Measuring RFP Savings… But Doing It Right

In the procurement department, the relationship to the supplier is also a central focus with performance measurement. The services, prices, and quantities established in supplier agreements are essential parameters for the efficiency of procurement and...

Procurement Performance Measurement

as to what should apply as a success and thus influence the added value of the purchase. Procurement Performance Measurement provides an answer...

FAQ: Performance Measurement

What is meant by Performance Measurement in Purchasing? The measurement of procurement performance is part of corporate measurement of success. This includes not only the measurement of procurement cost savings (in terms of cost reductions); arbitrary...

Indirect Purchasing: Transparency, potential analysis and performance measurement

In many companies, the purchase of so-called direct materials that are incorporated into the final products is part of the core business. These purchases make up approx. 70% to 85% of the purchasing volume within the manufacturing industry. All other...

FAQ: Procurement Performance Measurement

What is Procurement Performance Measurement? Procurement performance measurement is closely related to spend management or it is an integral component of procurement management. It describes key indicators, methods, and processes that are necessary for...

FAQ: Measure Management

Request a Demo for Impact & Savings Tracking more about Impact & Savings Tracking procurement purchasing initiative KPI measurement degree of implementation materials management Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition...

Services for Spend Management

The added value in purchasing: What all constitutes cost savings and how is this measured?

role and the added value in purchasing is gaining importance, not least because the pertinent systems and tools for the measurement of cost savings are gaining more and more possibilities and significance. Ultimately, the question of what the actual...

FAQ: Project Success Measuring

Navision, Oracle etc.). Request a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Measurement Procurement Success KPI Savings Initiatives Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition...

FAQ: Cost Savings

can be formed through a prior period a predefined plan or budget value a benchmark value Normally, cost reduction measurements are made against reference points a) and b), whereas cost avoidance measurements orientate themselves on c). The measurements...

Start - Modern solutions for the future.

forecasting, and monitoring of initiatives. Control of the procurement organization on the basis of planned measures. Measurement of performance and impact and early reaction to deviations between target and actual. Impact Tracker Planning, forecasting,...

Spend Management Overview

processes optimization of working capital compliance improvements quality and logistics analysis of potential and measurement of performance » The SpendControl Library of KPIs (PDF) By fulfilling the basic need of creating more transparency and finding...

Planning, Managing, and Measuring Procurement Success Using Degrees of Implementation

Procurement projects or initiatives often used to be managed with simple Excel templates. Now, there is special software for project management in strategic procurement. The underlying idea is to apply ideas for savings success as procurement...

Orpheus Videos InitiativeTracker Overview

success. The Orpheus InitiativeTracker supports you in all points. The Orpheus InitiativeTracker can adapt either to your measurement concept, which has perhaps already been established in your company for years or you trust in the best-practice...

How to Introduce Successful Initiative Management in Procurement (Part 2)

In many companies, initiative management and controlling still only play a minor role. Orpheus set out to understand the reasons and “stumbling blocks” and has illustrated essential “design criteria” in this article that play a large role in the...

Impact & Savings Tracking

savings reconciliation with P&L by leveraging multi user support and built-in approval workflows Automate performance measurement Real-time monitoring of procurement performance metrics and initiatives Automate performance measurement Real-time...

Project Management in Procurement beyond Excel

Saving initiatives have been introduced and their success measured for many years. Now, a certain professionalization is being introduced...

FAQ: Balanced Scorecard

are implemented. On the other hand, target achievements can be measured (see glossary for the terms performance measurement, purchasing successes and cost savings). In addition to purchase controlling, the implementation of measure management used to...

How to Introduce Successful Initiative Management in Procurement (Part 1)

Currently, many companies in procurement are still focusing on the automation of their operative procurement processes using SRM software modules, such as RfX, e-Procurement, Contract-Management, etc. However, on a strategic level in procurement and...

FAQ: Success of Negotiations

Navision, Oracle etc.). Request a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Measurement Procurment Success Supplier Material Cluster Spend Analysis Benchmarking Search Glossary {loadposition sidebar06}...

The 6 Savings Types

Procurement answers for a large cost block, especially in manufacturing companies or in trade enterprises. This cost block should be managed. Savings should be achieved and performance should be verifiable. In this article, we will present you with a...

4 Steps: Predictive Analytics in Procurement

Identify interdependencies, support forecasts, detect price risks early on and illustrate savings potentials with correlation and regression calculations

Download started - Whitepaper - The key figure MPV for measuring savings through substitutions

Orpheus Whitepaper The download of the whitepaper "The key figure MPV for measuring savings through substitutions" was started. If you do not see a file for download, click on the following link: Download the whitepaper "The key figure MPV for...

