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It requires you to juggle multiple priorities: unifying systems, improving visibility, reducing risk, and proving ROI across every stage of the procurement process. Cost savings and reduced maverick spend: By improving visibility and control, S2P tools help enforce purchasing policies and drive contract compliance.
You’ll learn how to review your current approach, pinpoint gaps, and start implementing improvements right away, focusing on automation, data visibility, and stakeholder alignment. Key Takeaways A modern procurement strategy must be tightly aligned with business objectives and supported by real-time data.
In this post, we’ll break down proven strategies to help you streamline processes, improve visibility, and take back control of your procurement stack. Modern procurement automation software helps companies to streamline repetitive tasks, improve cross-team collaboration, and improve visibility across every stage of the buying cycle.
You’ll learn how to review your current approach, pinpoint gaps, and start implementing improvements right away, focusing on automation, data visibility, and stakeholder alignment. Key Takeaways A modern procurement strategy must be tightly aligned with business objectives and supported by real-time data.
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
You know there are opportunities hidden in the numbers; the challenge is surfacing them in time to act. We’ll walk through key benefits, types of spend analysis, steps to get started, and metrics to track—backed by lessons learned from real-world implementations. Let’s dig in!
Unfortunately, outdated tools and fragmented processes make it difficult to maintain visibility across the supply chain and adapt at the pace of business. Drawing on real-world use cases and proven frameworks, we highlight what separates high-performing teams from the rest, and how to build a foundation for smarter, more agile procurement.
Key Takeaways S2C platforms optimize procurement efficiency, reduce costs and risk, streamline supplier relationships, and improve contract compliance with automation and real-time data visibility. Proactively mitigating supplier and business risks through improved visibility. For some, the goal may be risk mitigation.
Approval lead time is another important metric. This aligns closely with the need for real-timevisibility and analytics capabilities so that they can integrate procurement data with their other financial systems to enable data-driven decision making.
Modern platforms unify the entire Source-to-Pay lifecycle, offering real-timevisibility, integrated compliance controls, and advanced analytics across sourcing, contracts, and payments. It forms the foundation of digital procurement, enabling better spend visibility, improved compliance, and faster, more efficient operations.
Technology unifies procurement and purchasing, improving visibility, compliance, and workflow automation. Procurement is the end-to-end process of identifying business needs, sourcing goods and services, negotiating contracts, and managing supplier relationships over time.
Learn about Ivalua’s AI-powered virtual assistant and how it can help you save time, reduce risk and improve decision-making across the source-to-pay lifecycle. Inefficiencies are baked into the procurement process, wasting time and budget while leaving the door open to errors such as missed deadlines or incorrect orders.
For example, a single contract negotiation might involve supplier performance data, legal terms, payment histories, and risk assessments. AI agents can then access real-time, high-fidelity information, boosting the reliability of their insights. Cross-Functional Visibility: Procurement rarely happens in a bubble.
Let’s remember what AP is responsible for The promise of AI and agents is real. It’s about having the right information, in the right format, at the right time to make a payment decision. It’s about knowing the rules and applying them every time. It has no visibility into approval delays or discount capture.
Key Takeaways Unified sourcing platforms help connect planning, sourcing, and spend visibility for both procurement types, driving efficiency and competitive advantage. Contract non-compliance is another concern, as departments may bypass negotiated agreements and miss out on better terms.
If your procurement team is juggling multiple ERP systems, you’re likely spending more time chasing data than driving strategy. Disconnected supplier records, inconsistent processes, and limited visibility can impair efficiency and open the door to shadow spend. Take supplier collaboration.
Businesses must find effective ways to strengthen their networks and improve flexibility to maintain stability during uncertain times. In supply chain operations, it plays a crucial role in mitigating risks, improving response times, and optimizing workflows. Enhance visibility across the supply chain through structured reports.
Without an integrated process, organizations experience: Long invoice processing times, leading to unpredictable cash outflows. Inadequate cash flow visibility Finance teams often lack real-time insight into procurement expenditures, supplier contracts and upcoming financial obligations, making it difficult to forecast cash flow accurately.
From the start, negotiate terms that benefit both parties and establish clear performance metrics to track progress. Can you reduce lead times without compromising quality? Can you reduce lead times without compromising quality? Innovation is exciting, but it often comes with long lead times. The solution?
The series follows the methodology described in our Aligning Finance and Procurement in-depth guide , which offers a practical, structured approach to enhancing cash flow visibility, optimizing payment timing, reducing working capital risk and improving liquidity outcomes through closer collaboration between finance and procurement.
They can proactively identify risks, optimize processes in realtime, and even negotiate supplier contracts without human oversight. These AI agents leverage real-time data, predictive analytics, and generative AI to enhance resilience, reduce costs, and improve overall efficiency in AI-driven supply chain resilience.
