The Supplier Collaboration Category

A Different Sort of Influence: 16 Areas Where Supplier Management Can Help Engage Your Stakeholders Strategically (Part 1) [Plus+]

Supplier management is too often an afterthought in the eyes of procurement and its stakeholders. Yes, it's important to collect supplier qualification information through the sourcing and onboarding process, and then also monitor the suppliers against their contracts to get what you paid for and to reduce supply risk. But shouldn’t there be more to supplier management?

Progressive organizations are beginning to use supplier management (and third-party management more broadly) as a better overall governance structure for how to best externalize the enterprise. This is especially true as supply markets get digitized (and disrupted) and supplier innovation can be brought to bear beyond cost/spend savings.

“Innovation management” is indeed one of the areas where a supplier management approach can help procurement influence stakeholders, but there are 15 other ways, as well. Having a broader palette of value creation (for which we’ll discuss six major value streams) will not only help improve spend influence but also improve the quality of influence to help elevate procurement’s value proposition.

New Research: Using Collaboration in Bringing Competitive Advantage to Your Supply Chain

If your organization wants to create competitive advantages through its supply chains, collaboration is crucial, according to new research from the Global Supply Chain Institute at the University of Tennessee – Knoxville. The findings were presented in a white paper, End-to-End Supply Chain Collaboration Best Practices, written by Mike Burnette, managing director of the institute. Burnette and other supply chain faculty at the university interviewed 17 leading companies in eight industries to determine the best practices that help organizations achieve success through collaboration.

Vendor Summary Report: Supplier Management SolutionMap℠ Q4 2017 [PRO]

supplier network

This SolutionMapSM analyzes a select group of supplier management (SXM) providers. It includes coverage of supplier information management (SIM), supplier master data management (MDM), supplier performance management and broader initiative management (e.g., risk, third-party management) capabilities. It is part of our Q4 2017 SolutionMap report series, also featuring spend analytics, sourcing, contract management, e-procurement and invoice-to-pay providers. Our Q4 2017 also features SolutionMaps for procure-to-pay and strategic procurement technology suites.

Spend Matters tracks more than 50 supplier management solution providers today. This analysis features many of the largest supplier management providers, including BravoSolution, Determine, GEP, Ivalua, Lavante (PRGX), Hiperos 3PM (Opus Global), Jaggaer, Jaggaer Direct (formerly Pool4Tool), SAP Ariba, State of Flux and Zycus. Among these providers it features select industry/specialty capability of providers, although it does not highlight them in a specific persona, a change from our last SolutionMap release.

SolutionMap ratings provide comparative rankings and insight into how each provider scored from a Solution perspective and Customer Value perspective.

Dive deeper with our full analysis.

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SRM Unplugged: Expert Answers to 8 Burning Questions

Leading procurement organizations today know that investing in supplier relationship management pays real dividends for the enterprise. But knowing a practice is beneficial and knowing how to implement it are entirely different things. To help take SRM from theory to practice, we teamed up with David Atkinson, distinguished procurement leader and Managing Director, Four Pillars Consulting, who answered these top real-world questions on SRM during a recent webinar: “Supplier Relationship and Value Management: The Five Programme Killers and How to Overcome Them.”

The Benefits of Treating Your Suppliers Like Partners

Spend Matters welcomes this guest post from James Gellert, chief executive of RapidRatings.

Suppliers and buyers haven’t always had the best relationship beyond the transaction. Historically, the relationship was focused on getting the lowest price and reliable delivery. While this made sense on paper, it inevitably created a zero-sum game, as suppliers were often seen as expendable. Suppliers knew they could be replaced at any time and therefore had little interest in being flexible or working in the purchaser’s best interest.

While many companies have since rethought this Draconian approach and have been successful in creating overall value beyond the transaction, those companies that have truly realized the benefits of treating suppliers like partners are able to transform themselves into a more focused, nimble and cost-effective global competitor.

Procurement Value Drivers

Spend Matters welcomes this guest post from María Cecilia Siqueira, of GEP.

Formerly known as a tool for cost reduction, procurement is now changing the business game. The market’s fast pace and global competition has forced some critical transitions in companies’ structure, strategy and execution. As Klaus Schwab, chairman of World Economic Forum, puts it, “Nowadays, it is no longer the big fish that eats the small fish — it is the fast fish the eats the slow one.”

