The Supply Chain Visibility Category

Want to Know Your Industry’s Risks? CSR Index from EcoVadis Takes Deep Look

risk

As customers and businesses seek better environmental practices and fair labor standards, corporate social responsibility (CSR) reporting has taken on greater importance for executives who could face questions about why they use conflict minerals or buy products created by forced labor. To help take a deeper look at the issues, EcoVadis has assessed the CSR reporting of more than 33,000 companies around the world. The Paris-based company is a provider of business sustainability ratings, intelligence and performance-improvement tools for global supply chains.

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.

Offsets, Local Content and Supplier Information Management (Part 2) [Plus+]

We wrote in Part 1 about offsets in the defence industry, and the commonality they have with wider issues around “local content” — using procurement and supply chain activities to show support for building capability and capacity in local economies and supply chains, often as a lever to win contracts, concessions (e.g., mining) or similar.

So bringing this back to practical considerations, what can we learn, and how can organisations position themselves successfully in this field? That’s important because the need for organisations to show how they are impacting and benefitting local, regional or national economies is only going to increase in our view. That’s particularly true for firms who wish to trade and work internationally, particularly in the developing world. And looking at the growth rates in Africa, South America and the emerging parts of Asia, these are markets in which more and more Western firms will want to operate.

Offsets, Local Content, and Supplier Information Management [Plus+]

suppliers

The principle of offsets is this: assume a country doesn’t have its own indigenous capacity or capability to manufacture, say, fighter aircraft, so they obviously have to buy from foreign suppliers. But the government making the purchase will (not unreasonably) wish some of that purchase price to be re-invested back into their country.

Sponsored Article

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.

LexisNexis Entity Insight: Vendor Snapshot (Part 2) — Product Strengths and Weaknesses [PRO]

LexisNexis Entity Insight (LNEI) is a modern, “self-service” supplier management solution that the global data/market intelligence giant built to satisfy increasingly surging market demand for all things supplier risk management. Designed as a cost-effective, off-the-shelf solution, LNEI helps procurement, finance and supply chain organizations manage risk across their own supply networks, regardless of how nested or complex.

This Spend Matters PRO Vendor Snapshot explores LNEI’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider the provider. Part 1 of our analysis provided a company and detailed solution overview, as well as a recommend fit list of criteria for firms considering LNEI. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

Risk of Slavery, Trafficking and Labor Abuse in Supply Chains Expected to Increase

As manufacturing becomes increasingly automated, the risk of slavery, human trafficking and labor abuse in supply chains is also expected to rise, according to Verisk Maplecroft’s 2018 Human Rights Outlook. The report presents five issues that will pose “significant challenges to the reputations, operations and supply chains of multinational companies.” Automation tops the list, with an estimated 56% of jobs in Southeast Asia’s key manufacturing hubs potentially affected. Compliance, certification, threats to human rights defenders, and investor expectation for businesses to take up social responsibility round out the list.

Building the Business Case for Managing Suppliers With Technology: 7 ROI Levers (Part 2 — Supply Risk Management) [PRO]

risk

Thus far in this series we have examined six levers procurement organizations can pull, both at the front-end of the supplier lifecycle and those in the active phase of supplier management, to build a business case for managing suppliers with technology. In the case of the former, we focused on business case components for supplier search and discovery, supplier onboarding, and supplier enablement. In the latter, we examined contract compliance and enforcement, compliance and credentialing, and supplier performance management.

All of these areas can form core components of a supplier management business case. But on a standalone basis, thousands of global companies have already invested in data sources, specialized software or a combination of the two to monitor at least certain elements of supplier risk outside of these other supplier management areas. Indeed, of the seven levers organizations can pull in building a business case for managing suppliers through technology, supplier risk management — and broader supply risk management — is the one that is often most put to use.

In today’s installment, we zero in on the seventh supplier management business case lever, introducing business case and enabling technology considerations for supplier risk management. We discuss select solution components within this area, as well as high-level ROI considerations. Later in the series, we will provide more detailed ROI model inputs and ranges procurement teams can use in building a business case in each of these areas.

Spend Matters PRO clients can also contact their client services representative for an interactive Excel-based ROI model that can serve as the basis for building supplier management business cases.

What Are Procurement and Compliance Professionals Most Worried About?

Deloitte Global CPO Survey 2016

Although procurement and compliance professionals from the U.S. and the U.K. are largely confident in the effectiveness of their functions, they are concerned about the risks and challenges posed by regulations, technological change and fraud. These findings come from Dun & Bradstreet’s 2018 Compliance and Procurement Sentiment Report, based on a survey of more than 600 procurement and compliance decision-makers. The respondents represent a wide range of industries and revenues.

SRM Provider Kodiak Rating to Develop Blockchain to Improve Supply Chain Transparency

blockchain

The Stockholm-based supplier relationship management provider Kodiak Rating announced that it will apply blockchain technology to improve supply chain transparency and traceability and to better manage supplier risk. Research and development will be supported by a 800,000 SEK grant (approximately $92,000) that was recently awarded to Kodiak Rating by Vinnova, a federal agency under Sweden’s Ministry of Enterprise and Innovation.

Cyber, Political Resilience Rankings Shuffle in Latest FM Global Resilience Index

MBO Partners

FM Global released Wednesday its 2018 Resilience Index. While overall resilience rankings have remained largely unchanged from 2017, cyber and political resilience rankings have shifted. The Global Resilience Index is an annual ranking of 130 countries and regions according to 12 economic, risk and supply chain factors, which include supply chain visibility, supplier quality and rate of urbanization, in addition to the aforementioned cyber and political risk.