotiatedvolumepricing.
Withasingle,highlyautomated processandflexibleaccesstoexpert resources,datawillbecomemore accurate,moreimmediate,more granularandmoreaccessible. Automatingtransactionalprocessesfor sourcing,suppliermanagement, catalogue,procurement,receiptingand invoicing,willinevitablyenabledata toflowupanddowntheprocess resultinginimproveddataquality.
AccordingtoanEverestresearch study,automatingprocurementcan reducecostby35%to65%foronshore deliveryoperationsand10%to30% foroffshoredeliveryoperations.
ProcurementAutomationcanbe extendedintothesupplychain.By lookingdeepintotier1and2suppliers andstreamliningprocesses,most buyingorganisationsgainsignificant benefits.Dataisincreasingly ubiquitousandsharedacrossthe collaborativeteaminrealtime.By sharingdemandandperformancedata,
About the Author
James Samuels. Co-founder and Chief Executive Officer of Claritum Spend Management. Claritum help companies in streamlining the purchasing of tail spend and indirect categories. James has twenty years EMEA marketing experience in the automotive and technology sectors for clients such as VAG, Peugeot, Intel and HP.
integratingintokeysupplier’sorder processingsoftwareorautomating supplierdelivery,invoicingand paymentcyclesreleasesmorevaluefor buyerandsupplier.FarmersinAsia caninvestinequipmenttogrowmore cropsiftheycanrelyonrealtime consumertransactionsfromretailerin Europeforexample.Anadverse changeinasupplierriskrating automaticallyalertssourcing,supplier managementandaccounts.Delaysin shippingordeliveryshortfallswill notifygoodsreceiptingandtrigger adjustmentstoinvoices,aswellas updatingthesupplier.Andallinreal time.
Withamorestreamlinedend-to-end process,expertiseisreleasedfrom manualtransactionstodelivereven morevaluetothebusiness.Theyno longerneedtobeinvolvedinadvising ontacticalsourcingorsupplier management,butcanfocuson interpretingtheactionabledata generatedbythetechnologytodeliver realintelligence.
Combiningprocurementautomation withArtificialIntelligence(AI)cango waybeyondsimplyautomating
predictabletasksandapplybusiness rulestomakeobjectivedecisions.
ArtificialIntelligence(AI)
Asorganizationsautomatemoreof theirprocurementprocesses,theynot onlyfreeupresourcestoworksmarter, theyalsohaveaccesstoanincreased breadthanddepthofdata.
Smartprocurementleadersare increasinglyadoptingAIinorderto interpretlargedatasets,definerules andmonitorsupplychainperformance andcontinuallyoptimizetheend-toendprocess.
Forexample,AIcanhelpnormalize datafrommultiplesourcesoridentify commonlyorderedproductsfrom acrossadispersedorganization.Itcan flagsupplierrisksearlyenoughforthe risktobemitigated.Withacontinual approachtolearning,therightAIcan makemoreinformeddecisions,suchas maximizingsavingsopportunitiesby aggregatingvolumesortaking advantageofchangesincurrenciesor commodityprices.
Thissortofdatabecomesevenmore valuablewhenenrichedwithdata
sourcessuchaschangesinlegislation; changestosupplierriskratingsor localizedweatherforecastsforocean goingshipments.
AdvancedAIhastheabilitytoevaluate andprioritizemultipledatasourcesto makeinformeddecisions,monitor performanceacrossthesupplychain andprocurementcycle-andtolearn fromthosedecisionsinrealtime.
Withsuchapowerfulcapability,smart organizationswillbequickertorealize opportunities,eliminatesupplyrisk, makegreaterandmoresustainablecost savingsandgenerallyout-performtheir competitors.
SobycombiningProcurement AutomationwithArtificialIntelligence, businessleaderscanrevolutionizetheir procurement,enhancesupplier performance,reduceriskand maximizeprofits.
Thefutureofprocurementautomation isbright.Andthisisjustthestart.
ERPSolutions Challenges in Implementing ERPSolutions
How you gather, manage, and use information will determine whether you win or lose. —Bill Gates.
EnterpriseResourcePlanning(ERP)isanapplicationto integratethedifferentfunctionsofanorganizationina centralizedapproachinordertogatherandmanage information,maintainstability,andenhanceefficiency.
ERPcameintoexistenceinthe90swhenenterprises wereusingspecifictoolsforspecifictasksofa manufacturingprocessincludingmaterialrequirement planning,manufacturingresourceplanningandcomputer integratedmanufacturing.ERPhandledthoseentiretasks singlehandedlyandallothercorefunctionalareasofthe enterprisecamealong.TheprimaryfocusofERPwasto automatethebackofficefunctionsofenterprises.With time,allotherfunctionswereaddedinthetasklist including,CustomerRelationshipManagement(CRM), SupplierRelationshipManagement(SRM)andecommerce.