Why Every CPO is a “CEO” — But Not the CEO You’re Thinking Of

Global Risk Management Solutions (GRMS)

As value chains go digital, many enterprises have been trying to take a strategic approach in formulating digital business strategies rather than just translating existing business strategies into IT projects. Organizationally, many have appointed chief digital officers to manage this digital transformation. But digitization is only one megatrend. Its twin sibling is externalization, which is not just traditional outsourcing but the ability to similarly drive transformation by bringing the (increasingly digital) power of supply markets into the enterprise. You could then ask who would be best suited within the organization to perform the function of chief externalization officer (“CEO”).

Coupa’s Release 17: Features and Approach

Coupa’s first update of the year, Release 17, offers a new application called “Perfect Fit Insights” for cross-customer B2B insights and more than 50 features across the platform including new collaboration mechanisms to work with suppliers and additional e-invoicing compliance templates.

We published an in-depth analysis of Release 17 on Spend Matters PRO, but here is a quick recap on what you can expect from the solution update.

ClientLoyalty: Vendor Snapshot (Part 1) — Background & Solution Overview [PRO]

Supplier performance management is quickly becoming a "hot topic" among procurement organizations that want to create step change improvement as part of their supply management journey. This technology segment is actually a sub-segment of the supplier management technology market, which is more broadly comprised of what we often describe as “strategic procurement technologies” (see Spend Matters’ Sourcing, Contracting and Supplier Management Landscape Definition and Overview report for more detail). But supplier performance management, while a hot topic among procurement people and among those marketing solutions on the vendor side, is unfortunately not a hot topic among developers, especially as it pertains to managing the relationship aspect of supplier collaboration. While many procurement suite technology providers offer supplier management solutions, the reality is that the majority of these emphasize collecting and managing supplier master data and limited supplier performance management requirements.

ClientLoyalty, a somewhat ironically-named technology provider based on its orientation to managing suppliers, is hoping to change this. ClientLoyalty was founded with the desire to bring strategic supplier relationship management to companies that realized the critical importance of relationship management in order to get the most value for their money from suppliers. This Spend Matters PRO Vendor Snapshot provides facts and expert analysis to help procurement organizations make informed decisions about ClientLoyalty’s supplier management capabilities. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider ClientLoyalty in the procurement technology area. The remaining parts of this research brief will cover product strengths and weaknesses, competitor and SWOT analyses, and insider evaluation and selection considerations.

Deriving Competitive Advantage from a Sustainable Supply Chain

Spend Matters welcomes this guest post from Suhas Apte and Jagdish Sheth, authors of The Sustainability Edge: How To Drive Top-Line Growth With Triple-Bottom-Line Thinking.

The focus of supply chain management has historically been cost reduction and risk management. Therefore, much time tended to be spent on maintaining transactional supplier/buyer relationships that entail dictating supplier policies and mandating supplier compliance auditing. Doing so has only ensured that businesses become incrementally “less bad.”

3 Insights for Procurement from aPriori’s Cost Insight Conference

Spending the last 24 hours surrounded by design and cost engineers has taught me quite a bit about operations beyond procurement and supply chain management. Those in the buying and sourcing profession often spend a lot of time thinking about cost, and they sometimes get a bad rap for it. But based on my discussions with attendees, it’s clear to me that procurement is far from the only organizational unit worried about helping revenue get to the bottom line.

Yet procurement struggles with its image: it’s slow, it’s a roadblock to progress, it’s not knowledgeable enough to be valuable in new product development. The practitioners in attendance at Cost Insight, however, have worked doggedly to change perceptions such as these at their firms — to great success, in many cases. Here are three insights for procurement I’ve gleaned from various sessions.

Why Product Cost Management is (Finally) Gaining Acceptance with Global Manufacturers

The background music at this morning’s introductory session to aPriori’s Cost Insight conference said it all: “Never get fooled again.”

Manufacturers big and small waste time and money iterating on product designs, and the gap between “should cost” models and real total cost of ownership (TCO) is known to many procurement groups. But a growing openness to product cost management processes and tools, aPriori says, should end this confusion once and for all.

That’s not just the provider’s narrative either. With 65 companies in attendance this year at Cost Insight, the desire for better platforms for new product development, cost management and supplier collaboration is clear.