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When we talk about reputational risk, we refer to damage to a company’s name or brand resulting from the negative actions (inadvertent or not) of a top-tier supplier or sub-tier part of the supply chain. Find our in-depth guide to third-party and supply chain risk management with accompanying free download here.
A common thread among the conversations we’ve had recently with senior procurement practitioners tells of the extent to which attitudes towards risk have changed over the past decade. Today, just the combination of the words risk, environment and supply chain make the practitioner sit up and think differently. And Stephen is not alone.
To round off that perspective we’d like to engage the thoughts of the solution providers themselves, particularly in terms of how they believe their customers perceive risk and what they want from today’s solutions. Visit our In-Depth Guide to Risk Management for an explanation of this complex environment.
This piece covers how risk data specifically comes into play for traditional spend analytics vendors. The post How spend analytics solutions support risk management appeared first on Spend Matters. This content is for members only. Visit the site and log in/register to read.
What’s Inside: How organizations can most effectively focus on long-term value creation, not just short-term cost savings The impact that embracing innovation and new technologies such as artificial intelligence (AI) can have The essential elements every organization needs to balance cost, risk, and sustainability
Procurement and purchasing are often used interchangeably, but they serve distinct roles within any successful organization.While both involve acquiring goods and services, their workflows, objectives, and impact on enterprise risk management differ significantly. What is Purchasing?
As part of our theme this quarter on Procurement’s role and value in supply chain risk management, we are speaking with practitioners in the field to understand their perceptions of risk — clearly different industries perceive types of risk in different ways. And we must remember that one cannot escape supply chain risks.
This dependency, while essential, introduces potential risks that can lead to operational delays, regulatory penalties and financial instability if not effectively managed. The post Navigating the top 5 third-party risks in procure-to-pay processes appeared first on Spend Matters. This content is for members only.
That’s because procurement professionals like you are under constant pressure to cut costs, reduce risk, and deliver data-backed insights to the business. When done right, spend analysis enables cost savings, supplier optimization, risk reduction, and more strategic sourcing decisions. Spend analysis is often the entry point.
Direct materials sourcing is evolving, with procurement now tasked not only with cost efficiency but managing sustainability and risk management. The environment is marked by heightened demand and expectations, compounded by challenges such as rising input prices, supply chain disruptions and geopolitical tensions.
To round off that perspective, we’d like to engage the thoughts of the solution providers themselves, particularly in terms of how they believe their customers perceive risk and what they want from today’s solutions. Visit our In-Depth Guide to Risk Management for an explanation of this complex environment.
This article aims to help you understand different procurement fraud risks, arm you with a set of effective strategies for managing procurement fraud, and help you understand the true benefits of effective procurement fraud management. Lets take a look. This enhances productivity and reduces operational costs.
The aim is to avoid placing all resources in one spot, which could quickly turn into a risk. When departments operate in silos, the risk of miscommunication increases. Analysing trends from past disruptions allows systems to flag risks before they become full-blown issues. Visibility across internal workflows matters, too.
Not the least of these are the cybersecurity risks. Securing AI in Procurement – the Risks Let’s examine these risks and consider their possible impact on procurement. Perhaps the risk that gains most media attention is that of deepfakes and misinformation. Finally, GenAI can generate its own security risks.
Financial institutions must navigate a complex web of policies, procedures and regulations to ensure compliance and manage risk. It required a partner that would help embed its intricate buying processes — with all its validations, risk assessments and tiered approvals — into a unified system.
Risk Mitigation: Identify and manage procurement risks by ensuring supplier reliability, diversifying sources, and monitoring market trends. When committing an organisations spend, we are facing risks from all angles, consider whether if its a risk or an issue and how these can be mitigated early.
This introduction to supplier risk management outlines the importance of effectively identifying and managing risks that may arise from suppliers. Supplier risk management is crucial for businesses, as it helps them mitigate potential challenges that can disrupt operations. This process is known as supplier risk management.
Solutions around ESG, risk, intake & orchestration come to mind. Nikhil Gaur, Spend Matters Director, Strategic Projects & Research Analyst, summed up the achievement as follows: “Spend Matters tracks some 1,500+ procurement and supply chain technology and services providers.
What are the risks for procurement in 2023? What should leaders do to deliver value amid uncertainties? Read the GEP Spend Category Outlook 2023 report now to build successful spend management strategies across 22 indirect & direct categories.
As businesses navigate these turbulent waters, the stakes have never been higher, with the potential for unforeseen risks and challenges at every turn. The fluctuating trade policies and geopolitical tensions have created a volatile environment, leading to a surge in supply chain risks.
Lack of visibility into budgets and contracts: Without real-time tracking, procurement teams risk exceeding budget allocations and violating contract terms. Automate approval workflows: Set up rule-based approvals that adjust dynamically based on spend category, vendor type and risk level.