TheglobalmarketvalueofERPsoftwaremarketwas $82.3billionin2016anditisprojectedtoreacharound $84.7billionby2021.Inarecentstudy,itwasshownthat thenewERPsystemsenabledcompaniestoattain24% ofgrowthinon-timedeliveriesduetoincreasein efficiency.81%oftheorganizationshaveeither completedtheprocessofimplementation,orareinthe process.16%oftheorganizationsimplementedtheERP systemwiththemotiveswitchingintoanupdated system.BelowarethebenefitsofhavinganERPsystem:
Ÿ Helpstheenterprisetosurviveandgiveanedgeover otherenterprisesfromthecutthroatcompetitionof themarket.
Ÿ Enhancestheflowanduseofdatainordertoretrieve theoptimumresultfromthesame.
Ÿ Increasestheproductivityoftheorganizationasa wholebynotwastinganyresources.
Ÿ Offersbettersecuritythroughthecuttingedge featuresofferedinthemodernsystems.
Ÿ Enablestheenterprisetopreparefortheupcoming obstaclesbyofferingbetterriskmanagement.
Ÿ Improvesthequalityofservicesofferedtocustomers bymanagingtheirdatainrealtime.
Keepingtheabovedetailsinmind,onemustassumethat everycompanythatisusingERPmustbegenerating largerevenuesandachievingallthetargets.Butthefact isthatonly20%oftheenterprisesbenefitfromERP systems.60%oftheimplementationprojectsfailand 90%oftheERPsystemsfailtodelivertheestimated ROI.
ManycompaniesalsoreportdisappointmentwithERP solutions.However,thisstoryrequiresafurther explanationasinmostcases;ERPsolutionsdeliver unparalleledbenefitstoenterprises.Theanswerliesin theprocessofimplementationandthechallengesthat arisewhilethesame.Followingarethechallengesthat enterprisesencounterwhileimplementingtheERP systems:
Challenges
Ÿ
Compatibility
Theprimaryfocusbehindtheimplementationis efficiency.Iftheestimatedgrowthisnotvisibleinthe resultsthenthewholeprojectofswitchingtoanERP systemcanbeconsideredafailure.Thismeansthatthe enterprisesmustdoublechecktherequirementsbefore adaptingthenewsystem.Moreover,thesystemmustbe flexibletobeoptimizedinaccordancewiththetypeand structureoftheorganization.Theremustbeaproper researchoftheproviderincludingitscustomerbase, competencesandotherspecificfeaturesrelatedtothe product.
Ÿ Change
Themostcommonmistakemadebytheorganizationsis consideringtheimplementation,asjustanupdateof software.Itneedstobetakenasthetransformationof management.Theprocessaffectsallthefunctionsandit isachallengeforallthefunctionstorespondasperthe requirementtothechange.Thereshouldbeaproper communicationtothedepartmentsregardingthenewjob rolesandresponsibilities.
Ÿ Skill
Itneedshighlyskilledworkforcetosuccessfully completeaprojectaslargeasthis.However,itis doubtfulfortheenterprisestoexpectandmaintainthe
samestandardofworkfromeachindividualofthelot.Organizationsneedto investgoodamountofresourceswhilethehiringforthetoplevel managementofsuchprocess.Insomecases,freshleadershaveperformed immenselyintheseprojectswhileinothers;theexperiencehasspokenfor itself.Thismeansatrainingprocessshouldbeorganizedfortheexisting workforcebeforetheprocess.Nottomentionthetrainingforthesoftware aftertheimplementation.
Ÿ Time
Largeprojectsareoftenknownforconsumingmoretimethanexpectedas theyarecomplex,dynamicandcangooffthetrackbysmallerrors.Delayin thecompletionoftheprojectsisoneofthemostexpensiveconsequencesfor enterprises.Thecostofdelayaffectstheestimatedbudgetbyhugemargins, whichmeanslosingthepurposeofimplementingthesysteminthefirstplace. Thishappensduetolackofplanning.Eventhoughitisdifficulttocompletely avoidtheuncertainty,abetterplansavesatonofresources.
Ÿ Governance
Manyenterpriseslacksupervisioninlargeprojects.Moreover,inordertobe effective,projectsalsorequireslongtermvisionandkeenobservationonthe complexityoftheproject.Usuallysuchplanningisnotpossiblewiththehelp ofafewmanagers.Thereshouldbeagoverningbodytosupervisetheproject andmustevaluatethegrowthonadailybasis.
Ÿ Costing
Itisimpossibletoestimatethecostofaprojectwithaccuracy.Bigprojects, especiallywhenthereisanimplementationorupgradeofsoftware,costhuge amountofmoney.Anditisdifficulttopredictthefutureexpensesinadvance withoutthehelpofanextensiveandsystematicsolution.Enterprisesneedto consultexpertsinthisareaasitwouldcostmuchlessthantheuncertainty
Lookingatthetrends,ERPhasabrightfuture.Withitscollaborationwith technologieslikeInternetofThingsandCloudServices,thesystemwill becomemoreefficientandproductive.Butitcomeswithchallenges.Andthe enterprisesmusttakecareofthesechallengesinordertoretrievethepurpose itofferstofulfill.
