The BPO Category

Zycus Horizon Dispatch: Building the Partner Ecosystem

Earlier Monday at Zycus’ Horizon annual customer event in Virginia, CEO and founder Aatish Dedhia provided significant evidence that his source-to-pay firm has responded to the need to build out a global partner ecosystem, especially one centered on local customer implementation and enablement. Zycus global implementation/enablement partners now include over 35 organizations.

SirionLabs: What Makes It Great (Contract Lifecycle Management SolutionMap Analysis)

Just when you thought the contract lifecycle management (CLM) software market fit within a neatly defined 2x2 graph, along comes a vendor that breaks the mold, offering top functional capabilities while also redefining exactly what a CLM provider is capable of.

Who is this vendor, you ask?

SirionLabs.

Although it is fully capable of competing in the “traditional” CLM sector, SirionLabs is a powerful, specialized CLM solution that organizations have used primarily to manage and optimize the performance of large, complex, often multi-year services contracts. The solution combines core CLM components with added supplier management capabilities, like  performance management, relationship management and risk management. And it works for contracts of all shapes and sizes, delivering Value Leader (upper right quadrant) performances across every CLM SolutionMap buying persona.

As of Q3 2018, Spend Matters SolutionMap consists of functional and customer satisfaction benchmarks on more than 50 vendors within the procurement, finance and legal software markets. To date, Spend Matters’ analysts have evaluated 13 providers in the contract lifecycle management software segment, including SirionLabs. But where does SirionLabs stand out most, and why should this matter to procurement and legal organizations? Let’s dive into the CLM SolutionMap benchmark to find out.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

HealthTrust: Healthcare GPO Provider Summary — Introduction, Summary Analysis, SWOT and Customer Engagement Tips [PRO]

Through a combination of organic growth industry consolidation, three group purchasing organization (GPO) providers have come to dominate the healthcare market. These providers — Vizient, Premier and HealthTrust — control nearly 75% of spend in the healthcare GPO market. Despite this level of consolidation, the three competitors have, in certain cases, targeted different markets and introduced unique offerings. This Spend Matters PRO research brief provides an overview of HealthTrust, including a general introduction, key points analysis, SWOT framework and customer tips for getting the most out of engagement. For background on the GPO market, check out our two earlier briefs, An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape. For general context, perspective and analysis of the healthcare GPO market in particular, see our recent three-part series: Part 1 (Background, History and Introduction), Part 2 (GPO criticisms and market consolidation/bifurcation) and Part 3 (Key Takeaways, Emerging Paradigm Shifts and Customer Recommendations).

Premier: Healthcare GPO Provider Summary — Introduction, Summary Analysis, SWOT and Customer Engagement Tips [PRO]

healthcare

Through a combination of organic growth industry consolidation, three group purchasing organization (GPO) providers have come to dominate the healthcare market. These providers — Vizient, Premier and HealthTrust — control nearly 75% of spend in the healthcare GPO market.

Despite this level of consolidation, the three competitors have, in certain cases, targeted different markets and introduced unique offerings. This Spend Matters PRO research brief provides an overview of Premier, including a general introduction, key points analysis, SWOT framework and customer tips for getting the most out of engagement.

For background on the GPO market, check out our two earlier briefs, An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape. For general context, perspective and analysis of the healthcare GPO market in particular, see our recent three-part series: Part 1 (Background, History and Introduction), Part 2 (GPO criticisms and market consolidation/bifurcation) and Part 3 (Key Takeaways, Emerging Paradigm Shifts and Customer Recommendations).

Vizient: Healthcare GPO Provider Summary — Introduction, Summary Analysis, SWOT and Customer Engagement Tips [PRO]

Through a combination of organic growth industry consolidation, three group purchasing organization (GPO) providers have come to dominate the healthcare market. These providers — Vizient, Premier and HealthTrust — control nearly 75% of spend in the healthcare GPO market.

