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Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
Supplier Relationship Management (SRM) Research 2012-2013
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Supplier Relationship Management (SRM) Research 2012-2013

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Over the last twelve years that we have conducted the Supplier Relationship Management (SRM) Survey, the market for SRM has steadily grown and companies continue today to invest in these critical …

Over the last twelve years that we have conducted the Supplier Relationship Management (SRM) Survey, the market for SRM has steadily grown and companies continue today to invest in these critical applications. The growth in this market is a testament to the importance of this survey.

In addition to an overview of the major players in the market, the vendor survey shares the experiences, issues and questions that we see daily as procurement professionals implementing and optimizing SRM. Within the document, our expert colleagues share their views and experiences on SRM, resulting in cutting-edge opinion that offers a unique perspective on different facets of SRM. Major themes include the Seven Strategies for Future Procurement, Procurement and Sustainability, Usability and Demand Management, Supply Chain Finance and Procurement and Innovation.

Furthermore, the reader can find vendor profiles describing the participating vendors in greater detail. The descriptions cover information related to their specialization, the total scope of their offering, their distinguishing characteristics compared to competitors, the types of solutions offered (SaaS/In-house etc.), implementations and markets targeted.

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  • 1. Supplier Relationship Management(SRM) Research 2012-2013Solution Analysis and Business Insights
  • 2. Supplier Relationship Management (SRM) Research 2012-2013 SRM Prepared and edited by: Sarissa Alleijn Fleur Baarspul Merel Plante Special thanks to: Thomas Dahm Marjolein Dijkshoorn Ton van Dolder Erick Haag Bart Hellings Kevin Lemmens Martin Putters Kirsten Schipper TorbjÖrn Thorsén A note of thanks…. Capgemini Consulting would like to extend its thanks to the vendors who made time to participate in the Supplier Relationship Management Survey. Without their cooperation and support, research of this nature would not have been possible.
  • 3. Supplier Relationship Management (SRM) Research 2012-2013Table of Contents PagesForeword 4Business Insights 7Functionality Analysis 25Supplier Profiles 57
  • 4. Supplier Relationship Management (SRM) Research 2012-2013ForewordDue to the challenging economic conditions of the last few years, many CPO’s have reverted to the old school methods ofprocurement: achieving savings through squeezing suppliers and contract renegotiations. We feel this trend is unfortunate as theeconomic situation currently creates numerous opportunities for procurement organisations to achieve savings while creating longterm, sustainable relationships with suppliers.How can procurement organisations respond to the need for short-term savings while simultaneously focusing on long-termsupplier development? We developed the “Seven Strategies for Future Procurement”, which is a practical framework to assistCPOs in creating best-in-class procurement organisations. Regardless of the maturity of the organisation, these strategies shouldbe included in the strategic plans for the coming years.Below is a high-level look at the “Seven Strategies for Future Procurement”:Closed Loop ProcurementMany procurement organisations are still struggling to master the basics: spend visibility and, sourcing and contract compliance.Establishing closed loop procurement is a major achievement and an end goal in itself for most procurement organisations.This strategy involves optimising the basic infrastructure for procurement, from source to pay, in processes, organisation andsupporting IT systems.Hybrid Organisation ModelsAt a functional level, we see a trend towards hybrid organisational models that combine the benefits of central coordinationwith improved business collaboration. At a category level, we see further differentiation in organisational models depending onbusiness, category and supply market specific characteristics. A one-size-fits-all organisation design is no longer good enough.Gain all of the benefits from different organisational models and shape your own future procurement organisation.Supplier Value ManagementLeading procurement organisations manage collaborative supplier relationships to extract more value from the supply base.Creating value is on every agenda, but capturing this value is difficult. Utilising a hybrid organisation model, you will be able tomanage different categories in a diverse manner. It is our belief that innovation is the driver for creating value. Use InnovationDriven Procurement (IDP) to accelerate the pace of innovation within organisations by leveraging the innovative power of thesupply base. (For IDP see Business