Supply Risk Content

Sustainability, Environmental Stewardship and CSR: The CPO’s Outside-In Agenda (Part 2A) [PRO]

leading cross-functional teams

In this first installment of this Spend Matters PRO series (see Part 1A and Part 1B), we noted that a number of pressing issues are shaping procurement from the outside in, yet chief procurement officers (CPOs) are primarily still concerned with issues set by an inside-out agenda — that is, cost cutting and supply assurance targets mandated by upper management. Our PESTLE analysis of factors shaping the modern CPO agenda identified broad trends like economic instability, globalization, changing digital business strategies and the need to address corporate social responsibility (CSR) as areas that procurement organizations need to consider if they want to truly tap and manage the opportunities (and risks) offered by external supply markets.

Perhaps nowhere is this more readily apparent than with the topic of sustainability and environmental stewardship, the focus of today’s brief. The environment is an inseparable component of any business. It forms the platform layer off which all goods and services are produced, and, more fundamentally, the resulting ecosystem services from which humans benefit create the foundations for our species’ survival and quality of life. Due to multiple ongoing trends, however, the environment is changing, as are the ways that consumers, investors and governments think about our relationship to the environment.

Accordingly, Part 2 of this series on the CPO’s Conundrum examines the outside-in drivers pushing sustainability and environmental stewardship higher on the procurement agenda. It also explores recent examples of how businesses are integrating these issues into their supply management strategies, while simultaneously addressing them in balance with traditional procurement objectives, such as category management, supply base alignment and demand shaping.

EcoVadis to Add Risk Mapping Tool, On-Site Audit Feature to Its Core CSR Rating

wind power

EcoVadis, a provider that rates businesses on sustainability and corporate social responsibility (CSR), announced Tuesday that it is expanding its capabilities with the new Sustainability Intelligence Suite, which will include "predictive risk mapping, performance signals and audit management."

After EcoVadis’ Sustain 2019: Product Strategy, Roadmap and Prospect/Customer Analysis (Part 3) [PRO]

EcoVadis, which provides vendor ratings and scorecarding for sustainability and broader CSR metrics as a component of an integrated “many-to-many” supplier network and platform, has an aggressive product roadmap to expand how users interact with and leverage the supplier intelligence, which is at the very core of its value proposition.

Today, in this final installment in this Spend Matters’ PRO series based on our analysis from the EcoVadis Sustain 2019 customer event, we turn our attention to the future direction of where EcoVadis is expanding its capabilities. We also include customer/prospect recommendations.

In previous Spend Matters PRO coverage on EcoVadis, we offered a recap and update on the provider’s most recent capabilities and solution footprint — and an analysis of where EcoVadis fits in the broader supplier management and supply chain risk management landscape.

After EcoVadis’ Sustain 2019: How Its Offering Fits With Supplier Management, Risk Management Solutions (Part 2) [PRO]

supply risk

Last week, I represented the Spend Matters analyst team at EcoVadis’ Sustain 2019 customer event in Paris. In between lessons on sustainable supply chains, vendor CSR ratings and French labor unions I never knew existed — thank goodness for British Airways when the Eurostar shuts down because a handful of customs workers at Gare du Nord decided to protest Brexit by striking — I had the chance to learn about the latest enhancements to the EcoVadis platform.

In Part 1 of this Spend Matters PRO research series, we shared some of the most recent capabilities that EcoVadis has embedded in its sustainability and ratings supplier management platform. Today, we turn our attention to explaining how EcoVadis fits in the broader supplier management and risk solutions landscape. (Hint: It is a complement to other solutions, but not a replacement for them, at least not yet.)

We will conclude our series with a look at the EcoVadis solutions roadmap and landscape in the coming weeks with specific recommendations on what it means for current and future customers who are likely to also make investments in adjacent solution areas and need to think about the architectural “fit” of all these components together. But to answer that question, we first need to explore where EcoVadis sits today in the broader supplier management and supply/supply chain risk management technology and solutions universe?

This Spend Matters PRO research brief provides insight into all of the components that comprise the supplier management and supplier/supply chain risk management sectors. It then attempts to place EcoVadis, a sustainability and CSR specialist in vendor ratings and management, in the context of these two highly complex solutions markets. Our analysis includes detailed functional and requirements for each of these solution types.

Resilinc EventWatch: Top Risks to Supply Chains in 2018 Were Extreme Weather, M&A Activity, Brexit and Explosions

With deadline questions looming about Brexit and high levels of uncertainty about U.S.-China trade negotiations still hanging over global markets, risks to supply chains may already seem well above average. As reported by Resilinc’s EventWatch 2018 annual report, however, some of the greatest risks to supply chain operation may be something that stakeholders don’t realize.

