The Supplier Risk and Compliance Management Category

Resilinc EventWatch Data: Factory Fires and M&A Activity Rank as Top Disruptive Events

supply risk

Resilinc recently released its 2017 EventWatch Supply Chain Disruption Annual Report, and the top two disruptive event types by a significant margin were factory fires and explosions and mergers and acquisitions. The report is based off the 2017 data collected by Resilinc’s EventWatch software, which monitors and analyzes global events that are potentially disruptive for supply chains and then alerts customers. In 2017, EventWatch published on average five bulletins a day.

Aravo: Vendor Snapshot (Part 3) — Summary and Competitive Analysis [PRO]

suppliers

Of all the procurement solution providers Spend Matters has tracked over the years, Aravo was arguably the most ahead of its time, delivering a set of supplier management capabilities a decade before demand would catch up with supply for this multifaceted solution category.

Owning to the tenacity and passion of its original leadership and the secondary management team that would eventually take the helm, Aravo managed to survive and then thrive, waiting for the market to catch up to it — not the other way around. Today, Aravo excels at many disciplines within supplier management and third-party management, and has a track record of enabling some of the largest deployments of supplier information management (SIM) capabilities that Spend Matters has tracked in the broader market.

This third and final installment of this Spend Matters Vendor Snapshot covering Aravo provides a SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also includes recommended shortlist candidates as substitute providers to Aravo and provider selection guidance. Finally, it provides summary analysis and recommendations for companies that can best take advantage of Aravo’s capabilities. Part 1 of this series provided an in-depth look at Aravo as a company and its specific solutions, and Part 2 gave a detailed analysis of solution strengths and weaknesses and a review of the user experience.

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Italy and the Real-Time VAT Control Big Bang

Electronic invoicing is on the decline — and rapidly so. No, I don’t mean companies have started exchanging fewer invoices in electronic format. I mean that the domain that we have in the past 15 years called “e-invoicing” is converging with the broader VAT compliance domain. Together, the two are morphing into what might be called “VAT compliance v2.0.”

Aravo: Vendor Snapshot (Part 2) — Platform Strengths and Weaknesses [PRO]

Aravo was the original standalone supplier information management (SIM) solution in the North American marketplace. Founded in 2000, it is also one of the oldest independent procurement solution providers. After growing beyond its early roots as a catalog management enabler for Ariba implementations, Aravo launched a SIM solution capable of managing general supplier registration field and template-based initiatives. In more recent years, it has evolved into a full-fledged third-party and supplier data management solution that bridges a range of governance, risk and compliance (GRC) and procurement-centric requirements.

This Spend Matters PRO Vendor Snapshot explores Aravo’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider the provider. Part 1 of our analysis provided a company and detailed solution overview, as well as a recommend fit list of criteria for firms considering Aravo. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

What the Super Bowl Can Teach About Risk Management

Pause for a moment to consider how adept the NFL has proven itself at proactively addressing logistics and risk management. Whether we’re talking facilities, security, transportation or emergency services, there’s obviously a lot more behind the curtain than we know about. Suffice it to say that little imagination is required to accept that the NFL sets an interesting, if not teachable, example — not just in terms of how to pull off a mega-event but how to react to most anything that could possibly go wrong. It expects problems and is prepared for them.

Investigative Report Details Toxic Gas Poisoning and Other Serious Labor Violations at Key Apple Supplier

China Labor Watch released a lengthy report Tuesday detailing appalling work conditions at Catcher Technology, a supplier of computers, digital cameras and other products to Apple, Dell, HP, IBM and Sony. The factory under investigation, however, is primarily an Apple supplier, producing iPhone frames and MacBook components. Among many other labor violations, China Labor Watch found toxic gas poisoning, unsanitary food, inadequate protective gear and excessive pollution during its investigation of the Catcher factory in Suqian, China, conducted from October 2017 to January 2018.