AnExceptionalProcurement SolutionProviderforInterior DesignIndustry EXCELLAGLOBAL
Buildingaprojectisoneofthe biggestinvestmentsan individualcanmake.The largestcomponentsoftheoverall budgetforanyconstructionprojectare almostalwaystheinteriorandexterior design.Thesmartprojectbuilderis awareofthisandwillenjoyasuperior finishedproductwhilesavingboth timeandmoney.
Professionalarchitectsandcontractors keepintouchwiththelatesttrendsin theirrespectiveindustries,andtheyuse thatknowledgetocreatestunning designs.However,keepingtrackof everynewtrendinahighlyprogressive market,likeinteriorandexterior designing,isvirtuallyimpossiblefor themaswell.
Acomprehensivesolutiontoassist theseprofessionalswillnotonly simplifythedesignprocessbutalso resultinbetterdesignsinshorter timeframes.ThisiswhereExcella Globalcomesin.
ExcellaGlobalisaone-stopglobal sourcingandprocurementsolution providerforinteriorandexterior decorationproducts.Thecompany’s servicesareaimedatinteriordesigners, architectsandprojectownersin projectsasdiverseashospitality,real
estate,corporatespace,institutions, andprivateresidences.
ExcellaGlobaloptimizestimeandcost investmentsbyhelpingclientsprocure thebestproductsfortheirneedsfrom verifiedvendorsatthebestprices.
SimplifyingthePurchasingProcess
ExcellaGlobalhasspentoveradecade givinginteriordesignersandarchitects aversatileplatformtoimprovetheir speedandefficiencywithout compromisingquality.Thecompany excelsatidentifyingtheneedsof clientsandhelpsthemtopurchase qualityproductsatthebestprices.
Itsend-to-endservicesfromsourcing toexecutiongivecustomersaccessto furniture,lights,buildingmaterials,art, andartefacts.Overtheyears,the companyhasdevelopedamassive sourcingdatabaseofmanythousands ofproductsandanintuitiveinterface whichhelpsclientsmaketheright choicefortheirneedsquickly.
ThejourneyofExcellaGlobalbegan fromChina.Initially,itstruggledto findthebestwaytomatchcustomers’ requestsandspecificationswiththe rightproductandrightvendor. However,itquicklygainedastrong
commandoverthediversemarket,and hasnowwideneditsprocurement networktoincludeIndia,Indonesia, andItaly.
AProactiveEntrepreneur
Mr.VivekAgrawalistheCEOof ExcellaGlobalandhecontributesasa strategydesignertothecompany. Vivekisnevershortofideastoinject innovationintoaclient’sproject.
Heisayoung,passionate,and proactiveentrepreneurwithovera decadeofexperienceindiversefields, whichincludesfurniture,marble,tiles, lighting,chemicals,andfabrics.Itis hisunrivalledvisionandleadership thathasmadethecompanyaleaderin theindustry.
Vivekisusuallyinvolvedatthe planningstageofprojectsand maintainsaconsistentpresence throughouttheprojectimplementation cycle.Hehastheinvaluableabilityto translateaclient’sgoalintoactionable strategy,andexcelsatarticulating conceptsandeducatingclientssothey canmakeempoweredandinformed businessdecisions.
Hisexperiencegiveshimaknackfor understandingtrendsfromtheground
Vivek Agrawal CEO
upandtheforesighttocarrythosetrendssmoothlythrough variousprojects.Heisalsoinvolvedinensuringthatallof theprojectworkandoperationalactivitiesadheretothe highstandardsthathehassetforthecompanyandits clients.
Vivekisconstantlylookingtoidentifynewer,moreefficient waysandopportunitiestoimprovethecompany’sservices. Hisdiverseexperienceallowshimtomakesmartdecisions fromabusinessstrategyperspectiveforhisclientswhile fosteringacreativeenvironmentforday-to-dayoperations forhisemployees.
TimelyCommunication
ExcellaGlobalplacesgreatemphasisonupfrontandtimely communicationtobetterserveitscustomers.Ithasinvested heavilyincreatingandconstantlyimprovingonhowit communicateswithbothclientsandvendors.
ExcellaGlobalendowsitscustomerswithasystemthrough whichthecustomerscangetanextensivesourcing advantage.Thecompanybidsalocalrepresentationfeature thathelpsclientstochoosetherightproductandforfurther assurancethecustomerscantrackandcheckeachandevery orderaswell.
Thissystemisknownforitsspeedinprocessingandthisis evidentfromthehundredsofpositivereviewsand referencesbyitsclients.
