Category Archives: Supplier Management

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

contract

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

risk

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.

Automakers Need to Improve Their Supplier Relationships

Nissan

Automakers need to do a better job of working with suppliers to succeed in an increasingly competitive market, according to a new analysis. The North American Automotive OEM-Supplier Working Relations Index Study from Planning Perspectives Inc., a Mississippi-based consulting firm, looked at six original equipment manufacturers and their working relationships with suppliers. None of the automakers received scores on the index that Planning Perspectives considers “good” or “very good.”

3 Ways Large Buying Organizations Can Better Attract SMB Suppliers

change of control clauses

As procurement and supply chain organizations know, there are many benefits of working with small and medium-sized businesses — they diversify your supply chain, foster innovation, can often be more flexible, perhaps offer lower prices and a more intimate business relationships or even operate locally. But large buying organizations often struggle to effectively engage with SMB suppliers for various reasons.

Collaborative Innovation: A Healthy Strategy for the Aeronautics Industry

Spend Matters welcomes this guest post from Adam Cleveland, director of digital marketing at Ivalua.

There’s no doubt the aeronautics industry is booming. Resilient growth within the air traffic and defense sectors — alongside the recent enactment of the Rafale Contract in Egypt — has helped the industry soar to new heights. Nevertheless, the modern aeronautics industry still faces many stringent challenges, from sales limits to aging business models.

What the Nissan-Mitsubishi Debacle Teaches Procurement About Enterprise Risk Management

Nissan

Nissan car sales have taken a dive in Japan after its supplier, Mitsubishi Motors, admitted to manipulating fuel economy test data for the last 25 years on some of its vehicles. While Nissan ultimately discovered the fuel efficiency discrepancies in the cars Mitsubishi supplied, the story serves as an example of what companies should be doing to manage potential risks in their supply chain.

Tricky Business with Supplier Lifecycle Management

Spend Matters welcomes this guest post by Santosh Reddy, of GEP.

ERPs are funny. Businesses are even funnier. The last month saw me in extensive discussions with threes companies in different industries and continents on one topic – supplier information, from the moment a supplier is identified as a potential source to being selected for procuring from and paying to. The approaches and the reasons behind how widely the companies varied in their final solution left me wondering about the constraints on efficiency imposed by legacy systems.

Defining Your Solution Approach: Supplier Management 101 (Part 3)

supplier management

In Part 1 of this series, we introduced supplier management from a process and methodology standpoint before mapping it to various solution areas that are out in the marketplace. Supplier management often is called SLM because of its lifecycle focus, which spans initial analysis (analysis and opportunity identification), planning (sourcing), negotiation (contract management) and execution (performance), and closes the process loop by leading back to the analysis phase of the strategic sourcing cycle as a result of future opportunity identification. Third-party management (3PM), which deals with non-suppliers that are also critical to your organization — such as government agencies, third-party logistics, partners and (media) agencies — is simply the application of the appropriate finely-tuned subset of supplier management capabilities to the third party that needs to be managed for organizational success. And, of course, you also need good supplier information. In this installment we cover what is in scope from a process and information standpoint before mapping to solution categories that are available in the market.

HICX: Vendor Snapshot (Part 2) — Strengths, Weaknesses, Competition and Customer Fit

supplier network

Those procurement organizations that have already deployed supplier management solutions or are familiar with the details of them are likely aware that they are often as — or more — complicated as purchase-to-pay (P2P) and other related solutions. While some providers targeting this area offer focused solutions (e.g., supplier risk management, supplier performance management, supplier portals), others go broad (and deep) spanning all of these areas and more. One such provider is HICX, which we previously provided a company and solution overview for in the first installment of this series. HICX competes against a range of suite providers (e.g., Ariba/SAP, Emptoris/IBM, Coupa, GEP, Determine, Ivalua, Oracle, SciQuest, Zycus, etc.) as well as vendors that target specific or broader aspects of the supplier management area (e.g., Aravo, Biznet, CVM Solutions/Kroll, ConnXus, DiversePoint, DIR, Hiperos/Opus Global, Lavante, OpenText/GXS/Rollstream, Source Intelligence, SourceMap, etc.). It also competes against “substitute” providers offering supplier management capabilities on a managed services basis (e.g., Achilles, Helios, Global Risk Management Solutions, etc.). This Spend Matters PRO research brief provides insight into HICX’s strengths, weaknesses, competition and ideal customer fit.

HICX: Vendor Snapshot (Part 1) — Company and Solution Overview

SpendLead

Companies looking for supplier management solutions have a broad range of choices, ranging from independent solution providers to ERP modules of varying degrees of sophistication and depth. There are numerous challenges that come with identifying the right solutions in the market for an individual procurement organization. These include the fact that consultants and analysts generally have limited experience with the in-the-trenches capabilities of these solutions compared with sourcing and purchase-to-pay suites. Further, the individual capabilities of solutions can vary dramatically, and independent solution providers generally invest far less in sales and marketing in educating the market and building awareness than providers delivering suites or serving other areas of procurement. One provider that warrants consideration in the market is HICX, a London-based firm founded in 2004. It is essentially a supply chain master data management (MDM) solution with a configurable workflow that allows an organization to use it as the supplier (and associated product) MDM system. Even though the company now focuses heavily on supplier information management (SIM), supplier performance management (SPM), supplier risk management (SRM) and supplier compliance management (SCM), it enables end-to-end supplier data management as a result of its strong MDM foundation. It has also recently expanded its capabilities into the contract management area, with a new module that both can complete and complement contract lifecycle management (CLM) solutions. This two-part Spend Matters PRO research brief provides an introduction to HICX, including insight into solution capabilities, product strengths and weaknesses, perspectives on how it stacks up against supplier management competitors and recommendations to potential customers.

ClientLoyalty Officially Launches Relationship Management Platform

ClinetLoyalty

ClientLoyalty, a cloud-based enterprise relationship management software company, officially launched its platform this week. The platform had been in beta testing since January, with a number of companies, including reported multinational and Fortune 100 corporations, testing the solution in recent months. Kent Barnett, CEO and co-founder of ClientLoyalty, said the beta testing was successful and the feedback provided by users during the last three months will drive ClientLoyalty’s product roadmap in the future.