This is Part 2 of our in-depth look at Intesource and it new SRM solution release. You can check out Part 1 here. So what is the new supplier relationship management solution like? Gabe Gabaldon, Intesource's CTO, shared some details around the latest update to its sourcing solution. In this PRO research brief, I provide some of the highlights Gabe pointed out, such as its emphasis on enterprise-wide rollout, enhanced customer support and cleaner supplier data. I also offer my input on the solution and add key takeaways.
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Back in March, I provided an analysis of the Intesource Innovation Conference in Las Vegas. The e-sourcing provider had announced at the event that it was releasing its new supplier relationship management solution, which I had the chance to preview and wrote about in that initial Plus article on Spend Matters. Today, I continue my coverage of Intesource with more in-depth analysis. Intesource is heavily vested in supporting sourcing and procurement for companies in the retail and restaurant business – specifically grocery retail stores.
Spend Matters is pleased to feature this guest post by Mickey North-Rizza, VP Strategic Solutions at BravoSolution. April 24, 2015, marks the release of the long-awaited Apple Watch. The hype around this new product is quickly gaining momentum and shipments are expected to reach 4.8 million units in Q1 and up to 9 million in Q2. These high projections could have some serious ramifications for the supply chain, especially since Quanta Computer is said to be the sole manufacturer of the watch. In light of these factors, significant supply and demand issues are expected.
As the e-procurement sector has matured, industry- and category-specific innovation has left a significant amount to be desired. The vast majority of e-procurement and P2P solutions today are generic rather than specialized, leaving unmet needs in the market. As one example, mining, energy, oil & gas, utilities, chemicals, heavy equipment, construction and related sectors collectively spend tens of billions of dollars per year on maintaining existing facilities (let alone capital expenditure to build new ones), which are not addressed effectively by traditional e-procurement solutions in MRO and related areas. This Spend Matters research note shares some of the innovations that one decade-old name in the sector, jCatalog, is bringing to e-procurement through addressing complex MRO and plant/facility buying scenarios.
Supply Risk Management in Mexico: Tips and Analysis For Multinational Procurement Organizations [PRO]
Supply risk management continues to be an important topic of not just debate but practice, too, within global procurement organizations. And on a more frequent basis, supply risk management efforts are extending “south of the border” for North American companies, as manufacturers continue to emphasize a more prominent role for Mexico and Mexican suppliers in their global supply chains. In this Spend Matters PRO analysis, we explore how Mexican companies are managing supply chain risk. We also share survey results from a recent study in the region and provide tips and lessons learned for multinational procurement organizations that are increasingly sourcing and manufacturing in the region as well as general supply chain risk management best practices.
Innovation has become one of the very hottest of hot topics in procurement circles over the last couple of years. At the recent ProcureCon conference in Berlin, it was covered over several sessions, with a number of CPOs giving us the benefit of their views and experience around supplier innovation and how to capture it. Based on this wealth of input, what conclusions or thoughts can we draw from the 2 days of thinking and talking around the topic? Here are some key take-aways that CPOs and others might want to consider.
Supplier Relationship Management (SRM): there is probably no other solution set in supply chain these days that is sold in so many incarnations – it’s a wild list of acronyms: SM, SIM, SLM, SRM, VRM, SBM, 3PM, even VMS. Some are truly meaningless labels that mainly serve to please the marketing managers that had to choose one over the other – others carry more weight and imply certain functionalities. Let’s look at the acronyms.
SciQuest 14.2 Update Part 2: Total Supplier Management – Sophisticated Supplier Lifecycle Management Solution Renewed [PRO]
In Part 1, we looked at the new TSM (Total Supplier Manager) 14.2 release by SciQuest. Details included a Base TSM with extendible functionality on a core Java framework shared with the rest of SciQuest’s suite offering, which concludes the migration of AECsoft IP from the older .NET architecture to SciQuest’s core platform. Read on to hear more insights in Part 2.
SciQuest 14.2 Update: Total Supplier Management – Sophisticated Supplier Lifecycle Management Solution Renewed [PRO]
SciQuest has released version 14.2 of its Total Supplier Management (TSM) solution. The bulk of the high-end SLM (supplier lifecycle management) and SIM (supplier information management) intellectual property contained in its 14.2 TSM offering was originally obtained through the AECsoft acquisition nearly 4 years ago, and the AECsoft’s .NET architected solution has now been almost entirely moved over to SciQuest’s Java-based framework as well as received a solid UI/UX scrubbing. Hats off to SciQuest for accomplishing this.
50 Shades of Pay: Shade 3 – Total Cash Disbursements to Suppliers (with supplier details) Part 2 [Plus +]
This post continues our exploration into shade No. 3 of our 50 Shades of Pay series. In this PLUS post, Pierre Mitchell discusses what happens when you aggregate all your supplier master data alongside the aggregation of your spend transaction data. According to Pierre, you will find "wonderful things" like your supplier master field names will be called different things and suppliers will be classified in all sorts of dimensions by different groups. Read on to learn more.
50 Shades of Pay: Shade 3 – Total Cash Disbursements to Suppliers (With Supplier Details) Part 1 [Plus +]
In Shade 2 of this spend analysis series, we looked at analyzing total cash disbursements to suppliers through the lens of basic A/P data. In doing so, we touched on the issue of data quality, and in the particular, the data coming from the supplier master file (or vendor master if you use that terminology). Obviously, if the supplier master data is bad (i.e., dirty, sparse, duplicated, non-standardized, etc.), the spend data will show it. But, the highlighting of bad data isn’t about improving data hygiene unto itself, but rather is about fixing the data problem to highlight value creation opportunities that you didn't see before. The most frequent example of this is supplier master duplication where multiple supplier records exist for the same supplier.
When you find duplicate supplier master records, you can obviously begin to see where there is additional volume leverage that you can gain within strategic sourcing. This is a key capability for justifying the ROI of investing to get to this level of capability. However, spend analysis is not just about feeding the strategic sourcing process! When you find duplicate supplier master records for the same supplier, it can lead to a whole slew of root causes that should be addressed. This includes a lack of clarity/controls in the supplier master setup process (e.g., who can add/change/delete what fields in the supplier master file) or poor “supplier discovery” inquiry capabilities of suppliers from your own existing supplier network.
Up until now in this series, much of what we have talked about can be done on your own, albeit inefficiently, but in the area of data de-duplication, cleansing, enriching, auto-classification, and harmonization, the tools can really help. But, this area is also where supplier content providers of many forms can be used (i.e., content firms, MDM providers, supplier/business networks, analytics vendors, supplier management application providers, procurement suite providers, etc.). Such firms can also assist in the de-duplication of effort using a combination of fuzzy logic (pattern matching), proprietary databases, and rules-based analyzers to help with this key task.
In a previous Spend Matters post titled Does Increased DPO Actually Destroy Enterprise Value?, I highlighted some analysis where, in 12 of 14 manufacturing industries I analyzed, I found negative correlations between days payable outstanding (DPO) and enterprise performance (e.g., debt you may incur to raise cash to invest in high payback initiatives such as B2B trade financing where early payment discounts and/or supply chain finance programs are established). In this Spend Matters PRO article, I’ll dive into the industry details and also provide some additional insights based on some recent research that we conducted with the Institute for Supply Management (ISM).