Supplier Risk and Compliance Management Content

APEX Analytix: What Makes It Great (Supplier Relationship Management and Risk SolutionMap Analysis)

In a market facing increasing consolidation each year, APEX Analytix stands out as a best-of-breed provider that excels in areas where suite providers merely meet the benchmark (or fall below it).

Results from Spend Matters’ SolutionMap vividly illustrate the gaps in the category of Supplier Relationship Management and Risk. While some larger providers post strong scores in general supplier information management, on-boarding or platform-related SXM capabilities (e.g., workflow management), few deliver the same consistently benchmark-topping scores that APEX Analytix does in its specialty areas.

The Greensboro, North Carolina-based provider has long been known for its broader portfolio of recovery audit, overpayment and self-audit software. But where APEX Analytix leads with its specialized supplier management solution — especially with granular supplier information and risk management capabilities — makes clear that specialization can yield considerable functional depth where end-to-end solutions sacrifice in pursuit of breadth.

Where does the provider stand out most, and why should this matter for procurement and finance organizations? Let’s delve into the SolutionMap benchmark to find out where APEX Analytix is great.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark, and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

Customer reviews for APEX Analytix are in the new SolutionMap Customer Insights report

This week’s SolutionMap Customer Insights report focuses on customer reviews for APEX Analytix, which provides software, data and services to manage suppliers, recover overpayments, and prevent fraud and payment errors. The applicable SolutionMap category for this report is Supplier Relationship Management & Risk.

SolutionMap Insider members can read about APEX Analytix in our latest report.

In each Customer Insights report, we provide a one-page summary from the SolutionMap peer review process. It includes ratings on how well the vendor meets user expectations, three key differentiators for the vendor and a list of quotes about the vendor’s greatest strengths.

‘What other needs do you have?’ — Lessons from ConnXus, a supplier relationship expert

Supplier relationship management (SRM) has grown from just sourcing the best deal to really evaluating suppliers for diversity, ability to innovate, value generation and their risk.

In this series on SRM, we’ve discussed how the development of supplier diversity has improved supplier management overall, and we’ve explored how companies can meet their goals to have a robust supply chain that’s diverse.

Businesses now know to get their spend data in order and should know how to measure the impact of that spend. They should be able to develop suppliers and drive innovation. Responsible businesses can protect their brand reputation by assessing their main suppliers (tier 1) and those deeper in the supply chain, as well as having a plan to mitigate risks, like unethical sourcing, forced labor in the supply chain or poor performance in the past. But, it’s also clear that lacking in supplier diversity or being weak in supplier information management (SIM) are risks themselves.

To learn more about these issues, we talked with SRM expert Daryl Hammett, the general manager of ConnXus, a provider that connects buyers and qualified suppliers.

Q3 2019 Supplier Relationship Management and Risk (SRM): Provider Scoring Summary

This SolutionMap scoring summary analyzes a select group of supplier management (SXM) providers. It includes coverage of supplier information management (SIM), supplier master data management (MDM), supplier performance management and broader initiative management (e.g., risk, third-party management) capabilities. It is part of our Q3 2019 SolutionMap report series, also featuring spend analytics, sourcing, contract management, e-procurement and invoice-to-pay providers.

The CPO’s Conundrum (Part 4): Economic Instability [PRO]

In the first three installments of this Spend Matters PRO series (see Part 1APart 1B), we noted that a number of pressing issues are shaping procurement from the outside in, yet chief procurement officers (CPOs) are still primarily concerned with issues set by an inside-out agenda — that is, cost-cutting and supply assurance targets mandated by upper management. Our PESTLE analysis of factors shaping the modern CPO agenda identified broad trends like economic instability, globalization, changing digital business strategies and the need to address corporate social responsibility (CSR) as areas that procurement organizations need to consider if they want to truly tap and manage the opportunities (and risks) offered by external supply markets, starting with sustainability and CSR in Part 2A and Part 2B and digital business strategy in Part 3.

Today we move on to the third item topping the CPO’s outside-in agenda: economic instability.

How to reach your goals on supplier diversity and supplier management

When a company considers how to improve its supplier diversity, it can do so along with improving its supplier management overall. But how does a business go from getting started to reaching its goals with suppliers?

In the first article in this series, we showed that businesses starting this process don’t have to choose between supplier diversity and supplier management. You should do both at the same time.

But now, let’s consider how to execute a plan to build relationships with suppliers and reach your business goals. You’ll need to understand three areas of SRM, or supplier relationship management: how your suppliers align with your business goals, how you manage supplier risk and how you address supplier development.