Insights Chapter).Supplier Risk ManagementIncreased dependency on external suppliers, volatility in raw material and energy prices, shortage of key materials, currencyimbalances, and global financial crises have all made companies recognise once again the importance of supplier riskmanagement and overall resiliency in the supply chain. Looking at the outlook for 2012, we believe risk management willbecome even more important in the year ahead. Risk management will be central to procurement, combining risk, innovation,sustainability, preferred customer strategies, and supplier management.End-to-End Supply NetworksLeading procurement organisations manage multiple supply networks that differentiate service characteristics by product/marketsegment. Managing complex supply networks requires pipeline visibility and alignment of planning and control across multipletiers of suppliers.Talent DevelopmentFor years we have seen that CPOs around the globe indicate that talent is the fourth biggest challenge for “marketing”procurement within their own organisation. We strongly believe that talent will be the key driver of success for procurementorganisations in the years to come. Leading companies have recognised talent as the key enabler for further developing thesupply management function, and are investing heavily in attracting, training and retaining top talent.4
  • 5. Supplier Relationship Management (SRM) Research 2012-2013Technology LeverageLeading supply management requires technology that is more user-friendly, provides real-time visibility, is better integrated,enables more effective collaboration with the supply base, and has more powerful analytic and simulation capabilities.This last “strategy” for future procurement, in particular, is a key enabler for realising most of the other strategies. This is whythe choices in technology should be an integral part of the procurement strategy. Our 2012 SRM survey will help to explore thetechnology development areas for your organisation.As part of the procurement transformation business, we see it as our mission to deliver high performance and robust results toour clients. The results not only impact procurement departments, but also stretch to other business areas. To deliver qualityresults and benefits, we continually develop our thought leadership in the business marketplace. We track recent developments inSupplier Relationship Management (SRM) solutions, conduct surveys, and evaluate our previous initiatives in order to build a richknowledge base of lessons learned from our client and supplier experiences.We are pleased to present to you the Supplier Relationship Management (SRM) survey 2012-2013. It is interesting to see that overthe last twelve years that we have been running this survey, the market for SRM is still growing and investing in these applications.This year’s Supplier Relationship Management study consists of three parts:1. SRM Research: Business Insights—our thought leadership from around the globe, related to the priorities of today’s ChiefProcurement Officers (CPOs) and the Seven Strategies for Future Procurement.2. SRM Research: Functionality Analysis—our view of the values you should expect from SRM applications.3. Supplier Profiles: Profiles of all SRM suppliers who participated in our research.The research and analysis is based on a series of questions designed to assess whether the software covers a specific set offunctions within the SRM environment. A new item in our research is our independent view on the different vendors. We havelearnt from previous client engagements that this is valuable information for package selection activities.Apart from the survey, which gives you an overview of the major players in the market, we also want to share the experiences,issues and questions that we encounter on a daily basis as procurement professionals implementing and optimising SRM; thesecan be found in the ‘business insight’ chapter of our publication. We therefore asked our foremost colleagues to share their viewsand experiences of SRM, resulting in four expert opinion stories, each telling something about SRM and procurement, fromdifferent perspectives.Our procurement experts have worked on this study with great care. We hope you enjoy reading it as much as we enjoyed writingit and look forward to your feedback. Let it be an inspiration for your future initiatives.We wish to thank all vendors and colleagues who have contributed to this year’s SRM study.Ton van DolderVice PresidentSupply Chain Management Practice Leader The NetherlandsCapgemini Consulting 5
  • 6. Supplier Relationship Management (SRM) Research 2012-20136
  • 7. Supplier Relationship Management (SRM) Research 2012-2013Business Insights 7
  • 8. Supplier Relationship Management (SRM) Research 2012-2013The purchaser as garbage manHow the procurement function can contribute to a more sustainable worldAuthorsErick Haag & Bart Hellings8