EyingGlobalExpansion
We optimise time and cost involvement and help clients procure quality products from verified vendors.
ExcellaGlobalhasmadeasignificantcontributiontothe designandconstructionsphereinAsiancountrieslike ChinaandIndia,andisnowexpandingitssourcingwings acrosstheglobe.
Itisalsoworkingonacollaborativeinternationalmodelto connectinteriordesignersandarchitectswith manufacturers.ExcellaGlobalsoft-launchedthis revolutionaryplatformatwww.arcedior.com.
Explainingitsbenefits,Vivekasserts,“The platform will empower architects and interior designers with simplified sourcing and procurement, and will give a global reach to large and small vendors alike.”
Thecompanyisconsideringothersimilarinitiativesand aimstostayattunedwiththelatestdesignstofacilitatethe globalmarket.
Workforce of Contemporary World
Asanemployee,ifyouweregivenachancetosellyourskillsonthe
globalstagewithagreatersenseofautonomy,independence,and flexibilityascomparetothetraditional9to5job,whatwouldyou prefer?Asanemployer,ifyouweregivenachancetohireapotential candidateon-demandatyourtermsandconditionsascomparedtoa permanenthire,whatwouldyouprefer?ThisiswhereGigeconomycomes intopicture.Thedaysof‘life-long’careerswithinthesamecompany,longtermstabilityofasignedjobcontract,guaranteedsignificanceoftheskills acquiredinthecollege,andpredictableworkroutinesarelonggone.
Inthisfastpacedglobaleconomicera,thereisagrowingdemandfor independenttalentwhoareautonomousandwillingtoselltheirskillsetson theglobalmarket.Therearemultiplefactorsthataregivingexponentialrise toGigeconomythanevenbefore.Belowaresomeofthesefactorsthatare fuellingthegrowthofGigeconomy,whichisconsideredasthenewand burgeoningtrendintheHRspace.
FinancialFreedom
Accordingtoasurveyconductedon6,247Gigeconomyworkers,57%said theychosefreelancepathtoearnmoremoney.Onanaverage,afreelance workermakes$60,000ayear,accordingtoMBOpartners.Whenaperson worksasafreelancer,heisnottiedtoincrementalsalaryincreases,orlimited tohowmuchyoucanmake.Dependingupontheindustry,skyisthelimit. Andthisiswhatfascinatesmosttothefreelancers.
Dowhatyoureallypassionateabout
Peopleworkbecauseitgivesthemthemostimportantresourcerequiredto livei.e.Money.Buthowmanypeopledotheworkwhichtheyreallyfind fascinating;thatisthemilliondollarquestion,andanswermightbeafraction ofthetotalworkforce.Thisisanotherreasonpeoplegetattractedtowards freelancing,asitgivesthemanopportunitytodowhattheyreallyfind interestingandhaveapassionabout.
BalancedWorkLife
Gigworkershavefullcontroloftheirworkload,theycanpickandchoose howmuchtheycantakeonandwhereandwhentoworkattheirown convenience.OneLinkedInsurveywhichwasconductedon10,000workers revealedthatmorethan46%valueworkinginsuchafashionbecauseit allowsthemtoworkonflexibletimings.AccordingtoForbes,morethan 35%liketheworklifebalancethatGigeconomyprovidestoitsworkers.
FullControloverDestiny
Inapermanentjob,employeeworksforsomespecificjobroleandarebound toworkinthesamedomainiftheywantagreaterhikeorabetterposition. Whereas,gigworkerhavethelibertytochangecareertrackwheneverthey
timetotime.Thisiswheregigworkersfit intothepicturemoreconvenientlythana fulltimeemployee.Whenemployers seekagigworker,theyoftenlookfora specificskillsetamongcandidates. Sinceagigworkerisnotafulltime employeeandhiredtocomplete specificproject,chancesof gettingworkdonemore efficiently,effectivelyandin timelymanneralwaysremains high.
Speedy Hiring and Onboarding Process: Conventional onboardingprocessmanytimes takesweeksorevenmonths. Butindividualsintheflexible workforceareexpectedto onboardmuchmorerapidlyand evenseamlesslyintegratetheir workwiththeteam.Since companieshiregigworkersfortheir expertiseinthesubjectmatterandthere isanocommitmentforafulltime employment,workersdogethiresfrom variousplatformsinaveryspeedymanner withfastonboardingprocess.
PastandtheFuture
want.Ifapersonwantstomakesomemoremoney,wantto trysomethingnew,orwantbetheirownboss,thenbeinga gigworkertheycanachievethesegoalsandhavemore controloverwhattodonext.Forabigdreamerwhonever getssatisfiedwithatraditionaljob,enteringflexible workforcemightbearefreshingchangeofpace.
NotonlyEmployeesbutEmployersalsowantFlexibility
Inmostpartofthecontemporaryworld,employersalso nowgracefullyaccepttheoptionofcontractualmanpower duetovarietyofadvantagesthatcontractworkerbringfor anorganization.