Download gestartet - Whitepaper - The key figure MPV for planning and measuring savings in procurement

Orpheus Whitepaper The download of the whitepaper "The key figure MPV for planning and measuring savings in procurement" was started. If you do not see a file for download, click on the following link: Download the whitepaper "The key figure MPV for...

Orpheus Videos Portfolio

From Transparency to Savings - Turn potentials into cash Category: Spend Analysis | Duration: 1:25 min {loadposition modal52} First, we connect to the source systems where we extract and enrich the data. For SAP we have a proprietary extractor program,...

FAQ: Startseite

Strategy › Material Price Variance (MPV / MCV) › Maverick Buying › Measure Management › N O P Potentials › Performance Measurement › Predictive Analytics › Procurement Controlling › Procurement Scorecard › Procurement Performance Management ›...

Orpheus Videos Financial Savings Management

(for product groups, technologies, innovations, etc.) and derivation and management of Initiatives to implement Success measurements and key figure based procurement controlling Added Value measurement through integration in the balance sheet and the...

Download started - Whitepaper - Balanced Scorecard, Procurement Planning and Measures Management in Strategic Procurement

Orpheus Whitepaper The download of the whitepaper "Balanced Scorecard, Procurement Planning and Measures Management in Strategic Procurement" was started. If you do not see a file for download, click on the following link: Download the whitepaper...

FAQ: Purchasing Transparency

demands as well as Maverick Buying or order rate is smaller, which in turn makes it more difficult for performance measurements and trend analyses. A description of the special challenges of indirect purchasing in regard to transparency and performance...

Optimizing Margins

Indeed it is possible – we can optimize our margins significantly easier and even better with transparent data. However, how do we create sustainable data transparency throughout all procurement data of the company? You will find out in the following...

5 proposals for truly sustainable purchasing success

A primary function of strategic sourcing is to reduce the purchase price of direct and indirect goods and services within a corporation. If nothing else, the success of this mission unfolds its impact in significant economic parameters of due...

FAQ: Indirect Purchasing

relevant to indirect purchasing, so that the share of repeatable demands is rather low. Analyses and cost savings measurements that are based on amounts and corresponding prices are thereby rarely applied in indirect purchasing. In reality, spend...

Artificial Intelligence

We are SAP partner and are very pleased that the DataCategorizer, our AI-based Semantic Data Management is now available as powered by SAP HANAand certifierd as built on SAP Cloud Platform. DataCategorizer for SAP S/4 HANA Create group-wide...

FAQ: Utilization of Framework Agreements

a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Payment Terms Initiatives KPI Measurement Supplier Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog...

FAQ: Initiative Management

What does Initiative Management mean in procurement context? Initiative management involves the planning, management, and measuring of (strategic) procurement projects. Purchasers can define projects, initiatives, and actions, provide activities for...

FAQ: KPIs

What are KPIs? KPI is the abbreviation for Key Performance Indicator. These indicators are key figures that monitor the transparency, successes or cost savings, compliance, process efficiency, risks and many other aspects of strategic purchasing. They...

FAQ: Procurement Strategy

What procurement strategies and material cluster strategies are there? In purchasing, a differentiation is made between so-called operative purchasing and strategic purchasing. The latter is usually divided into individual material cluster so that lead...

Calculating and Analyzing Material Price Variance (MPV) - 6 Basic Rules

Material price variance – sometimes also referred to as material cost variance (MCV) – is an essential key indicator for spend managers. It is important because it is a central measure for the success of procurement relevant to profit and loss. It sets...

FAQ: Material price variance (MPV / MCV)

How can I measure material cost variance (MKV) or material price variance (MPV)? Material cost variance (MCV) or material price variance (MPV) is an essential key procurement savings indicator. It identifies the change of material costs or material...

FAQ: Procurement Performance Management

of spend management and their realization through procurement initiatives (see Initiative Management) to the final measurement of success (see Procurement Performance Measurement) and for sustainable management over the course of several years. Data...

FAQ: Single Sourcing

Request a Demo for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Single Sourcing Supplier Measurement Material Master Data Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog...

FAQ: Reporting

Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Spend Management Spend Analysis Reporting Measurement Report Transparency Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read...

FAQ: Spend Analysis & Spend Management

Insights more about Dashboards & Insights Purchasing Procurement Spend Management Spend Analysis Reporting Spend Savings Measurement Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog articles about...

FAQ: Savings Management

for Dashboards & Insights more about Dashboards & Insights Purchasing Procurement Savings Management Performance Savings Measurement Initiatives Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog...

FAQ: ABC Analysis

What is an ABC Analysis? The ABC analysis is a form of concentration measurement. The automated form of the ABC analysis uses the so-called Gini coefficient to categorize a number of objects into three classes (A, B, and C) and to depict the results...