  • 9. Supplier Relationship Management (SRM) Research 2012-2013T he procurement function always Introduction influences multiple supplier Sustainability was once the domain relationships. Therefore, it can play of idealists, activists and experts.an important role in striving for a more Increasing scarcity of resources, risingsustainable world. This is especially energy costs and stricter policiesvalid in sectors where the purchase made sustainability a topic for thevolume accounts for more than 50% of world of business. Sustainabilitythe turnover. Over the past years, a lot targets are nowadays integrated intoof attention has been focused on this the strategies of major companies likesubject. Most of the time, the emphasis Unilever (100% sustainable purchasingis on influencing suppliers; this article of agricultural products), DSM (One ofstrives to make clear that this alone is the three strategic pillars for 2020), andnot enough. Influencing stakeholders Nike (considers a closed-loop supplyoutside the procurement function chain essential for future objectives).is essential to contributing towards From these examples it is clear thatachieving the sustainability goals of in realising the goals that are set,an organization. The focus is shifting optimising parts of supply chains is nottowards managing goods returns and enough. A radical change is needed,waste processing. Purchasers should demanding a new collaborative waybe garbage men, from the perspective of working amongst suppliers, clientsthat garbage is not waste but instead and other stakeholders throughoutshould be viewed as a valuable the supply chain, including the returnresource. stream. This new model is also known as ‘closed loop supply chain’, as illustrated in Figure 1.Figure 1: Extended focus area for the procurement function from a focuson the incoming materials to a ‘closed-loop supply chain’ approach. Traditional focus of procurement function Information Flow Internal Supply Chain Procurement Production Sales Flow of goods Supplier Market Consumers Recycling process New focus of procurement function 9
  • 10. Supplier Relationship Management (SRM) Research 2012-2013 The changing role of the When this concept of reusing materials procurement function in a is applied on a large scale, this has a closed-loop supply chain major impact on the traditional role of procurement. The strategic value of the For the procurement function, goods return stream increases and the sustainability traditionally meant volume of newly purchased materials purchasing goods and services against will decrease. However, this model optimal environmental and social will have a major impact on existing conditions. However, to respond to supplier relationships. For example, the increasing challenges of resource when suppliers collaborate actively on scarcity and fossil fuel dependency, an optimising recycling opportunities, they increasing number of organizations are will be ‘rewarded’ with less orders for searching for possibilities to collaborate new materials. with partners in the supply chain and to ‘close the loop’ by using waste as In assessing the strategic value of raw material. The development of a supplier, a shift will occur from a this concept was heavily influenced strictly financial perspective on the by the Cradle to Cradle concept that strategic value to a ‘triple bottom line’ was introduced in 2002 by William perspective, based on the value for McDonough and Michael Braungart. people, the planet and profits. This The core of this concept is to reuse means that suppliers who are actively materials from used products, to involved in recycling and recycled produce new ones. Maintaining the materials supply will be able to maintain quality of materials is essential for or even increase their strategic value long-term success of this model. The for clients. Cradle to Cradle concept is already applied successfully by companies like Auping, Desso, Forbo Flooring and Van Gansewinkel.10
  • 11. Supplier Relationship Management (SRM) Research 2012-2013Optimising a closed-loop supply Implementing the change Conclusionchain has more impacts on theprocurement function. For example, The impacts that were described The procurement function playsthe procurement function will play earlier provide a vision on what the an important role in reducing thean active role in selecting partners procurement function would look like ecological footprint of an organisation.in the recycle chain, and in selecting after successful implementation of It is not sufficient to merely transferthe right suppliers based on their this type of sustainability policy. It is the demands from internal users tocontribution to a closed-loop supply unrealistic, and often undesirable, to suppliers. The procurement functionchain. Category teams will have to reach the final stage in a very short time should play an important role inmake different choices, based on ‘triple (within less than a year), as the required establishing a closed loop supplybottom line’ principles, including all change is too fundamental. Therefore, chain and in actively managing theelements of a closed-loop supply chain. an implementation plan should be suppliers involved. The increase ofFurthermore, new