Despite this level of consolidation, the three competitors have, in certain cases, targeted different markets and introduced unique offerings. This Spend Matters PRO research brief provides a summary overview of Vizient, including a general introduction, key points analysis, SWOT framework and customer tips for getting the most out of engagement.

For background on the GPO market, check out our two earlier briefs, An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape. For general context, perspective and analysis of the healthcare GPO market in particular, see our recent three-part series: Part 1 (Background, History and Introduction), Part 2 (GPO criticisms and market consolidation/bifurcation) and Part 3 (Key Takeaways, Emerging Paradigm Shifts and Customer Recommendations).

The Healthcare Group Purchasing Organization Landscape (Part 3): Key Takeaways and Customer Recommendations [PRO]

This Spend Matters PRO series explores the history and current state of the healthcare group purchasing organization (GPO) market. In this third installment, we provide key takeaways for the industry, analyze emerging trends in the market and offer customer recommendations.

For background on the GPO market, we encourage you to start here with our two earlier briefs on GPOs, An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape. Then explore Part 1 (Background, History and Introduction) and Part 2 (GPO criticisms).

The Healthcare Group Purchasing Organization Landscape (Part 2): Market Critiques and Effects of Consolidation [PRO]

This Spend Matters PRO series provides an introduction to the healthcare GPO market. Today in Part 2, we summarize healthcare GPO criticisms and survey the effects of consolidation in two GPO contexts (member consolidation and GPO M&A). We also discuss how models are bifurcating.

For background on the GPO market, review our two earlier briefs, An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape. Then explore the first installment in this series, which provides a background, history and introduction to the healthcare GPO market.

The Healthcare Group Purchasing Organization (GPO) Landscape: Background, History and Introduction (Part 1) [PRO]

This Spend Matters PRO research series provides both an insider’s take on the healthcare GPO market from an industry perspective and an “outside-in” analysis of the market based on norms in the procurement industry overall. For an introduction to GPO models not specific to healthcare, including how they work and ways in which the GPO landscape is changing, see An Introduction to Group Purchasing Organizations (GPOs) and Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape

Part 1 of our coverage provides background, history and definition of the healthcare GPO market. The remaining installments will provide insight into how consolidation (both within healthcare systems and within GPOs) is affecting the market, lessons from other industries and an analysis of the “Big 3” national GPO providers: Vizient, Premier and HealthTrust.

We will also provide a summary of GPO criticisms — including those that are fairly levied and those that are not — and provide a perspective on what changes that we might expect as the GPO landscape evolves. Put on the flak jacket (or should we say take an intravenous sedative) and let’s delve in.

Holding Managed Services Providers (MSPs) Accountable to a BPO-Based Standard (Part 3) [Plus+]

Consider that during the initial years of a services procurement outsourcing initiative involving legal spend, that pursuing e-billing programs that enable rate management and better invoice tracking along with formal rate management programs and related benchmarking, rate/value alignment and volume discounting is most likely to deliver optimal near-term results. Yet in most cases, in the out-years of a multiple-year legal spend management program, it makes sense to move to such areas as law firm selection, alternative fee arrangements, resource optimization and document discovery as the next areas to tackle.

SAP Ariba Procurement Desk: Shared Services and Center of Excellence (CoE) Enablement [PRO]

category management

Procurement shared services groups can take different shapes and can add different sources of value. Shared services tend to focus on procure-to-pay (P2P) and accounts payable support, including supplier enablement, supplier master data maintenance, transactional purchasing, transaction processing, invoice automation and exception management. CoEs focus on both a classic shared services model (i.e., supporting processes on behalf of the business units) or a more transformational CoE model (i.e., giving business units tools, training and focused resources like third-party services). 

The former tends to focus on tactical buying like spot buying and tail spend management, and the latter tends to focus on strategic procurement areas such as analytics, sourcing, category and supply market intelligence, and contract management support. Increasingly, a number of CoEs are focused on both areas, whether run and administered internally or in an outsourced manner — sometimes only in part — by a business process outsourcing (BPO) partner such as Accenture or GEP.

