Category Archives: Risk Performance and Compliance

Avetta: Vendor Snapshot (Part 3) — Competitive and Summary Analysis

repair

The worlds of supplier networks, supplier management and services procurement compliance are converging — and Avetta is one of the providers at the forefront of this convergence. Avetta’s initial releases and managed service offering addressed independent contractor verification, validation and management. In some industries, accidents or errors from unqualified third-party contractors, either due to lack of training or lack of certification, can result in million-dollar lawsuits and threats to public safety, so ensuring proper qualifications and training is key.

Today, Avetta has evolved its offering to deliver an enhanced supplier management platform customized for credentialing, certification and contractor capability tracking with respect to health and safety, sustainability and other specific needs. However, unlike some niche supplier information management solutions, the solution allows the questions and profiles to be configured for each supplier based upon service(s) provided, risk profile or industry — and takes this capability down to the individual contractor level.

This final installment of our multipart Spend Matters PRO Vendor Snapshot series covering Avetta offers a competitive analysis and comparison with other procurement technology providers. It also includes a user selection guide, user interface and user experience (UI/UX) analysis and summary evaluation and selection considerations. Part 1 and Part 2 of this PRO research series provide a company and deep dive solution overview, a SWOT analysis, product strengths and weaknesses and a recommended fit analysis for what types of organizations should consider Avetta.

Avetta: Vendor Snapshot (Part 2) — Product Strengths & Weaknesses

ranco lucato/Adobe Stock

What would you get if you combined elements of supplier management, supplier risk management, vendor management system, talent marketplace and contractor compliance systems together, all with a specific design around skilled, often trades-based third-party and contractor management, especially in field intensive industries? We can make the case at Spend Matters that this mash up of capabilities would look something like Avetta, formerly known as PICS Auditing. Avetta solves a key problem that many companies in industries that rely heavily on contractors have: proper contractor vetting. Most supplier management providers vet the supplier, but it is not the supplier or contingent workforce provider alone that matters — it is the employee, or in some cases, the contractor, and if that employee or contractor is doing trade work, he or she has to be trained, certified and reliable.

While lacking some of the nuanced capabilities of many individual solution areas such as a VMS, Avetta makes up for any shortcomings with a purpose-built solution that is a particular fit in industries such as chemicals, construction, facilities management, oil and gas, telecommunications and related sectors. In many ways, Avetta extends the contractor credentialing paradigm of what Vendormate — which GHX acquired after as it scaled a highly successful supplier-paid business model in the healthcare matter — could have become had it remained independent, targeted multiple industries and adopted a supplier model.

This Spend Matters PRO Vendor Snapshot explores Avetta’s strengths and weaknesses across its procurement technology suite, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor as a potential procure-to-pay solution. Part 1 of our analysis comprised a company and detailed solution overview and a SWOT analysis, as well as a summary recommended fit suggestion for what types of organizations should consider Avetta. The remaining parts of this multipart series will offer a user selection guide, user interface (UI/UX) analysis, competitive alternatives and evaluation and selection considerations.

Avetta: Vendor Snapshot (Part 1) — Background & Solution Overview

MRO as a service

Despite its low profile in the procurement world, Avetta, formerly known as PICS Auditing, is better known in certain markets, especially industries that rely heavily on field work and contractors (e.g., energy companies, cable companies, wireless companies, and other utilities). Avetta’s traction in these market segments may not capture the attention of more generic procurement technology providers, but the SaaS applications vendor has seen year-over-year growth in the 30% range over the last 15 years. Avetta combines elements of supplier onboarding, supplier management, contractor management, supply risk management and third-party data aggregation in a unique solution purpose-built to support industry use cases. Avetta now has more than 300 clients (most of them larger Global 2000 firms) that collectively use more than 50,000 suppliers in 100 countries in a network graph with more than 250,000 active connections at any one time.

This Spend Matters PRO Vendor Snapshot explores Avetta and its unique approach to supply chain risk management and supplier management, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor. Part 1 of our analysis provides a company and detailed solution overview and a SWOT analysis, as well as a summary recommended fit suggestion for what types of organizations should consider Avetta. The remaining parts of this multipart series will offer a user selection guide, user interface (UI/UX) analysis, competitive alternatives and evaluation and selection considerations.

Preparing Buyers For Difficult Supplier Conversations — We Check out Rapid Ratings’ New Offering

Supply Chain Fraud

Rapid Ratings has released a very cool procurement content solution that I had a chance to kick the tires on. It’s called a “Financial Dialogue Report,” and basically it packages up Rapid Rating’s FHR (Financial Health Rating) score, CHS (Core Health Score) and supporting FHR components and data analytics into a scripted conversational guide that buyers can use to support their discussions with suppliers regarding “data of concern.”

