The Supply Risk Management Category

30 Under 30 Supply Chain Star Jordan Haller on Leading ExxonMobil’s Preparatory Procurement Efforts for Hurricane Irma

oil

Jordan Haller knows a thing or two about safety. In 2015, the procurement supervisor at ExxonMobil was named to the National Safety Council’s list of 40 safety leaders under the age of 40 for leading a near loss campaign for his company. And last summer, Haller led ExxonMobil’s preparatory procurement efforts for Hurricane Irma. In the meantime, Haller, who has a bachelor’s degree in supply chain and information systems from Penn State University, also managed to complete an MBA at Louisiana State University. Today, Spend Matters chats with Haller on supply chain disruptions, prioritizing safety and why he expects the internet of things to push supply chain optimization to the next level.

SolutionMap Subscriptions and Practitioner Selection Programs: A Primer and Sneak Peek at Q1 2018 SolutionMap [PRO]

Earlier today Spend Matters released its Q1 2018 SolutionMap. The release now comprises six technology areas with individual vendor rankings (spend and procurement analytics, sourcing, supplier management, contract lifecycle management, e-procurement and invoice-to-pay) and three composite suite views (strategic procurement technologies, procure-to-pay and source-to-pay).

Our goal with SolutionMap is very different from what other analyst firms seek to achieve with their ranking systems. This is apparent even at our “free” level. The SolutionMap approach starts by releasing the ranking charts in the public domain, providing multiple persona-based views of vendor capability (45 comparative 2/2 matrices in total for the Q1 2018 release). We take a truly data-driven approach to plotting vendors, where an “average” score positions a provider in the dead center of a chart. SolutionMap ranking charts also make it easy to distinguish analyst scoring from customer scoring, plotting the data on separate analyst and customer axes. Finally, the Q1 2018 release actually reflects the time frame of its publication: We update the underlying data set and charts for SolutionMap on a quarterly basis.

Admittedly, the “free” stuff is designed to pique your interest. Unlike some of our peers in the analyst world, we have not made SolutionMap “reprint friendly” for the maximum number of vendors through grade inflation. Why? Because in the world of procurement technology, not everyone is “above average” like the children of Lake Wobegon. There’s an average, and there’s a deviation from average — positive and negative. Obfuscating these deviations might produce charts that make people feel good about buying decisions up front, but other than a near-term CYA, how useful will these be in the long run for those relying on them for, well, anything?

At the new SolutionMap subscriber level — separate from Spend Matters PRO — the tangible value of SolutionMap becomes even clearer. At this level, we unpack the underlying data we show for the analyst scoring by rated sub-category. For example, in the Supplier Management SolutionMap, you can see individual, tiered-based scoring for capabilities such as master data management (MDM), supplier onboarding support, core supplier information management (SIM) and supplier performance management, among other areas. Customer ratings (e.g., level of value perceived, quick deployment, ROI) are also visible.

To see the full level of data available to SolutionMap subscribers, check out the currently available reports from the Q1 2018 release:

There are views of the data beyond those provided in these reports (e.g., tiered-based scoring and ranked scoring for all sub-components that comprise an area, such as master data management within the Supplier Management report). Per our competitive intelligence policy, however, we reserve this view for practitioners going through a selection process (or the consultancies advising them), with strict licensing. This prevents comparative information from falling into the hands of competing vendors participating in SolutionMap. We take intellectual property protection and data privacy, for providers and practitioners, very seriously here at Spend Matters; otherwise, we’d find ourselves out of business quickly.

So, how exactly does all of this work? Read on as we unpack a SolutionMap Insider-level example within Supplier Management from the Q1 2018 SolutionMap. Specifically, we compare Jaggaer with Jaggaer Advantage (formerly BravoSolution) to showcase how it all works.

Q1 2018 SolutionMap Release Notes: Sourcing, Spend Analytics, SRM, CLM and Strategic Procurement Technology Suites

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This Spend Matters SolutionMap Insider release note provides insight into the Q1 2018 SolutionMap release for Sourcing, Spend and Procurement Analytics, Supplier Relationship Management & Risk, Contract Lifecycle Management, and Strategic Procurement Technologies Suite Solution Maps, reviewing the process we follow and highlighting what has changed since the last release.

Within the individual areas covered in this brief, the following providers have been added to the Q1 2018 release: Agiloft, Aravo, ConnXus, HICX, Opera BIQ, Simfoni and SynerTrade. Additionally, providers such as SAP Ariba have received updated scoring following the submission and demonstration of new capabilities based on production releases of individual modules. (Non-GA capabilities are not considered in SolutionMap scoring.) This SolutionMap Insider release note explores these and additional changes in the Q1 2018 SolutionMap release.

IntegrityNext: Vendor Introduction, Analysis and SWOT [PRO]

For many procurement organizations, monitoring suppliers for regulatory compliance and sustainability initiatives is becoming increasingly important. This is true with both larger, tier-one suppliers and smaller vendors further down in the supply chain. From supply disruptions to infractions in the court of public opinion, even the most hidden suppliers today introduce product and operational risks that can cause irreparable harm to a business.

