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How to assess supplier risk management: An overview report and checklist

Procurement professionals must consider many factors when working to protect their organizations from risks — from reputational problems, compliance issues, changing regulations to cyber security and social responsibility. A WBR Insights report built on advice from the consulting firm GEP and the technology provider Global Risk Management Solutions (GRMS) focuses on supplier risk management.

2020 Predicaments in Supplier Management: Top 3 Problems in SXM

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(Editor’s note: Spend Matters’ analysts are taking on the new year by looking at their areas of procurement technology to see what’s broken and what can and should be fixed this year. Here, analyst Magnus Bergfors lays out the predicaments faced in supplier management (SXM). And for our PRO subscribers, his other post today offers his predictions for 2020.)

Just before the holidays we published a PRO brief (The 5 Building Blocks of Supplier Management Capabilities) on the complexity of the SXM market and created a framework for how to define this space. That article highlights one of the lingering issues with supplier management: There is no one-size-fits-all solution here. That is, however, a very broad predicament, and in this article we want to break this down into a few more specific predicaments.

Givewith Q&A: How technology allows social impact to be ‘seamlessly embedded into transactions’

As social and environmental issues become more important to regulators, consumers, investors and C-suites, companies have begun programs to address sustainability, corporate social responsibility (CSR) and topics related to ESG — environmental, social and governance issues.

Besides satisfying outside interests, businesses also can find value in these pursuits — but they may not be getting all of the benefits that they could. So we interviewed the founder of Givewith, CEO Paul Polizzotto, to shed some light on the issues.

Givewith uses technology to help companies match their sustainability and ESG efforts with a nonprofit or social enterprise that benefits those areas. Givewith evaluates hundreds of nonprofits and social enterprises and works with companies all around the world to help turn everyday business into a social benefit.

2020 Predicaments in Strategic Sourcing: How to Make It More Strategic

(Editor’s note: Spend Matters’ analysts are taking on the new year by looking at their areas of procurement technology to see what’s broken and what can and should be fixed this year. Here, analyst Magnus Bergfors lays out the predicaments faced in strategic sourcing. And for our PRO subscribers, his other post today offers his predictions for 2020.)

Strategic sourcing as a concept was introduced in the 1980’s and heavily influenced by consulting firms such as McKinsey (which gave us the famous Kraljic matrix) and A.T. Kearney — and is a process that is designed to help procurement organizations successfully source or renegotiate products and services in a deliberate manner.

While this process can deliver billions in savings, there is a larger problem. This approach is binary — you either run a strategic sourcing project or you don’t — and it’s very episodic in that once you have implemented the strategy, you then move on to the next project. This is the proverbial “drive-by sourcing” and “three bids and a buy and a cloud of dust.” This means that the follow-up and management of the contract is ignored.

Then there's the concept called category management. It has its roots going back to the Kraljic matrix (which profiles various spend/supply categories and then tailors the resulting supplier sourcing/management strategies), but the term “category management” really originates in retail, where the idea is to treat your categories as individual business units. Applied to procurement, it becomes a process to continuously manage your category.

In 2020, how should these two concepts be addressed by procurement technology vendors?

Customer reviews for Scanmarket are in the new SolutionMap Customer Insights report

This week’s SolutionMap Customer Insights report focuses on customer reviews for Scanmarket, a provider of strategic sourcing solutions.

The applicable SolutionMap category for this report is in Sourcing.

SolutionMap Insider members can click here to read about Scanmarket in our latest report.

In each Customer Insights report, we provide a one-page summary of details from the SolutionMap peer review process. It includes ratings on how well the vendor meets its customers' expectations, three key differentiators for the vendor and a list of quotes from customers about the vendor’s greatest strengths.

Tradeshift has $240 million funding round, plans to restructure and focus on near-term profitability

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Tradeshift, a solution provider known for its network, supply chain payment offerings and marketplaces, announced today that it has a funding round of $240 million in equity and debt that sets “the company on a direct path to profitability in the near future,” the announcement said.

CEO Christian Lanng spoke with Spend Matters and said this marks a time for refocusing on high-value efforts and restructuring the company, which was founded in 2010.

“It's been a very long journey to get critical mass. It actually doesn't feel this long today. Ten years is quick in our space,” Lanng said.

Read more about the changes at Tradeshift.