Suppliers whose prices fluctuate significantly over time may not be suitable for long-term partnerships, whereas those who consistently provide products at estimated costs can be considered for future contracts. However, due to bulk purchasing negotiations, the company secures a discount and purchases the material at $4.50
With automated systems, purchase orders can be generated based on predefined criteria, such as inventory levels or specific triggers, ensuring timely and accurate procurement. Real-time tracking and reporting capabilities allow organizations to monitor the status of purchase orders, deliveries, and payments.
Here’s a breakdown of the shifts over this period: 2011: Procurement as a Tactical Function Primary Focus on Cost Savings : In 2011, CFOs largely viewed procurement as a cost-control function , tasked with negotiating contracts, reducing spend, and maintaining compliance with budgets.
Technology is a powerful enabler of finance-procurement collaboration, bridging gaps in spend visibility, cost control and data integration. Without integration, finance teams struggle to track procurement-driven savings, while procurement lacks visibility into financial planning and liquidity management.
This involves analyzing spend data, identifying for consolidation, and negotiating better contracts with key suppliers. Leveraging Technology: Implement procurement software and analytics tools to gain better visibility into spending patterns , identify areas of inefficiency, and automate processes.
While full-scale digital transformation certainly takes time, organisations can see rapid improvements in efficiency, collaboration, and data accuracy right from the outset. They can make informed decisions, negotiate more effectively, and identify cost-saving opportunities faster.
However, the traditional manual contract review and negotiation process often leads to delays, communication gaps, and potential errors, adding friction to the process of onboarding of new suppliers. Contract redlining software is essentially a specialized tool designed to streamline the contract review and negotiation process.
Long lead times often lead to frustration, making a customer less likely to buy from you next time. However, the great news is that you can improve lead times by making a few strategic changes. Below are a few other ways to help you reduce lead times. This can damage your reputation and reduce sales.
Its increasingly evident: GenAI is no longer a future concept; its already reshaping operations in realtime. Traditional procurement teams continue to grapple with familiar, persistent challenges, such as manual data entry, siloed systems, outdated tools and limited visibility into spend categories or supplier performance.
All of the phases are peppered with real-world case studies from the people who have been in your shoes; so you dont have to step into the same holes theyve already avoided! The guide is an invaluable tool for anyone thinking about starting or actively undergoing a digitally-enabled procurement transformation.
Maverick spend costs organizations millions of dollars in lost savings, it impacts budgets because it bypasses negotiated contracts and supply agreements, and additionally creates significant compliance risks. Additionally, your team might miss out on better terms negotiated by procurement with their approved suppliers.
Comprehensive Curriculum: MCIPS covers a broad spectrum of topics, from procurement principles and strategies to contract management, negotiation, and ethical considerations. The interactive approach caters to learners who want to develop practical skills and gain real-world insights. This flexibility is ideal for busy professionals.
Key Strategies for Navigating Tariff Turmoil: Utilize Data Analytics: Leverage advanced analytics tools to gain deep visibility into supply chain dynamics and identify potential areas of vulnerability. By incorporating real-time market data and supplier performance metrics , organizations can gain a competitive edge in volatile environments.
Collaboration across Tier 1, Tier 2, Tier 3, and beyond requires visibility and communication regarding capacity, cost, risk, order quantities, inventory levels, quality , timelines, logistics, and more. Collaboration brings visibility and agility for gaining market share.
It offers a smarter, more integrated approach to managing the entire procurement lifecycle, bringing structure, visibility, and agility to every stage of the process. It connects people, processes, and systems to ensure all procurement activities happen in the right order, at the right time, with full visibility and control.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. These begin with enhanced visibility.
AI helps optimize supply chain management by offering predictive supplier analytics , real-time tracking, and automation. It forecasts demand accurately using historical data and market trends, assisting organizations to maintain optimal inventory while avoiding shortages or excess stock.
Together, they enable procurement teams to move from reactive to proactive, optimizing sourcing strategies, improving supplier negotiations, and ensuring more accurate, real-time decision-making. Impact on Procurement: Spend analytics give CPOs visibility into spending patterns, supplier performance, and inefficiencies.
At the time, organisations were understandably keen to capture the benefits but, in many cases, they took leaps of blind faith and dot.com became dot.bomb. People like to do what they have always done, even if they could save themselves time and effort by doing things differently. This is especially true in procurement!
A well-executed S2P strategy reduces costs, increases visibility, and ensures compliance. Organizations leveraging digital solutions for S2P gain real-time insights into spending patterns, enabling smarter decision-making. Digital transformation further enhances these benefits by improving visibility and automation.
Supply chain reports are data-driven documents that provide key metrics and insights into various aspects of your supply chain, including: Inventory Levels Tracking stock levels in real-time to ensure adequate inventory to meet demand while minimizing holding costs.
How to gain visibility and control of your indirect spend. These portals improve real-timevisibility into purchase orders, payment timelines, and dispute resolution, directly enhancing vendor satisfaction. [5] How to report and analyze indirect spend to identify savings opportunities.
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