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Procurement and supplychainmanagement are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supplychainmanagement, and explain where the biggest disconnects typically occur.
Direct and indirect procurement are two fundamental approaches in supplychainmanagement, each serving distinct functions within an organization. Both focus on improving efficiency and reducing costs but differ in their strategic approach and impact on the core business operations.
(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.
Understanding these differences is essential for businesses that want to optimize operational efficiency and safeguard against costly errors. Aligning procurement and purchasing ensures efficiency, cost control, and reduced risk across the organization. What is Procurement?
JAGGAER characterizes the steps in this process as SpendManagement, Category Management, Sourcing , and Contracts. Secondly come eProcurement, SupplyChain Collaboration, Invoicing, and Payments. Digital S2P platforms provide real-time insights into supplier performance, contract compliance, and spending patterns.
When done right, spend analysis enables cost savings, supplier optimization, risk reduction, and more strategic sourcing decisions. Success depends on integration, transparency, and alignment with help from modern spend analysis software that supports trusted data, configurable logic, and cross-functional collaboration.
Supplychain software is a game-changing tool that offers immense opportunities for growth and success in the transportation services market. Nevertheless, the supplychain industry faces various challenges that can be effectively addressed through the utilization of high-performing software solutions.
Indirect spending includes everything from office supplies and travel accommodations to IT services, paid ads, and wages for the people who clean the office. Different departments handle different purchases without much transparency across departmental lines. Create vendor and supplier expense management policies.
Procurement leaders have increasingly turned to Spend and Supplier Management platforms to improve decision-making, efficiency and collaboration. TEI helps organizations measure ROI, NPV, and efficiency gains from implementing solutions like Ivalua’s Source-to-Pay (S2P) platform. Savings Achieved: Over $24.2
Finance and procurement play critical roles in shaping an organizations financial health and operational efficiency. Automated spendmanagement AI-powered spend analytics automatically reconcile procurement cost data with financial reports, reducing the risk of mismatched data and inaccurate financial forecasting.
Rather than treat procurement as a series of disparate tasks, global organizations in all sectors implement efficiency across the source-to-pay journey. Big data and digital technologies support the aggregation of purchases across business units to improve performance, provide better spend analysis, and drive business value.
Why Procurement should be seen as a Growth Partner When fully integrated into a business’s value chain, Procurement drives tangible value through: 1. Why Procurement should be seen as a Growth Partner When fully integrated into a business’s value chain, Procurement drives tangible value through: 1.
Identifying the need for foundational technology and processes Before joining Utz as its SVP Procurement, Ron had been consulting with the SupplyChain department working on a number of different projects. In addition, the broader supplychain organization was working to implement other new tools and processes.
Predictive AI, on the other hand, uses historical data to forecast potential disruptions, price changes, and supplychain risks. Spend Analytics: Maximizing Efficiency and Driving Cost Reduction Why Its Critical: Spend analytics is a cornerstone of a procurement technology transformation.
Sourcing Innovation Launch Date: June 2006 Overview: Authored by Michael Lamoureux, a Computer Science PhD, Sourcing Innovation focuses on procurement technology, strategic sourcing, and supplychainmanagement. AI, e-sourcing), spend analytics, and best practices. It serves analysts, procurement leaders, and managers.
AI in Procurement AI in procurement: How different industries are harnessing its power Across industries, AI is capable of reshaping procurement, making it smarter, more predictive and highly efficient. Procurement platforms are getting smarter, or most people think so at least. And they are testing the limits of procurement’s preparedness.
Procurement has become a strategic function in modern businesses, with growing pressure to manage costs, improve supplier performance, and drive operational efficiency. Efficient data management involves the collection, cleaning, integration, and storage of procurement data.
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. How better management in AP can give you better flexibility for cash flow management. But what happens if those supplychains are disrupted?
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend. What's PLANERGY?
This single data issue can be responsible for $ hundreds of thousands in unnecessary spending, especially in mid-sized companies where procurement typically is more tactical than strategic. Incorrect incoterms frequently cause supplychain disruptions and unexpected expenses. It’s significantly more than zero.
KKR’s expertise in procurement stems from its strategic focus on improving operational efficiencies across its portfolio companies, which often involves optimizing supplychains, leveraging technology, and implementing cost-saving measures. How successful are KKR ProcureTech companies when it comes to solution implementations?
Historically, the focus has been on optimizing portfolios of spend—prioritizing what to address, defer, or ignore—using well-known frameworks such as the Kraljic Matrix and the Pareto Principle. This allows procurement teams to set up events quickly and efficiently, pre-populating supplier bid sheets with suggested prices.
It is a process that creates efficiencies across all spend categories, minimizes supplychain risks through improved supplier selection and awards, while giving visibility into pricing and forecasting. However, whats really missing hereneeds analysis. Thus, strategic sourcing makes more sense when done at scale.
