The Supplier Performance Category

Why Platforms Need to Monetize Their Supplier Ecosystem

Because P2P solutions started giving away supplier portals, cash flow optimizers, analytics, support, etc., they closed a revenue door. Trying to build a sustainable business model when half your ecosystem is not monetized is very challenging, even as P2P platforms add features and functionality. Sure, many platforms are trying to figure out payments, and that is something that scares the bejeebers out of them due to regulations and compliance rules. (Don’t pay that blacklisted vendor or person, or else.) But payments is not a profitable business for platforms, it’s a service.

Creative Supplier Governance: Key Points From a Sourcing Leaders’ Lunch & Learn

SciQuest

At a recent Chicago Sourcing Leaders Lunch & Learn, one theme was clear: The sourcing department includes the “cool kids” of the enterprise. Hosted by solutions provider Scout RFP and Zebra Technologies, pioneers of barcode scanning technology, the Lunch & Learn featured a sampling of the Zebra product line and a practical presentation from Dawn Tiura, president and CEO of the Sourcing Industry Group, or SIG. She described the qualities of the “cool kids” and shared her insight on the importance of having a formal supplier governance program.

LexisNexis Entity Insight: Vendor Snapshot (Part 3) — Summary and Competitive Analysis [PRO]

The supplier risk management market includes a highly diverse set of providers, many of which are difficult to compare on an “apples to apples” basis with each other — unlike just about every other procurement technology segment. Within this market — which also can extended deeper into the tiers of a supply base in the form of supply chain risk management — more organizations are seeking to automate the management of risk as much as possible, as accurately as possible. And arguably, LexisNexis Entity Insight (LNEI) is better positioned than many of its peers to have deep, methodologically-driven conversations based on how it adjudicates data and verifies document integrity to drive risk analysis.

This third and final installment of this Spend Matters Vendor Snapshot covering LexisNexis provides an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also includes recommended shortlist candidates as alternative vendors to LexisNexis and offers provider-selection guidance. Finally, it gives summary analysis and recommendations for companies considering the vendor. Part 1 provided an in-depth look at LexisNexis as a supply risk provider and its specific solutions, and Part 2 gave a detailed analysis of solution strengths and weaknesses and a review of the product’s user experience.

AdaptOne: Vendor Snapshot (Part 1) — Background and Solution Overview [PRO]

The supplier lifecycle management software market — which can be segregated at least half a dozen different ways — includes dozens upon dozens of different providers specializing in one or more enterprise technology areas. These include supplier information management (SIM), supplier performance management (SPM), supplier relationship management (SRM), supplier quality management (SQM), supplier discovery management (SDM), supplier diversity, supplier risk management, and governance, risk and compliance (GRC). 

Some of these areas are data-centric, others are process-centric and others still are relationship-centric. Following this pattern, from a tech vendor “supply market” perspective, some of the providers that compete in this sector are well known to procurement organizations, having invested heavily in marketing and sales for many years. But the majority tend to slip under the radar, either due to lack of marketing investment, lack of focus or simply poor communication (e.g., getting caught up in broader offerings/suite capabilities). And some are not even on the radar of most organizations.

One of the providers in these latter camps that recently caught our attention is AdaptOne. And not necessarily because it has a unique supplier management solution, as the truth is there is a lot of similarity between it and a few other SIM solutions. Rather, AdaptOne piqued our interest because it comes from a unique background and sells the solution from a new perspective. Leveraging a business process management (BPM) development and deployment orientation, AdaptOne’s solution is more configurable and, well, adaptable (sorry, we could not resist) than most of its peers.

But how does AdaptOne stack up functionally, and what does its solution offer? This Spend Matters Pro Vendor Snapshot provides an overview of the AdaptOne solution, along with facts and expert analysis to help buying organizations, suppliers and their partners make informed decisions about AdaptOne's SIM-centric solution. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations might want to consider AdaptOne. The rest of this multipart research brief will cover product strengths and weaknesses, competitors and SWOT analysis, user selection guides, insider evaluation and selection considerations.