Skill based Hiring: Manyjobsrequireaspecialistonly whenthereisadireneedofit,notallthe365daysayear. Then,whytospendextramoneyonafulltimeemployee,is theburningquestionthatarisesinthemindofrecruiters
Whilealternativeworkarrangementhasbeeninthefashion forlongbutitsusagehasgrownsignificantlyoverthepast decade.Thefractionofcontingentemployeesinthelabor forceincreasedfrom10%to16%between2005and2015, withalternativeworkarrangementsaccountingforallofthe netgrowthinemploymentoverthepastdecade.
Theincreasedapplicationsofdisruptivetechnologieslike ArtificialIntelligence,roboticsandautomationwillshape thefutureofglobalworkforceandwillsignificantlygive risetoso-calledgigeconomy.Accordingtoonesurvey,an estimated7.6millionAmericanswillberegularlyworking asprovidersintheon-demandeconomyby2020,morethan doublingthecurrenttotalof3.2millionflexibletaskforce. Gigeconomyisstillatthenascentstage,accordingto researchfirmPwC,gigeconomycovermerea2%ofthe totalrecruitmentmarket.Butby2020,gigeconomywill worth$63billionglobally.
StreamliningPurchase toPayProcesses Nipendo
RoboticProcessAutomation (RPA)combinedwithCloud computinghastruly revolutionizedthespaceofPurchaseto Pay(P2P)andbecomingacritical factorinEnterprise’scompetitive advantagecreatingatruecollaboration betweenbuyersandsupplierswhichis mostlyautomated.ModernCloud solution,RPAarchitectureoutperform existingsolutionssuchasAriba,GXS andBaswarethatserveasdumbpipes andhavefailedontheirpromiseto automateProcuretoPay(P2P) processes.
AsRPAandAIarebecoming mainstreamenterprisesarestartingto realizepracticalwaystheycanbenefit thesetechnologiestoreplacetedious, error-pronemanualworkandrote decisionmakingwithsoftwarebots. Consequently,moderntechnology Cloudvendorsthatarchitecturetheir solutiononRPArecentlysense growingdemandexpandingacross differentverticalmarkets.Nipendois perfectlypositionedtocapitalizeon thisimmensepotentialwithits SupplierCloudPlatform.
ItsCloud-basedRoboticProcess Automation(RPA)platform streamlinesP2Pinteractionsacrossall spendcategories,suppliersand processes.Ittransformsprocurement, orderfulfillment,accountspayables, invoicesandpaymentstofullyautomated,touch-freeanderror-free processes.Nipendohavealsosolved thecomplexityofone-to-one integration,whichisoneofthebiggest barrierstowidespreadsupplier
collaboration,throughmultiple canonicalandcontentbasedintegration resultingwithdistributednetwork effectwherecompaniesconnectonce tothenetworkandcommunicateswith allnetworkpartners.
NipendoSupplierCloudisusedby leadingorganizationsacrossvarious industries.Itsclientsinclude multinationalssuchasKLATencor, KodakAlaris,Intel,Checkpoint, Amdocs,IsraelAerospaceIndustries, Sigma-Aldrich,andTeva Pharmaceuticals.
DeliveringSimplifiedSolutions
Nipendo’sRPAplatformreplacesover 85%ofmanualworkandrotedecision makingwithautomatedprocesses.
Itenablessupplierstousetheirexisting EnterpriseResourcePlanning(ERP) system/mobileapp/webapporemailto maintaintheirexistingworkmethods, businessprocessesandtools.Itswide rangeofsolutionsincludesB2B integration,supplychainprocess orchestration,ExchangetoExchange (E2E)invoicing,dynamicdiscounting andsupplychainfinance.
Withthesesolutions,enterprisescan automatesuppliercollaborationonthe mainP2PprocessessuchasRequest forProposal,Forecasting,ECO, PurchasingOrder(PO),Shipping Notifications,AdvanceShipNotice (ASN),GoodsReceipt(GR),Supplier Inventory,Vendor-managedInventory (VMI),Consignment,alltypesof InvoicesandPayments.
Inaddition,Nipendoalsooffers solutionsforAccountsReceivable (AR)Financing,Supplier Management,SupplierOn-Boarding andSupplierMasterData Management.
Thesecapabilitiesleveragethe followingadvantages:
Ÿ BusinesswideP2Pprocess transparencyacrossallspends categories,alltypesofsuppliers, andallgeographies
Ÿ Improvedsupplierperformanceby sharingperformanceKPIscores andcomparablecompetitive performancewithsuppliers
Ÿ Highscalabilitywithnoneedfor additionalhumanresources
Ÿ Improvedcomplianceandprocess governance
Ÿ Eliminatingdiscrepanciesand ManagementbyException
Ÿ Eliminatingmanualworkand automatingallroutinedecision making
AChallengingJourney
Renownedauthor,JeffreyBenjamin, oncesaid,“In every challenge lives a greater opportunity.” Thisquote appliesveryappropriatelyforNipendo.
