Supplier Risk and Compliance Management Content

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Supplier Risk & Ethics Analysis: Time to Get Started

For many buying firms, the quality of goods and services are contingent on their suppliers. Suppliers can indirectly impact brand perception from business to consumer. While delivered goods can be inspected through quantitative metrics, there are a host of other metrics that firms should track related to their vendors, including risk and ethics.

AI in Supplier Management: Tomorrow (Part 2) [PRO]

complex sourcing

In Part 1 of AI in Supplier Management: Tomorrow, we began our discussion of some of the AI-enabled capabilities that you can expect to find in tomorrow's supplier management platforms, where we define AI as assisted intelligence (because, as we have discussed, there is no true artificial intelligence in enterprise platforms today and there won't be tomorrow either). AI is a buzzword, not a reality. But we don't need true AI to achieve software that can radically increase our productivity. Reaching assisted intelligence will add multiples to our efficiency and effectiveness.

In our last article, we discussed how tomorrow's supplier management platforms will offer smart, automatic, supplier profile update (suggestions) — taking the headaches out of profile maintenance that results in most profiles being out of date in a supplier management system shortly after they are created; market-based supplier intelligence that is more in line and reflective with reality — and not just the experience of an anomalous customer subset; and real-time relationship monitoring that paints a relatively full picture of the relationship, not just a point-based performance picture.

So what else will tomorrow's platforms do to help you focus more on the strategic side of supplier management? Let’s look at the next three areas:

— Automated resolution plan creation, monitoring and adjustment
— Automated risk mitigation strategy identification
— Optimized real-time resource re-alignment

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Unconditional Procurement with Cybersecurity

In the global supply chain landscape, threats to cybersecurity are increasing exponentially. Fortune 500 companies have seen sensitive information exposed because hackers have targeted their vendors and business partners, which are organizations that might not be as secure as their corporate buyers. Every supplier and business partner becomes an added risk.

Working with global companies large and small, one of the biggest opportunities that I’ve observed is managing multi-tier suppliers and mitigating risk. We can support all of our suppliers through secured technology and the principle of “unconditional procurement.” What does that mean? By “unconditional,” I mean an unrestricted approach to procurement.

Are Supplier Relationships Evolving with Technology for Better or Worse?

As the digital transformation of procurement matures, relationships with suppliers are changing — in good ways and in challenging ways. To give us a close-up view of developments in supplier relationship management, we did a Q&A with Daryl Hammett, the general manager of ConnXus, a provider whose SRM solution helps buyers and suppliers work together to be efficient, responsible and sustainable.

AI in Supplier Management: Today (Part 2) [PRO]

As we have been repeating throughout this PRO Spend Matters’ AI series, AI is the reigning buzzword of the day in sourcing and procurement software. Supplier management is no exception. Just about every vendor out there trying to get an edge in the space is claiming to have AI, even if all they have is a pinch of RPA. That's why, in Part 1, we reviewed the technology ladder from RPA to "cognitive" — and insisted that while there is no true artificial intelligence out there today, we will start to see “assisted intelligence” and, later, “augmented intelligence” as the software gets more mature and more powerful.

And while we may not see true AI for decades, we do need assisted and augmented intelligence to efficiently and effectively do our jobs. As with supplier discovery, sometimes there is just too much supplier data to weed through to on-board, qualify, track and manage suppliers in an efficient and effective manner. It's really hampering our productivity.

But the right platforms will change all that. As per Part 1, the best platforms of today will:

— speed up and simplify on-boarding for us and our suppliers with auto-fill from databases, networks and third-party information sources.
— offer basic community supplier intelligence to provide quick, differentiating insights between suppliers with similar profiles but greatly differentiated capabilities.
— provide real-time performance insight and alerts to issues that need, or may soon need, attention from a real person versus just automated follow-ups with a supplier.


This is great, but it is not all they can do. We really need platforms that can be all they can be in order to truly take supplier management to the next level as an organizational practice ... versus a point-based endeavor with suppliers that we think are strategic or need our help.

The best platforms on the market today can also help with:

— automated issue identification — automated risk identification — automated resource assignment

And we will discuss each of these required capabilities in the rest of this article.

AI in Supplier Management: Today (Part 1) [PRO]

suppliers

With this brief we begin the next installment of our series on the application of artificial intelligence (AI) to various source-to-pay technologies. Previous entries focused on AI in procurement (Today, Part 1 and Part 2; Tomorrow, Part 1, Part 2 and Part 3; and The Day After Tomorrow), AI in sourcing (Today; Tomorrow, Part 1 and Part 2; and The Day After Tomorrow), AI in sourcing optimization (Today; Tomorrow; and The Day After Tomorrow, Part 1 and Part 2) and AI in supplier discovery (Today, Tomorrow and The Day After Tomorrow).

Following the path from supplier discovery and selection is the topic of our current series, supplier management. As with each preceding entry, the aim is to define what is available with AI(-like) technology and what will be possible tomorrow. And just as the best platforms for supplier discovery are starting to use machine learning and RPA, so too are the best supplier management platforms — but we're getting ahead of ourselves.

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.

Zycus: A Comparative Analysis of the S2P Suite (Source-to-Pay SolutionMap Analysis)

Zycus is part of an exclusive club.

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.

Coupa: A Comparative Analysis of the S2P Suite (Source-to-Pay SolutionMap Analysis)

It is impossible today to discuss procurement and finance software solutions without mentioning Coupa. Since its founding in 2006, Coupa has grown into one of the best-known providers of technology for corporate purchasing as well as invoicing and payments, sourcing, and spend analysis. And its philosophy of business spend management (BSM) resurrected — and improved upon — the original premise that gave rise to Spend Matters back in 2004 (spend does matter).

The awareness of Coupa in the market is due in no small part to its 2016 IPO, which brought the provider into the wider public eye while also providing it with the balance sheet to support an aggressive M&A program. The result is that Coupa can now claim some of the most advanced procurement-specific capabilities in multiple technology areas, as it has acquired several market-leading vendors and integrated their functionality into its own platform.

But where does Coupa excel the most, and where do its comparatively few weaknesses lie, measured against both best-of-breed vendors for standalone technology areas (e.g., contract lifecycle management) and competing suite providers (e.g., procure-to-pay, source-to-pay)?

 This Spend Matters SolutionMap analysis examines Coupa’s 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 Coupa 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 Coupa’s broader peer group, including Jaggaer, SAP Ariba, Ivalua, Oracle, SynerTrade and Zycus.

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 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, Zycus 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 and Ivalua.

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.