Services and Indirect Content

Workday: Procurement Rising? 5 Scenarios Explored

Procurement is taking on increased importance for Workday’s growth. In a recent Seeking Alpha column highlighting some of the takeaways from Workday’s financial analyst day at its Workday Rising customer conference, the author notes that Workday suggested it will have four drivers of sustained growth in the quarters and years to come: international expansion, financials, old customers — and, drumroll please, procurement!

According to the column, the focus on procurement appears in part driven out of the success of Coupa, which validates the “the considerable potential in this market.” Further, according to Workday, “procurement would serve to expand focus, with the potential to sell the product on a standalone basis in the future. Workday shared that more than 650 WDAY customers used procurement and highlighted that the attach rates for procurement is 85% for the core financials segment.”

Of course that says nothing for the breadth, depth and capability of what Workday is building for customers at this stage in the area (right now, things look somewhat bare bones). Cynically, we could argue that Workday Procurement is still two-steps removed from the mainstage. After all, the product line appears to fold into the supply chain product line, which does not even get a mention as one of the Product Strategy and Vision Keynotes at Workday Rising.

Procurement also takes a backseat role at other cloud-based ERP vendors as well ...

Who should have access to your projects and budget in your VMS?

Spend Matters welcomes this guest post from Ivana Cvejic, Co-Founder and CSO for Renhead, an end-to-end workforce management technology provider headquartered in Las Vegas.

To outsource work while planning, tracking and budgeting projects, businesses procure transparent data and time management with vendor management systems (VMS). 

While it’s all well and good for businesses to have vital information and tools at their fingertips, that information must be made available to the right people so they can take the appropriate action that best benefits the organization. 

Afternoon Coffee: Deloitte launches CPO survey; How to win the war for contractor talent in manufacturing (free webinar); Fairmarkit raises $11M

Deloitte, in association with (and with input from) Spend Matters, released their annual CPO report today, titled "Global Chief Procurement Officer Survey 2019." MetalMiner’s executive editor and Azul Partners CEO Lisa Reisman will walk through how companies can (and should) address the talent gap, on a free webinar tomorrow, Thursday October 24 at 11 am CT / 12 pm ET, titled “The War For Contractor Talent: How Manufacturers Can Find the Workers They Need (and Fast).” And tail spend management software solution provider Fairmarkit announced it has raised $11 million in Series A round funding, to be used in part to expand its product suite offerings. Afternoon Coffee: your source for procurement and supply chain news.

Beeline update: VMS veteran makes strides on partner network, UI, services procurement, direct sourcing [PRO]

After about a year since our last meeting with Beeline, Spend Matters recently had the opportunity to be briefed by its team on developments related to the comprehensive Beeline global VMS solution. One thing is for sure: Beeline is not resting on its laurels. Now celebrating its 20th year in business, the company is growing and responding to market changes.

In this PRO review, we present what we learned in the briefing, which covered a number of areas:

* Business overall
* Partner ecosystem (including key new partnerships)
* UI upgrade
* Candidate evaluation experience (including new evaluation partnership)
* Services procurement (including independent contractor solution, compliance and complex sourcing)
* Direct sourcing (including a direct sourcing platform partnership)

This brief will conclude with our thoughts on the recent briefing.

Afternoon Coffee: Walmart enters unique wind power deal; Basware reports earnings; VMS solution shopping? ICYMI, we can help

ENGIE US Wind has announced that it would continue to service Walmart’s renewable energy needs via an "innovative agreement." Basware, the Finnish suite provider, reported its total revenue increased 8.3% from July to September 2019 over the same period last year, according to an earnings release today. Avetta, the supply chain risk management solution provider, named Arshad Matin its new CEO. And ICYMI, Andrew Karpie's analysis of today's VMS solution landscape is a must-read for those practitioners currently in the market for a new VMS. Afternoon Coffee: your source for procurement and supply chain news.