Ivalua: Vendor Snapshot (Part 3) — Downstream Solution Overview [PRO]

supplier network

Ivalua has been growing steadily since Spend Matters’ comprehensive update in 2016, with the suite provider adding clients, offices, employees and capability around the globe. After we provided an updated background in Part 1, we delved into Ivalua’s primary upstream solution components around spend analysis, strategic sourcing, direct sourcing and contract management in Part 2.

Today, this seven-part Spend Matters PRO series will continue our solution overview with a look at the downstream components — namely catalog management, e-procurement and order management, e-invoicing, expense management, payment management and IVA for guided buying. After we review these downstream components, we’ll finish up our solution review with a couple of the cross-platform capabilities around risk and performance management, supplier information management and master data management (MDM). After we finish with our solution overview, in Parts 4 and 5, we will dive into Ivalua's particular strengths and weaknesses from a solution perspective.

Q2 2019 Supplier Relationship Management and Risk (SRM): Provider Scoring Summary

This SolutionMap scoring summary analyzes a select group of supplier management (SXM) providers. It includes coverage of supplier information management (SIM), supplier master data management (MDM), supplier performance management and broader initiative management (e.g., risk, third-party management) capabilities. It is part of our Q2 2019 SolutionMap report series, also featuring spend analytics, sourcing, contract management, e-procurement and invoice-to-pay providers.

ConnXus Brings ‘Quick and Clean’ Supplier Data Cleansing to the Masses with SmartScrub: Vendor Snapshot Update [PRO]

For the majority of procurement organizations today, obtaining and maintaining accurate supplier master data is a huge pain point. Most organizations still do not trust their vendor master as a single source of truth (or even have one!) — nor do they have the time or personnel to continuously validate and enrich supplier records to the degree that is necessary to create that level of trust.

One solution to this problem for the last decade or so has been to gather a list of suppliers the organization has worked with in the past year and submit the records to one of several firms that clean and enrich this data as a service for various purposes (e.g., deduplication, verification, enrichment, etc.). Among these firms is ConnXus, a best-of-breed solution provider within the Supplier Relationship Management & Risk SolutionMap category. ConnXus is best known for strong supplier diversity management and a growing set of adjacent capabilities (such as a next-generation supplier network where a supplier can register once and share its profile with any business).

As technology has improved in the market, new options for supplier master data cleansing and enrichment have turned this service into an increasingly automated process (e.g., doing so via API every time a new supplier is added). But offerings vary. Some require a license to the entire platform to use the data services, while others provide a cost-effective entry point that do not guarantee perfect results. So ConnXus, as of this week, is seeking to provide a middle ground between these two extremes: A competitively priced supplier data cleansing and enrichment subscription called SmartScrub that guarantees 98% accurate records for U.S.-based businesses returned in under 24 hours — often much faster, as the service is completely automated once users provide an uploaded template containing supplier name and valid address.

More important for procurement organizations, SmartScrub’s capabilities are available for purchase without engaging ConnXus’ supplier management solutions. And at the price points ConnXus is offering, most companies will have the ability to validate, centralize and report on diversity and industry data for thousands of records where before such solutions may have been inaccessible. Although ConnXus does aim to turn these subscribers into full customers, of course, especially as it quickly evolves its data validation capabilities into what it sees as the next logical evolution: mass supplier discovery of diverse and industry-specific vendors.

This Spend Matter Vendor Snapshot Update reviews ConnXus’ new SmartScrub subscription and explains how the supplier management vendor is taking a potentially disruptive approach to enabling MDM cleansing and virtualization. It is an addendum to our previous reviews and analyses of ConnXus:

Part 1: Background and Solution Overview
Part 2: Product Strengths and Weaknesses
Part 3: Commentary and Summary Analysis
ConnXus Envisions a Next-Generation Supplier Network With myConnXion: Vendor Snapshot Update

Protect Against These Risks when Working with Third-Party Vendors

risk

Spend Matters welcomes this guest post from Matt Kunkel, the CEO of LogicGate, a provider of risk management solutions.

A recent study revealed more than 60% of organizations in the U.S. that have encountered a data breach were compromised because of a third-party vendor. Organizations use vendors as a means to efficiently complete tasks, but they can create vulnerabilities for which the organization is ultimately responsible. Vendor decisions and operations are frequently out of a chief information security officer’s control, but they still carry serious risks to the organization’s business and reputation.

