Supplier Information Management Content

Promena: Vendor Introduction (Part 2) — Product Strengths and Weaknesses [PRO]

contingent workforce

In our last Spend Matters PRO post, we introduced you to Promena, an 18-year-old provider based out of Istanbul that is deploying a platform for strategic sourcing, supplier management and e-procurement. Operated under the umbrella of Zer, a procurement BPO firm that itself is a subsidiary of Turkey’s largest industrial conglomerate, Koç Holding, Promena has a solution with a long history of development and some relatively mature functionality despite its lower name recognition in the global procurement technology market. And while its newest modules are still finding their footing amid a rapidly changing sector, the solution overall offers a strong baseline off which Promena could expand it functional footprint.

Part 1 of this brief provided an overview of Promena’s offering and a short selection requirements checklist that outlined the typical company for which Promena might be a good fit. In Part 2, we provide a breakdown of what is comparatively good (and not so good) about the solution, a high-level SWOT analysis, and some final conclusions and takeaways.

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profile update (suggestions) — taking the headaches out of profile maintenance that results in most profiles being out of date in a supplier management system shortly after they are created; market-based supplier intelligence that is more in line and reflective with reality — and not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

Visibility is Key to Managing CSR Risks in Indirect Spend, EcoVadis Says (Part 3)

Indirect spend often gets overlooked by businesses because the outcomes from buying those goods and services are not the company’s core product, which relies on direct spend. But the potential for lost money and increased risk is so great that businesses must find a way to manage indirect spend.

“The broad reach of indirect spend, coupled with a lack of visibility creates risk, so the key to gaining visibility and managing this risk is to prioritize indirect spend management within an organization and start assessing indirect supplier performance in a formalized way,” said EcoVadis, a risk mitigation provider that offers business sustainability ratings and intelligence.

EcoVadis joined us for a Q&A to explore the next steps to figure out how to identify weak points, prioritize areas to defend against and create a plan for mitigating risks.

Tealbook: Vendor Introduction (Part 2) — Product Strengths and Weaknesses [PRO]

cloud solutions

In our last Spend Matters PRO brief, we introduced you to Tealbook, a five-year-old provider based out of Toronto (with an office in New York City) that is deploying a new platform for supplier information management (SIM) and discovery. Combining machine learning to accelerate data cleansing and gathering with a social media-like user experience to encourage collaborative supplier information management, Tealbook is gaining use cases and enterprise-class procurement customers that want to:

— Consolidate and better manage their supplier master data — aka the “I” (Information and Intelligence) in SIM.
— Discover and on-board new suppliers more effectively than 1) Google searches and 2) searches within proprietary supplier networks.
— Create a system of intelligence surrounding suppliers both internally (e.g., within a spend category team or project team) and externally through fully permissioned, community-based knowledge sharing.
— Quickly bring supplier diversity programs to target levels.

Part 1 of this brief provided an overview of Tealbook’s offering and a short selection requirements checklist that outlined the typical company for which Tealbook might be a good fit.

In Part 2, we provide a breakdown of what is comparatively good (and not so good) about the solution, a high-level SWOT analysis, and some final conclusions and takeaways.

Tealbook: Vendor Introduction (Part 1) — Background and Solution Overview [PRO]

Procurement organizations today talk a big game about automating transactional processes so that they can focus on upstream value creation opportunities. The thinking goes like this: The biggest opportunities for procurement are not in squeezing diminishing savings out of the usual vendors year after year but in identifying and contracting with the most innovative suppliers that can enable exclusive competitive advantages. These include not only strategic sourcing efforts around major categories or products but also mutually beneficial relationship-based activities like supplier collaboration, development, innovation and risk mitigation.

Yet there are several obstacles to this shift in emphasis toward more strategic activities. One is remarkably simple: The majority of procurement organizations do not have a single, accurate record of all of their suppliers. Most of the vital information that would constitute a vendor master file is instead scattered across various silos, including ERP systems, dedicated P2P or S2P tools, homegrown tools, and proverbial three-ring binders. So before procurement can earnestly attempt to spend more time on higher-impact value creation opportunities, most organizations have a lot of work to do forming a baseline off which they can build stronger supplier management, discovery and development competencies. This baseline of supplier knowledge is not just about maintaining an accurate vendor master file to pay the bills, but also a hub for information to help build supplier intelligence and a private supplier network (albeit with some community-based elements) rather than any single commercial network/marketplace.

