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In a new weekly series from Ardent Partners, we revisit what defined procurement… The post State of Procurement (A Retrospective): Insights from the 2007 Agenda appeared first on CPO RISING - THE SITE FOR CHIEF PROCUREMENT OFFICERS & LEADERS IN SUPPLY MANAGEMENT.
I have gone through the Procurement Insights archive of 2,410 posts from 2007 to today to provide what I believe will be a unique context explaining the evolution of predictions over the past couple of decades. There are between 2 and 4 links covering the period 2007 to 2024.
Strengths : Structured roadmaps, risk management, and enterprise-wide integration. Gartner Approaches Current Landscape Gartner’s Organizational Frameworks Dominance : ~60–70% of enterprises use Gartner’s models for IT alignment, governance, and scalability.
” So, here is the question: Focusing on the core areas of global value chains and proximity, what do both the 2007 and 2025 articles indicate regarding the progress between the two time periods? 30 BONUS COVERAGE Progress in Global Value Chains and Proximity: 2007 vs. 2025 1. in 2007 to about 22.5%
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
Sourcing Innovation Launch Date: June 2006 Overview: Authored by Michael Lamoureux, a Computer Science PhD, Sourcing Innovation focuses on procurement technology, strategic sourcing, and supply chain management. It targets sourcing managers and procurement professionals with actionable content.
2040) Even mature technologies like ERP could avoid obsolescence through continuous Hansen-guided evolution The Hansen Fit Model essentially transforms unpredictable “hype cycles” into manageable “value cycles” with predictable timelines and measurable outcomes.
Here is the link to everything I have written about spreadsheets in the Procurement Insights blog since 2007. 2007 97% Slight decline as early cloud solutions emerged, but spreadsheets dominated due to familiarity and cost. Procurement Insights (2007) highlights manual processes. 2006 98% Minimal change; early ProcureTech (e.g.,
Between 2007 and 2025, Procurement Insights archives reflect a remarkable evolution in the procurement and supply chain industry—from basic cost and operational concerns to strategic, tech-driven, and resilience-oriented priorities. Here’s how the coverage informs our understanding: Evolution from Tactical to Transformational 1.
eProcurement surged early (2007–2015) but slowed thereafter. – **AI** is rapidly becoming the strategic core of procurement, enabling predictive analytics, risk management, and process automation. ERP systems exhibit steady growth, reaching a plateau of around 45–50%. RPA adoption started in 2013 and steadily grew toward 50%.
” The need for change management decreases significantly using an agent-based model that engages both internal and external stakeholders. Middle management walks the line: tasked with delivery but pressured to align with best practice endorsements. Procurement Insight Archives May 22, 2007 – The Change ManagementMyth?
Cited as a success in Procurement Insights (2007-2014), it embodied Hansens agent-based approach, likely a precursor to the Metaprise model, prioritizing the shared relationship between human agent experience and expertise and technology-based AI agents. DNDs success (2007) reflects Hansens user focus, cutting 50-70% failure rates.
2007, 2014, and The GenAI Metaprise, Oct 11, 2024)involves observing data, acting, assessing results, and adapting, aligning with self-learning concepts but prioritizing practical outcomes over technical specifics. supplier performance metrics) over mathematical optimization, reflecting Hansens practitioner-oriented approach (2007 post,).
1996: Adidas Warehouse Management System Failure What Happened: Adidas’ new warehouse system failed after vendor bankruptcy, rushed go-live, and lack of readiness. 1997: Snap-on Tools Order Management Disaster What Happened: Faulty new order management system led to $50M in lost sales and 40% higher operating costs.
(A PI Q&A) , A reader asked the following question: Aside from the basics of spend analysis and eliminating redundancy, I’m curious to hear of others’ experiences in dealing with mergers/acquisitions and how the cultural elements were addressed in terms of promoting the use of preferred vendors and the adoption of expense management policy.
.” – CPO | Advisor | IIT | NUS | Stanford | Exxonmobil | Chevron | E&Y (February 2025) Based on my research and work between 1998 and 2004, I wrote a paper titled ACRES OF DIAMONDS: The Value of Effectively Managing Low-Dollar, High Transactional Volume Spend. You can access it by clicking on the title page image above.
Since May 2007, when the Procurement Insights blog published its first post, one post has consistently garnered attention. MODEL 3 – RESPONSE & OUTCOME Conclusion : Hansens strand commonality would have transformed the Philips fire from a catastrophic black swan into a manageable disruption.
Scalability and Resilience Factor Agent-Based Model (Metaprise) Equation-Based Intake & Orchestration Scalability Agents scale across global networks, managing thousands of variables (e.g., Example Agents autonomously manage compliance across 50+ countries with varying regulations. tariffs, ESG metrics).
Equation-Based Validation The DND case achieved “a year-over-year 23% cost of goods savings for seven consecutive years while simultaneously reducing the number of buyers required to manage the contract to 3 from an original 23,” using an agent-based approach – Are you chasing solutions or solving problems? Part 1 of 3).
Steady Initial Growth: From 1983 to 2000, AI adoption would have experienced steady growth at approximately 1.5% per year, reaching around 25% adoption by 2000. This is the cornerstone of agent-based modeling.
Network Member Question Aside from the basics of spend analysis and eliminating redundancy, Im curious to hear of others experiences in dealing with merger/acquisitions and how the cultural elements were addressed in terms of promoting the use of preferred vendors and the adoption of expense management policy.
