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The Forrester Wave™: Supplier Value Management Platforms, Q3 2024 See Report
The future of Procurement for businesses at all stages and sizes lies in the digital realm. At Ivalua, our team has responded to the digital Procurement wave by enabling customers to get started quickly on a specific area and expand from there to cover more spend and suppliers. We want to understand customers transformation goals and jointly build a plan to help them achieve that.
Most companies still under invest in the Procurement and spend management. We can help take procurement from the back office to the boardroom.
Procurement transformation is achieved largely when a company is effectively managing all spend and all suppliers. When Procurement and all supplier related processes are digitized and there is complete visibility and insight across all spend and supplier relationships. Transformation is achieved when Procurement is able to focus on strategic objectives versus being overwhelmed by tactical, low value activities. When Procurement is effectively able to align business spend to business objectives.
Procurement transformation takes purchasing tasks and elevates them, making them an integral element embedded into your standard businesses processes, set to affect current and future success. It provides a reliable framework that focuses on shifting your Procurement department from a tactical cost center to a strategic value-added nerve center.
Once a back-office function, Procurement transformation now takes center stage for growing businesses everywhere. Organizational leaders see the value of supporting this critical strategic business endeavor ensuring all essential supplies are available when needed and at the price and quality expected.
If you are a Procurement leader in your organization, you may be searching for the optimal way to transform Procurement. Ivalua offers the solutions to help to get started and achieve a quick win and also help you expand the scope to match your transformation goals to cover all spend and suppliers.
There really is no one-size-fits-all strategy for Procurement Transformation since every business is unique. However, there are proven ways to get started rapidly and achieve quick wins to build consensus and support for the longer term vision.
Keeping the full end-to-end process in mind is critical to success, no matter where you choose to begin your journey. A poor decision in one area can impact another. So, it is important to have a perspective on the entire source-to-pay process.
As you search for ways to streamline your purchasing process and implement a solid Procurement solution, it is important to take a deeper look at your spend. Exploring this aspect of your business allows you to gain insight into operational ineffectiveness in order to improve your overall sourcing success.
Here are seven steps necessary to conduct a proper spend analysis for your organization.
At Ivalua, we take you through the spend analysis phase as an organic step in the Procurement transformation process to create spend visibility and to keep your budget on track.
There are certain supplies that are essential to each given business to serve organizational and clients’ needs. The process of finding, obtaining and managing the required products and services according to the business’s budget it essential to short-term and long-term organizational success. Elements involved with supply management include the products and services themselves, information, budgets and employees. The purpose and goals of focusing on supply management procedures is to keep costs reasonable and stable and using resources effectively to increase productivity, efficiency and profits for the business.
Companies find that streamlining their supply-side activities ultimately and clearly serves to maximize customer value and gain a competitive edge in the marketplace.
Category management is an approach to managing supply activities with a goal of reducing the cost of buying goods and services, reducing risk in the supply chain and increasing the overall value of the supply base while gaining access to the best suppliers for a given need or set of needs. This strategic approach focuses on the greater majority of organizational spend and, if applied effectively throughout the organization, the results can prove significantly greater than traditional transaction-based purchasing negotiations.
Organizations that fold category management into their Procurement strategy have a median supplier lead time of a mere six days compared to the 14 days for organizations without category management programs, according to the APQC (American Productivity & Quality Center). Additionally, organizations that have initiated category management programs also feature a faster turnaround time for purchase order processing, which comes in at eight hours versus a median of 15 hours for organizations without such programs.
Defined as a strategic approach to Procurement, category management allows organizations to segment its spending on bought-in products and services. The partitioning allows for the goods and services to be placed in discrete groups that identify their unique functions and roles within the organization, according to daily and project use.
Following are a few of the categories on which organizations typically focus spend:
With our procure-to-pay program, we help you improve your category management strategies in the following ways:
Category management provides top businesses with multiple benefits, including the following:
Streamlining Business Strategy. In the performance of strategic business planning, category management makes it easier to ty specific strategic goals to strategic purposes.
Indirect Procurement and indirect spend focus on sourcing all the necessary goods and services that a business needs to maintain and develop its core and overarching operations. There are several key goods and services that fall under the umbrella of indirect spend and Procurement. These products and services are commonly purchased for consumption by internal stakeholders that include business units or functions, rather than for external clients and customers.
Indirect Procurement categories may include, but are not limited to:
Our Procurement team at Ivalua is here to help you with tasks that involve purchase requisitions, purchase orders, receiving, budget tracking, advanced sales Procurement function and planned collaboration for a better buying experience.
Our goal is to offer you a solid Procurement strategy via a full menu of digital Procurement transformation solutions that will streamline and ultimately revolutionize the way your Procurement team acquires goods and services for your operations. Explore all the digital strategies and solutions we have developed to help you access and purchase the supplies you need to guarantee success as a world-class organization in your industry.
Ivalua Recognized as a Leader In the Forrester Wave™: eProcurement Platforms, Q4 2019
Complete Digital Transformation of Procurement with High ROI. Read Why Crédit Agricole chose Ivalua
Ivalua recognized as a Leader in Gartner’s 2019 Procure-to-Pay Magic Quadrant