The Sourcing Category

Putting “Strategic” Back into Sourcing with Deloitte — New, Complimentary Research

The need is there for a wholly strategic supply chain sourcing platform built on a supply network design model. It's time to move on from the standard BOM-based sourcing workflows and low-level commodity sourcing efforts that utilize e-RFX tools. Pierre Mitchell, chief research officer at Spend Matters, makes his case in Part 1 of his two-part series: Deloitte's Game-Changing Analytics Platform Puts 'Strategic' Back into Sourcing.

This two-part research series is culled from his four-part series (linked to in this paper) and features a comprehensive approach to strategic supply chain technology and trends.

Wednesday, May 31. Downtown Chicago. Sourcing, AI and Optimization.

I rarely pimp things I'm participating in, but I'm really excited to go back to my FreeMarkets roots tomorrow (May 31) at this breakfast and morning session in Chicago on the future of strategic sourcing and e-sourcing. The event is free, and it’s open to procurement practitioners and consultants.

Keelvar is hosting the event and the topic is about the massive transformation (thanks to artificial intelligence [AI], robotics, optimization and more) starting to take shape in strategic sourcing and e-sourcing. Alan Holland (Keelvar) and Josh Brogan (A.T. Kearney) are speaking as well.

Verisk Maplecroft Releases Latest Geopolitical Risk Outlook: Keep An Eye on Emerging Markets

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Emmanuel Macron’s win in the French presidential election was a temporary boon for geopolitical stability, as was Moon Jae-in’s election as the new president of South Korea. U.S. president Donald Trump, however, has managed to become even more of a wildcard. In addition to the above, many emerging markets are at risk of growing instability, according to global risk research firm Verisk Maplecroft, which recently released its 2017 Geopolitical Risk Outlook.

Ethiopia’s Apparel Sector Beset By Land Disputes and Labor Risks, New Research Finds

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As a sourcing destination for apparel companies, Ethiopia can hardly be called up-and-coming anymore. Since 2013, East Africa — and Ethiopia in particular — has been on the radar of apparel companies seeking low-cost manufacturing labor. New research from global risk consulting firm Verisk Maplecroft, however, suggests that Ethiopia’s apparel sector is likely to face significant risks in the near future, from land disputes to human rights concerns to political protests and instability.

Trade Extensions Dispatch: Is The Supply Chain Ready to Be Defined by Sourcing?

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Trade Extensions sells the most advanced sourcing optimization technology that Spend Matters has encountered on the market today (read our research, linked below, if you want to understand why). It’s capable of tackling extremely complex multitier sourcing challenges. This is one of the reasons Coupa is buying it. Yet today, most customers are just scratching the surface of what the tool can enable in the majority of their sourcing events (if not all).

Fish Fraud, Mislabeled Sushi and Supply Chain Traceability

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Nowadays one doesn’t have to be a coffee snob to appreciate a single-origin brew, not when even Starbucks is bandying around words like terroir. The same goes for so-called bean-to-bar chocolate. For years now, businesses and consumers have pored over the provenances of foodstuffs with a fervor that used to be limited to wine. Seafood may be getting there, too, albeit slowly. Imagine ordering from a menu where each seafood dish comes with a note on where it came from.

Is Sourcing Forklift Trucks Easier than Sourcing Cars?

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Spend Matters welcomes this guest post from Nitin Khandelwal, of GEP.

Forklift sourcing isn’t as complex as it seems (especially when we compare it with fleet), but there are a variety of factors that should be considered to ensure that you contract the right supplier.

Conflict Minerals Update: Perspectives on the SEC’S Latest Move

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Last Friday, the U.S. Securities and Exchange Commission announced that it is scaling back the more costly parts of its conflict minerals rule. As indicated in Section 1502 of the Dodd-Frank Act, companies are required to disclose whether their products contain tin, tungsten, tantalum and gold (3TG) sourced from the eastern regions of the Democratic Republic of Congo, where large shares of mining profits go to various armed rebel groups.

