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5000 developers are working on product enhancements and extensions to the SAP spend management suite. At SAP Spend Connect Live, held October 14-16 in Las Vegas, SAP did make several significant product announcements. Spend Management Takeaways SAP continues to invest in using generative AI to improve the user experience.
Background Most of the clients that I am working with are working on two large supply chain initiatives: Implementation of SAP RISE and Compliance with the EU Digital Product Passport initiative. To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?”
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Employees Cannot Get to the Right Data at the Speed of Business A war is raging between Oracle, Salesforce and SAP to automate supply chains. The ripple effects are pervasive. It is a landgrab of sorts.
Businesses often use it in retail and purchasing. Category management isn’t just another procurement trend. It’s a way for companies to group similar goods or services (like IT infrastructure, facilities, or raw materials) and manage them holistically instead of handling every purchase in isolation.
Procurement is a complex and dynamic process involving strategic planning and several stages of execution, from sourcing to paying and reporting. Supply chain management, purchase requisitions and orders, budget management, and three-way matching – all these processes are integral to procurement as a whole.
The IT taxonomy for visibility is supply chain analytics. As you implement supply chain analytics and use control theory with well-defined reference data with clear bands for control, process improvement ensues. These sources while functional are difficult to connect. The team was seeking analytics to monitor process compliance.
Almost two decades of reporting. Demand latency is the time cycle to translate a channel purchase to an order.) I ask, “What happened to the better design of supply chains and the bi-directional orchestration of constraints across source, make, and deliver outside of lead time (the tactical horizon)?”
Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. What can often look like compliance in APO could actually be numbers calculated in Excel and posted into the SAP system.
Source Merriam-Webster Dictionary. The market shift is towards analytics, but this new market is confusing. They are step change requiring either the redeployment of existing technologies or the purchase of new platforms. Data model structures are the difference between success and failure. Build What-if Analytics.
They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets. The most common questions include: What should I do about the discontinuation of SAP APO in 2025? Should I migrate to SAP IBP? Frustration abounds.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
Did you know that advanced analytics, when used in lieu of traditional statistical models, can help procurement departments increase cost efficiency by 3-8%? [1]. The procurement department of any business generates more data than is humanly possible to compute and comprehend through traditional means. Integration.
I am speaking to companies that are being held hostage to SAP HANA upgrades with 70% cost overruns and 60% time schedule expansion. Similarly, SAP Ariba frustration is mounting in the market. Yet, the IT team is still mandating SAP standardization. For many, mandating SAP is job security for the IT implementation team.
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008. Let me explain.
SAP AG (NYSE: SAP) and Ariba, Inc. Nasdaq: ARBA) today announced that SAP’s subsidiary, SAP America, Inc., The per share purchase price represents a 20% premium over the May 21 closing price and a 19% premium over the one month volume weighted average price per share. billion term loan facility.
ThroughPut AI SAP Integrated Business Planning Oracle SCM Cloud Blue Yonder Kinaxis RapidResponse Infor Nexus E2Open Manhattan Associates Epicor SCM Logility Anaplan Odoo Coupa HighJump (Körber) 1. Review the features and benefits of these tools below.
Procurement operations are no exception. In fact, 43% of GPOs that took part in the 2023 Global Chief Procurement Officer Survey cited overall procurement risk had increased significantly as compared to 20% in the 2021 study. Keep reading to learn: What is an online procurement system?
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
If you have an efficient ERP system, information can flow freely between your source-to-pay applications and the companys central IT infrastructure. The first company to use the term ERP commercially was SAP, which was founded in 1972 by five former German employees of IBM after the IT giant had abandoned their pet project.
The ends of the supply chain–both in customer and procurement– are fragile. They would ask how social can impact their supply chain source, make and deliver processes. As an analyst that has done this type of prediction for many years, I just find this hard to believe. Charlene wrote the report [link].
Today I attended the SAP Insider Conference. SAP S4/HANA delivers on the goal of digital transformation. I yearn for the years when the SAP Insider conference was larger and full of energy. The attendees are hard-core SAP teams trying to figure out the new architecture. This should worry SAP. The answer?
EDI is too cumbersome, and SAP Ariba’s focus, despite the marketing hype, is primarily on managing indirect spending. (My The SAP acquisition of Ariba slowed innovation and the purchase, and then the failed promise of investment in Crossgate was disappointing to SAP supply chain business users. There is hope.
Linda McKee, the director for global trade services management at SAP, expressed the idea this way, “I don’t think we currently have any real standard global trade scenarios. Thomson Reuters purchased the global trade compliance vendor Integration Point in 2018. Every customer seems to want to manage them differently.”
