Ariba Releases 2008 Spend Management Priorities and Challenges.Managing Global Supply Base, Extending Reach of Spend Management Emerge as Key Objectives in Annual Survey of Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. Executives SUNNYVALE, Calif. -- As spend management has become increasingly global, so too have the priorities of those responsible for driving it. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 2008 Priorities and Challenges in Spend Management, an annual survey conducted by Ariba, Inc. (Nasdaq:ARBA), the leading spend management solutions provider, what used to be mostly about cost reductions and process efficiencies is now focused squarely square·ly adv. 1. Mathematics At right angles: sawed the beam squarely. 2. In a square shape. 3. on managing a global supply base to minimize risk and extending the reach of spend management to accelerate and increase bottom-line results. "Ten years ago, spend management was a procurement function aimed solely at saving money," said Hari Candadai, Director, Solutions Marketing, Ariba and author of the research. "Today, it is a strategic business imperative that companies of all sizes are leveraging to enhance corporate value, improve competitive advantage, and mitigate the risks of doing business in a global economy." The 2008 Spend Management Priorities and Challenges Leveraging its global roster of more than 600 customers, Ariba polled procurement, finance, and business executives across a range of industries to understand their goals for the coming year. What emerged from the research was a growing sense of urgency among companies to make spend management a truly global function. For the first time in the five year history of the Ariba Priorities and Challenges in Spend Management survey, cultivating and managing a global supply base and extending the reach of spend management both functionally and geographically ranked among the top ten priorities of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. . The Top Ten Spend Management Priorities 1. Deliver measurable results that correlate to financial metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. 2. Access and analyze spend data 3. Identify savings opportunities faster 4. Increase visibility into spend across categories 5. Support multiple business units and geographies 6. Complete projects on time and within budget 7. Recruit, audit and measure the performance of a global supply base 8. Build internal commitment for spend management programs 9. Drive adoption and use of spend management solutions across the enterprise 10. Extend reach of spend management without adding resources The Top Ten Spend Management Challenges 1. Access and analyze spend data 2. Extend reach of spend management without adding resources 3. Deliver measurable results that correlate to financial metrics 4. Automate To turn a set of manual steps into an operation that goes by itself. See automation. , optimize and standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. procurement processes 5. Drive adoption and use of spend management solutions across the enterprise 6. Increase visibility into spend across categories 7. Identify savings opportunities faster 8. Ensure compliance with established processes 9. Recruit, audit and measure the performance of a global supply base 10. Support multiple business units and geographies "Identifying savings and driving them to the bottom line are still the chief objectives of today's spend management professionals," Candadai said. "But to deliver on these goals, many are realizing they need to implement solutions and processes that enable them to extend the reach of spend management and to collaborate with the global supply base for joint value and competitive advantage." Across the board, respondents to the 2008 Ariba survey ranked extending the reach of spend management to support additional business units and geographies as a top priority. But they admit they are constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by limited resources, skills and budgets. "Although they understand the value of spend management, many companies fail to invest in the internal resources required to drive programs on a global scale," Candadai said. "As a result, an increasing number of spend management executives and professionals find themselves looking to external sources of category expertise and market intelligence in order to meet the objectives that have been set for them." Implementing solutions and processes to develop, audit and measure the performance of a global supply base also rated as a key objective for the coming year. Yet, in the face of tight budgets, those polled say they struggle to prioritize pri·or·i·tize v. pri·or·i·tized, pri·or·i·tiz·ing, pri·or·i·tiz·es Usage Problem v.tr. To arrange or deal with in order of importance. v.intr. this against other investments. As Candadai notes, spend management professionals still rank driving cost reductions as their top priority in the year ahead. But they are challenged to translate these savings into bottom-line profitability measurements that correlate to financial metrics. "Controlling costs is a struggle for all companies, and spend management is often seen as a silver bullet silver bullet - magic bullet solution," Candadai said. "The reality is, procurement can identify savings, but finance must ultimately get them to the bottom line. And this requires a strong partnership between the two functions which the majority of the executives surveyed struggle to create." Similarly, respondents indicated that although spend management is viewed as a strategic initiative and critical driver of future success by their companies, they are challenged to enlist en·list v. en·list·ed, en·list·ing, en·lists v.tr. 1. To engage (persons or a person) for service in the armed forces. 2. To engage the support or cooperation of. v. the support of key executives and users at the cross-functional level necessary to drive broad adoption. "Spend management is a journey. And companies will inevitably encounter challenges as they move along the path," Candadai said. "But with the right priorities and solutions in place to drive them, they can enable the people, processes and technology needed to achieve their goals." To hear more about what's top of mind for spend management executives and professionals, tune in to the Ariba 2008 Spend Management Priorities and Challenges podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are available on Supply & Demand Chain Executive at www.sdcexec.com About Ariba, Inc. Ariba, Inc. is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management[TM] software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com. Copyright (c) 1996 - 2008 Ariba, Inc. Ariba, the Ariba logo, AribaLIVE and SupplyWatch are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Spend Management. Find it. Get it. Keep it., Ariba. This is Spend Management, Ariba Solutions Delivery, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement, Ariba Contract Compliance, Ariba Contracts, Ariba Contract Management, Ariba Contract Workbench, Ariba Data Enrichment enrichment Food industry The addition of vitamins or minerals to a food–eg, wheat, which may have been lost during processing. See White flour; Cf Whole grains. , Ariba eForms, Ariba Electronic Invoice Presentment presentment: see indictment. and Payment, Ariba Invoice, Ariba Sourcing, Ariba Spend Visibility, Ariba Travel and Expense, Ariba Procure-to-Pay, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Connectivity, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement, Ariba Spend Management Knowledge Base, Ariba Ready, Ariba Supply Lines, Ariba Supply Manager, Ariba LIVE and It's Time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a for Spend Management are trademarks or service marks of Ariba, Inc. All other trademarks are property of their respective owners. Ariba Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Safe Harbor Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from current expectations include, but are not limited to: delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating as·sim·i·late v. as·sim·i·lat·ed, as·sim·i·lat·ing, as·sim·i·lates v.tr. 1. Physiology a. To consume and incorporate (nutrients) into the body after digestion. b. acquired companies, including Procuri which Ariba acquired on December 17, 2007; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; the impact of our acquisitions, including the disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q Form 10-Q See 10-Q. filed with the SEC on February 6, 2008. |
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