Suppliers Content

Why Payment Companies are Missing an Opportunity with Early Pay

Small Business Credit

David Gustin is the chief strategy officer for The Interface Financial Group responsible for digital supply chain finance and is a contributing author to Trade Financing Matters.

Facilitating B2B payments is certainly the “in” thing these days as witnessed by some of the more recent acquisitions — see Jason Busch’s Spend Matters’ post Another Payment Provider Gets Acquired.

Why all the excitement? The market sees opportunities around three areas — interchange fees, cross border payments and FX.

For many payment companies that deliver solutions to automate payments and accounts payable, their core value proposition, infrastructure and business model are built around converting their clients’ suppliers to card payment.

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Learn the Best Practices for Integrating Your E-procurement System with Amazon Business

BuyerQuest

To automate your procure-to-pay processes, your business will need to integrate your e-procurement systems with the online catalogs of your contracted suppliers.

Amazon Business launched in 2015 with a vision to give businesses a simple, personalized and transparent online B2B experience. An extension of this vision was to simplify the integration for businesses connecting their e-procurement systems to Amazon Business, while giving them access to a broader selection of products and sellers.

This article will highlight the best practices for integrating your e-procurement system with Amazon Business.

Public Spend and Riding a Bike: A Fresh Look at Successful Buyer-Supplier Relationships

In Spend Matters’ effort to examine public spend, we came across an article on Public Spend Forum that highlights a universal truth — while also leading into a lesson on rethinking how to source a project. The truth is that having the knowledge about something doesn’t mean that you can understand it enough to use it effectively. Kate Vitasek, a professor at the Haslem College of Business Administration at the University of Tennessee and founder of the Vested business model, learned a similar lesson when studying why some buyer-supplier relationships were more successful than others. Along the way she studied these transactions — even looking at U.S. Air Force procurement deals — and developed the Vested business model, which has five steps. Check out the details in this story and hear her on a podcast.

The Ultimate Guide to Subcontracting in Government Procurement

Spend Matters welcomes this guest post from Public Spend Forum, which is helping us look at the world of public sector procurement.

Entering the world of government contracting requires considerable effort and education on the complicated process. Once you’ve overcome all of the hurdles and secured your first government contract, you may find you’ll require additional assistance to fulfill the job. Before you begin your search for the appropriate subcontractors, you’ll want to review the applicable regulations and compliance requirements. And you'll want to read the tips in this guide.

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How to Increase Supplier Collaboration: Where to Start Today

Only 23% of procurement leaders plan to increase the level of supplier collaboration as a lever to deliver value in 2018. We know the days of squeezing suppliers for every penny of savings are gone and that procurement teams recognize supplier relationships as being key to success — so why are only 23% of procurement leaders planning to increase the level of supplier collaboration this year compared to 26% last year and 39% in 2016?1 My hypothesis is that the mandate to “increase supplier collaboration” is easier said than done. 

So, in this post let’s focus on six steps you can take now to kick off your initiative to increase supplier collaboration. 

Efficio Panel Debate: Good Banter, Robot Jokes and 3 Points About the Future of Procurement

Last week in London I participated in one of the livelier and more spirited panel debates on the future of procurement (skills, technology and more) in recent memory. The event, held at Efficio’s offices Thursday to mark the release of its latest report, “Procurement 2025: Is Digital Transformation Driving More Effective Procurement,” included not only a handful of esteemed panelists and facilitators from the procurement/CPO, consulting and academic ranks, but also a robot — which led to many robotic process automation jokes throughout the discourse. If Efficio does something like this again, ask them for an invitation — you won’t be disappointed!

Here are three points that stuck in my mind from the different panel discussions and chats that I had.

Gary Hare Talks Amazon Business and Turning the Internet into the ‘World’s Largest Supplier Network’ (Part 2)

“I think the market is going to move from being buyer-centric ... to supplier-centric. [Suppliers] need help going digital,” says procurement veteran Gary Hare. “We really have no choice if we want to get this right.”

