Category Archives: Supplier Management

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.

Join Jason Busch and ISM for Suppliers Webinar and Receive 1 CEH Certificate

suppliers

Do You Have a 360-Degree View of Your Suppliers? Join Jason Busch, founder and head of strategy at Spend Matters, ISM and representatives from POOL4TOOL, riskmethods, EcoVadis and LexisNexis Risk Solutions this Wednesday, Sept. 21, at 2:30 p.m. EDT. They'll show you how to reduce risk in your supply base, how to increase supplier compliance and much more. Sign up here!

7 Secrets to Creating Supply Risk Management Leverage

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As recent events such as Hanjin Shipping’s bankruptcy, the Zika virus and the East Coast oil disruptions have demonstrated, supply risk management is more important than ever. Yet trying to implement supply risk management as a standalone program is often a tough affair for companies where the modus operandi is unprotected “supply reward management.” All too often, organizations view risk management as a glorified insurance policy instead of as a strategy integrated with the rest of the business.

This is a mistake. Risk and reward can work together to create true win-win situations for both suppliers and the business. In this Spend Matters PRO analysis, we share seven strategies that leading supply chain organizations have found to be successful.

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.

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

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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.

Statess (State of Flux): Vendor Snapshot (Part 3) — Competitive & Summary Analysis

supplier management

Statess, a supplier management technology solution developed and owned by State of Flux, a consultancy, competes in a sector that is confusing for providers, let alone procurement organizations. The fragmentation of the supplier management technology market can make it difficult for procurement organizations to create the right provider shortlist and select the optimal technology to meet their needs. Statess is an upstart competitor in this highly complicated sector, although one not as well known as perhaps it should be, owning to the limited sales and marketing investment of its parent company relative to peers.

This final installment of our multipart Spend Matters PRO Vendor Snapshot series covering Statess offers a competitive analysis and comparison with other supplier management 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 State of Flux and the Statess product line.

Statess (State of Flux): Vendor Snapshot (Part 2) — Product Strengths & Weaknesses

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There are comparatively few sourcing and supplier management technology providers that specialize in the management of strategic supplier relationships. Statess, a vendor based in the U.K. and wholly owned by State of Flux, a consultancy and services firm, is one of them. What State of Flux originally launched as a relatively simplistic toolset for supplier performance management and (corrective) action planning has grown into a full-fledged supplier relationship management (SRM) solution that ecompasses supplier information management, performance management, risk management, governance and relationship management, corporate social responsibility (CSR), contract management and innovation management.

This Spend Matters PRO vendor snapshot explores Statess’ strengths and weaknesses in the supplier management area, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor as a potential provider. 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 Statess. 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.

Statess (State of Flux): Vendor Snapshot (Part 1) — Background & Solution Overview

Oracle

Unlike e-procurement and electronic invoicing, the market for supplier management technology is inherently complicated for two reasons. First, the range of use cases organizations can apply are broad, and second, the vendors serving the market are diverse, often with significantly different value propositions when compared with each other. There are different ways to segment the supplier management market and we would encourage Spend Matters subscribers to take the time to understand the advantages of using technology to support different initiatives, from accounts payable-based supplier onboarding to enabling supplier diversity programs to strategic supplier development.

One provider that began serving the market focused on strategic supplier development is State of Flux, which positions its applications division as a supplier relationship management (SRM) technology provider. Founded in 2004, State of Flux saw an opportunity from its consulting work to develop a solution focused on strategic SRM that would eventually become known as Statess. What started as a simple tool for performance and (corrective) action planning has grown into a full-fledged SRM solution that offers supplier information management (SIM), performance management, risk management, governance and relationship management, CSR (corporate social responsibility), contract compliance and innovation management.

This Spend Matters PRO vendor snapshot explores Statess’ strengths and weaknesses in the supplier management market, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor as a potential provider. 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 Statess. 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.

The Ripple Effect of Supplier Bankruptcy: Broad and Deep

Spend Matters welcomes this guest post from Rose Kelly-Falls, senior vice president of supplier risk management at Rapid Ratings.

A critical 105-year-old automotive interior supplier filed for bankruptcy last week, making General Motors’ worst nightmare a reality. Clark-Cutler-McDermott (CCM), a Massachusetts-based GM supplier, makes approximately 175 parts for GM and relies on the automaker for more than 80% of its revenue. For any company, such a crucial partner’s bankruptcy would be challenging, but for a Fortune 500 company, it can be brand-defining.

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

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As businesses, we are increasingly buying outcomes rather than widgets or labor. Yet in many ways, the general market for procurement technology still reflects a world in which we source, procure, contract and manage supplier relationships based on models that track to underlying SKUs or hourly bill rates rather than partnership-based outcomes. There are a few technology providers working to change this paradigm, including SirionLabs, which has built a suite focused on managing all aspects of complex supplier relationships after a negotiation has taken place, starting with contract authoring and proceeding to steady-state performance, relationship and risk management. Comparing SirionLabs with a traditional source-to-pay (S2P) technology suite or a vendor management system (VMS) provider with an SOW capability is like comparing boats, cars and airplanes. While all three provide transportation, they do so in environments that are foreign to each other and where hybrid approaches to date have amounted to compromises that few want to make.

This Spend Matters PRO vendor profile provides facts and expert analysis to help procurement organizations make informed decisions about whether they need a solution like SirionLabs or an alternative for complex services spend. This multi-part research brief includes a SirionLabs company and solution history and overview, company-level SWOT analysis, product strengths and weaknesses, competitor analysis, user selection guides and insider evaluation and selection considerations.

Why Supply Chain Risk Management is Key to Supplier Management

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While category management can address and even reduce supply chain risk by ensuring a chosen strategy has the right level of resiliency, prevention and agility, it cannot prevent risk or do much to eliminate the source of risk once something has happened. That can only be done by each party in the supply chain doing everything they can to eliminate the risk. In particular, a supplier needs to do all they can to minimize the risk on their end.