FAQ: Cost Drivers

What are Cost Drivers in Purchasing? Cost drivers in purchasing describe which factors influence the purchase price for parts and services. The cost drivers in purchasing vary greatly depending on the product group as well as the type of product group....

FAQ: Strategic Purchasing

What does strategic purchasing mean? Strategic purchasing differs from operative purchasing in that it defines a purchasing strategy that consists of coordinated measures, which subsequently bring sustainable success to a company. The purchasing or...

FAQ: Added Value of Procurement

What is Added Value of Procurement? Appropriately depicting the added value of procurement is one of the greatest challenges of proper procurement management. Many companies reduce the added value to savings in the sense of cost reductions that can be...

Initiative Management Overview

InitiativeTracker – What’s that? InitiativeTracker is a software to Plan and monitor sourcing initiatives, Control your purchasing organization by planned values and measures, Measure your purchasing performance and React early to differences between...

FAQ: Compliance Indicators

How can I measure a company's compliance? The English term “compliance” refers to legal compliance and indicates the adherence to given rules and guidelines. Compliance regulations vary in each company. Typical compliance indicators relevant to...

Data Consolidation

to other attributes of the master data record. These attributes can range from addresses or bank information to weight, measurements, or color. The Orpheus algorithms for consolidating and clustering master data break down the individual fields of a...

Akademie übersicht EN

und Bedeutung des Einkaufs wächst... » read more Indirect Purchasing: Transparency, potential analysis and performance measurement In many companies, the purchase of so-called direct materials that are incorporated into the final products is part of...

FAQ: Savings Pipeline

Tracking more about Impact & Savings Tracking Purchasing Procurement Savings Management Initiatives Performance Savings Measurement Initiatives Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition sidebar07} Orpheus Blog Read blog...

FAQ: Procurement Success

and dashboards. Request a Demo for Impact & Savings Tracking more about Impact & Savings Tracking Purchasing Procurement Measurement Procurement Success KPI Savings Initiatives Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition...

FAQ: Procurement Planning

Request a Demo for Impact & Savings Tracking more about Impact & Savings Tracking Purchasing Procurement Initiatives Measurement Savings Budget Cost Reduction Cost Avoidance Search Glossary {loadposition sidebar06} Orpheus Glossary {loadposition...

Structure of a Strategic Spend Management System

Procurement departments are increasingly evolving away from being an order service to being a powerful strategic instrument within their company. Procurement departments are making more and more important decisions. However, there is still heavy...

FAQ: Degree of Implementation Systematic (DOI)

What is a Degree of Implementation Systematic? Degrees of implementation represent a specific type of project milestones. They illustrate how close planned effects (e.g. planned savings) are to implementation. In this sense, they represent status...

Consolidate and classify purchasing data

Perfect data quality lays the foundation for successful spend controls. Wouldn’t it be great to have instant access to current, valid, reliable numbers or to know the bundled spend volume for individual suppliers and categories – across all business...

FAQ: Predictive Analytics

What is the purpose of Predictive Analytics or Forecasting? Predictive analytics (in purchasing) describes key figures, evaluations and chains of analyses that concentrate on prognostic conclusions. For example, a company tries to forecast the...

FAQ: Potentials

What potentials are there in purchasing? Potentials in purchasing can refer to many different contexts. Reference is to cost savings, for example, when speaking about savings. These could be potential reduction of purchase prices from which cost...

FAQ: Spend Analysis

What is meant by Spend Analysis Spend Analysis is often synonymously used with the term Spend Management. Both terms fundamentally encompass all functions required for progressive purchase controlling. Other interpretations of Spend Analysis emphasize...

FAQ: Supplier Relationship Management

What means Supplier Relationship Management (SRM)? The term Supplier Relationship Management (SRM) includes the strategic and operative processes, beginning with the purchasing strategy, supplier management and procurement controlling all the way to...

FAQ: Procurement controlling

What is meant by the term Procurement Controlling? Procurement controlling and procurement performance management are two synonyms for the same functional area. The terms describe the tasks of supporting both strategic purchasing and operative...

FAQ: Key Procurement Performance Indicators

What are Key Procurement Performance Indicators? Key procurement performance indicators cover all areas of analysis relevant to procurement management. Examples are savings(Cost Reduction and Cost Avoidance) procurement volume pricing quantities...

FAQ: XYZ Analysis

What does a XYZ Analysis? The XYZ analysis is based on the same mathematic methods as the ABC analysis. However, the analytical goal is different. With the XYZ analysis, we attempt to find out what objects (materials, suppliers, etc.) have particularly...

FAQ: Competitive Effects

What are Competitive Effects? The competitive effect describes pricing variances of offers within a bid. For the reason alone that procurement allows multiple suppliers to come together in one bid, savings potentials can be produced. Dashboards &...

