Provade Content

“Surprise! We Rock!”: The Distorted Reality of Supplier-Led QBRs

The reality is that the QBR is often – if not most of the time – a sales event for the vendor. First of all, most customers defer the work of the QBR to their suppliers, allowing them to compile all of the data and presentation materials. This allows the supplier to set the agenda and direct the interpretation of the data to create an overall subjective assessment of their performance. These presentations typically become numerous PowerPoint slides of data, data, and more data. Not surprisingly, the results typically indicate that suppliers are meeting or exceeding all of their service levels, especially after they toss out those pesky data anomalies to ensure that the data supports what the supplier knew even before they did their research: that they, the supplier, are awesome.

M&A Watch: Which Top VMS Will Be Acquired in The Next 12 Months? [PRO]

Services procurement management and categories are increasingly getting intertwined with regular procurement operations and oversight. Year-by-year, procurement is gaining influence over a wide variety of services spending areas, from basic contingent labor to complex business process outsourcing (BPO) areas – not to mention a large number of categories in between. Yet best-of-breed contingent and SOW – as opposed to specialized category specific – suite solutions for services procurement such as Fieldglass, IQNavigator, Beeline and Provade have long remained independent of suite procurement specialists and ERP providers, which have the dominant ear of procurement senior management outside of the services area. This is likely to change for a variety of reasons in the coming years, one of which is our hypothesis that SAP (and possibly IBM or Oracle) will acquire one of the top VMS providers, even paying a healthy premium (and market valuation) to do so. We believe with near certainty (90% probability) that at least one transaction will happen in the next 12 months.