Monitoring suppliers to reduce risk, however, is no easy task, especially across the long tail of suppliers. Many procurement organizations still require a basic platform that can manage supplier, information, performance, relationship and lifecycle needs to drive basic automation, collection, aggregation and maintenance of this data. In order to get a grip on supplier compliance to meet these objectives, procurement organizations generally need four things: supplier self-assessments that capture details on policies and procedures; certificates of verification; third-party audit information; and up-to-the-minute insight and analysis on reported events that could be early indicators of issues that need to be investigated.

At the nexus of these areas is IntegrityNext, a new solution provider in the supplier risk and compliance sector. IntegrityNext is aiming to offer an affordable and easy way for procurement organizations to access compliance assessments, up-to-date certifications and real-time market sentiment on their supply chains.

This Spend Matters PRO Vendor Introduction offers a candid take on IntegrityNext and its capabilities. It includes an overview of IntegrityNext’s offering, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for those that might consider the provider.

The Modern Contract: Connected Sets of Data

The purpose of almost every business contract is the same: to define the relationship and allocate risk. To effectively do the latter, supply chain managers must manage external risks and internal risks. But even considered separately, the point is that managing both kinds of risk is challenging. With a plate that full and interdependent, is it any wonder that contracts seem to create more operational friction than they’re worth? Why haven’t we figured out that we can’t adjudicate such variability?

Haven’t Experienced a Significant Supply Chain Disruption in the Past Year? You’re Among the Lucky Few

supply chain disruption

Riskmethods recently commissioned a survey of more than 250 senior procurement executives around the world to see what strategies they’re using to manage risk in their supply chains, and the results were published in a white paper, Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain. The report found that avoiding significant supply disruptions is a top priority for senior procurement executives. These events are also not uncommon occurrences, as the vast majority of the survey respondents reported that they experienced at least one supply chain incident in the past 12 months that led to a significant disruption.

New Report Warns that More Affordable Artificial Intelligence May Be a Blow to Cybersecurity

cybersecurity

Artificial intelligence is becoming more affordable and available to different companies and industries. However, this also means more risks in the realms of digital, physical and political security, warns a new report co-written by a team of 26 AI researchers from prominent American and British universities and think tanks. There are a number of reasons AI can bring about a new level of risk. Most AI researchers believe that AI will exceed human performance in a wide range of tasks within the next 50 years — and if an AI system can lead to better farming practices, it can certainly also conduct more devastating cyberattacks. AI can allow for a greater degree of anonymity and distance for the human actor. And AI systems tend to be efficient and scalable.

How to Minimize Exposure Risk in a Global Food Supply Chain

Spend Matters welcomes this guest post from Megan Ray Nichols, a freelance writer covering STEM topics.

We all live in a global society now — a reality that includes, to a greater extent each year, our entire world’s food supply chains. If you and your business represent some of the critical pieces in this vast and interconnected ecosystem, you need to know you’re doing everything possible to insulate yourself, your product and, perhaps most critically of all, your end users from all types of risk that may introduce themselves along the way.

Resilinc EventWatch Data: Factory Fires and M&A Activity Rank as Top Disruptive Events

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Resilinc recently released its 2017 EventWatch Supply Chain Disruption Annual Report, and the top two disruptive event types by a significant margin were factory fires and explosions and mergers and acquisitions. The report is based off the 2017 data collected by Resilinc’s EventWatch software, which monitors and analyzes global events that are potentially disruptive for supply chains and then alerts customers. In 2017, EventWatch published on average five bulletins a day.

What the Super Bowl Can Teach About Risk Management

Pause for a moment to consider how adept the NFL has proven itself at proactively addressing logistics and risk management. Whether we’re talking facilities, security, transportation or emergency services, there’s obviously a lot more behind the curtain than we know about. Suffice it to say that little imagination is required to accept that the NFL sets an interesting, if not teachable, example — not just in terms of how to pull off a mega-event but how to react to most anything that could possibly go wrong. It expects problems and is prepared for them.

U.S. Companies are Rethinking Risk Management Strategy After the 2017 Hurricanes

For many large U.S.-based companies, last year’s hurricanes and the damage they brought have been a wake-up call. A survey of senior financial executives at U.S.-based companies with revenues of more than $1 billion, commissioned by FM Global, revealed that the hurricanes have prompted 68% to adapt their risk management strategy for the future.

A Guide to Supply Risk Management and Compliance (Including Cyber Risks) in 2018

cyber attack

The World Economic Forum recently released its 13th annual global risks report, predicting the biggest risks that global businesses are likely to face in 2018. Extreme weather events rank top both in terms of potential impact and likelihood. Other top risks included cyberattacks, data fraud and economic bubbles. Meanwhile, Spend Matters has been working on updating our Supply Risk Management and Compliance Landscape Definition and Overview for 2018, highlighting the increasing need for investment in supply risk in the cyber and information security (INFOSEC) area.