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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. Who Owns It in the Enterprise Typically, direct procurement is managed by supplychain or operations teams. It also includes travel and consultant spend.
(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.
Supplychainsoftware 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 softwaresolutions.
While the terms procurement and purchasing are often used interchangeably, they address different aspects of an organization’s spendmanagement. Procurement is the strategic, big-picture approach to sourcing and supplier relationship management, while purchasing is the tactical execution of those plans.
How to Gain Similar ROI: Centralize supplier data and use analytics software to identify cost-saving opportunities. End-to-end automation of the Source-to-Pay Solution process to reduce the time consuming inefficiencies that occur between steps of the process. Increased procurement cost savings ranging between 2.25% and 2.35% annually.
Facilities management : Maintenance, cleaning, and security services. IT services : Software subscriptions, cloud storage, and tech support. When you’re comparing direct and indirect spend, half the battle comes down to managing changes in the supplychain. What’s Behind This Disconnect?
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.
KKR, one of the largest private equity and investment firms globally, has considerable experience and insights into procurement and ProcureTech solutions, especially through its portfolio companies and investments. How successful are KKR ProcureTech companies when it comes to solution implementations? Are Coupa and Ivalua competitors?
Each stage contributes to a more strategic approach to procurement: Spendmanagement: Despite the title, source to pay cannot really start with sourcing. Category management: Whereas spendmanagement aims to depict the entire landscape, category management fills in the detail for each major spend category.
Reduction in total cost of ownership: Purchasing energy-efficient machinery despite higher initial capex; buying higher-specification spare parts that reduce overall consumption and increase machinery uptime; near-shoring the supplychain to reduce stock-outs, optimise transport costs, and free up cash tied in excess inventory.
Automated spendmanagement AI-powered spend analytics automatically reconcile procurement cost data with financial reports, reducing the risk of mismatched data and inaccurate financial forecasting. Claritum Cloud-based P2P solution with tactical sourcing capabilities. Leverages community-based intelligence for insights.
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.
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. Instead, he noted, we had to choose our solutions in a more targeted and perhaps even piecemeal fashion.
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.
JAGGAER characterizes the steps in this process as SpendManagement, Category Management, Sourcing , and Contracts. Secondly come eProcurement, SupplyChain Collaboration, Invoicing, and Payments. These four steps constitute the upstream source-to-contract part of the process. Make them feel in control.
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. The answer is clear: you can’t.
Reference : JD Edwards Baan : Overview : The Baan Corporation offered ERP solutions with procurement components, focusing on manufacturing and project-based industries. Significance : Baan’s software emphasized integration across the supplychain, including procurement processes.
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?
Procurement analytics platforms enable access for multiple users across departments, encouraging collaboration between procurement, finance, supplychain, and operations teams. The procurement analytics software integrates with these systems and automatically extracts relevant data. This is the heart of procurement analytics.
Below is a ranking of the top 10 ProcureTech should-cost solution providersGEP, Zycus, Ivalua, SAP Ariba, Coupa Software, Jaggaer, Keelvar, Lytica, ProPurchaser, and Archletacross three criteria: length of time in business, company size, and top reason for dealing with each one. market share (Apps Run The World, 2023) lead.
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. But today this is largely executed electronically, for example by eSourcing events and with sourcing optimization software.
Heres how to break it down into four easy steps: Set up budgets and invite colleagues : Define budgets for departments and onboard colleagues into the system to align the purchasing process with supplychain needs and spending limits. How does the software achieve this?
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?
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. Today’s procurement challenges go far beyond cost negotiations and sourcing. However, this convenience comes with a downside.
Acquisitions Coupa buys Cirtuo, adds category management to its spendmanagement suite Coupa announced during its Inspire 2025 event that it has acquired Cirtuo, a provider of category managementsoftware. And they are testing the limits of procurement’s preparedness.
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.
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. What's PLANERGY?
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. Jack Margeson is the Vice President of Alliances at Deposco, a leading provider of cloud-based fulfillment softwaresolutions.
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. million in 2015 (pre-IPO) to approximately $725 million by fiscal year 2022.
raw materials, software licenses). They submit a formal request, which managers review for necessity and cost-effectiveness. Minimizing supplychain disruptions and compliance risks. An automated purchasing system uses software to streamline procurement activities. Avoiding delays that could disrupt operations.
Modern SpendManagement and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. Cost Efficiency: Thoughtful management helps schools meet financial goals by eliminating waste. Proper risk management protects against these situations.
This comprehensive solution streamlines procurement activities, improves and provides transparency across the entire supplychain. Understanding Procurement Management in Real Estate Procurement in real estate involves acquiring goods, services, and works necessary for the development and maintenance of properties.
Virtual CFO tools range from cloud-based accounting platforms to cash flow forecasting, budgeting, and spendmanagementsoftware. Cloud accounting software A virtual CFOs foundation starts with a reliable cloud-based accounting system. Notion A flexible workspace for project management and even financial documentation.
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.
Considering the above, the following high-level comparison between ConvergentIS and SAP Ariba demonstrates how the agent-based model will be the dominant force that drives procurement and supplychain automation in 2025 and beyond. Target Audience: Organizations using SAP looking for customized, user-friendly solutions.
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.
Microsoft CEO Satya Nadella’s assertion that “SaaS is dead” reflects a strategic shift towards AI-driven, integrated platforms that transcend traditional Software-as-a-Service (SaaS) models. What does Nadella’s SaaS death statement mean to them?
Skip to main content CONTINUE TO SITE ➞ Dont miss tomorrows supplychain industry news Let SupplyChain Dives free newsletter keep you informed, straight from your inbox. UPS has also levied peak season surcharges for years. As of Thursday morning, the company hasnt made an announcement on 2025 holiday fees.
Ivalua study finds 97% of procurement leaders see significant disruption in direct materials supplychain; 67% not confident in existing technology; 84% consider modernization a ‘strategic priority’. Nearly all executives surveyed (97%) point to significant disruption today in their direct materials supplychain.
Ivalua’s new Environmental Impact Center empowers Procurement and SupplyChain teams with reliable and actionable insight to reduce Scope 3 Greenhouse Gas (GHG) emissions. As products are purchased within an organization, category managers can precisely track the year-to-date carbon emission trajectory for their purchases.
John Cockerill was looking for a unified end-to-end spendmanagement platform to be deployed across 4 business units in 22 countries, helping to reduce administrative tasks for the buyers, improve the fluidity of the procurement process and optimize collaboration between internal stakeholder and suppliers in a highly secure environment. “As
Ivalua, a global leader in spendmanagement, today announced that it has been selected by Swedish steel manufacturer SSAB to further improve the efficiency of its procurement processes and uphold and strengthen supplychain risk management thanks to Ivalua’s Source-to-Contract (S2C) solution. About Ivalua.
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