Nipendostartedwithadreamtosolve cumbersome,rigidandmanual processesintheprocurement,A&Fand supplychainspace,whichwas inherentlyaveryelusivegoal.When theydidsucceedincreatingasolution, marketpenetrationbecamethenext seeminglyinsurmountablechallenge.
Eyal Rosenberg Co-founder & CEO
Convincingbusinessestoimplementdisruptivetechnology onlyrecentlycreatedbyastartupcompanywasindeeda challengingexperiment.However,asthenumberofclient successstoriesgrew,thechallengeflippedandNipendohad tocontendwithexponentialgrowthinthedemandforits services.
AnEnthusiasticCEO
ItisanenthusiasmabouttheERPspacethatdrivesEyal Rosenberg,aCo-founderandCEOofNipendo.Eyalhas alwaysbeenkeenonimprovingefficiency,reducing complexity,flexingrigidness,reducingcosts,improving scalability,andgivingusersacompetitiveadvantage.Itwas thispassionthatledtotheinceptionofNipendo.
Priortostartingthecompany,EyalservedasaVPofR&D atBAANERP,apioneeringERPvendor.In1999,heleft BAANtofoundhisfirststartupandhassinceestablished anotherthree.Allthesecompaniesareinvolvedinthe procurement,A&Fandsupplychainfields.
EyalholdsanMBAfromBar-IlanUniversityandaBAin FinanceandMarketingfromTelAvivUniversity.
AnEssentialContribution
Inthefuture,machineswillmakepurchasingdecisionsby consideringwhat,when,fromwhomandhowmuchinthe tailandindirectspend.Duetothis,thecertainpurchasing categoriestendtobedisappeared.Moreexpenditurewillbe completelyautomatedthroughmachine-to-machine interactions.Giante-commerceplatformslikeAmazonand Alibabawillreplacemanycurrentsuppliers,evenmajor ones.
We plan to become the bridge for enterprises to the RPA and the AI era.
Nipendohassetthestagefortheupcominglevelof automationandwillbecomeakeyfacilitatorforcompanies torapidlyachievefully-automatedP2Pprocesses.Its customersarealreadyenjoyingahighlevelofautomation today.
ADeterminedStride
Nipendowasfoundedwithanaimtodisruptthe procurement,A&Fandsupplychainspace,andplansto becomethebridgeforenterprisestotheRPAandtheAIera inthesesegments.
Thecompanyisintheprocessofhelpingitscustomers reachanunprecedentedlevelofautomation.Itisconstantly advancingitstechnologytoleadthemarketwithbest-inclasssolutionsenabledthroughRPA,AI,machinelearning andpredictiveanalytics.
ADisruptiveProcurement SolutionBuyingBetter Profits think
Overthepastfewyears,the valueofprocurement innovationhasbecome apparent.Currentresearchshowsmore andmorepeoplerecognizethe efficiencyofprocurement,especially thosewhodealwithtrading transactions.Theprocurementroleis essentialtoanybusinessthat purchases,totheextentthatbuying goods,servicesoranyotheritems, showsprocurementhavingadirect resultonprofit.
Typically,businessesbuyproductsor servicesfrommultiplevendors. Procurementprofessionalshandlethe detailsofprocuringthesepurchasesat optimalprices.Soestablishingrational procurementpolicyandprocedures enablesmid-sizedbusinessesto coordinatetheirbuyingstrategywith theirlong-termgoalsandobjectives.
thinkholdings,isAustralia’sleading providerofbusinessprocurement SoftwareasaService(SaaS).By leveragingtechnology,market knowledgeandprocurementexpertise, thinkenablesorganizationstoincrease profitabilitybybuyingbetter,astrategy especiallydesignedformid-sized businesses.Thecompanyhasdesigned solutionsdedicatedtoimprove scalability,purchasingandpayment processesofallmid-sized organisations.
thinkisfocusedontheautomationof buyingandsellingtransactionsinB2B commerceandhaschosentosolve procurementprocesses,suchas workflowapprovals,GLCoding, reconciliationandgoodsreceipting, amongstothers.It’srapiddeployment andflexibleconfigurationcapabilities, combinedwithasimpletransactional model,buildscomprehensivevalue basedstrategiesallowingorganisations torevitalisetheoverallprocesscycle oftheirorganisation.
EasierandFlexiblePlatform AutomatingBetterPricing
Foundedin2010,thinkidentifiedthe Enterprisemarketwasservedby existingplayersandfocusedits attentiononmid-sizedorganisations.It hasintentionallydesignedaneasier, efficientandflexibleplatformtargeting mid-sizeorganisations.Theadaptive platformenablesclientstoeffectively managetheircatalogs;helpingto ensurecontentisclassifiedand enriched.Thesefacilitationsallowa betterpricingstructureandthe modularapproachtofeaturesand flexibleself-configurationtools,makes theprocesseveneasierandmore efficient.