Helping organizations form this baseline is how Tealbook, a four-year-old provider based out of Toronto (with an office in New York City), is deploying its platform for supplier information management and discovery. Combining machine learning to accelerate data cleansing and gathering with a social media-like user experience to encourage collaborative supplier information management, Tealbook is gaining use cases with enterprise-level procurement organizations that want to consolidate their efforts in master data management (MDM), quickly bring their supplier diversity programs to target levels, and find new suppliers more effectively than a search on the open web allows, as well as expedite the supplier on-boarding process. And as it continues to bring more users and suppliers into its network, Tealbook generates insights that becomes increasingly valuable to its community (without ever sharing proprietary information between organizations).

This Spend Matters PRO Vendor Introduction offers a candid take on Tealbook and its capabilities. The first part of this brief includes an overview of Tealbook’s offering and a short selection requirements checklist that outlines the typical company for which Tealbook might be a good fit. The second part of this brief provides a breakdown of what is comparatively good (and not so good) about the solution, a high-level SWOT analysis, and some market implications and takeaways.

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.

Sponsored Article

Putting the ‘Relationship’ Back in SRM

contingent workforce

At ConnXus, we’ve worked with countless buyers and suppliers — ranging from global fortune 500s to small and diverse businesses. One of the biggest opportunities we consistently see between buyers and suppliers in the B2B space is the ability to boost supplier relationship management (SRM). Successful SRM is a pivotal milestone in maximizing the value of your supply chain. Developing relationships with your suppliers can help foster collaboration, drive innovation and impact your bottom line.

AI in Supplier Discovery: Tomorrow [PRO]

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In Spend Matters’ last PRO article for the AI in Supplier Discovery series, we overviewed some situations where you can find it today, or at least functionality that looked like it was enabled by artificial intelligence (even if it was not), and set ourselves up for a discussion of true AI that is going to creep into supplier discovery platforms tomorrow.

However, when we say true AI, we mean the definition of AI as “assisted intelligence,” because there is no true artificial intelligence out there and probably won't be for a very long time (with some futurists conjecturing it will be 2060 before machines are as smart as the dumbest of us). Note that we don't even mean “augmented intelligence,” as even though the platforms will augment your knowledge, it will still be up to you to make the right, intelligent, decisions tomorrow. (And maybe the day after that, but that is a subject for our next article.)

In our last article, we reviewed the capabilities of the leading discovery platforms today, which mainly revolved around:

  • Smart search
  • Community intelligence

...and the intersection of both.

We discussed how the improvements in computing power and web-usability made it possible for platforms to implement better and more powerful search algorithms that actually made searches useful across wide supplier directories and networks; how community intelligence allowed an organization to quickly narrow potential supplier pools down to reasonable sizes; and how the intersection allowed for the definition of "like" searches that could not be done before now.

But as of today, those "like" searches are still pretty high level. And they are best at finding suppliers that provide finished products and services that can be well-defined and compared to other suppliers that provide similar finished products and services. In fact, most systems with "like" searches are for the identification of suppliers for indirect. Not direct. (And not services either.)

But that is going to change tomorrow. Tomorrow, supplier discovery systems are going to support:

  • deep capability match that uses bill of materials, production requirements and other deep factors to support supplier search for direct suppliers
  • resource capability match that can identify needed skill sets, knowledge and related attributes for services suppliers

And we'll finally have smart supplier search for all. But how will it happen? And what will it look like? Let's explore.