Supply Chain Disruption and Customer Viability Top Finance Leaders’ Risk Management Worries

Finance departments are struggling to manage risk, a recent report from Dun & Bradstreet finds, and many finance leaders “believe their own efforts to manage, monitor and predict risk pose a moderate to high risk to their businesses.” In order to find out how today’s finance leaders are managing risk and what their future risk management plans look like, earlier this year Dun & Bradstreet commissioned a study of approximately 1,100 finance professionals, the vast majority of whom were based in the U.S.

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Enabling Supply Chain Mobility: The myConnXion Revolution

Having officially launched myConnXion yesterday, our team is thrilled to invite buyers and suppliers to connect. A key factor behind our innovative technology lies in the ability to integrate the process into your current sourcing strategy. We mobilize supply chains to compete faster and better in today’s global economy. Many procurement teams are deeply entrenched in legacy enterprise software and business processes, which are often not enough to manage today’s data type and quality, supplier relationships and business risks. Having a supply chain capable of movement and adaptability has become vital to the success of an organization’s business operation. Adding velocity to your supply chain starts with sustainable sourcing.

ConnXus’ Multitier Tracking Capability: Creating a Sustainable Picture of Supplier Spend

procurement software

Editor’s Note: This article is part of our series The Featured Feature, where we explore unique technology capabilities that differentiate procurement software companies. Read our introductory post to learn more.

Supply chain visibility is a major concern for today’s procurement organizations. In a 2017 Geodis survey of 623 companies, respondents named improving supply chain visibility as the third most important priority for their businesses, behind only full deliveries and product availability. Yet only 6% of those respondents said they had full visibility of their supply chains. Acknowledging this need for better visibility and information about their suppliers, businesses are increasingly turning their attention to the latest generation of supplier management solutions. ConnXus, a more recent entrant to this sector, is one such example, with a particular expertise in supplier diversity tracking and reporting.

Hiperos (Opus): What Makes it Great (Supplier Management SolutionMap Analysis)

Hiperos (an Opus Company) is one of the most widely used third-party management solutions in the market today, albeit with a focus primarily on services and indirect suppliers. It is also the highest-performing vendor on a functional basis for the Turn-Key persona in the Q2 2018 Supplier Management SolutionMap, as well as a customer favorite in all five personas.

But Hiperos is not just a third-party management compliance tool. It delivers a broad set of supplier management capabilities focused on the management of all types of vendor relationships, including strategic suppliers, across the broader lifecycle of engagement and is a top vendor in such speciality areas as supplier performance management and supplier information management. It’s also an integrated supply and contract risk management solution in its own right.

What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

Ivalua vs. SAP Ariba: A Supplier Management ‘Battle of the Best’ for Q3 2018 SolutionMap

Our ongoing Head-to-Head comparison series has been immensely popular with members of our new SolutionMap Insider subscription service. But for Q3 2018 SolutionMap results, which have not yet published, we thought it would be fun to shake things up a bit. With functional scoring for supplier management solutions now finalized for the quarter (and due out in September), the Spend Matters analyst team thought we’d tweak the Head-to-Head format to create a “Battle of the Best,” pitting the two highest-ranked vendors in a given procurement software category against each other.

This week, using the latest SolutionMap data, we pit the two top-ranked supplier management solutions for Q3 2018 against each other: Ivalua and SAP Ariba. That’s right — two suite vendors are now officially eating the feature/function lunch of best-of-breed solutions for supplier management, at least on an aggregate scoring basis. (Aggregate is the operative term here. In specific functional areas, best-of-breed providers may still be stronger and, for specific buying personas, may be a better fit.)

To be sure, several best-of-breed solutions still come out on top for groupings of scored fields when it comes to targeted ratings in support of such areas as third-party management, supplier diversity and master data management. But even the third-ranked provider for Q3 supplier management functional scoring, Jaggaer Advantage, which is just a hair under Ivalua and SAP Ariba in terms of overall scoring, is also a suite provider.