Inadditiontothis,thinktakesanactive roleinensuringthequalityand accuracyofsellercataloginformation
includingimages,descriptions, supportingdocumentation, classificationandsearchmetricsatthe verystartoftheprocess,rightthrough toinvoiceautomation,reconciliation andpaymentstoendtheprocess.
thinkistrulyP2Pinthisregardasit integrateseachoftherequiredsteps ensuringgreaterautomationatthe highestlevelsofaccuracy.The deliveredsolutionsbenefitclientswith reducedprocesscosts,betterpricing opportunitieswithsellersandreduced errorscomparedtoanyotheroffering inthemarkettoday.
InitialStrugglesinBalancingthe Ambitions
thinkhadtheclassicstartupstruggles ofbalancinganambitionofdisrupting theB2Bcommercemarketwith procurementandpaymentsatthecore. Convincingcustomerstochangethe waytheyengagewithsellersand sellerstothinkdifferentlyabouttheir gotomarketstrategy,includinghowto getpaidearlier,wasachallengingtask forthink.
However,thecompanyemphasison creatinganeasierandcustomisable systemhashelpedthinkbuildasystem thathasattractedlocalandglobal clients.Thecompanyvisionistobe thebestinmarketandnotthebiggest
inmarket.Thestrategiespoweredbythisvisionhavea notableimpactonclientprocessingcycleswithnotable industryleadersadmiringthinkforitsprecisionsolutions. Coupledwithreachingthehighestsecuritygradein paymentsofanyorganisationinthisspace(PCI ComplianceLevel),thisvisionisatestamenttothequality ofthink’sapplication.
AnInstrumentalLeaderPilotingtheCompanytowards GreaterHeights
AdamRyanistheFounderofthink.Heisthevisionary behindthink,startingthecompanyinagarageandnow seenasaleadinginnovatorinthisspace.Adamhasbeen involvedintechnologystart-upsforover20yearsandwas apartofthefoundingmanagementteamofSEEK,anASX listedTOP100companywithamarketcapitalisationof over$5BUSD.
AdamisanAdvisoryBoardMemberoftheInstituteof SupplyExcellence&InnovationattheRadySchoolof ManagementattheUniversityofCaliforniaSanDiego.He isaMemberoftheAustralianInstituteofCompany DirectorsaswellasbeingafounderoftheWatkinsBay Fundspecialisinginstart-ups,apassionhecontinuestoday.
Hehasbeeninstrumentalintransformingtheviewsof banksandpaymentprovidersonwhatcanbeachievedin theDigitalPaymentsspaceforB2Bcommerce,andisa soughtafterspeakerforFintech,banking,andprocurement conferencesglobally.
ConvertingOpportunitiesintoReality
We envision making our customers’, suppliers’ and users’ purchase-to-pay lives easier and more efficient, and to deliver an ROI that encompasses savings, resources and time.
Incomingtimes,thinkwillprovideprocurementsolution providerswiththeabilitytoinceptplatformsthatare contemporaryintheirchargingmodelthatwillbecomethe truedisrupters.Companieswithaninnovativetransaction basedpricingmethodologyalignedtocreatingvaluefor customersensuringfasterandgreaterreturnontheir investment,willwitnessmoreoutcomesthanthetraditional ones.Inthatsensethinkisatruedisruptor.
thinkcontinuestopursueopportunitiesforitsB2B commerceplatformacrossitscorecapabilities,from ContentManagementServicesandbuyerandseller platformsforarangeofverticalindustries,lookingto unlockingaccesstocontentandprocessautomationalong withfutureinnovation.
Theapproachofcollaboratingwithindustryleaders, leadingconsultingfirms,securityexperts,banksand progressivecustomershasensuredthink’sabilitytodisrupt thee-procurementmarketwithitsofferingaddressingreal issuesandcreatingrealvalue.
Adam Ryan Founder
An Entrepreneur’s Perspective Thriving In Technology:
Everyday,wehearnews aboutdisruptivetechnology:
ArtificialIntelligence(AI), Blockchain,theInternetofThings (IoT).Thesesolutionshavethe potentialtochangethewaywework atanunprecedentedspeedandscale. Technologyfundamentallyaltersthe waywemakedecisions.Sohowdo peoplefactorintothisnewequation?