In fact, I emphasize AI as a tool for agility and stakeholder alignment, not a full substitute, aligning with my Metaprise models focus on decentralized, human-guided agents (2007 post). Icertis: Agentic AI Role: Icertis Contract Intelligence platform uses AI agents for contract lifecycle management, automating compliance and supplier terms.
Grimm went on to say, “there needs to be a partnership that includes at least the district’s CIO, purchasing agent, finance manager in charge of accounts payable, major user departments, and budgeting arm. One Final Note I forgot to mention that the above text is an excerpt from a Procurement Insights article I posted on August 1st, 2007.
Procurement Insights (Originally published in May 2007) In the context of the above excerpt from my May 2007 series, “Dangerous Supply Chain Myths,” I want to share the following email I received this Morning from Spend Matters following The Hackett Group acquisition.
It evolved from material requirements planning (MRP) and later manufacturing resource planning (MRP II), which were already being used in manufacturing industries to manage production and inventory. To counter Oracles PeopleSoft acquisition, SAP acquired SuccessFactors, a leader in human capital management (HCM), in 2011.
For example, many reports show that the adoption of e-sourcing by best-in-class companies has stagnated at 60% – 70% since 2007. An organization that does not know where it is going will have difficulties defining some of the critical aspects of digital projects, like: Solution requirements management.
My Take: Many Procurement Insights articles stress continuous self-cleaning data as vital, citing DNDs success (2004-2007) where human-AI synergy cleaned supplier data for 20% savings. Their platform enables rapid setup and delivers actionable insights for spend management. Without clean data, effectiveness drops sharply.
EDITOR’S NOTE: In advance of reading the following post, have a quick read of the following two Procurement Insights posts from 2007 and 2023, respectively. Fullstep: Specializing in procurement optimization, Fullstep uses AI and analytics for sourcing and spend management. Their supply chain expertise (e.g.,
eVA, Virginia’s eProcurement Program , knew this back in 2007 when the tech wasn’t as robust as it is today – [link] Instead of company names, we should know the names of the people behind each one. These points are logically sound and are generally accepted principles in project management and organizational change.
His Procurement Insights blog, active since 2007, has over 14,700 followers, and hes authored nearly 3,000 articles, five books, and hosted over 900 episodes of the PI Window on The World Show. Tariff Mitigation and Risk Management: Hansens insights on supply chain risk (e.g., 5M in savings. or higher).
Parts 4 and 6 of my 2007 Dangerous Supply Chain Myths series speak directly to the points you and Xavier Olivera are referencing, Michael Lamoureux. EDITOR’S NOTE: In today’s post, I share my following comment in a LinkedIn discussion stream regarding implementing AI, GenAI, and Agentic AI solutions in the procurement industry.
Iovance Biotherapeutics Inc Andy Shigo, Head of Procurement at Iovance Biotherapeutics Inc, highlighted the flexibility of ORO’s solution in managing procurement processes, including new procurement requests, supplier onboarding, and compliance checks. G2 Reviews : User reviews on G2.com
Only a few times in the past 20 years have we seen such meteoric price rises including in 2007, 2017 and 2020.” These strategies should be transparent and developed in close collaboration with project owners to proactively manage risk,” said O’Reilly.
Instead, these technologies could redefine roles, emphasizing strategic decision-making and relationship management over routine tasks. It’s important to note that while automation and artificial intelligence are expected to transform procurement functions, they may not necessarily lead to widespread job losses.
Its spend management was fragmented, often requiring tools like Concur. Supplier Focus: Ramps supplier management is buyer-centric (e.g., Competition Scope: Amexs broader portfolio (consumer cards, travel) dilutes its ProcureTech focus, unlike Ramps laser-targeted spend management. PO syncing, bill pay). PO syncing, bill pay).
EDITOR’S NOTE: In 2007, I wrote what is still one of the most popular posts on this blog: “ The Ariba Interviews: Re-engineering the Future ofOn-Demand. SAP Ariba A global leader in procurement software, offering a comprehensive platform for spend management, supplier management, and procurement automation.
.” So, in today’s post, let’s discover what they are and how relevant they are to 2025 procurement and supply chain management. Each agent specializes in a particular task, like inventory management, order fulfillment, or production scheduling. regional suppliers for MACs $0.30/unit 10% on Brazil coffee to $4.40/kg)
Below is Part 6 of the 7-Part Dangerous Supply Chain Myths series , where I provide an extensive breakdown of the ISM, CAPS, and AT Kearney report originally released in May 2007. Successful organizations will need to adopt and utilize appropriate supply chain technologies that integrate functional management and track appropriate metrics.
It is this latter “twist” if you can call it that, that has enabled the optimization process to extend beyond the limitations of executional boundaries referred to in a May 2007 article that appeared in Supply Chain Digest titled Supply Chain Optimization versus Simulation.
Part 1 of 3) 2007 – Commonwealth of Virginia’s eVA – Yes Virginia! ” 2007 It is incredible how the core foundation for success was the same in 2007 as in 1998. There is more to e-procurement than software!
In this Spend Matters Vendor Analysis, we provide an overview of Supply Risk Solutions and its solution for supplier (chain) risk management. Supplier risk management is crucial for a variety of reasons. Supply Risk Solutions (SRS) was founded in 2007 to address these issues for the semiconductor and healthcare industries.
” Let’s travel back to 2007 and then ahead to 2024. If we replace the word ERP with Generative AI, would the 2007 predictions by CAPS, ISM, and Kearney be any different today than they were back then? Kearney Report, which was originally released in May 2007.
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