Spend Matters Procurement Provider Coverage: Sourcing

The e-sourcing market is one of our foundational coverage areas. It forms a core application area that can be purchased from multiple sub-sectors as we’ve written about here, but it also is available in large sourcing & supplier management suites (providers who offer everything except transactional P2P processes), source-to-pay suites, and ERP providers.

The sourcing market is focused on sourcing solutions and supporting content and services (e.g., spend category specific templates) for driving process-thinking, efficiencies, visibility, and structure into strategic sourcing & tactical sourcing activities. Such sourcing “mini-suites” and modules support areas such as spend analysis, supply base analysis, market analysis, category strategy, cost/value modeling, supplier discovery, supplier qualification/certification, and sourcing execution that includes multi-round RFx events, a.k.a. bidding (including e-auctions of various varieties and bid optimization support for constraint modeling, scenarios, conditional/bundled bids, etc.), supplier surveys, bid analysis, and post event negotiations / awards.

Some level of master data management for suppliers, categories/commodities, cost types, etc. is expected. Further differentiating functionality includes project management, savings/value tracking, commodity management, category/industry specific functionality & templates/content, supplier management, contract management, and support for adjacent functional areas (e.g., product design, EH&S, supply chain). In terms of some of the solution capabilities that we assess in our sourcing SolutionMaps™, we evaluate areas such as:

  • Qualitative assessments
  • Quantitative assessments
  • Post event analysis & optimization
  • Integration
  • Supplier collaboration processes and projects
  • Knowledge repositories
  • Workflow support and automation
  • Access restrictions and audits
  • Event creation & export/import functionality

We provide additional details on the above areas in yesterday's Spend Matters Plus post.

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