supplier networks Content

A TRULY Open Supplier Discovery Network: Spend Matters Crowdsource #1

supplier management

As I hinted at yesterday, the notion of a truly open supplier network doesn’t exist today. My first contribution – and request of you – has to deal with the best ways of overcoming the notion of closed supplier search, ratings, rankings and connectivity. Instead of pointing fingers at the effect of closed systems (e.g., supplier network fees for transactions, business credit rating agencies “double-dipping” on fees, etc.), let’s together come up with solutions. Together. This is the first installment of a crowdsourcing series where Spend Matters analysts will offer up an “open call” to the market for a B2B problem that exists in the value chain. It’s easy to complain generically about broad problems, but we thought we’d provide a more granular specification for a crowdsourced solution that we feel is needed in the market. There’s no cash prizes here other than bragging rights…and world domination (maybe).

Will Blockchain Kill Ariba, Basware, D&B and Others?

supplier network

Imagine a new world, where the concept of a ‘supplier network’ becomes a set of discoverable and available web services and associated data that has persisted in trusted/distributed registries that buyers can access directly or through authorized channel providers. The data is written once by the supplier and accessed flexibly by the buyers and other value chain participants as needed. Let me say I’m certain Ariba, Basware and D&B will continue to provide value to customers. The ROI of e-procurement and P2P is undeniable. They won’t die — but Blockchain does have the potential to be a revolutionary disruptor in supplier networks, procurement technology, and supply risk ratings.

‘A WIP a Week’ — Our New Series for Contingent Workforce and Services Procurement Professionals

talent management

From a contingent workforce and services procurement perspective, work intermediation platforms (WIPs) represent new sources and ways of engaging contingent talent and services. To raise awareness and help to educate our contingent workforce and services procurement audience on this topic, we will be starting a series we are dubbing “A WIP a Week.” Every week, we will select and briefly profile a different WIP on our site. In addition, from time to time, we may also do deeper-dives, for our Plus and PRO subscribers.

An Electronic Supplier Network is a Strategy – Not a Provider Product

supplier management

The term “supplier network” or “business network” can mean many things to many people. Ariba offers its supplier network as a cloud-based set of services and has been very successful at that. Think about car dealers. They don’t make all their money on the cars themselves but on all the downstream services. And if you have a bigger fleet of older, complex vehicles, you’ll make more money from your customers over the lifecycle. It’s good business and a good strategy — unless you’re the customer. As such, I’m writing to the customers about how to best approach supplier networks.

Should Supplier Networks Outsource Vendor Compliance Like Payroll?

supplier network

I’ve had a number of discussions with folks on all sides of the procurement and accounts payable technology market of late, covering different points of view on where supplier networks and transactional connectivity might be headed. One area that seems to come up often is looking at networks not just as a tool for operational efficiency, as they are today, but as an essential compliance utility.

Bringing Procurement Briefs to the Entire Organization

Spend Matters welcomes this guest article by Vroozi.

One of the biggest themes of this blog series has been how procurement will benefit from the increase of information. However, all of this increased intelligence won’t be beneficial to the average business user if they aren’t guided on how to use it. A 4 year old behind the wheel of a car will not be able to see the benefits that a fully licensed driver would.

The next wave of procurement will involve giving internal buyers and external suppliers the guidance and lessons they need to become better at procurement themselves. As procurement professionals move into the role of teacher, they will enjoy moving out of the role of babysitter. Instead of wasting time on administrative tasks, correcting other user’s mistakes and working in an inefficient system, all users of the company’s procurement system will have the education they need to work efficiently and make critical business decisions regarding procurement.

How AGCO Built Its Business Case for Global Supply Chain Risk Management

supply chain

AGCO is a Duluth, Georgia-based, multi-business unit global manufacturer of agricultural machinery. With an addressable procurement spend of around $7 billion, AGCO’S procurement function was fragmented and spread across the many business units, which led to business challenges when external events – such as earthquakes – disrupted the supply base. These events sent buyers scrambling for available capacity without any sense of teamwork or collaboration. When a competitor proved that a center-led supply chain risk management (SCRM) approach was more effective at securing supplier capacity, this drove AGCO to adopt its own strategy, as well as an organizational change to a matrix layout. Organizations that want an inside track on building or accelerating a business case for investment in SCRM are likely to find the Spend Matters paper, A Case Study in Global Supply Chain Risk Management: How AGCO Implemented an SCRM Solution to Save Millions, useful in their efforts.

GT Nexus and Purchase Order Finance – Going Upstream from Taulia, Tungsten and Ariba

Spend Matters and Trade Financing Matters have both long argued that invoice-based discounting and payables and receivables financing programs are just the tip of the trade financing iceberg in terms of getting cash into the hands of suppliers more quickly. My colleague David Gustin recently shared how GT Nexus is targeting purchase order-based financing, which in many ways represents the next frontier of tech-enabled trade financing programs. David suggests that GT Nexus, the world’s largest cloud-based business network for global trade, with over $100 billion of goods managed on the platform, is now offering purchase order finance.

An Introduction to GT Nexus – Targeting the Direct Supply Chain With Applications and Network Capability

supplier network

Trade Financing Matters' David Gustin recently attended the GT Nexus customer conference to gain a better understanding of the provider’s strategic direction in the market following its merger with TradeCard Inc. Given its focus on enabling global trade and direct spend, GT Nexus is often overlooked by those in procurement who are considering solutions in the purchase-to-pay and supplier network areas. Perhaps they should reconsider.

Supply Ecosystems: Co-opetition – Where Cooperation and Competition Meet

We recently shared some thoughts around the premise of an article that will soon be published in the Journal of Business Logistics authored by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook that argues why a new type of supply ecosystem will replace current sourcing and supply chain models. One of the arguments the authors make is that in this new model, rising levels of co-opetition will take place within supply ecosystems. Co-opetition does not just have to mean “supplier vs. supplier.”

Supply Ecosystems: The Next Big Thing?

Thanks to the rise of purchase-to-pay (P2P) software, we hear quite often about “supplier networks” and “business networks” as the next big thing that will link buyers with vendors. But what about the concept of a “supply ecosystem” that goes further? This is the premise in a forthcoming Journal of Business Logistics article authored by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook. Based on the author’s definition, these new supply ecosystems appear to more closely resemble giant industrial conglomerates or trading firms, but without necessarily having corporate parent/child ties between members (think Toyota, Mitsubishi, Samsung and to a lesser degree Siemens and GE).