FAQ: Currency Effects

What exactly are currency effects? Currency effects arise with comparisons from previous periods through exchange rate variations. The following are differentiated: The effect through the conversion of suppliers to the local currency – the transaction...

FAQ: Total Cost of Ownership

What is Total Cost of Ownership (TCO)? With the calculation of the “total cost of ownership”, we not only include the outright purchase price, but rather all costs incurred throughout the life cycle of a product or service. Dashboards & Insights...

FAQ: Maverick Buying

What is Maverick Buying? Maverick buying represents the procurement of material or services without adhering to the compliance regulations of the company. Even today, large volumes are purchased outside of the procurement department. Typical examples...

FAQ: Low-Cost Country Sourcing

What is Low-Cost Country Sourcing? Purchase of material and services from low-cost countries with the goal of saving costs, minimizing currency effects, and strengthening individual competitive benefits. Dashboards & Insights Dashboards & Insights is a...

FAQ: Global Sourcing

How to define Global Sourcing? Global sourcing describes the global expansion of procurements to a growing number of international markets. Thus, it is essential to appropriately evaluate the opportunities and risks of low-cost country sourcing and to...

FAQ: Forecasting

What is Forecasting in procurement? After drafting the procurement budget within the scope of procurement planning, cyclical changes to the planning executed occur (continuously). These planning adjustments are referred to as forecasting. In...

FAQ: eProcurement

What is eProcurement? eProcurement is electronic, partially automated procurement via internet-based catalog systems. Dashboards & Insights Dashboards & Insights is a complete Procurement Controlling and Spend Management solution. It provides all...

FAQ: Cash-out-Quote

What is the Cash-out Rate? The cash-out rate is an indicator in spend management. It applies the credit-related overall expenditures to the ratio of expenditure managed by procurement. Dashboards & Insights Dashboards & Insights is a complete...

FAQ: CPO

What does a CPO? The Chief Procurement Officer is also referred to as the Chief Purchasing Officer (CPO) in global companies. He is responsible to executive management for the success of the procurement department. Dashboards & Insights Dashboards &...

FAQ: Content-Management

What is Content Management in procurement context? Content management is the targeted improvement of spend data quality. This includes multifaceted measures for correcting and expanding master data as well as transaction data - see „Classification“ and...

FAQ: Budget

What exactly is meant by the term "budget" in procurement context? The purchasing budget is the projected procurement volume for a certain purchasing category related to given planning periods. Dashboards & Insights Dashboards & Insights is a complete...

FAQ: Benchmarking

What is Benchmarking about? During benchmarking, a company’s values (e.g. spend/ procurement volumes, prices or cost savings key figures) are compared with a reference value (the so-called benchmark). This reference value may have been deduced from...

FAQ: Ad-hoc Queries

What are Ad-hoc Requests? When we speak of ad-hoc requests, we are not referring to the unprepared, spontaneous response to a question, most often with the help of a software system. Ad-hoc requests are normally unique information requests that have...

Alerting & Recommendations

AI-based technology for automated and simplified spend and procurement analytics Orpheus Alerting & Recommendations contain business logic paired with AI and feedback learning. Your data steams will be analyzed automatically and constantly and you are...

Big Data Analytics in strategic purchasing

For a few months now, the term Big Data has been a hot topic in the media. Yet what is really new with respect to well-known instruments such as SpendAnalysis and procurement controlling? Big Data in strategic purchasing primarily aims for a higher...

Orpheus Videos Initiative Management

Videos Initiative Management InitiativeTracker Overview Create and Manage Procurement Initiatives. Plan, Forecast and Track/Measure their Impact on P&L Savings. Category: Initiative Management | 5:11 m More videos will follow... 0:00 m More videos...

DataCategorizer is certified as built on SAP Cloud Platform

Nuremberg - June 27, 2019 - Orpheus DataCatergorizer has received SAP certification for the SAP HANA® platform. The solution has been proven to run on SAP HANA and leverages its unique capabilities. The SAP Integration and Certification Center (SAP...

Orpheus Videos

Videos Procurement Intelligence BME Webinar 2019 (EN subtiteled) How do Orpheus AI methods support you in digitizing your strategic procurement? Category: Data Management | 1:01:40 h Orpheus SpendCube for Partners & Consultants SpendCube for...

DataCategorizer is certified as powered by SAP HANA

The Orpheus DataCategorizer supports clients in swiftly achieving group-wide transparency within their procurement data, required for reliable analyses. An AI-backed framework implements various functions for Semantic Data Management (SDM) and thus...

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WOULDN’T IT BE GREAT IF Full spend visibility … we had complete transparency on our spend at invoice and order item level, and all records were categorized at the most granular level? Consistent consolidation … we could harmonize and consolidate...