Additionally, spend analytics enables procurement teams to track compliance with procurement policies, identify potential risks and ensure that resources are allocated efficiently. Additionally, it can model and marry a variety of data alongside the spend, from contracts to risk. This content is for members only.
Audit Supply Chains: Identify and address environmental and social risks in the supply chain. Risk Management Actionable Steps: Identify Risks: Develop a checklist of potential procurement risks, such as supply chain disruptions or quality issues. Monitor Continuously: Use procurement dashboards to track risk indicators.
Without the right strategy, enterprises face hidden risks and unnecessary spend. Tail spend — often unmanaged, fragmented and costly — can account for as much as 80% of total transaction volume. It’s time to shift from fragmented, ad hoc purchasing to a strategic, technology-driven approach.
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manage procurement effectively. Success depends on cross-functional collaboration, continuous improvement, and the ability to adapt quickly to shifting risk and findings from market analysis.
However,as the global air cargo industry faces unprecedented challenges,a critical question emerges: is the booming demand for cross-border e-commerce air cargo at risk? Harnessing effective strategies is crucial to mitigate these risks and ensure the sustained growth of the industry.
20152020: Procurement Gains Strategic Recognition Emergence of Strategic Sourcing : CFOs began to recognize procurement’s role in driving long-term value through strategic sourcing, supplier relationships, and risk management. Analytics and insights from procurement data were minimal.
Maja Tepeh , Senior Brand Manager at supply chain risk management solution Prewave , shares what their customers are looking for from their digital procurement investment. However, the cost avoidance from mitigating ESG-related supply chain risks, such as regulatory fines or disruptions, is equally important.
The paper highlights real-world examples and use cases that demonstrate generative AI's transformative effects on operational efficiency, risk management, and cost reduction.
Effective and efficient tariff management is rooted in robust direct materials and supply chain risk management. Supply Chain Risk Management (SCRM) complements this by systematically identifying and mitigating supplier risks, such as financial instability, geographic vulnerabilities and inconsistencies in supplier operations.
Procurement professionals can contribute significantly to the S&OP process by providing valuable insights into supply chain dynamics, identifying potential risks, and optimizing sourcing strategies. Risk Management: By understanding potential risks, procurement can develop contingency plans to ensure a continuous supply of materials.
Many organizations are discovering that without clear procurement software best practices, costs spiral, risks multiply, and efficiency stalls. These modules work together to help organizations reduce risk and ensure compliance, while supporting data-driven decisions that lead to greater cost savings. Sound familiar?
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manage procurement effectively. Success depends on cross-functional collaboration, continuous improvement, and the ability to adapt quickly to shifting risk and findings from market analysis.
Drawing on our work with global companies across manufacturing, automotive, pharmaceuticals, semiconductors, software, technology, financial services, and a range of service industries, we outline the key strategic and tactical actions companies are taking to navigate this period of heightened uncertainty.
A typical procurement competency framework covers several key areas, including but not limited to strategic sourcing, supplier management, risk management, and contract negotiation. They can improve performance, lead to stronger strategic alignment, and enhance the career development opportunities for your procurement staff.
AI also enhances supplier profile management, enriching, verifying and completing supplier data to provide a more comprehensive view of risks and opportunities. Contract management gets a major upgrade with AI-powered analytics, which can identify obligations, risks and even suggest best-fit language alternatives.
As supply chains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. Plus, they can proactively alert teams to opportunities or potential risks.
As supply chains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. Plus, they can proactively alert teams to opportunities or potential risks.
From demand forecasting to inventory optimization, risk mitigation to sustainability — AI is set to transform everything. AI isn’t the future. It’s here, now. 30% of businesses have invested in AI. Another 57% will do it in the next 12 months*.
Key Challenges and Risks Price volatility in raw materials and parts can eat into margins if you don’t manage them carefully. To avoid these pitfalls, supply chain and procurement leaders should continuously monitor risk, strengthen supplier relationships, and work to mitigate disruptions through planning and cross-functional collaboration.
This early involvement allows procurement to provide critical market and supplier intelligence, advising on component sourcing risks that could delay production. Early Supplier Involvement (ESI) has been shown to shorten development cycles and lead times while reducing development costs and risks.
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. Supplier risk adds even more complexity. Most teams are stuck reacting to problems after they’ve already escalated, rather than proactively managing risk.
Real-time data will inform sourcing decisions, risk management, and supplier relationships, leading to more informed and agile procurement functions. Procurement will focus on risk assessment, diversification, and flexibility to adapt to disruptions and ensure continuity. Resilient Workforce 2009 – [link] 10.
This must-read annual report informs procurement and supply chain leaders of the types of risks to expect and their levels of impact. GEP experts in nearly two dozen critical categories guide you in the right direction in our annual comprehensive resource — GEP Spend Category Outlook 2024.
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