Category Archives: Supplier 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

supplier network

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

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.