At SIG’s Global Executive Summit this week in California, two sessions, a mainstage panel and a breakout session, focused on the opportunity for lease sourcing. Two LeaseAccelerator execs — Steve Keifer, VP of Marketing, and Ingemar Lanevi, VP of Global Lease Sourcing Solutions — ran the sessions.
EVERY procurement leader and category manager who has the opportunity to address lease spend should listen to this presentation (and of course finance teams that have oversight over leasing spend as well). Here are some of my notes from the talk and from the slides that Steve shared with me:
As we highlighted in Part 1 of this seven-part Spend Matters PRO series, GEP is a diverse company that is a provider of source-to-pay solutions, BPO services and consulting. In Part 2, we discussed how SMART by GEP is a unified S2P solution platform built from the ground up as a cloud-based solution, with full integration capabilities into back-end systems, built and hosted on the Microsoft Azure infrastructure. From both platform-as-a-service (PaaS) and hosting perspectives, this brings the same advantages of Amazon Web Services virtualization (e.g., ability to rapidly “scale up” and “scale down” at any layer in the architecture). But further, the entire GEP platform is Microsoft native, which theoretically means tighter integration into the Microsoft ecosystem of products (e.g., SharePoint, Office, etc.) than competing products. The Azure platform and hosting model provides another layer of scalability insurance for GEP customers.
In Part 3, we’ll look at the midstream and downstream functional S2P capabilities — contract management, supplier management, procure to pay (P2P) — that GEP offers within SMART by GEP. We also take a critical look at GEP’s emphasis on user experience.
SMART by GEP is a unified source-to-pay solution platform and, as GEP is quick to point out, it doesn’t sell “single modules as widgets” on a price list. SMART by GEP can, of course, provide its customers with modular functionality. (See Part 1 of this seven-part Spend Matters PRO series for a company overview of the S2P provider, which also has BPO services and consulting.) However, GEP claims that the majority of its new platform customers will continue to embrace full suite adoption from the get-go, versus a minority that will desire a point-based solution at the start.
SMART by GEP is a cloud-based solution, with full integration capabilities into back-end systems, built and hosted on the Microsoft Azure infrastructure. From both platform-as-a-service (PaaS) and hosting perspectives, this brings the same advantages of Amazon Web Services virtualization (e.g., ability to rapidly “scale up” and “scale down” at any layer in the architecture).
But further, the entire GEP platform is Microsoft native, which theoretically means tighter integration into the Microsoft ecosystem of products (e.g., SharePoint, Office, etc.) than competing products. The Azure platform and hosting model provides another layer of scalability insurance for GEP customers.
In Part 2 of this series, we will cover key upstream functional S2P capabilities — spend analysis, category management, sourcing — that GEP offers within the unified SMART by GEP platform:
As technology changes the work landscape, as companies seek more specifically skilled workers and as those workers push for non-traditional work arrangements, companies need to find effective ways to meet those changes. Direct sourcing is emerging as a viable, practical option to fill on-demand and other staffing needs.
When used alongside traditional hiring methods, including third-party staffing firms, direct sourcing allows companies to find and hire previously untapped independent contractors.
For decades companies have relied on staffing firms, managed service providers (MSPs), and other internal HR or procurement processes to handle their hiring, so how can they successfully integrate new technologies and methods? A readily available and reliable choice is to enlist a third-party technology provider that specializes in freelancer management systems technology (FMS). This technology can be integrated into an existing vendor management system, allowing companies to glean data from all sources to support the entire contractor management program.
Most procurement departments would agree that introducing a category management structure is a good way to secure the best-in-class status they crave. On the tactical-to-strategic spectrum, it’s still a notch below “trusted adviser” status, but it’s several more notches removed from reactive purchasing and the three-bid-and-buy mentality. While they’ve largely got a consistent end goal, procurement departments vary wildly when it comes to progress.
Many are still hard at work introducing even a foundational level of strategy. Others are mired in damage control after trying and failing to build a more strategic procurement function. Even those exemplary departments that can call category management a next step have a lot of work ahead. Like their less advanced peers, they’ve got to change their organization’s mindset if they want to truly transform procurement. To transform the function, they’ve got to first change the way other business units perceive and engage it.
Sourcing optimization can and should be applied more broadly to a variety of sourcing scenarios, bringing a simpler approach and guided exploration — designed with the everyday sourcing user in mind. With the value it can bring to categories and customers alike, why should sourcing optimization remain out of reach beyond the most complex logistics bids?
