In a previous post, I wrote the following:
“With increasing frequency, procurement executives have told me that their successful ProcureTech implementations with smaller, longstanding solution providers are being replaced by more prominent, e.g., bigger providers like SAP Ariba and Workday. The transition results have been generally poor because these larger providers are growing market share through acquisition and assimilation rather than actual procurement industry experience and expertise. In short, boardroom decisions are based on provider size and money rather than successful implementations. Now, the 80% initiative failure rate makes even more sense.”
Now consider the following comments I have been receiving from procurement executives:
“More recently, my procurement team(s) have been significantly impacted and running with a much leaner team – resulting in my being asked to “do more with less.”
Finally, consider the following email I received from a Procurement Director:
More Shutdowns Are Coming
All the data suggests that more shutdowns and poor M&A outcomes will increase in 2025.
These shutdowns might also mean there are some terrific deals for acquirers to pick up some IP and customers for really cheap (but not all cheap deals are good).
Carta reports that companies with >$20M are shutting down.
The number of companies shutting down after raising $50M+ is growing as well. There are still many broken late-stage companies.
Based on the above three points raised in today’s post, what does it mean to you and all procurement professionals?
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Procurement Insights
Does the recognition of procurement’s importance extend to procurement professionals?
Posted on January 27, 2025
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In a previous post, I wrote the following:
“With increasing frequency, procurement executives have told me that their successful ProcureTech implementations with smaller, longstanding solution providers are being replaced by more prominent, e.g., bigger providers like SAP Ariba and Workday. The transition results have been generally poor because these larger providers are growing market share through acquisition and assimilation rather than actual procurement industry experience and expertise. In short, boardroom decisions are based on provider size and money rather than successful implementations. Now, the 80% initiative failure rate makes even more sense.”
Now consider the following comments I have been receiving from procurement executives:
“More recently, my procurement team(s) have been significantly impacted and running with a much leaner team – resulting in my being asked to “do more with less.”
Finally, consider the following email I received from a Procurement Director:
More Shutdowns Are Coming
All the data suggests that more shutdowns and poor M&A outcomes will increase in 2025.
These shutdowns might also mean there are some terrific deals for acquirers to pick up some IP and customers for really cheap (but not all cheap deals are good).
Carta reports that companies with >$20M are shutting down.
The number of companies shutting down after raising $50M+ is growing as well. There are still many broken late-stage companies.
Based on the above three points raised in today’s post, what does it mean to you and all procurement professionals?
30
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