6 Coupa Software 2006 Founded in 2006, a relatively younger leader in spendmanagement. 9 Lytica 2015 Established in 2015, a newer player in supplychain analytics. 2 Coupa Software 3,000+ employees Publicly traded, $725M revenue (2023), a major player in business spendmanagement.
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. The Four Types of Procurement in Education Key Steps in the Education Procurement Process Who Benefits from Efficient Procurement? What's PLANERGY?
Significance : Baan’s software emphasized integration across the supplychain, including procurement processes. Notable among these were: Ariba Buyer : Ariba was a leading provider of e-procurement solutions, offering platforms that enabled organizations to manage their procurement processes efficiently.
Improve the purchase order management process. Simplifying workflows for creating, approving, and tracking purchase orders for better efficiency. 4 steps to simplify the purchase order process Simplifying the purchase order process can save time, reduce errors, and make your operations more efficient.
However, procurement plays a critical role in reflecting cost-saving initiatives, supplier contracts and spendmanagement efforts in financial statements and budget planning. To align with financial reporting goals, procurement teams should: Improve spend visibility: Validate and accurately report procurement savings to finance.
From assistant to copilot to autopilot, JAI is a human-guided AI orchestrator revolutionizing supplychainmanagement Research Triangle Park, NC, 24th June 2025 — In the vibrant setting of its global customer REV event in Miami, JAGGAER today introduced to customers and partners its latest bold leap forward in enterprise procurement transformation.
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. Simpler Logistics and SupplyChainManagement With operations overseas, you run the risk of becoming too reliant on global supplychains.
A prime example of this is sustainability: since a large portion of emissions lie within the supplychain, procurement holds a crucial lever here think Scope 3. Proper orchestration of supplychains enhances corporate resilience. Procurement professionals are increasingly evolving into strategic value creation partners.
In contrast, SAPs Joule, an AI copilot in S/4HANA Cloud, uses explicit feedback loops, such as gradient descent for procurement analytics, to optimize tasks like supplier selection and spendmanagement, leveraging structured AI methodologies. Cosmetics/Coffee: Joule excels in cosmetics spend analytics (e.g.,
Its unique technology enables shippers to break free of expensive parcel shipping consultants with an easy-to-use software app that brings transparency to the black box of carrier agreements. With over 8 years of experience in strategic partnerships, Jack drives innovative collaborations that advance supplychain and logistics technology.
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. Managing these suppliers isnt just about making purchases; it ensures smooth operations, cost savings, and quality education. What's PLANERGY?
in 2015 and climbing steadily to $1.21B by 2025 – representing extraordinary growth as the company established itself as a leader in the spendmanagement space. This is consistent with Cirtuos efficient, SaaS-focused business model and increasing market adoption.
Apurchasing systemis a structured workflow business use to manage the acquisition of goods, services, or materials efficiently. All steps are documented for transparency and future planning. : A restaurant uses a purchasing system to manage weekly ingredient orders. raw materials, software licenses).
Dangerous SupplyChain Myths (Part 7) Are you chasing solutions or solving problems? Additionally, this post is a follow-up to the previous one titled “Is Spend Matters – Now The Hackett Group Swinging for the Fences with Loaded Bases? Their supplychain expertise (e.g., Their supplychain expertise (e.g.,
It’s time to align procurement and AP efforts not just for efficiency, but for smarter, more strategic spendmanagement. Your disconnected spending processes are costing you Your procurement team is busy managing , working with vendors, and ensuring timely deliveries. . The result?
The real estate industry, characterized by intricate processes and substantial investments, constantly seeks ways to enhance efficiency, reduce costs, and ensure timely project completion. This comprehensive solution streamlines procurement activities, improves and provides transparency across the entire supplychain.
Its spendmanagement was fragmented, often requiring tools like Concur. Competition Scope: Amexs broader portfolio (consumer cards, travel) dilutes its ProcureTech focus, unlike Ramps laser-targeted spendmanagement. So, why is Ramp “hidden in plain sight” in the procurement and supplychain world?
Virtual CFO tools range from cloud-based accounting platforms to cash flow forecasting, budgeting, and spendmanagement software. Thats why vCFOs need a spendmanagement solution to streamline purchasing, prevent maverick spending, and maintain real-time budget visibility. Test before you commit.
Its unique technology enables shippers to break free of expensive parcel shipping consultants with an easy-to-use software app that brings transparency to the black box of carrier agreements. Jennifer is an innovative manager with over 20 years of supplychain and logistics experience. There’s so much noise.
For those who may not be aware, Horizon Blue Cross Blue Shield of New Jersey will be, and I quote, leveraging Aribas on-demand Procure-to-Pay offering to drive savings, efficiencies, and competitive advantage. Key Products: Ariba Network, Spend Analysis, Strategic Sourcing Suite, and Contract Management.
SAP Ariba : A leading procurement software company, SAP Ariba offers a comprehensive suite of solutions for supplier management, strategic sourcing, procurement, and financial supplychainmanagement.
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