Many organizations are focused on driving analytics as a foundation for competitive advantage. Often overlooked in this discussion is the importance of establishing a foundation for analytics through the process of data readiness and data cleansing. First, the user is contacted and the “raw” data is collected from different sources.
This ended when Gartner purchased AMR Research in 2010. Since I do not believe in the Gartner business model, I left. Sitting in a SAP presentation, using the term demand-driven at the recent SAP Insider conference, without grounding in the definition is painful for me. 7) Cost-to-Serve. Reflections.
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Thoma Bravo purchased Elemica in June 2016. E2open, following a rough 2014, was purchased by Insight Venture Partners in 2015.
On Wednesday morning, when I finished speaking at the Foundation for Strategic Sourcing in Fort Lauderdale, an executive from J&J pulled me aside and said, “Our strengths, are now our vulnerabilities.” Likewise, this is not something you can expect from partnering with SAP, Oracle or Infor. Many feel overwhelmed.
As Tom Standage ( @tomstandage ), editor of The Economist ‘s ‘ The World in 2021 ‘, reminds us, the digital path to purchase is increasingly becoming the customer journey of choice. … SAP polled 1,000 U.S. When consumers are ready to purchase, there are minimum safety measures they expect.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. It is a new buyer.
Today Thoma Bravo, a private equity investment firm, announced a definitive agreement to purchase Elemica, a provider of Supply Chain Operating Networks for the chemical industry. While, in 2012, SAP acquired Ariba. To build this model, I flew to Arizona to develop it with Carol Ptak of the Demand-Driven Institute.
The budget is for a fiscal year with quarter reporting and updates. The direct connection between the two processes increases costs and increases error. Instead, it should be mapped as an input to track supply chain forecasting to financial budgets for reporting and insights. Time horizon. Bias and error.
The source of the content is research. I manage a team at Supply Chain Insights and actively publish using an Open Content research model. This Tuesday we will publish our 87th report, and our 167th podcast, in our 36th newsletter. Annually we invest 22% of revenues in building content. We take content seriously.
image source: [link]. Given increased demand for S&OP systems, ERP vendors like SAP and other, more focused, players have jumped on the opportunity to develop best-of-breed software. Analytics: empowering users with transparent prescriptive analytics (optimization) capabilities to generate scenarios and solutions automatically.
When the report published, it stimulated many conversations. Examples include E2open, Elemica, GT Nexus (now owned by INFOR ), and SAP Ariba. As shown in Figure 2, few orders and purchase orders flow hands-free. We will use this in our December meeting to define a mission/charter and governance model.
You could assess impacts to inventory, margin, cost of sales, new purchases, capacity…all within seconds, all within a single system. Some sites have SAP, others have Oracle. Supply Chain Data – Obviously you need to be able to pull in the data from multiple supply chain data sources into a single system.
One of our newest SCRC partners, Siemens Building Technologies, recently shared their insights on creating an analytics strategy. This effort was led by the Chief Procurement Officer for Siemens BT, Carl Oberland, but has recently been rolled out across the global organization. What is digital governance and stewardship?
Can you deliver added value and cost savings from a supply chain, optimise and develop procurement processes, manage a wide range of suppliers internationally and identify new supply sources? Secure profitable purchase processes. You will be joining ROCKWOOL’s Global Sourcing & Procurement organisation.
Get full visibility with SAP and Alloy together Problems like stockouts and excess inventory continue to present a major challenge for every brand selling into retail. Today we’re excited to announce that our Alloy Intelligence application is now available on SAP® Store, the online marketplace for SAP and partner offerings.
Sadly, I find each to have a limited view of supply chain analytics. Is it a coincidence that process industry leaders have standardized on SAP and blindly followed the SAP IT-centric definition of supply chain automation without holding SAP accountable to build effective supply chain solutions for the extended value network?
The premise of the Christensen’s book is that when companies focus on current customer needs, they fail to adopt new technologies or business models that will meet the customer’s unstated or future needs. I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” Test new solutions against the traditional demand sensing providers of E2open (Terra Technology), SAP and ToolsGroup. Demand latency is the time from channel purchase to translation into an order.
image source: [link]. Given increased demand for S&OP systems, ERP vendors like SAP and other, more focused, players have jumped on the opportunity to develop best-of-breed software. Analytics: empowering users with transparent prescriptive analytics (optimization) capabilities to generate scenarios and solutions automatically.
The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As About the Supply Chains to Admire Research.
I had the opportunity to attend the Procurement Leaders in San Francisco forum two weeks ago, followed by attending the ISM Carolinas-Virginia meeting in Winston Salem last week. Procurementanalytics was discussed at length at both sessions. Most are still focused on spend analytics.
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