category teams carefully developed; such a plan could reused materials in the supply chainwill be established based on the new be made per category, for example, has an impact on the supplier strategycategories from the return stream of by starting with the highest ecological and portfolio. The fact that morematerials. Planning and managing the footprint. Alternatively, it could be organisations are struggling with theirflow and volume of materials becomes planned per end product, which is ecological footprint, is irreversible. If wemore complex because there are more complex, as an end product continue wasting our resources like wemore reused materials to be collected contains a variety of materials. Focus do now, we need to carefully considerand processed. New processes and and speed of the plan heavily depends our waste. Thus, in order to improvesystems need to be implemented to on the organisation’s goals. matters our purchasers should bemanage a closed-loop supply chain. garbage men, recycling that which is noExamples include getting products longer needed.back from users, maintaining quality ofthe return stream, handling informationon traceability of products and planningthe input of a combination of new andused materials.Figure 2: An example of an introduction plan Phase 3 The procurement function proactively contributes to innovation throughout the supply chain Sustainability aspects are part of integrating supply chains Suppliers are actively involved in Phase 2 integrating supply chains, for example through involvement in Design for The procurement function is involved in Recycling (DFR) realizing sustainability targets entailing a closed loop supply chain Procurement stimulates suppliers to contribute to the recyclability of their products Phase 1 Sustainability criteria are included in buying specifications Suppliers are partly selected on their contribution to reaching sustainability targets 11
  • 12. Supplier Relationship Management (SRM) Research 2012-2013Where Usability and DemandManagement MeetAuthorTorbjörn Thorsén12
  • 13. Supplier Relationship Management (SRM) Research 2012-2013A little over ten years ago, Booz, Allen and Hamilton published a short thought leadershippiece on Procurement Strategy CREAT VALUEin their Strategy and Businessmagazine entitled “The Four Phasesof Continuous Sourcing”1. Although TS SULthe article failed to make the impact RE MANAGE DEMAND Y OFit undoubtedly merited, it did provide ER LIVan alluringly simplistic framework for DEgauging procurement strategy that has INED STA REDUCE COSTsuccessfully stood the test of time. SUIn brief, the framework consists of fourvalue levels that procurement functionsneed to master and continuously revisit CAPTURE MARGINin order to stay on top of their game. Adapted from The Four Phases of Continuous Sourcing, Booz & Co. TIMEWhilst the majority of procurementfunctions operate quite satisfactorily —and in a large number of cases evendeliver remarkable returns—on the Second, globalisation—of bothlower levels of the framework (capturing supply markets and the workforcemargin and reducing cost), few are – has enabled organisations toable to master the skills necessary to reduce costs by switching supply todeliver against the upper reaches of low-cost locations.the framework (managing demand andbecoming real value creators). This is What signifies most initiatives on theseparticularly evident in the procurement levels is that they are mostly outbound,of indirect goods and services facing suppliers and partners ratherwhere even organisations that have initiating change inside the organisationmastered direct materials procurement itself. Understanding the implications offalter, thus leaving a great deal of this selected focus is a key challengepotential unrealised. for procurement organisations who aspire to elevate their position and riseOne reason that most organisations are above the norm.now better able to consistently addressthe lower two levels of the Boozframework (capture margin and reducecost) is that procurement technologyhas matured; e-procurement ande-sourcing are now standard toolsfor most organisations, as is the shifttowards a centre-led procurementmodel. The introduction of thesetechnologies and organisational modelshas enabled companies to effectivelyintroduce increased competition innegotiations in order to reduce supplierprices. They are able to leveragee-sourcing technologies to addressa wider potential supply base, whilstreducing the number of contracted andpreferred suppliers as a consequenceof the centralised procurement model. 13
