Best of Spend Matters: Supplier Management

- December 21, 2011 7:12 AM
Categories: Best Of, Commentary | Tags:

For the next week and a half, the Spend Matters team is taking a much-needed holiday break (we have a lot of eggnog and 10%+ holiday beer to source). We’ll be running a lead post every day (so you can still get your analysis on if the mood strikes), and will be featuring a daily “Best of” through January 2. Happy Holidays, and be sure to check in on the 26th for our Santa vs. Hanukkah Harry smack down!

SciQuest: A First Step to Integrating Sourcing and Supplier Management with P2P (Part 1) — SciQuest made the rather smart — in terms of both valuation and product and upsell synergy — acquisition of AECSoft late last year (see our coverage of the deal here, here, and here). Just over half a year later, the company has taken the first integration steps to joining the two separate solutions together. According to this announcement from last week, “the solution reflects the first phase in integrating SciQuest’s eProcurement suite with the supplier management and sourcing technology from AECsoft…The new release integrates Sourcing Director into the base modular source-to-settle solution suite. This integration includes seamless process flows from requisitioning to conducting sourcing events and from sourcing events back into the requisitioning process.” ( Part 2, Part 3 and Part 4 )

Balancing Supplier Management Strategies and Cost Reduction – Supplier Development and Investment — There are many strategies companies can deploy to get more from their existing supply base in terms of supplier management. They can invest directly in suppliers, they can send in development teams to engage in joint cost take-out initiatives focused on unit cost, and they can look to develop suppliers in “softer” areas such as labor practices, general CSR adherence/code-of-conduct, etc. Professor Cuihong Li, PhD of the University of Connecticut’s school of business, was recently quoted in Venture Outsource with a number of tactics that companies likely Apple have deployed for supplier development. Today we hear about supplier violations (e.g., labor practices) more often than not from a supplier management perspective. But basic supplier development and investment is alive and well in the high tech manufacturing supply chain, among others.

SM/MM Survey: Supplier Management, Vendor/Material Risk and Supply Chain Traceability — Spend Matters and MetalMiner have published extensive research in the area of supplier management. But nearly all of our analysis and primary research to date has focused on vendor level information, aside from coverage of conflict minerals (Dodd-Frank) and related registration. Now, we’re hoping to dig deeper into the area of supplier management, vendor/material risk and supply chain traceability by conducting a survey and additional primary research that takes an even deeper view of the extended products and vendor supply chain.

New Research: Supplier Management — Recent Trending, Musings on SAP’s Core Offering and More — Supplier management technologies have come far in recent years, buoyed by their early adoption to enable specific initiatives (e.g. supplier diversity, supplier on-boarding for eProcurement, supplier performance management). For broader sourcing, modern supplier management covers not only the data points needed to keep the accounts payable team happy when they onboard new suppliers — it spans a broad range of areas such as commodities, capabilities, capacities, credit and other supply chain risk, corporate and regulatory compliance, geographical coverage, diversity, performance and more.

- Brianna Tonner

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