spendmatters
 

February 09, 2012

 

Prepping for Your Next IBM Contract

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom, transportation and energy.

IBM takes a lot of heat. Their diverse offerings and growth-by-acquisition business strategy means they have a staggering amount of competition in the marketplace. It also means they know when to be aggressive. Here are a few things to consider as you purchase or renew your IBM solutions:

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Commodity Edge Conference

“That Time of the Month”

Spend Matters welcomes a guest post from Mark Schaffner, VP of Marketing at Verian.

It's an uncomfortable topic.

There are some people who become irritable, demanding, and yes --somewhat emotional, for about a week at the same time every month. Their physical demeanor changes, they look tired, break out, and sometimes crave chocolate or chips more than usual.

They are accountants.

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Predicting the Results of Super Bowl XLVI and Commodity Prices: At All Possible?

Spend Matters welcomes a guest post from Nick Peksa and co-author Mike Wenble from Mintec, Ltd.

"Prediction is very difficult, especially about the future" -- attributed to Niels Bohr (physicist, 1885-1962)

Every buyer faces the question: "What's going to happen to the price?" The only correct answer is: "It will go up, or down, or, exceptionally, stay the same." If I were able reliably to forecast the price of rapeseed oil (or cocoa, steel or tomatoes), then I would not be writing this article -- I would be sunning myself in the Maldives.

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Top Ten Findings from Hackett 2012 Procurement Key Issues Study

Spend Matters welcomes a guest post from Pierre Mitchell, Director, Hackett Advisory Group.

Over on our World Class Procurement LinkedIn group (all practitioners welcome), we shared some of the summary findings from the 2012 edition of our annual Procurement Key Issues study we did a few months ago, and I thought the Spend Matters readership might be interested. So, to quote the Bud Lite commercial, "here we go"...

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How Else Can I Help my Providers Help Me?

Spend Matters would like to welcome a guest post from Vantage Partners. See previous posts in this series here: Part 1 and Part 2

Buyers can enable providers to help them reach their goals in a number of ways. In this third part, we explore two additional outsourcing goals -- allowing the buyer to focus on core capabilities and moving more items from fixed to variable costs -- and how the buyer can help the provider enable them to achieve these goals.

Focusing on Core Capabilities
We often hear buyers say that they have outsourced certain "non-core" functions so that they can focus their attention and efforts on more important or strategic activities. When you charge functional experts with managing the service provider relationship, the result is often micromanagement. Rather than focusing on core activities, retained managers end up putting even more time and energy into the very work they said they outsourced.

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Hypervisor Pricing Wars -- Get Ready

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom, transportation and energy.

I recently came across an interesting article on a war being waged between VMware and Microsoft. According to RW Baird, more than 25 percent of VARs expect the hypervisor category to be the scene of the most aggressive price pressure within IT in 2012.?

? Below are a few things to consider -- especially if you are renewing your Microsoft EA or VMware licensing agreement, or purchasing a hypervisor for the first time:

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Creating Spend Management Change Super Heroes

Spend Matters welcomes a guest post from Jim Heininger, Founder of Dixon|James Communications.

Success of spend management initiatives, especially in those settings where leadership doesn't apply mandates to require adoption and compliance, requires a team what can effectively persuade stakeholders to the benefits and value of new procurement approaches. In these settings, change management trumps technology and process. Team members must actively campaign on behalf of the effort.

Here are some important steps to help groom your team members to become super change agents:

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Geographic Difference in Purchase-to-Pay Channel Strategy: Balancing Efficiency and Effectiveness

Spend Matters welcomes a guest post from Kurt Albertson, Associate Principal, Procurement Advisory at The Hackett Group.

The Hackett Group has long emphasized the need to balance risk and control within the P2P process, leveraging the "optimal" end-to-end channel rather than simply defaulting to the often overly controlled three-way match process. By doing so, organizations balance efficiency and effectiveness within the P2P process, freeing up resources to focus on higher value activities such as sourcing and supplier management.

And while Hackett has long published performance differences between world-class and peer organizations, recent analysis highlights some interesting perspectives when the P2P control environment is compared by geography. These insights come from Hackett's 2011 Purchase-to-Pay and Procurement benchmarks, in which we segmented performance by North American and Western European operations.

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Retail IT in 2012 -- Sourcing Professionals Take Note! (Part 2)

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom, transportation and energy.

Two weeks ago, I shared five IT spending mistakes retailers should avoid in 2012. But, with IT spending on the rise, you can bet there are several more pitfalls that will challenge retailers to keep their budgets in line and their initiatives on track. Here are four more:

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What's Up With Legal Fee Negotiations?

Spend Matters welcomes a guest post from Danny Ertel of Vantage Partners.

A lot has been written about the death of the billable hour and the rise of new alternative billing arrangements (AFAs), with a recent survey reporting that 95% of all firms, and 100% of firms with over 250 lawyers, are using AFAs in some way, shape or form. But the percentage of revenue accounted for by AFAs remains low and two-thirds of the firms using AFAs acknowledge that they are doing so only reactively. And when they were not talking with clients about AFAs, many large firms have instead been offering clients discounts on their hourly rates, often substantial ones.

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