  • 14. Supplier Relationship Management (SRM) Research 2012-2013Managing demand KEY (SOUGHT-AFTER) ATTRIBUTE RANKING OF AIn essence, and this is particularly true MODERN PROCUREMENT PROFESSIONALwhen it comes to indirect materials andservices spend on, managing demandis made up of one part compliancemanagement and one part business 32% CATdevelopment. Demand Management EG EXPE ORYenables the full enterprise to leverage 27% PROC E RTISexisting contracts by rolling out UREEXPE MEN RIEN Tcategory-wide e-procurement support, CE EXEC UTIV INFwhilst keeping an ear on the ground E CO LUENCE MMU A NICA NDand providing enough flexibility toensure that new needs are supported CHAN GE M ANAG 63% TION CAPA EMENT(in a controlled manner) in order to BILIT IES43%maintain momentum.The procurement function needsto not only be able to track spendcompliance (to policy, processesand contracts) and provide intuitiveself-service procurement channels Extending the scope of usage patterns, a high volume of spend needs to be transacted using(where applicable), it also needs to procurement e-procurement.have the competence and capacity to From a strategic perspective, extendingunderstand and communicate benefits the scope of procurement to include For the past decade, rolling out self-of procurement in a business context. the upper levels of the Booz framework service procurement has been one of requires the following prerequisites: the key priorities for many procurementUnfortunately, this is quite a step ensure that as high a share of spend as functions. Yet very few organisationsout of the comfort zone for many possible, is under management, that have been able to achieve the levels ofprocurement professionals who have e-sourcing is widely adopted and used usage that justify the costs of doing so.often built their careers and reputations across all categories, that contracts are In retrospect, ROI for e-procurementon hardline negotiation and policing managed accordingly with supporting has not been a boardroom successtactics. technology in place to ensure visibility, story. While online commerce andThe ability to allocate focus accordingly and finally that supplier risk and social networks have taken the worldis what truly sets leading and mature performance is tracked and appropriate by storm, e-procurement is stillprocurement functions apart from their mitigation strategies are in place. struggling to break out of the mouldless mature peers. This is reflected of being little more than a digitisedin many ways, but one example is But more importantly—especially from paper trail. Fortunately, the emergencethat procurement organisations are a savings performance perspective— of cloud and SaaS delivery modelsincreasingly looking for new traits and contract compliance needs to be have created a market for wraparoundare specifying these traits as essential monitored and seen as an important procurement services that providein the recruiting process; competencies KPI for category managers (again end-user shopping experiences thatsuch as executive communication skills an internally focused activity). This match leading online commerceand change management capabilities can only be achieved by connecting solutions as well as business networkare more sought after than traditional strategic and operational procurement, solutions. These fill the e-procurementprocurement skill sets such as taking into account the fact that warehouses with appropriate contentcategory competence and negotiation category management is as much, while providing connectivity andexperience2. if not more, an internal business communication channels for buyers development activity as it is about and suppliers alike.Organisations that have already supplier relationship management.implemented procurement technologyto support strategic as well as It is also important to note that to gainoperational activities are now looking essential transparency into spendfor ways to extend usage. patterns, into process and channel14
  • 15. Supplier Relationship Management (SRM) Research 2012-2013Usability information, they will. Given flexible procurement channels, they will even SourcesFor many, usability is seen as little more comply with procurement processes,than a shiny user interface. In reality, 1. Hugh Baker and Tim Laseter, Booz thereby minimising maverick spendhowever, it is much more. Though & Co. – Strategy and Business and expanding procurement’s controlmany ERP-based e-procurement reprint 02204 (originally published of spend.solutions are lagging in the area of user in 2002)experience, that issue is addressed by 2. SAP and Procurement Leadersmany independent third-party vendor Mastering Demand - Key Drivers for Modernsolutions3 (including Capgemini’s IBX Management Procurement, 2011Platform). Equally important is theissue of enabling users to interact with Mastering demand management is 3. Spend Matters - Getting the Mostprocurement technology from mobile a complex task. Procurement needs from ERP Procurement Applicationsdevices. to be able to communicate benefits – Focusing on the User Experience clearly in a business context, control and Content, 2011Many operational procurement and monitor spending in near to realactivities, from requisitioning to time, as well as provide supporting 4. Gartner Research - Key Predictionsapprovals as well as access to spend technology that is truly user-friendly – for IT Organisations and Users inand performance data, can and should providing necessary insight and tools in 2010 and Beyond, 2010be accessible on the move. In fact, an