The 12 Supply Risk Management Disconnects that Destroy Value (Part 1) [PRO]

risk

“Risk” and “risk management” are terms that are like the ultimate Rorschach test in business: they mean many different things to many people. The same applies to the term “value” — and don’t even bring up “supply management.” Even a specific term like “supply risk” has many interpretations (e.g., it’s much more than supplier risk). The problem with this is that if people within a company define various terms differently, then how well will they be collectively managing those areas? Likely not well at all.

Risk management is a strange animal. On one hand, it focuses on “things gone wrong” and hones in on defining and mitigating various external risks that create adverse events in a value chain. On the other hand, those adverse events affect stakeholder-relevant performance (i.e., measurable value). Such performance and value delivery is focused on “things gone right” and reward rather than risk.

The key, therefore, is to realize that risk and reward are inextricably linked. If ensuring delivered value (and improving it over time) from the supply chain and from suppliers is what supply management is all about, then that supply value should not only be expected (i.e., expected value like discussed above) but also protected (i.e., protected value ensured through supply risk management). As a side note, have you ever considered that the concept of “expected value” uses the term “value” even though it is applied heavily to the world of risk management (i.e., calculating the expected probabilities and impacts of various risks)?

Anyway, the imperative becomes ensuring that the most important performance metrics (i.e., KPIs) are protected from risk. Yet these individual KPIs are rarely individually and systematically managed for risk, and the lack of risk-adjusted performance management means that you’re going to be exposed and it will catch up with you eventually. The problem isn’t just bouncing around and applying risk management technique X via tool Y to address risk type Z. There are a dozen fundamental disconnects in most firms that prevent risk management being properly resourced, aligned, managed and improved. Only by unpacking them and addressing them through focused practical interventions can you really get to the root cause issues that are likely keeping your supply risk management efforts suboptimized.

In this Spend Matter PRO series, we will explore 12 critical supply risk management disconnects. This brief, Part 1, focuses on the following four areas:

  1. Risk Scope and Stakeholders
  2. Performance vs. Risk
  3. Risk Type vs. Impact
  4. Risk vs. Cost (e.g., “cost of risk”)
If you’re a practitioner, you should be able to see which disconnects are the biggest issues for you and make yourself more resilient (i.e., ability to mitigate and recover from risks) and predictably high performing. If you’re a consulting organization, you’ll probably find some pointers to improve any methodologies that you have here. And if you’re solution provider, whether in the supply risk management area, or more broadly, you’ll hopefully get some ideas on how to address more strategic pain points.

LUPR: Vendor Snapshot (Part 2) — Product Strengths and Weaknesses [PRO]

This vendor snapshot series is focused on LUPR, a new entrant in the supplier management technology arena. Pronounced “looper,” but not spelled looper, as that's a media site dedicated to bite-sized entertainment news and pop culture, and procurement technology is usually not that scintillating, the name certainly caught our attention. And maybe yours.

Perhaps you’re chuckling about the various puns on the name LUPR (e.g., that supplier threw me for a …). But once you get past the name — which we believe positively calls out and reinforces the need for closed loop supplier and customer engagement — it becomes clear that LUPR is addressing a number of areas that most procurement organizations have not yet gotten around to automating through technology outside Excel, primarily centered on supplier quality and supplier development in a direct materials context.

Built on the Salesforce platform, LUPR has two different solutions: a buyer platform and a supplier platform, which is free for suppliers to use. This Spend Matters PRO Vendor Snapshot explores LUPR’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider the provider. Part 1 of our analysis provided a company and detailed solution overview and a recommend fit list of criteria for firms considering LUPR. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

LUPR: Vendor Snapshot (Part 1) — Background and Solution Overview [PRO]

While not all procurement groups have adopted the “supplier” flavor of customer lifecycle management — that is, supplier relationship management (SRM) — an increasing number of organizations are taking the plunge and purchasing supplier management capabilities, either from standalone providers or as part of integrated suites — and sometimes both. The SRM sector is a crowded one, and Spend Matters has covered many of its newest entrants. From specialized initiative management providers to on-boarding and master data management (MDM) specialists and spend-specific vendors (e.g., manufacturing, services) there is no shortage of solutions to choose from, let alone individual technology providers.