Sustainability and Supplier Data: EcoVadis, Healthcare Firms Share Information for ‘Responsible Health Initiative’

healthcare

The issue of sustainability has increasingly become a topic that has the power to unite industries in which peers might otherwise find themselves in fierce competition. According to EcoVadis, industry concerns about sustainability have made supplier data, which was once considered proprietary, become a shared resource for creating impact and cross-company value. EcoVadis and three health and pharmaceutical companies — GlaxoSmithKline (GSK), Teva, Takeda — this year announced the launch of the Responsible Health Initiative (RHI).

What the Heck are Companies Buying When They Purchase Accounts Payable Technology?

Spend Matters recently ran two surveys (one to procurement/finance practitioners and one to technology providers) in preparation for the launch of the Spend Matters Accounts Payable Automation SolutionMap later in 2019. Many of our questions focused on how users and providers define the bounds of AP automation solutions since there is often a disconnect even within the vendor community — let alone the user community. Accounts payable technology covers many business areas, so the market for the solutions is confusing. It's hard to compare them apples to apples.

Avetta, Browz to Merge: Placing Avetta in the Context of Broader Supplier Management and Risk Management Solutions (Part 3) [PRO]

How does Avetta — and its peers, including ISnetworld and Achilles — fit into 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 Avetta in the context of these two, highly complex solutions markets.

Our analysis includes detailed functional and requirements for each of these areas. Just coming up to speed on our analysis of the merger of Avetta and Browz? See our initial Spend Matters PRO Coverage: Avetta, Browz to Merge: Facts, Figures, Solution & Market Overview (Part 1) and Avetta, Browz to Merge: History and the Growth of Community-Oriented, Network Models (Part 2).

Before placing Avetta (and its peers) in the context of these two solution areas, it is essential to create a level-set definition of each. There is often significant overlap between supplier management solutions and supplier/supply chain risk management solutions, both in capability and in terms of the “what” companies are buying. But in short, here’s what they comprise and how they differ.

Avetta and Browz to Merge: Facts, Figures, Solution & Market Overview (Part 1)  [PRO]

Avetta announced earlier today that it and Browz are merging. Together under the Avetta name, the two providers of supplier management and supply chain risk management will become one of the clear leaders in perhaps the most “under the radar” procurement solutions market. The general focus of these two providers is on supplier and contractor on-boarding, pre-qualification and virtual auditing in support of vendor compliance, environmental, health and safety, risk management and related initiatives. SaaS-based enablement is a component of what Avetta and Browz do, but the real value they bring is based on the network impact and scale economics focused on supplier/contractor intelligence they provide to buyers and suppliers alike on a many-to-many basis.

Avetta, Browz, ISNetworld, Achilles and other similar solution providers compete in this somewhat niche — though quite sizeable and rapidly growing — area of the supplier management and supply chain risk management worlds. While not as well-known as providers like Coupa, Jaggaer and Ivalua (let alone SAP Ariba and Oracle), these four providers — along with a handful of other vertical and geographic specific providers — represent one of the fastest growing $500 million+ procurement solutions markets (2018 revenue), one that the vast majority of procurement and supply chain organizations know quite little about the inner workings of.

For many Spend Matters readers, this really is the largest procurement solutions market you’ve never heard of.

Over the course of the coming weeks, this Spend Matters PRO series will explore the combination of Avetta and Browz and what it means for the market. It will also unpack this market segment and explain how it fits alongside supply chain risk management, supplier information management (SIM), supplier performance management, master data management and adjacent sub-components of the supplier management market. We’ll also provide an outlook for customers of these solutions and for the broader growth of this sector as well (which Avetta pegs at a $14 billion market potential based on a referenced study to McKinsey in a briefing with Spend Matters prior to the deal announcement).

Today, we will start with a quick overview of the Avetta and Browz deal itself (facts/figures, estimated revenues, rationale, analysis, etc.) based on a variety of sources. Part 1 also includes a brief history of both providers and an overview of the current state of this market. For this series, our reference inputs include an interview earlier this week with the CEO of Avetta, John Herr, and over a dozen of other interviews conducted in recent years, as well as existing Spend Matters research (see previous Spend Matters PRO coverage on Avetta: Introduction/Background, Strengths / Weaknesses and Competitive Analysis/Customer Recommendations).