Trade Extensions and Coupa Acquisition Analysis: Customer and Partner Recommendations [PRO]

Tradeshift Baiwang

This Spend Matters PRO brief, part of a series analyzing Coupa’s acquisition of Trade Extensions (see also here and here), provides recommendations for Trade Extensions and Coupa customers and partners surrounding the acquisition. 

Spend Matters has spoken or met with many of Trade Extensions’ largest customers in recent years (most of which prefer to remain unnamed) and the most advanced organizations view it as the tool that affords the highest degrees of competitive advantage across the procurement technology spectrum relative to peers in as much as how it is used than what it has the potential to do. This is key. In fact, there are material levels of diversity among Trade Extensions users even in the same industry. Many customers expose some parts of Trade Extensions’ potential yet could get away with another optimization solution for at least some of their events, if not all. Yet best-in-class procurement organizations unleash its full potential to drive competitive sourcing and supply chain advantage.

Whether you view Trade Extensions and sourcing optimization at this level or more tactically, this Spend Matters PRO brief provides insight and recommendations into the combination of the two providers. It is divided into three sections: Trade Extensions customer recommendations, Coupa customer recommendations and partner recommendations.

Coupa to Acquire Trade Extensions: Solution and Market Analysis [PRO]

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This Spend Matters PRO brief provides a solution and market analysis of Coupa’s announced acquisition of Trade Extensions. Based on subscriber feedback, we’ve already been asked to go into details about what makes Trade Extensions’ optimization capability different from Jaggaer ASO (formerly CombineNet), BravoSolution, Keelvar, Determine/Iasta and Emptoris (IBM).

In addition, this brief offers a broader market-based analysis of the acquisition. As always, we invite Spend Matters PRO advisory customers to reach out to us for more insight behind our thinking and also to discuss if Trade Extensions is right for them (as well as alternatives). We will publish a separate customer and partner analysis PRO research brief later this week.

Given our knowledge and background in this market, we tried to think of an analogy to describe the combination of Coupa and Trade Extensions’ strategic sourcing capability. We think we’ve got a good one. However, we’ll share this analogy at the end of this research brief. First, to focus on what really matters, we’ll delve into some of the less superficial solution, customer and market analysis.

Apple Achieves 100% Cobalt Supply Chain Mapping (Plus: Lessons for Supply Chain)

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Apple’s responsible sourcing efforts now include tracking cobalt as well as conflict minerals, according to the company’s 11th annual Supplier Responsibility Progress Report released Monday. Last year, Apple announced it had achieved 100% third-party auditing of conflict mineral suppliers. This year, Apple was able to publish a complete list of its cobalt smelters, all of which have participated in third-party auditing. In another milestone, Apple’s suppliers have also achieved 100% UL 2799 Zero Waste to Fill validation for all final assembly sites in China.

A Look Back at IvaluaNow: Balancing Complexity with UI [Plus+]

Last Friday, I found myself in a wood-paneled, classy meeting room at NYC’s prestigious Princeton Club. It had been a slow commute into the city that morning, so I got there just in time for the speakers to blast an energetic opening video and to loudly announce our host — Ivalua CEO David Khuat-Duy.

Khuat-Duy founded Ivalua 17 years ago in France, and the company has realized rapid year-on-year growth since its inception. For example, in 2016 the firm experienced 45% growth over the previous year and a 100% customer retention rate (which has been 98% since inception). Ivalua now serves more than 250 customers globally, and the U.S. accounts for 50% of the company’s business.

Named a Provider to Know for three consecutive years in the Spend Matters Almanac, the company “has built an end-to-end solution on a single technology stack (from the ground up) with sufficient breadth and depth across all key functional areas to enable it to serve as a single technology suite for procurement organizations. Its entire suite was built in-house on a single platform over the last 16 years.”