Accounts Payable: The New Tax Department

Spend Matters welcomes this guest post from Steve Sprague, vice president of product strategy at Invoiceware International.

As governments worldwide continue the fight against tax fraud, they are requiring more and more data from enterprises, even down to the individual invoice level. In fact, a recent EY survey on “VAT/GST electronic filing and data extraction” reported that 16 countries currently require taxpayers to submit individual tax invoices to the tax authority — and that number is only showing signs of growing.

Worried About Third-Party Risk Management? Your Procurement Team Can Help!

risk

Spend Matters welcomes this guest post from Wayne Weil, director, performance improvement at Alvarez & Marsal.

One of the hottest topics in the financial services regulatory world is third-party risk management (3PRM). While regulated firms scramble to meet new guidelines, they may be surprised to find there is a group within their organization that has been working to accomplish many of the same goals for years: the procurement organization. The people, processes and tools found within most procurement organizations can provide a powerful complement to the compliance organization’s third-party risk management aims. As firms grapple with developing compliant 3PRM programs, they would be well served to partner with their procurement teams to jump-start the implementation, as well as to capture the additional hard-dollar benefits that have been the yardstick for success in traditional vendor management.

Concerned About Vendor Credential Compliance Risk? Now There May Be a Way to Rest Easier: GIS

Supply Chain Fraud

The management of compliance risk in the supply chain must be attacked in a number of ways — almost always based on the organization of the right data and information. We recently had the opportunity to speak with David Bartley and Patrick Espie of General Information Services Inc. (GIS) to learn about the company’s latest offering, vendor credentialing management (VCM), which effectively enables companies to manage a certain dimension of compliance (credentialing) risk in their supplier network.

GIS is one of the top employment-related background checking service providers. The 50-year-old company was listed on the 2016 Workforce Magazine “Hot List,” where it was reported that the company served more than 2,350 companies by processing employment-related screenings on more than 9.2 million people annually. Among GIS’ client companies are some very large ones, including one-sixth of the Fortune 500. GIS prides itself not only on its information and technology but also on its high level of service (provided by a client services workforce located entirely in the U.S.).

Supplier Response Rates Improve in SEC Conflict Mineral Reporting

child labor

More suppliers are responding to information requests regarding conflict mineral sourcing as organizations aim to gain visibility into their supply chain and ensure no tin, tungsten or tantalum is being sourced from conflict zones in the Democratic Republic of the Congo. A new analysis of more than 1,200 U.S. Securities and Exchange Commission filings from 2015 related to conflict minerals reporting shows supplier response rates increased compared with a year earlier.

Book Review: Legal Blacksmith — How to Avoid and Defend Supply Chain Disputes

book

We are in the middle of a great period for procurement and supply chain books, with several very impressive examples being published over the last two years or so. (We’ve linked to our overview of some of those at the end of this article). Now, there is another impressive publication to add to the list. "Legal Blacksmith – How to Avoid and Defend Supply Chain Disputes" has a different perspective to any book we have seen previously in our sector.

Lack of Investment in Trade Compliance Training Troublesome

customs bill

Procurement organizations have faced a number of new trade compliance regulations this year. Take the new Trade Facilitation and Trade Enforcement Act, as an example, which was signed into law in February. Or, the new Cuba trade agreements developing now that sanctions have been lifted. And now, with Brexit vote impacts looming over procurement and supply chain organizations, companies may have additional trade rules to consider in the near future. But a new survey shows multinational companies are not investing in trade compliance training for their employees, despite the risks of noncompliance.

Brexit: A ‘Huge Supply Chain Problem’

Brexit

Much of the rhetoric around Brexit has been very political, but the global business community needs to become a bigger part of the conversation, according to Bindiya Vakil, founder and CEO of supply risk management and market intelligence solution provider Resilinc. Brexit is not a local or regional problem — it will impact companies around the world, she said, adding this is a “huge supply chain problem.”

Prepping Your Supply Chain for Taiwan Typhoon Nepartak

supply chain disruption

The super typhoon Nepartak struck Taiwan earlier today, causing flooding, power disruptions and damage to homes and other structures. There are also reports of extensive damage to Taiwan’s agriculture industry, with initial losses topping $18 million. How exactly the storm will impact other industries as well as businesses that rely on suppliers in Taiwan has yet to be seen. However, supply chain and procurement organizations that work with partners in the country should take these five steps to prepare for, and potentially mitigate, the impacts of the supply chain disruption.