2020 Predicaments in Contract Management: Poor Adoption, CLM Market Fragmentation and Limited Imagination

contract lifecycle management

(Editor’s note: Spend Matters’ analysts are taking on the new year by looking at their areas of procurement technology to see what’s broken and what can and should be fixed this year. Here, analyst Nick Heinzmann lays out problems in contract lifecycle management (CLM). In another piece also published today for our PRO subscribers, he lays out his predictions for 2020.)

Businesses may be trying to bring themselves into the 21st century on a wave of digital transformation, especially as it relates to B2B e-commerce, but this technological evolution has a major stumbling block — contracts.

Across industries and company sizes, businesses exhibit low maturity for their approach to contract management.

This presents both a problem and a missed opportunity.

So what’s holding businesses back from attaining contract management enlightenment? We see a few major impediments:

2020 Predicaments in Services Procurement — No Light at the End of the Tunnel

(Editor’s note: Spend Matters’ analysts are taking on the new year by looking at their areas of procurement technology to see what’s broken and what can and should be fixed this year. Here, analyst Andrew Karpie lays out problems in services procurement. In another piece also published today for our PRO subscribers, he lays out his predictions for 2020.)

In some industry verticals, services is the largest and most poorly managed non-payroll spend category. But the buying and consuming of services is nearly always poorly managed and controlled within enterprises — leading to potentially billions of dollars of unnecessary spend and opportunity costs (lost value). A problem of such enormous scale and complexity is not going to be addressed overnight.

Various estimates suggest that, in the U.S., spend on temporary staffing services represents an average of only about 33% of total services spend across all enterprises (though that percentage can vary widely, depending upon the type of business/industry). But outside of spend on temporary staffing services, most enterprises have had, at best, fragmented and limited visibility into their non-staffing contingent workers and their complex services spend — to say nothing of control over the whole services source-to-pay lifecycle.

Part of the problem is organizational, as procurement and HR often view the contingent workforce segment of services spend very differently in terms of priorities and the strategies (and service/solution providers) used to manage it. Technology solution fragmentation is also a major problem. The inadequacy, fragmentation or absence of complete, fit-for-purpose technology solutions for managing the broad range of different services spend types represent one set of obstacles to making major gains in management of services spend in the short run. This set of obstacles is tied to the non-technological barriers of legacy enterprise architecture (i.e., silos, etc.), run-of-the mill organizational inertia and the difficulty of changing, even as the services world evolves.

As we head into 2020, thinking about the future of services procurement, what should we know about the technological obstacles and non-technological barriers to significant progress on addressing what must be overcome?

EcoVadis gets $200 million boost for its sustainability ratings and supply chain technology

EcoVadis, a provider of ratings on sustainability, CSR and ESG, today announced a $200 million investment from CVC Growth Partners that puts three CVC executives on the EcoVadis board and sets the company up to expand. “EcoVadis plans to leverage the funding to expand internationally, break into new countries and further invest in its technology platform, sustainability intelligence solutions and network of rated companies,” according to its press release.

Customer reviews for BuyerQuest are in the new SolutionMap Customer Insights report

This week’s SolutionMap Customer Insights report focuses on customer reviews for BuyerQuest, a provider of e-commerce solutions. The applicable SolutionMap category for this report is in E-Procurement.

SolutionMap Insider members can read about BuyerQuest in our latest report.

In each Customer Insights report, we provide a one-page summary of details from the SolutionMap peer review process. It includes ratings on how well the vendor meets its customers' expectations, three key differentiators for the vendor and a list of quotes from customers about the vendor’s greatest strengths.

Coupa acquires Yapta, boosting its T&E capabilities

Coupa announced today that it is buying Yapta, a website that monitors airline and hotel prices in real time and rebooks at the lowest price. The addition to Coupa’s business spend management suite of offerings bolsters its travel and expense capabilities, according to the announcement.

Customer reviews for HICX are in the new SolutionMap Customer Insights report

This week’s SolutionMap Customer Insights report focuses on customer reviews for HICX, a configurable solution that scored well in master data management and other areas of supplier relationship management.

The applicable SolutionMap category for this report is in SRM & Risk. SolutionMap Insider members can to read about HICX in our latest report.

In each Customer Insights report, we provide a one-page summary of details from the SolutionMap peer review process. It includes ratings on how well the vendor meets its customers' expectations, three key differentiators for the vendor and a list of quotes from customers about the vendor’s greatest strengths.