When it comes to the Supplier Management SolutionMap overall — which includes both aggregate and atomic scoring for supplier enablement, performance management, risk management, collaboration, innovation, diversity, technology, configurability and services, among other areas — the suites are convincingly winning the Spend Matters analyst ratings battle for broad-based supplier management enablement.

Still, SolutionMap data suggest that the right solution will vary based on different initiative and organizational requirements — and how much “heavy lifting” a procurement, supply chain or finance organization wants to take on to enable different supplier management scenarios compared with choosing a partner that is expert in a single or handful of areas. But there’s no debate that supplier management processes will reward procurement organizations that tailor provider selection to their specific needs, even specific supplier management initiative requirements in cases where supplier management will not be at the core of a suite-based selection.

Not yet an Insider member? Contact Spend Matters to gain access to SolutionMap reports, ratings and associated content. Organizations in the midst of software selection that can’t wait for broader Q3 2018 data to be published can access the full Q2 2018 Supplier Management SolutionMap on demand or contact Spend Matters to access the Q3 2018 data in advance of release.  

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Back to the myConnXion Future: Connecting Buyers and Suppliers

digital business transformation

As disruptors in the supplier management space, our team set out with a simple task: understand the challenges suppliers face, so we can help them better collaborate with buyers in global supply chains. We started hearing from many small and diverse businesses that it was difficult to engage with large corporate buyers. As a small, minority-owned business, we’ve faced some challenges ourselves, but wanted to confirm our thoughts with general findings from other organizations. To gather these insights, our product innovation team conducted a focus group with buyers and suppliers and received some interesting feedback.

Program Management: The Missing Link in Procurement Technology Modules and Suites (Part 7 — SRM Technology Components) [PRO]

LinkedIn ProFinder

This series has explored the various aspects of a modern strategic procurement system that enables both enterprise-level programs and procurement-led programs and processes. We’ve explored in gory detail the elements for strong analytics, user experiences and agile architectures. The series began with strategic sourcing to illustrate that properly supported category management can be a pretty tall order. Within category management, we went from basic program management requirements that were quite demanding to in-depth program management requirements that, on the surface, might seem impossible to the average procurement software company, as well as analytics requirements that, at the present time, excludes most of the current vendors from the market. 

These requirements from a business standpoint are not unreasonable, but although the ability for most providers to meet them is certainly a work-in-progress, the value in doing so is compelling. Strategic personnel can truly do strategic functions, not spend their days filling out virtual paper and transcribing data. The biggest cost in procurement is the opportunity cost of wasting a professional’s time on firefighting, pushing paper, wrangling bad spend data amd “googling” for new suppliers, rather than creating the 5X–10X ROI that goes along with strategic procurement. 

But turning the tables is not easy. Take the last example from the list above regarding supplier discovery. Today's supplier networks are generally “walled gardens” built to support suppliers within the network, not to help buyers find suppliers beyond the network. This would require new approaches to supplier networks — and new technology building blocks. That’s why, in this post, we are addressing what those critical building blocks are.

5 Reasons Supply Base Rationalization Can Be the Enemy of Effective Procurement Spend Management

category management

Traditionally, procurement organizations have been advised to consolidate their supplier base (with the handful of suppliers with the greatest percentage of purchases), negotiate strong contractual discounts and encourage their employees to purchase from these preferred vendors at the prenegotiated pricing. On the surface, rationalizing an organization’s supply base can seem like an effective way to improve procurement performance. By rationalizing the number of suppliers that enterprises work with, procurement leaders can reduce costs, improve quality and save the time of procurement teams who are too often lost in the arduous process of managing indirect tail spend. However, due to the rise of more advanced B2B e-commerce platforms and highly volatile pricing fluctuations for products, the supplier consolidation strategy is quickly becoming outdated.