Another white paper from Ariba, about spend management priorities for CPOs in 2006. I think this is the kind of white paper we got and we’ll get every year. Very useful to identify what their customers are looking after but quite compelling for everyone as well to understand where the attention of CPOs is concentrated on but – potentially and more interestingly – how it evolves. So, In October 2006, Ariba completed a survey on that topic involving more than 550 procurement professionals representing a variety of industries, roles, company sizes and regions but mostly (64%) US.
The white paper details the priorities per industry sector but the following list summarizes the overall top 10 priorities:
- 1 Deliver measurable results
- 2 Access and analyze spend data
- 3 Complete projects on time and within budget
- 4 Build internal commitment
- 5 Establish consistent, efficient processes
- 6 Define a spend management strategy
- 7 Support multiple business units / geographies
- 8 Manage strategic commodities
- 9 Ensure compliance with established processes
- 10 Increase effectiveness of supplier relationships
Having said that, Ariba took as well in consideration where buying organisations foresee highest challenges. The top 5 challenges are as follow:
- Increase efficiencies: Extend coverage without adding resources
- Involve internal stakeholders: Build internal commitment
- Get spend visibility: Access and analyze spend data
- Go fast: Complete projects faster
- Manage complexe structures: Support multiple business units / geographies
Is that really different from 2005, anyone knows? Anyway, the most important is to know how to address those points and I’ll come to it shortly.