Spend Analysis Content

Procurement Technology, Consulting Pricing Trends and Negotiation Strategies – The Times They Are a-Changin' (Part 2) [PRO]

This is the second installment of our examination of pricing trends and negotiation/vendor management strategies focuses on software providers on a module-by-module basis (spend analysis, sourcing, contract management). We’ll cover supplier management, eProcurement and e-Invoicing later in this series.

SAP and Ariba Procurement Customers: Hints at a Directional Solution Focus and Recommendations to Take Advantage of Acquisition and Post-Merger Uncertainty [Plus+]

For suppliers, there could be many benefits of such a model as well. These might include integrated working capital tools that cross customer and network bounds (imagine a combination of Taulia, which incidentally should be on the immediate shopping list for SAP/Ariba now, with built-in financing partners pre-integrated into the network and pre-approved, low-APR rates based on the buying organization’s credit rating). In addition, supplier-focused network capability might include the ability to leverage the shared infrastructure to develop and deliver enhanced solutions including plumbing for vendor managed inventory (VMI), just-in-time (JIT), leveraged buying/buying aggregation, hedging/commodity management and other capabilities.

Ariba and SAP…Exploring the Network Elephant in the Cloudy Room [Plus+]

The fact Ariba has many suppliers paying thousands – sometimes tens of thousands or more, per year – to transact with multiple trading partners has helped offset the cost of Ariba’s P2P application for buyers, allowing it to compete on price as well as product. Yet many procurement professionals believe that suppliers will factor any additional transaction costs they may incur into their pricing. Still, Ariba has had the upper hand in this area because their SaaS-based P2P deals require companies to only work with companies through the network (Ariba CD customers have options to take suppliers off the network, something providers such as Vinimaya, Hubwoo, WALLMEDIEN, OB10, Transcepta and others can theoretically enable – and have, in certain cases).

SAP and Ariba: Customer and Prospect Implications – Sourcing, Spend Analysis, Supplier Management and Contract Management [Plus+]

Ariba and SAP customers and prospects should continue to evaluate sourcing tools independently. Given the limited integration touch-points in the sourcing area between spend analysis and contract management, organizations should not be worried about the integration of various best-of-breed tools even if they plan to standardize on an SAP/Ariba suite and network vision at some point in time. For general advanced sourcing capabilities, we still recommend CombineNet, Trade Extensions, Emptoris/IBM, BravoSolution and Iasta over Ariba and SAP. For direct spend sourcing capabilities, Co-Exprise, MFG.com, FullStep, Pool4Tool and others offer unique capabilities in their own right (of the three, for direct spend we believe Co-Exprise has the most unique mash-up of PLM, secure file-sharing/collaboration, sourcing and spend analysis in the market). Organizations may also wish to consider GEP, Zycus, and range of other e-sourcing providers.