One of these new entrants, LUPR, was co-founded by Sean Harley, a former colleague of one of the authors of this brief. (Harley and Jason Busch worked together at FreeMarkets). The name LUPR is a play on words, as one of the goals of the firm is to close the loop between buyers and suppliers with relevant data to help both parties sustain relationships, improve quality levels, resolve performance issues and collaborate on innovation. LUPR is not yet a full-featured supplier information management solution, but it does go deep in specific supplier management areas and excels in meeting a range of initiative-based requirements for manufacturers.

But in such a crowded market, the question remains: Is LUPR different enough to succeed? Maybe.

This Spend Matters PRO Vendor Snapshot provides facts and expert analysis to help procurement organizations make informed decisions about LUPR and whether its technology and solution capabilities are a fit for their needs. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider LUPR in the supplier management and quality management areas. The remaining parts of this research brief will cover product strengths and weaknesses, competitor and SWOT analyses, and insider evaluation and selection considerations.

Hurricanes, Geopolitics, Cyberattacks and More: Top Risk Posts of 2017

As far as risk goes, if 2016 was characterized by political turbulence, then 2017 was all about disasters, natural and manmade. This past May saw a worldwide ransomware attack that hit more tha 300,000 computers in 150 countries, disrupted hospitals and manufacturing plants, and caused economic losses that are estimated to be in the billions. Then there were the Harvey and Irma hurricanes of late summer and the ongoing California wildfires. And we haven’t even mentioned geopolitics, commodities, finances and all of the other risks out there that need to be on procurement’s radar these days. As part of Spend Matters’ year in review, here are the top risk posts from 2017 that you don’t want to miss.

Predictive Contract Negotiations: Get Full Value From CLM Tools [Plus+]

Contract management is undergoing a transformation, moving from the back of the procurement kitchen to nearly taking center stage. A good part of the reason is the corporate transition from a more passive "risk viewed as lack of compliance" efforts toward a more dynamic and comprehensive approach to risk management. This approach doesn't just examine legal clauses as such. Nor does it merely ensure that agreed upon prices and SLA deliverables are met, although those reasons are obviously part of the equation. There’s more to it — much more. In this Spend Matters Plus research brief, we begin by reviewing the core components of CLM systems, and then we explore the path to predictive contract negotiations, delving into the intersections of big data, predictive analytics and contract management.

Comparing Jaggaer and BravoSolution: Supplier Management [PRO]

As Spend Matters defines it in terms of SolutionMap functional requirements, supplier management is a catch-all for a range of underlying capabilities. Said another way, it is not “single” supply market. Supplier management solutions combine varying depths of underlying technical capabilities with single or multi-initiative functional support capabilities. No one vendor is great at all of it — not even close — even if there are significant advantages to coupling supplier management with other modules in an integrated suite.

BravoSolution, Jaggaer and Jaggaer Direct each bring different capabilities to the supplier management equation that can make the individual modules a better fit for certain organizations and industries than others. It can also make comparing them (either directly or with others) confusing for those who are somewhat new to all of the areas that supplier management technologies support and enable.

In this research brief, we will answer the following questions:

  • Comparatively, how does each respective supplier management module stack up on a capability basis?
  • What are the functional strengths of each supplier management module “under the surface”?
  • What are the “best fit” SolutionMap personas for each supplier management module?
  • Who are alternative supplier management providers?
  • What are disruptive forces in the supplier management market (e.g., artificial intelligence, low-cost solutions) that could affect both providers?
  • Is there a disadvantage to “going non-suite” in the supplier management area?
This Spend Matters PRO brief is based on the following inputs: Q4 2017 SolutionMap datasets (analyst scoring) based on our SolutionMap methodology, demonstration notes and Spend Matters PRO research on alternative suppliers (Vendor Snapshots).