Mastercard Track: A Gateway to a New Kind of B2B Ecosystem (Part 2) — SWOT Analysis and Market Implications [PRO]

Over a decade ago, American Express led the payments way in making innovative investments aimed at procurement organizations and their suppliers, primarily through its venture and partnership arms. (Remember MarketMile/Ketera, anyone?) But more recently, it appears that Mastercard has picked up the B2B innovation mantle, opting to organically build a solution aimed at buyers and suppliers with procurement front and center in the business case crosshairs. This new solution, Track, surprised us in multiple ways (click here for an introduction to Track), especially for its audacious supplier network vision (and we might add also for what it is not doing, at least not yet).

Is the tail of Mastercard’s new supplier network offering — comprised of a trade directory, supply risk monitoring capability and payment ledger — wagging the payments dog? The answer might surprise you. This purebred procurement solution can hunt without even hinting at the need to enable a virtual or corporate card swipe.

Indeed, with its new Track solution, Mastercard appears quite serious about the procurement and supplier management market beyond just finding creative ways of leveraging its rails to enable payments. With this new product release, Mastercard stands in contrast to American Express, among others, which still appears to be taking the same old B2B payments and financing pooch out for a walk, albeit with an updated veneer for the digital working capital era.

But before we drown in our doggy metaphors, let’s analyze what’s good — and what’s not so good — about Mastercard’s first generation Track release and what it means for procurement organizations, supporting services providers (e.g., consultancies) and the procurement technology sector as a whole.

Mastercard Track: A Gateway to a New Kind of B2B Ecosystem (Part 1) — Vendor Introduction and Solution Overview [PRO]

B2B payments represent a significant opportunity for payments providers. Within the U.S. alone, Deloitte research suggests that B2B payments are expected to reach $23.1 trillion by 2020, following a 5.8% CAGR since 2014, with large enterprises accounting for more than 60% of all transaction volume. Financial institutions, however, have placed comparatively less emphasis on the B2B space in favor of B2C transactions, which in spite of their smaller relative total size present less complexity in terms of technological and process problems to solve. Yet this is beginning to change. Banks, payment providers and other institutions are doubling down on the opportunities in B2B, and some are even starting to get their foot in the door by offering software targeted toward procurement organizations. For example, Mastercard has been rolling out its new Track solution in partnership with major banks and P2P and S2P suite providers and via public demonstrations at vendor conferences like Basware Connect and Ivalua NOW. Following the integration of Track’s payment capabilities with Singapore’s Networked Trade Platform (NTP) last year, Mastercard is getting its procurement technology start in, of all things, supplier master data and risk management. This may seem like an odd fit, especially when there are other technology providers offering similar — or in some cases, far more sophisticated — tools for managing supplier data and tracking third-party risk. As many B2B “old timers” know, banks and payment networks (Mastercard included) have been trying to insert themselves into P2P processes for nearly 20 years, and the results have been a failure every time, because they were always about funneling the transactions to their payment networks in order to charge suppliers 2% to 3% processing fees. This relegated these initial efforts to tail spend and highlighted how they couldn’t add value to the broader S2P process.

But we think this solution from Mastercard actually has huge potential and will likely be a market disruptor. Why? Well, from a practitioner standpoint, what would you think of a vendor who took all your supplier master data and then ran it through its “magic engine” and then showed you all the duplicates and supplier risk warning flags — and they did this on a freemium basis? That should catch your attention. And it should catch the competitive attention of D&B, LexisNexis, supplier networks, supplier risk/intelligence providers, supplier discovery tools and others that play in this space, as well as the partnering attention of S2P application providers that want an instant supplier network partner that can do more than process low-dollar transactions on a payment network.

Mastercard is just starting the first act of a longer, platform-based play, and the question today is simple: Is this “priceless” MDM and supplier risk solution worth a look? The answer is a resounding “Yes!” Because unlike other services in the space, Track takes the long view, supporting Mastercard’s aspiration to enable and connect into a global B2B ecosystem of multiple services, from business identity and risk management to payment facilitation and trade finance. And while we expect many of Track’s initial capabilities and partner offerings to evolve over time — what Mastercard has been publicly demonstrating over the past several months is more of a minimum viable product than a fully matured and battle-tested solution — the first cut is worthy of a deeper dive.

This Spend Matters PRO Vendor Introduction offers a candid take on Mastercard Track and its initial capabilities. Part 1 includes an introduction of Mastercard’s offering and a breakdown what the solution can (and can’t) currently do. Part 2 will provide a SWOT analysis and our key recommendations to interested parties (procurement organizations, technology providers, supporting services providers) evaluating Track as encountered through partner P2P or S2P providers.