AsFounderandCEOofConnXus,a suppliermanagementsoftware companybasedinOhio,Iinteract withbusinesstechnologyandvarious operationalteamseveryday.We’ve seenafundamentalshiftinthe marketlandscapeandpivotedour businessmodelasaresult.There’sa cleargapinthemarket,andonly thoselisteningcanstepuptothe challenge.Inthisenvironment, we’vebecomeleanandnimble.Here areafewkeycomponentsmyteam andIhavelearnedindriving businessvaluethroughtechnology:
TechnologyLowerstheBarrierto Entry
Technologyallowsbusinessusers withnon-technicalbackgroundsto accessdataandassets.Forexample, peoplewhouseAPIsdon’tneedto understandhowback-endsystems
functionorhowprograms communicateswitheachother.They canself-serveaccordingtotheirdata needs.Firmscanopenbackenddata andfunctionalitytobereusedinnew programswithoutalienatingnontechnicalusers.Thisstrategy eliminatesinformationsilosand gatekeepers,increasingoperational efficiency.ITdepartmentsare incentivizedtobuildreusable infrastructure.Thiscultureshiftfrom viewingITasatechnologyprovider toastrategicbusinesspartneris critical.
StrategyMaximizesDigital Adoption
Technologyplaysanimportantrole nomatterwhereyougo.Butnew technologybringsnewresponsibility. Digitaltoolsenablerelationshipdrivenpeopletosucceedinbusiness. Technologyismosteffectivewhen utilizedwithstrategiesclosely alignedtoyourbusinessvaluesand goals.Focusingonaproblemand settingthescopeofatool’sfunction isvitaltothetool’ssuccess.As routineandrepetitivetasksare becomingmoreautomated,it’s importanttodefinetheareasthat humanempathyandcriticalthinking shinethrough.
InnovationIsToday’sCurrency
It’snosecretthatstart-upsare disruptingmulti-billiondollar industries.Today’stopfivepubliclytradedcompaniesdidn’tevenexist 25yearsago.Thesecompaniesall introducedinnovativesolutionsto themarketthatdeliveredvaluein newanduniqueways.Thesedays, peoplearelookingforrobust,secure, andeasy-to-deploysolutionsthat solveavarietyofcommunication problems.Scalablesoftware solutionsthatoffercentralizedaccess tocleandatawillbecomethenew standard.
TheRightToolsareUtilizedbythe RightPeople
Technologyisoftenseenasthe meanstoanend,anexecutiontool forstrategy.Buthavingtheright teamcanbejustasimportant.The bestleadershipadviceI’veever receivedwas“hirepeoplewhoare smarterthanyouatwhattheydo,and createanenvironmentwherethey candotheirbestwork”.Ihavean awesome,technicallycompetent teamthatenablesmetofocuson vision,strategy,leadershipand relationships.InthewordsofJohn Maxwell,“thereisnothingworse
About the Author
Rod Robinson is the Founder and CEO of ConnXus, a supplier management software platform. He writes about supplier diversity, supply chain technology, procurement, leadership and entrepreneurship.
thananentrepreneurwithabigdreamandabadteam.” I’mblessedwithadreamteamofpeoplewhounderstood myvisionandsharedmypassionforthesolutionthatI wanttobuild.Keystakeholders,suchasourboardof directors,areanextensionofourteamandourbrand. Onlypeoplethattrulyfitthejobroleandworkculture willbeabletomaximizewhatevertechnologytoolsare providedtothem.
FocusonCoreCompetenciesCreatesOpportunity
It’seasytogetlostinthebellsandwhistlesofthelatest technologycraze.Asasoftwarecompany,wehaveto stayvigilantandfocusedonourtechnicalapproach.We havetobuildfastandfallforward.Ourcloud-based platformprovidespowerfultoolsandanalyticsthat enablelargecompaniestomeasureandquantify diversitywithintheirsupplychains.Bydeliberately focusingonourcoreandexceedingcustomer expectationsoverthepastseveralyears,manyofour customersnowseethebroadercapabilitiesofour platformasafullsuppliermanagementsolutionthat specializesinsupplierdiversityandsustainability.This greatlyexpandsthesizeofourmarketopportunity,and isadirectresultofourlaserfocusondevelopingthe righttechnologythatdifferentiatedusfromcompetitors.
TechnologyFostersCollaboration&Impact
AtConnXus,weworkwithcountlessbusinessesranging fromsmallanddiversefamily-ownedsuppliers,tolarge corporatebuyers.Acrosstheboard,weconsistentlyfind thatbusinesseswithstrategicfocusoninclusionand sustainabilityhavesubstantialbottomlinesavings,and positivelyimpacttheirlocalcommunity.Manyofthese businessestakeadvantageofimplementingtheright technologyfitfortheirneeds.Inthisway,technology framespurposeandhelpsoperationalteamsdomore withless.Purpose-driventechnologyattractspurposedrivenpeopleandworkculture.Thismakesitpossible forustocreateanunfairadvantage.Aligningour purposetoourtechnologytoolsenabledConnXusto attractagrowinglistofFortune500customers,investors andstrategicpartners,whohaveallplayedkeyrolesin helpingusgrow.Inalltheseways,webelieve technologyisthekeytosuccess.