Avetta names new CEO to lead supply chain risk firm

Avetta has named a new CEO as the supply chain risk management firm continues to evolve after its acquisition of Browz this year. The Utah-based provider named Arshad Matin as president and chief executive officer, effective immediately, according to a press release issued Monday. Matin replaces John Herr, who is stepping down and will be an adviser to the board to ensure a smooth transition, the company said.

Bullhorn Acquires Erecruit — Is It Relevant to Contingent Workforce Managers? [PRO]

Bullhorn, a leading provider of comprehensive software for staffing/recruiting agencies, recently announced its acquisition of its rival Erecruit. Terms of the acquisition were not disclosed, but the combined companies (each of which have acquired key competitors over the past several years) now serve about 11,000 staffing supplier customers, primarily in the U.S. and Europe. Note: Bullhorn has reported that 95% of its customers are temp staffing agencies vs. 5% placement agencies and executive search services; and we assume there was a similar ratio for Erecruit.

Bullhorn’s acquisition of Erecruit is in itself a significant event within the staffing industry. But it also led Spend Matters to ask some questions:

* Do contingent workforce managers take an interest in what is going on upstream in their supply chains? That is, beyond standard performance metrics (cost, speed, quality) which treat staffing suppliers mostly as black boxes that produce certain commodity outputs (submittals, candidates, quality hires, et al.).
* Do practitioners consider which technology providers that their staffing suppliers are using, how much they are investing in technology and digital transformation, or how they are innovating for the benefit of its business clients and workers?
* Finally, do those investments in technology, digital transformation and innovation put those suppliers in a better position to provide talent and service to a demand-side organization? These seem like important questions with either a one-word answers (i.e., “no”) or multi-word answers (with potentially many viewpoints and long discussions that cannot take place within the boundaries of this brief).

Accordingly, in this brief, we are not going to delve into those questions as such, but rather focus on Bullhorn’s acquisition of Erecruit (what’s the context, what’s in it, what lies ahead). Then, contingent workforce managers can form their own thoughts about how important upstream supply chain (and specifically, technology) changes are and how much attention and consideration they merit.

So let's look at this deal and how these two entities (once direct competitors, now a single business) stack up ...

Afternoon Coffee: U.S. factory output falls; LevaData, IBM announce DirectSpend IQ; Science Exchange gets new funding

Science Exchange, a leading SaaS-enabled marketplace, sourcing and management solution for outsourced research and development (R&D), has raised an additional $20 million in equity and debt financing. LevaData and IBM partnered to launch a new offering called DirectSpend IQ, which “brings together IBM's expert managed services with LevaData’s Cognitive Sourcing Platform to deliver insights and recommendations for direct procurement cost savings opportunities and process transformation." And due to the GM strike among other factors, U.S. factory output has suffered. Afternoon Coffee: here's to a Happy Friday of procurement and supply chain news.

Afternoon Coffee: A new SolutionMap analysis of VMS software providers; Tesla’s Powerwall batteries to hit Japan’s market

Today Spend Matters published a “roll-up” view and analysis of software providers currently participating in SolutionMap that offer vendor management system (VMS) solutions, using SolutionMap scoring data to give an up-to-date perspective of the VMS landscape. Starting next spring, Tesla will start installing the 13.5 kWh Powerwall home power storage batteries in Japan. And Expanse, the net ops management company that counts the U.S. Department of Defense as one of its clients, today said it had launched Expanse Link, a product that helps identify and manage strategic suppliers' Internet assets and risks. Afternoon Coffee: your source for procurement and supply chain news.

What is a VMS today? Spend Matters’ SolutionMap helps define it 

work intermediation platform

Vendor management system (VMS) solutions have been synonymous with contingent workforce technology for the past two decades, but the functions associated with it have been evolving.

It began as a fit-for-purpose software application for managing temporary staffing suppliers and temporary workers, but over the past 10 years, most of these solutions have added functionality or modules to manage contract services/SOW suppliers and service delivery engagements. In the past five years, some providers of these solutions have grappled with the VMS term and concept. Today, most providers of these types of solutions still refer to themselves as VMS solutions, although their solution footprints vary.