Yet even with the help of these outsourced partners, procurement shared services teams and CoEs have not had up to this point a purpose-built technology solution to manage their own operations. SAP Ariba is hoping to change this with its new Procurement Desk product. Available in March to limited release customers and in the summer months to all SAP Ariba customers, Procurement Desk has big plans to improve the capability of shared services teams and CoEs to deliver value and drive continuous improvement.

Based on demonstration sessions, presentations and analyst discussions at SAP Ariba Live in March 2018, this Spend Matters PRO research brief introduces the initial release of Procurement Desk, explores some of SAP Ariba’s ambitions for future releases based on the product roadmap and offers our initial analysis of the new offering, along with recommendations for SAP Ariba customers. A subsequent PRO research brief will provide a generalized CoE operating framework spanning all areas that procurement shared services groups can address with SAP Ariba’s current and planned capabilities for targeting this market.

Group Purchasing Organizations: Supplier Perspectives and the Evolving GPO Landscape [PRO]

Joining a GPO is like getting a Costco membership. You know you’re not going to get ripped off, so you probably won’t put much thought into joining. But therein lies the rub for GPO members. Like Costco, a GPO is a one-size-fits-all marketplace where you may overbuy when you get there or underbuy by not getting there at all.

In an increasingly Amazon-dominated world, however, this model is not the only available option.Today, the assortment and pricing of items available to consumers are tuned to the user and monetized most efficiently by intermediaries that can source better and optimize for lowest total landed costs better than individual buyers. Procurement organizations are now looking to bring this experience to the complex world of B2B purchasing. And where GPOs fit into this more sophisticated equation is not a simple answer (many are still trying to figure it out themselves). 

But that doesn’t mean GPOs will go the way of the 1980s big box retailer. Instead, GPOs will have to take on a role beyond the race to the lowest price. This multipart Spend Matters PRO series explains what motivates GPOs and helps procurement organizations best decide when and how to engage them. In this second installment (see our initial GPO introduction), we explore GPOs from a supplier perspective and offer recommendations for vendors working through GPOs to make these relationships more successful. We also explore how GPO options and capabilities are evolving and segment the GPO market by model and type and provide case example looks at different GPO business models. These include vertical/industry independent, member-owned, horizontal, affinity, category-specific and procurement technology led GPO models. 

An Introduction to Group Purchasing Organizations (GPOs) [PRO]

purchasing

Group purchasing organizations (GPOs) are not a new idea. Agricultural cooperatives aggregated the buying power of farmers hundreds of years ago. That said, GPOs have evolved quite a bit, and the infusion of new digital capabilities is taking that evolution to an even higher level. This evolution also means that procurement organizations must go in “eyes wide open” to best utilize this important tool in the procurement tool belt.

Not all GPOs (or GPO models) are the same. Understanding the differences will make you a more educated, and thus likely more successful, buyer. Therefore, we’ve decided to delve a little deeper into this obscure sector of the procurement provider market and shed some light on how to best extract value from it.

This multipart Spend Matters PRO brief is designed to demystify GPOs and put procurement organizations on the same information playing field as the GPOs attempting to sign them up, expand their utilization of contracts and sell additional services. Within this series, we will explore GPOs by type, as there are several business models in play, and by industry segment, as GPOs are heavily embedded in certain markets and are little more than a supply option in others.

This first installment in our GPO coverage:

  • Defines what GPOs are (and are not)
  • Explains how GPOs operate
  • Explores GPO “spend coverage and fit”
  • Analyze the GPO market segments and how to engage them
  • Offers tips and tricks for engaging GPOs based on their own constraints/models
  • Provides both basic and advanced takeaways for procurement organizations that are thinking through GPOs as an alternative supply option
  • Offers a checklist of activities to consider when sourcing GPOs