To understand how this situation arose, it helps to consider the rationale behind how first-generation sourcing optimization solutions were designed.
Procurement organizations today don’t have to do a lot of legwork to build an initial shortlist for choosing an e-procurement or procure-to-pay solution. A Google search will return dozens of companies vying for your business, and the Spend Matters SolutionMaps for E-Procurement and Procure-to-Pay Suites make the process even simpler, rating top providers of these solutions against specific organizational requirements based on buyer demographics and psychographics.
Figuring out the differences between all of these choices, however, is easier said than done.
One of the key ways procurement organizations can do this is by understanding what type of market a vendor seeks to address. Although in concept the potential market a vendor is targeting could appear similar to how others position their solutions, the reality is that each provider is unique in terms of their best-fit customers, their capabilities and the technological foundations of their platform.
This is especially true of Wescale, which provides P2P functionality fit for a variety of businesses through an open business integration platform approach (PaaS, or platform as a service) not commonly seen from e-procurement or P2P providers in the North American market. For that matter, Berlin-based Wescale is not commonly seen outside of Europe — but to the detriment of potential U.S. and global customers that might overlook it due to its primary geographic focus.
This third and final installment of this Spend Matters Vendor Snapshot covering Wescale, the branded name for WPS Management, includes an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also has a recommended shortlist of candidates as substitute providers to Wescale as well as provider-selection guidance. Finally, it offers a summary analysis and recommendations for companies that can best take advantage of Wescale’s capabilities.
It is one of the few source-to-pay suite vendors on the market that can offer at least adequate functional support across all six modular areas that Spend Matters tracks for S2P using only its internally developed capabilities. This stands in contrast to several of its biggest competitors, which have to varying degrees of success acquired and integrated best-in-class vendors or other suites to bolster their own capabilities.
And while Zycus cannot today claim its technology runs its suite of applications on a single data model, more than 95% of the solution is unified, and when compared against the market, it generally presents broad-based and out-of-the-box capability. Its solutions not only provide strong baseline (sometimes above-the-benchmark) functionality but they come from a single provider that is responsible for making it all work together.
This Spend Matters SolutionMap analysis examines Zycus’ solutions by modular and suite view to help interested parties understand the best components that make up the vendor’s end-to-end offering. It provides insight into which areas Zycus is strong in (and where it lags), how competitive individual modules are compared with best-in-class alternatives, and how combinations in the form of procure-to-pay (P2P), strategic procurement technology (SPT) and source-to-pay (S2P) suites stack up in comparison to Zycus’ broader peer group, including Coupa, Jaggaer, SAP Ariba, Ivalua and SynerTrade.
For this analysis, our report uses the aggregate results of nine SolutionMaps from Q4 2018 (the most recent in our quarterly update cycle), comparing a total of 58 solution providers across more than 600 granular functional benchmarks, which are aggregated into more manageable, tiered buckets for the purpose of this analysis. (Those procurement organizations leveraging SolutionMap for a software selection process gain insight into comparative performance at a significantly more granular level of detail that maps business requirements to functional performance.) The SolutionMap analyst ratings, also called the Solution scoring, used in this analysis are based on more than 3,000 hours of live product demonstrations and validated vendor RFI responses.
In subsequent briefs exploring SynerTrade and others, we will take a similar approach to analyzing source-to-pay providers, breaking down where end-to-end platforms excel (or fall below the functional benchmark) on module and suite bases. Previously, we covered the suite performances of Jaggaer, SAP Ariba, Ivalua and Coupa.
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.
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.
Today’s technology enables fine-grained customization and personalization. When applied correctly, personalization can lead to a better customer experience and higher sales or engagement. If applied poorly, it can detract from the user experience, causing frustration and possibly missed sales. In this article, we’ll walk through some of the personalization that can be enabled when using Amazon Business, helping to make it easier to find the right products and better control rogue spending.
If you’re not familiar with it, Amazon Business makes it easy for business customers to find and buy from hundreds of thousands of sellers and helps sellers reach millions of registered business customers around the world. Similar to Amazon.com, buyers search for products from millions of available items. For businesses, personalization helps make the buying experience fast and efficient. From relevant search results to customized messaging, buyers can find the items they need, and know upfront if they are approved for company purchase.
For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. This week: palladium up, copper down and electric vehicle from China may crush prices.
