E-Sourcing Content

The Contingent Workforce and Services (CW/S) Insider’s Hot List: May 2019 [Plus+]

Welcome to the May 2019 edition of Spend Matters Insider’s Hot List, a monthly look at the contingent workforce and services (CW/S) space that’s available to PLUS and PRO subscribers. For those new to the Hot List, each edition covers the prior month’s important or interesting technology and innovation developments in the CW/S space. The latest edition looks at Uber's IPO, Shiftgig news, Moonlighting's blockchain news, Visa's move into fintech for fast payments, and Ernst & Young acquiring a UK-based alternative legal services provider (ALSP).

Ivalua NOW 2019 Chicago: ‘We have this ambitious vision,’ CEO says of new release, roadmap

Ivalua CEO David Khuat-Duy on Tuesday kicked off the procurement solution provider’s customer event, Ivalua NOW 2019 Chicago, with an eye toward maintaining its dedication to serving customers, discussing its latest release and shedding light on its plans for the future.

“We have this long-term strategy of building a very big company with a fantastic product that we can offer to the market. And this is our vision,” Khuat-Duy said. “We don't have a short-term vision, like exiting or doing something different. We have this ambitious vision.”

Using AI to Extend Digital Transformation to Services Procurement

Every time you shop at a favorite retailer’s online store or use an app to bank, you’re benefitting from the digital transformation of B2C services.

In the B2B environment, digital transformation of services is also taking place but at a slower pace. And in B2B for procurement, the shift is even slower, most often being used to automate processes and uncover potential cost-savings.

As discussed in The Digital Transformation of Services Sourcing: What It Is and Why It Matters, part 1 of this series, procurement departments will need purpose-fit technology to manage the vast areas of services spend. Procurement won’t necessarily do the hiring of services. That role will likely continue to rest with the stakeholders who need a marketing team or extra legal services. Since procurement departments may not be able to centralize the decision-making over services spend, they need another way to manage each stakeholder’s sourcing process — and the answer is artificial intelligence (AI). Read on to find out how AI is changing services spend.

Shifting to Digitization from Manual Sourcing Processes Isn’t Easy — Unless You Use Bonfire

For procurement project managers looking to overcome manual processes and engage stakeholders, digitizing your sourcing workflows can be a mammoth task.

It’s more than just using digital files like PDFs, Excel spreadsheets and email. Although they are a step in the right direction, those tools are not true digitization. Digitization is really about making a workflow that’s easier for people to use while saving time and money. It involves putting all the documents in a central, accessible source and making the whole process more collaborative with people across your company and with vendors.

Bonfire, a cloud-based provider of strategic sourcing and contract and performance management, knows your pain because it has already solved those problems.

The Digital Transformation of Services Sourcing: What It Is and Why It Matters

gig economy

Remember when you could only book a flight by calling a travel agent? Or do a banking transaction by visiting the nearest branch? Buy insurance only through an agent? Shop for a new house only by reading the local newspaper classifieds, or search for a plumber or doctor only in the Yellow Pages?

The way consumers buy services now has been massively digitized, with the enormous benefits of great selection, convenience and value for all of us. Yet most business-to-business services are bought today in the same way they were bought 20 years ago. That still largely depends on a phone call between a business stakeholder who has a need and someone they trust to broker the work. That someone is often a senior executive in a large firm, who then rallies a team to prepare a proposal that will be presented to the buyer in person.

But change is coming.

Why Well-Run Hospitals Need Tailored Technology to Care for Patients, Business

healthcare

As one of the nation’s largest nonprofit health systems, BJC HealthCare needs to provide consistent, high-quality patient care across all of its hospitals while maintaining operational efficiency. When the St. Louis, Missouri-based healthcare provider began its search to upgrade how it supplies its facilities, it found the healthcare marketplace provider Prodigo Solutions, which knows what hospitals of all sizes need because it provides online shopping and other services to more than half of the top 15 hospitals in the U.S.

Today, BJC uses ProdigoMarketplace to requisition a range of medical items that have been negotiated for price and vetted for compliance. To understand how the Marketplace helps, the staff at BJC answered some questions about working with Prodigo.

Sourceit: Vendor Introduction, Analysis and SWOT [PRO]

Marketing procurement can be a touchy subject for businesses. This critical category can make or break a company’s ability to attract new customers, yet it is rarely managed in an efficient, effective manner — at least as a procurement professional would define it.

Within most businesses, marketing procurement is plagued by poor corporate governance, uncompetitive sourcing practices and unfocused project management, frequently leading to cost overruns and delivery delays. This in turn leads to a strained relationship between marketing departments and their peers in procurement, who find it difficult to overcome their seemingly incompatible goals. The problem is so bad and so distinct to this particular category that it practically begs for a niche technology solution to address it.

This is precisely the inspiration behind Sourceit, a four-year-old provider of sourcing and e-procurement tools for marketing services. Born out of a homegrown print sourcing solution at Finsbury Green, an Australian printer and managed services provider, Sourceit market and catalog offers a targeted set of capabilities that illustrate a deep understanding of the common hurdles of marketing procurement as it applies to print technology. The technology was spun out of Finsbury Green in 2015 as a standalone SaaS platform, then over the past four years has expanded from Australia into the UK, Canada, Brazil and, as of 2017, the U.S., under a reseller model in each market.

This Spend Matters PRO Vendor Introduction offers a candid take on Sourceit's capabilities. The brief includes an overview of “sourceit market” and “sourceit catalog” applications, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for companies that might consider the provider.

