Spend Matters welcomes this guest article by Jim Kiser of GEP. You can't manage what you don't measure. This is an old adage that is still pretty accurate today. Really, if you don’t put in place the criteria to measure something you don't know if it is improving or getting worse. Managing for improvement in today’s business climate is essential, and with regards to supplier performance management, you have to measure to see what is improving and what is not.
Category Archives: Supplier Management
Earlier this week at Empower, the annual IBM procurement event, IBM Emptoris and Coupa announced a broader sales and distribution partner agreement, one built on top of a previous partnership between the 2 vendors. The IBM team told Spend Matters that the 2 providers have approximately 6 clients in common right now, including a large financial services client. The partnership goes beyond a distribution agreement from an IBM perspective and also includes joint API-based and pre-built connector development that is in progress.
We recently started to cover McDonald’s recently announced commitment to eliminating deforestation throughout its supply chain. The announcement pays more than lip service to the opportunity, in part because if will cascade across multiple tiers of suppliers rather than just tier-1 or direct suppliers to the fast food giant. There’s also a number of other rather curious elements to the program that warrant further analysis, one of which is contained within the Supporting Addendum McDonald’s Corporation Commitment on Deforestation that explores the difference between how McDonald’s is defining traceability vs. visibility.
McDonald’s recently announced an important commitment to sustainability by moving to eliminate suppliers that engage in any potential deforestation practices in its supply chain. For quick background reading on the topic, see McDonald’s Corporation Commitment on Deforestation pledge. On the surface, the pronouncement would seem to have corporate social responsibility teeth. I share some of the main points the fast food company has made in its new commitment.
Earlier today on Spend Matters PRO, Thomas Kase, vice president of research, wrapped up his 2-part series on Intesource and told our readers why the e-sourcing company should be on their short short list of vendor considerations. Specifically, Thomas dives into Intesource's new supplier relationship management solution, sharing details about the product as well as insight from Intesource's CTO Gabe Gabaldon. Check out the full article here.
Intesource’s New Supplier Relationship Management Solution: Why it Should Be on Your Short List of Vendor Considerations
This is Part 2 of our in-depth look at Intesource and it new SRM solution release. You can check out Part 1 here. So what is the new supplier relationship management solution like? Gabe Gabaldon, Intesource's CTO, shared some details around the latest update to its sourcing solution. In this PRO research brief, I provide some of the highlights Gabe pointed out, such as its emphasis on enterprise-wide rollout, enhanced customer support and cleaner supplier data. I also offer my input on the solution and add key takeaways.
At Ariba LIVE earlier this month, it was mentioned that T-Mobile has done $8 billion in payments to more than 1,000 suppliers through AribaPay – an impressive set of numbers given that Ariba Pay was released back in July 2014. AribaPay is separate from the rest of the Ariba suite and serves as a standalone (yet integrated) payments module that leverages Discover’s payments infrastructure (“rails” in card speak) to provide transparency and visibility into the payment process from both the seller and buyer perspective. AribaPay is embedded as an option in the Ariba Network to complete the procure-to-pay cycle. I provivde a few examples of AribaPay features.
Back in March, I provided an analysis of the Intesource Innovation Conference in Las Vegas. The e-sourcing provider had announced at the event that it was releasing its new supplier relationship management solution, which I had the chance to preview and wrote about in that initial Plus article on Spend Matters. Today, I continue my coverage of Intesource with more in-depth analysis. Intesource is heavily vested in supporting sourcing and procurement for companies in the retail and restaurant business – specifically grocery retail stores.
In between presenting this morning at Tungsten Insights 2015, and facilitating a panel discussion later today with suppliers on supplier networks and e-procurement solutions (or marketplaces), I sat in for a breakout session led by Selina Yankson, head of campaign management for Tungsten. Selina shared a number of items in her “secret sauce” to maximizing supplier enrollment. She also talked about new approaches Tungsten is taking, as well as enrollment components of Tungsten’s next generation supplier portal. We’ll leave the details of the portal for future analysis as well as some of the key lessons learned over the years in scaling global programs. But here are a few of Selina’s quick tips that jumped out from her talk.
Every so often, we have a discussion with an organization and come away with page after page of insights. Such was the case with a recent interview with a P2P process owner at a large Fortune 500 food/beverage company that had worked with 2 different vendors (Taulia and Xign) over multiple years for supplier enablement and enrollment for connectivity, invoicing and planned trade-financing activity.
Spend Matters recently spoke to a P2P process owner at a Fortune 500 beverage company. The hour-long conversation turned out to be a treasure trove of tips and tactics for improving the supplier enablement and onboarding process for e-invoicing and trade financing. Today, we continue the analysis looking at how this organization got more from the careful use of carrots rather than sticks as it brought suppliers up and running with Taulia (after previously using Xign). With supplier enablement and trade financing programs, this large food and beverage company found that carrots (and frequent, active and friendly communications) tend to work better than sticks, especially with strategic suppliers.
Addressing Communication Challenges With Supplier Enablement and E-Invoicing: Lessons From a Fortune 500 Food/Beverage Company
Even with an initial well-constructed strategy in place with support tactics, it is inevitable in any supplier enablement and e-invoicing deployment that things will not always go as planned, or issues will arise that couldn’t possibly have been pre-determined. One issue for an organization we recently talked to was around communications to suppliers requesting information. It turned out that a surprising number of suppliers going through the onboarding process believed the outbound email and phone-based efforts were “phishing” efforts designed to steal their confidential information (e.g., banking details).