When Spend Matters introduced its first SolutionMap for Contingent Workforce and Services (CW/S) enterprise technology in Q2 2018, it decided to forgo the use of the term VMS in favor of developing separate SolutionMap rankings for distinct technology solutions that addressed three extended workforce categories: (1) Temp Staffing, (2) Contract Services/SOW and (3) Direct Sourcing of Workforce/Services (formerly named “Independent Contract Workers”). This was done in part to sidestep the growing variability of the meaning of the term VMS. But more importantly, it was done based on the belief that the three categories provided a more accurate way to analyze and compare solution capabilities (to be discussed further below).

This SolutionMap Insider brief examines the current status of VMS and how Spend Matters draws a tentative line around what constitutes a VMS solution today. It also provides a high-level view of the “VMS” capabilities and an anonymized analysis of corresponding SolutionMap scores. Lastly, it concludes with questions posed to practitioners and providers about the validity of the definition and concept of VMS presented in this brief.

Afternoon Coffee: RigUp raises $300M in latest funding round; Trump tariff call-off continues supply chain uncertainty

Online marketplace RigUp, which refers to itself as “the energy industry’s largest marketplace for on-demand services and skilled labor,” has announced a $300 million Series D round led by Andreessen Horowitz (a16z). The Consumer Technology Association (CTA) has called the logic behind President Donald Trump’s trade strategy with China akin to taking “one step forward, two steps back." And women are increasingly joining the truck driving workforce, according to the WSJ. Afternoon Coffee: your source for procurement and supply chain news.

VectorVMS: What Makes It Great (Temp Staffing/VMS SolutionMap Analysis)

workers

VectorVMS, previously known as PeopleFluent, delivers software and services that support businesses in the management of their contingent workforce programs.

Acquired by publicly traded Learning Technologies Group (LTG) in 2018, VectorVMS now operates as a separate business unit focused on providing contingent workforce and services (CW/S) technology solutions. VectorVMS' clients today are using its technology solution that enables organizations’ sourcing and management staffing suppliers and temp workers.

VectorVMS offers businesses what may be a unique blend of (i) solid Temp Staffing sourcing /management functionality, (ii) established domain expertise and experience and, last but not least, (iii) a set of a la carte services that (for internally managed programs, for example), can even substitute for some processes that MSPs traditionally offer. It therefore holds a unique place in Spend Matter’s SolutionMap lineup.

Spend Matters segments the evolving CW/S enterprise technology solution market into Temp Staffing and two other main categories:
* Temp Staffing (Temp), the historical focus and largest category of spend under management for established VMS providers (e.g. Beeline, Coupa-DCR Contingent Workforce, SAP Fieldglass, etc.)
* Contracted Services/SOW (SOW), the spend on services provided by organized suppliers (e.g., professional services, etc.), the sprawling category of spend now contributing the highest growth to some VMS providers’ spend under management.
* Direct Sourcing of Workforce/Services (DSW/S), the spend on directly-sourced individual external workers and very-small-scale services providers, a category of spend that is becoming more relevant to many businesses.

At the time of the Q3 2019 Solution Map RFI submission, VectorVMS reported providing temporary staffing solution capabilities to nearly 200 clients in various private sector verticals (such as healthcare) as well as government. While VectorVMS did demo an appreciable set of capabilities addressing Complex Services/SOW, it is not represented in that SolutionMap this quarter (but may be in a subsequent quarters).

The Spend Matters SolutionMap contains functional and customer satisfaction benchmarks on more than 50 technology providers within the broad procurement solution landscape, including 14 providers within the CW/S segment. But where does VectorVMS stand out most and help “set the bar” for the Temp Staffing solution segment? And why should this matter for procurement and HR organizations? Let’s delve into the SolutionMap benchmark to find out where VectorVMS 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.