Comparing S2P Procurement Technology Suites on a Functional Basis: Coupa, Ivalua, Jaggaer and SAP Ariba

Now more than ever, better choices exist at the top end of the market for source-to-pay technology suites. When it comes to overall suite functional performance in the Q4 2018 SolutionMap, a handful of suite vendors tend to stand out from the overall pack, often for very different reasons. Four of the top performing S2P suite vendors in the Q4 SolutionMap functional benchmark are Coupa, Ivalua, Jaggaer and SAP Ariba. But how do they compare to the overall SolutionMap source-to-pay benchmark dataset? You can find out here in our coverage, which will include Determine, SynerTrade and Zycus.

Trade War or No, Local Sourcing with Maker-to-User Model has Advantages

sourcing operations

Spend Matters welcomes this guest post from Jason Middleton, Ray Products vice president of sales and development.

Our trade deficit with China surpassed $301 billion in 2018 — and it’s no mystery why. Thanks to cheap labor and fewer regulations there, it tends to be more cost-effective to have “Made in China” stamped on your product than it is to have “Made in America.”

In the last year, however, the trade war has prompted many companies to re-evaluate their outsourcing practices and consider a “maker-to-user” model of sourcing locally. With the U.S. imposing approximately $250 billion in tariffs on Chinese imports, it’s simply no longer cost-effective to source products and materials from China.

Is Direct Materials Procurement a Separate Technology Market in North America? (Part 1: Introducing a Decision Framework)

Germany, Austria and some adjacent markets have something North America doesn’t — a distinct technology market for direct materials procurement. In Europe, Pool4Tool (now Jaggaer Direct), Allocation Network, SynerTrade, SupplyOn and a range of other solution providers succeeded in creating a distinctive European direct materials procurement solutions market that exists outside the generic source-to-pay realm.

But in North America, as these providers — also joined by Ivalua and SAP Ariba, and specialists like SourceDay and Supply Dynamics, as well as the offspring of the original MFG.com, LiveSource — attempt to reach customers, I question if all of these providers are selling to individual buyers rather than a clear market segment in which procurement organizations know they need a specialized solution set.

For the sake of argument, let’s define the “bounds” of direct materials procurement solutions as encompassing any or all of the following technology areas:

Avetta, Browz to Merge: Placing Avetta in the Context of Broader Supplier Management and Risk Management Solutions (Part 3) [PRO]

How does Avetta — and its peers, including ISnetworld and Achilles — fit into the broader supplier management and supply/supply chain risk management technology and solutions universe? This Spend Matters PRO research brief provides insight into all of the components that comprise the supplier management and supplier/supply chain risk management sectors. It then attempts to place Avetta in the context of these two, highly complex solutions markets.

Our analysis includes detailed functional and requirements for each of these areas. Just coming up to speed on our analysis of the merger of Avetta and Browz? See our initial Spend Matters PRO Coverage: Avetta, Browz to Merge: Facts, Figures, Solution & Market Overview (Part 1) and Avetta, Browz to Merge: History and the Growth of Community-Oriented, Network Models (Part 2).

Before placing Avetta (and its peers) in the context of these two solution areas, it is essential to create a level-set definition of each. There is often significant overlap between supplier management solutions and supplier/supply chain risk management solutions, both in capability and in terms of the “what” companies are buying. But in short, here’s what they comprise and how they differ.

At HIMSS, Healthcare Technology Focuses on Telemedicine, Payment Platforms, Cybersecurity for Medical Devices

healthcare

At last week’s Healthcare Information Management Systems Society Conference (HIMSS), technology and medical professionals mainly focused on three areas of advancement and supply chain risk: the latest in telemedicine, the related consumer-driven payment platforms and cybersecurity for connected medical devices.

Avetta, Browz to Merge: History and the Growth of Community-Oriented, Network Models (Part 2) [PRO]

Industry insiders might argue that the growth of Avetta, Browz, ISNetworld and other industry supplier compliance and credentialing solutions like VendorMate (now part of GHX), GRMS and Hellios should never have been allowed to reach escape velocity owing to the first mover advantage that Achilles had on this market overall. But playing armchair supplier credentialing, pre-validation and certification vendor quarterback is nowhere near as useful an exercise as explaining the history of this market and how it became the largest procurement solutions sector that most buyers know little if anything about — yet is of critical strategic (and growing) importance.

So join us as we provide a history lesson about how this market came about and the value levers it created for buyers and suppliers. This investigation includes exploring how the sector in which Avetta competes can serve as a complement to other supplier management and risk management areas too (which we’ll tackle in more detail in the next research brief in this series).

If you’re just coming up on this market and the merger of Browz and Avetta, read the first research brief in this series (Avetta, Browz to Merge: Facts, Solution and Market Overview), which explored the core details and numbers behind the two companies coming together under the Avetta name.

3 Areas Where CSR Risks Hide in Your Indirect Spend (Part 2)

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Because procurement is so often measured on cost savings as its primary KPI, another essential factor can be left by the wayside: risk. Especially when it comes to corporate social responsibility (CSR) and sustainability, risk remains hidden within indirect spend. To see how these dangers go unaddressed, here are three areas with examples of where organizations miss — but, with proper tools, can address — CSR and sustainability risks for indirect procurement.