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Contractor, supplier relationships come with many financial risks, Avetta warns

supply risk

Managing supply chain risk is an important area of focus for companies to consider when working with suppliers and contractors at various levels of business. A recent study from the business-qualifying firm Avetta, “The Importance of Assessing Supplier Financial Stability,” evaluates an array of research on the issues and pinpoints the many risks that companies face when choosing and working with contractors and vendors.

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.

Avetta: Vendor Analysis (Part 3) — Competitive and Summary Analysis

repair

The worlds of supplier networks, supplier management and services procurement compliance are converging — and Avetta is one of the providers at the forefront of this convergence. Avetta’s initial releases and managed service offering addressed independent contractor verification, validation and management. In some industries, accidents or errors from unqualified third-party contractors, either due to lack of training or lack of certification, can result in million-dollar lawsuits and threats to public safety, so ensuring proper qualifications and training is key.

Today, Avetta has evolved its offering to deliver an enhanced supplier management platform customized for credentialing, certification and contractor capability tracking with respect to health and safety, sustainability and other specific needs. However, unlike some niche supplier information management solutions, the solution allows the questions and profiles to be configured for each supplier based upon service(s) provided, risk profile or industry — and takes this capability down to the individual contractor level.

This final installment of our multipart Spend Matters PRO Vendor Snapshot series covering Avetta offers a competitive analysis and comparison with other procurement technology providers. It also includes a user selection guide, user interface and user experience (UI/UX) analysis and summary evaluation and selection considerations. Part 1 and Part 2 of this PRO research series provide a company and deep dive solution overview, a SWOT analysis, product strengths and weaknesses and a recommended fit analysis for what types of organizations should consider Avetta.

Avetta: Vendor Analysis (Part 2) — Product Strengths & Weaknesses

What would you get if you combined elements of supplier management, supplier risk management, vendor management system, talent marketplace and contractor compliance systems together, all with a specific design around skilled, often trades-based third-party and contractor management, especially in field intensive industries? We can make the case at Spend Matters that this mash up of capabilities would look something like Avetta, formerly known as PICS Auditing. Avetta solves a key problem that many companies in industries that rely heavily on contractors have: proper contractor vetting. Most supplier management providers vet the supplier, but it is not the supplier or contingent workforce provider alone that matters — it is the employee, or in some cases, the contractor, and if that employee or contractor is doing trade work, he or she has to be trained, certified and reliable.

While lacking some of the nuanced capabilities of many individual solution areas such as a VMS, Avetta makes up for any shortcomings with a purpose-built solution that is a particular fit in industries such as chemicals, construction, facilities management, oil and gas, telecommunications and related sectors. In many ways, Avetta extends the contractor credentialing paradigm of what Vendormate — which GHX acquired after as it scaled a highly successful supplier-paid business model in the healthcare matter — could have become had it remained independent, targeted multiple industries and adopted a supplier model.

This Spend Matters PRO Vendor Snapshot explores Avetta’s strengths and weaknesses across its procurement technology suite, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor as a potential procure-to-pay solution. Part 1 of our analysis comprised a company and detailed solution overview and a SWOT analysis, as well as a summary recommended fit suggestion for what types of organizations should consider Avetta. The remaining parts of this multipart series will offer a user selection guide, user interface (UI/UX) analysis, competitive alternatives and evaluation and selection considerations.

Avetta: Vendor Analysis (Part 1) — Background & Solution Overview

MRO as a service

Despite its low profile in the procurement world, Avetta, formerly known as PICS Auditing, is better known in certain markets, especially industries that rely heavily on field work and contractors (e.g., energy companies, cable companies, wireless companies, and other utilities). Avetta’s traction in these market segments may not capture the attention of more generic procurement technology providers, but the SaaS applications vendor has seen year-over-year growth in the 30% range over the last 15 years. Avetta combines elements of supplier onboarding, supplier management, contractor management, supply risk management and third-party data aggregation in a unique solution purpose-built to support industry use cases. Avetta now has more than 300 clients (most of them larger Global 2000 firms) that collectively use more than 50,000 suppliers in 100 countries in a network graph with more than 250,000 active connections at any one time.

This Spend Matters PRO Vendor Snapshot explores Avetta and its unique approach to supply chain risk management and supplier management, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor. Part 1 of our analysis provides a company and detailed solution overview and a SWOT analysis, as well as a summary recommended fit suggestion for what types of organizations should consider Avetta. The remaining parts of this multipart series will offer a user selection guide, user interface (UI/UX) analysis, competitive alternatives and evaluation and selection considerations.