Easier-to-Use Sourcing Optimization Can Put the Power in the Hands of Everyone, Scout RFP Says

Sourcing optimization holds much promise for crunching the vast amount of data that procurement organizations increasingly face — as well as cutting costs, saving time and guiding buyers and suppliers to better decisions. But to date, the tools used for optimization have been too complex for most professionals to easily examine and understand the wide range of sourcing events presented.

That’s starting to change as procurement technology modernizes and customer-experience expectations rise.

To understand how the barriers to using sourcing optimization are dropping and to see the wider adoption of dynamic negotiation and sourcing optimization tools, we asked Scout RFP Co-Founder and President Stan Garber to shed some light on the latest developments.

“Today, we can optimize the entire sourcing process with a click of a button. We’re going from the days of manual Excel modeling and email juggling to a collaborative application that is as simple to use as an iPhone,” Garber said for this Q&A about the future of the procurement and sourcing technology.

Simplify Workforce: Vendor Introduction, Analysis and SWOT [PRO]

Because of recent M&A consolidation and multiple external drivers, the market for vendor management system (VMS) solutions has become fairly complex. Competing vendors have been absorbed or combined, draining the field of vendor choices that can be applied in a wide number of scenarios. Concurrently, businesses have shifted away from their focus on temporary staffing labor to a rising emphasis on statement of work (SOW) spend, while also exploring new talent engagement models that increase program complexity, to include the exploratory enterprise adoption of the “gig economy” in the form of independent contractors. Add in the typical challenges of effectively operating a temporary staffing program — from cost control issues to quality maintenance and the management of intermediaries like MSPs — and it’s easy to see why procurement organizations are finding the old paradigm for VMS solutions is no longer holding up.

Going against the grain of complexity is a newer VMS provider that incorporates simplicity (i.e., ease of use) into its name — and its solution. Founded in 2016, Simplify Workforce provides an end-to-end SaaS solution for managing the extended workforce.

The Jersey City, New Jersey-based provider enables this through separate modules for contingent workforce (or in our SolutionMap classification, Temp Staffing) and statement of work (Contracted Services/SOW), with an emphasis on configurability, adaptability and ease of use that has typically eluded past VMS solutions. In doing so, Simplify Workforce aims to address the long-underserved middle market — specifically, businesses with annual contingent workforce spend of $1 million to $100 million — with the ability to scale up or down on spend easily, with a VMS and SOW solution that can solve the majority of daily contingent workforce challenges without overwhelming users, implementation teams and budgets with unnecessary complexity.

This Spend Matters PRO Vendor Introduction offers a candid take on Simplify Workforce and its capabilities. The brief includes an overview of Simplify Workforce’s offering, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for companies that might consider the provider.

SAP Ariba Sourcing: How It Compares Today and What’s Coming Tomorrow (Part 1: Benchmark Performance, Product Roadmap) [PRO]

future

The strategic sourcing or e-sourcing technology market — we simply call it “Sourcing” in SolutionMap — has undergone significant transformation and bifurcation in recent years. On the one hand, disruption has come from simplicity and ease of use (e.g., Bonfire, Keelvar, Market Dojo, Scout RFP, etc.). And on the other hand, it has come from significant advances in functional capabilities in various areas (e.g., Coupa, GEP, Ivalua, Jaggaer, SynerTrade and Wax Digital, among others).

SAP Ariba, one of the stalwarts of the Sourcing world for over two decades (if you count the acquisition of FreeMarkets), remains a frequent competitor on a global basis today. But how does SAP Ariba compare to others in the market on a functional basis based on its current offering? And what is coming for SAP Ariba Sourcing tomorrow?

Part 1 of this Spend Matters PRO analysis provides insight into SAP’s relative strengths and weaknesses today (based on our Q1 2019 SolutionMap release) and shares what we learned from the SAP Ariba Live event this month on an overall roadmap basis. Part 2 will provide additional insight into the new SAP Ariba Sourcing user experience as well as analysis, commentary and customer recommendations based on SAP Ariba’s Sourcing roadmap overall.

Ivalua NOW Paris event: A Dispatch on the Art and Science of Procurement

Spend Matters analyst Michael Lamoureux attended Ivalua’s customer event, Ivalua NOW Paris: The Art of Procurement, last week and found several advancements in the provider’s offerings, saw some improvements to its capabilities and learned about plans to upgrade its solution.

Shortlist: What Makes It Great (Independent Contract Workers Analysis)

Shortlist is a provider of an enterprise technology solution that enables organizations to source, on-board, manage, directly engage and pay their independent contract workers (ICWs).

Its offering was recently evaluated in Spend Matters’ SolutionMap framework with the Independent Contract Workers (ICW) enterprise solution category. That segment is the most dynamic part of the contingent and workforce and services (CW/S) procurement technology market, which also includes SolutionMap’s Temp Staffing (Vendor Management Systems/VMS) and Contract Services/Statement of Work solution segments.

Most ICW enterprise solutions have emerged over the past five years within the context of the so-called gig, freelance and peer-to-peer “economies” — a world of innovative platforms like Uber and Airbnb versus the establishment world of enterprise software applications inhabited for decades by providers like SAP and Oracle.

While some new providers have stood up external platforms like online marketplaces that function effectively as third-party suppliers of talent, others have stood up enterprise software solutions that organizations can use to source and manage talent in ways that VMS, ATS and HRIS systems cannot. Shortlist falls within this latter category.

Shortlist provides a comprehensive, fit-for-purpose software solution that can be used by organizations to manage their independent contract workers (ICWs) and small-scale service providers (SSPs). The solution provides support in almost every aspect of the ICW/SSP source-to-pay lifecycle.