Hare’s assessment came during a discussion about Coupa’s purchase of Aquiire and the future of e-procurement shopping, which he says involves a way of outworking Amazon Business and turning the internet into "the world’s largest supplier network." He knows the issues because until 2009 he led Vinimaya before it rebranded as Aquiire. Hare, now the CEO of Vurbis USA, talks about the future of e-procurement in Part 2 of this Q&A, which has been edited. Part 1 ran Monday.

So You Want to Build a B2B Marketplace: 8 Business Scenarios & Case Examples (Part 2) [PRO]

Just what is a B2B marketplace and, most important, why would you, as a procurement organization or distribution/business intermediary, want to build one? This Spend Matters PRO series provides insight into these and other questions. Part 1 and today’s installment begin by segmenting the market into (and defining) eight business scenarios they can enable that go beyond standard procure-to-pay or storefront/e-commerce enablement, which include “private” and “public” marketplace models.

Thus far, we have explored four models: Digital Trading Company (“buy/sell” models), Extended Bill of Material Orchestration, Group Purchasing Organization (GPO) and Distributor “Value Add.” Today, we turn our attention to four additional B2B marketplace concepts: Procure-to-Pay (P2P) Innovator, New Business Intermediary, Industry Captain and Supply Chain Steward.

For each of the eight areas we provide a summary description of the marketplace concept, technologies (off-the-shelf) that can enable it, selected vendor shortlists, best-fit industries that it can support and best-fit spend categories (if applicable). Later installments in the series will provider deeper insight into the following: what you’ll need to build one, technology vendors to consider capable of providing marketplace technology/infrastructure (based on SolutionMap benchmark data), and whether a marketplace, for procurement organizations, is a substitute (or not) for traditional cloud-based source-to-pay applications.

Spend Matters is involved in technology strategy and RFI projects for organizations building — or evaluating building — marketplaces using “off-the-shelf” technologies. Contact us to learn more.

Sustainable SRM Is Focus of 10th Annual State of Flux Report on Supplier Relationships

gig economy

Many businesses have come around to the idea that sustainability is not just a hashtag or a marketing ploy but something that can help a company advance its business goals. But as organizations dive into all the ways they can save energy and use friendlier materials, they soon realize there are only so many they control. Truly leveraging sustainability requires close collaboration all the way down the supply chain to find mutual incentives for all, according to the latest report by State of Flux, a global procurement and supply chain consultancy.

Supplier Relationship Management Needs a Jolt of Technology, State of Flux’s SRM Summit Finds

Procurement has made significant strides in supporting supplier relationship management initiatives, but poor investment in technology could limit the potential benefits those programs can deliver in the years to come, according to State of Flux, a consulting firm that specializes in SRM and which held its annual SRM summit in Chicago on Oct. 23. Over the decade that State of Flux has monitored SRM maturity, procurement organizations have made considerable improvements in several areas — but not in adopting and using technology dedicated to SRM.

Coupa-Aquiire Deal Highlights Key Change: Marketplace E-Procurement Models Aren’t One-Size-Fits-All Anymore

marketing

Spend Matters’ recent coverage of Coupa’s purchase of Aquiire details Coupa’s acquisition rationale and the general wisdom of its decision — but the deal also calls attention to a useful context that evaluators of “Amazon-like” e-procurement systems would be well served to understand. As these systems are tailored for different industries, they should be evaluated for how they differ, not how they're the same. Let's look at three types of marketplaces spawned by the Amazon model.

Amazon Business Prime Updated: Analysis and Procurement Recommendations (October 2018 Update) [PRO]

AnyData Solutions

Earlier today, Amazon announced a host of enhancements to its Amazon Business Prime offering. To help procurement organizations understand the implications of these added capabilities, this Spend Matters PRO research brief provides an overview and analysis of the new solution components and offers recommendations to procurement organizations already using or considering Amazon Business.

The emphasis of this PRO analysis centers on the spend visibility/analytics, e-procurement (guided buying) and working capital/payment capabilities of the October 2018 Amazon Business release. While some of these areas are likely to be less interesting for organizations that already use a third-party e-procurement solution that integrates with Amazon Business (either via punch-out or API), Amazon’s enhanced invoicing, working capital and payment components can be applied to all potential users.

But perhaps most important, these enhancement offer some signals of how Amazon may continue to build out the capabilities of its Prime business solution. Let’s delve in.