on-the-go context.Gartner Research predicts that mobileinternet access will overtake desktop This ability to coordinate, cooperateinternet access in 20134. and enable the organisation to act in unison from a spend managementWith workforces going mobile, speed perspective is manifested in leadingof business accelerating, globalisation procurement functions. They haveof the supply base being the norm traversed into the upper reaches ofrather than the exception, self-service the framework outlined above withoutneeds to encompass mobile devices losing traction in the lower levels.to a greater degree. Procurementtechnology cannot stay on the Delivering sustainable procurementdesktop; it is a key enabler when value—as in savings, efficiency,striving for procurement excellence, control and transparency—is reliantso it needs to be at the fingertips of on procurement being able to addressprocurement professionals as well as challenges on all levels:the wider organisation. • Increasing competitive pressure in the supply base to capture margins,Guided buying as well as nimbly shift supply to low cost/high value locationsManaging demand can also besupported by empowering end users • Managing demand, leveragingto make informed procurement innovative technology, anddecisions. By providing end users leveraging guided buying principleswith procurement intelligence suchas delivery precision, quality ratings • Changing management capabilitiesand other supplier performance to drive supplier innovation in orderindicators in parallel to procurement to generate increased valueguidelines and policy would provide thefoundation of guided buying that goesbeyond traditional catalogues.To paraphrase Google’s famous tagline“Do the right thing; don’t be evil”,procurement needs to trust the enduser to do the right thing. Given enough 15
  • 16. Supplier Relationship Management (SRM) Research 2012-2013The Potential of Supply Chain FinanceAuthorMerel Plante16
  • 17. Supplier Relationship Management (SRM) Research 2012-2013W hat would be the effect on For many companies, the situation buyers. But with the difficult economic your company’s relationship described above seems impossible climate that companies find themselves with its suppliers if you to reach. A company’s suppliers will in today, combined with the terms andwere able to pay them immediately always prefer to have the shortest conditions banks put upon companiesafter receiving goods and services? payment terms possible while the in the current environment, this solutionWhat if payment terms were open for company itself will always prefer to have is no longer sustainable. With everydiscussion and could be improved the longest payment terms possible. organisation in the supply chainfor buyers and suppliers alike? What Moreover, as that same company is actively trying to protect its bottomwould be the effect on your company’s also a part of a larger supply chain, it line, all parties must show value forfinancial performance if, on the one too will want to negotiate the shortest their money and make the best use ofhand, it could achieve favourable payment terms with its own customers. their limited resources. In response, afavorable payment terms from its Nevertheless, many companies new market for supply chain financesuppliers, while on the other hand today are in fact able to overcome solutions has emerged.it was paid immediately by its own this dilemma of divergent prioritiescustomers? The short answer is that (and achieve the benefits described Supply chain finance is thereforeultimately the cost of goods for buyers above) through the use of supply a means to have a third companywould be greatly reduced while access chain finance. involved in the payment circle and ‘buy’to financing and risk exposure for the outstanding payments from thesuppliers would be greatly improved. buyer to pay out the supplier faster. SeeThis of course would reduce the What is supply figure below for more insight into supplyinherent friction between buyers and chain finance? chain finance.suppliers and could lead to a level Traditionally, suppliers have beenof supplier collaboration previously responsible for facilitating commerceunheard of. by providing financing (usually in the form of favourable payment terms) toFigure 3: Typically SCF involves three parties and a common platform to execute an operation. Checks and balances are setin the payments platform to minimise the risk 17
  • 18. Supplier Relationship Management (SRM) Research 2012-2013Why might your company Benefits to a Payment Provider analytics for invoices and electronicbe interested in supply The payment provider can build invoice presentment and payment (EIPP).chain finance? stronger collaborative relationships with customers, despite the unfavourableThe dilemma of the divergent priorities Organisation economic climate organisations facebetween buyers and suppliers is well currently. A payment provider can use We have noticed that Finance andknown. Unfortunately, the potential of the largest party as an anchor for the Procurement teams typically drivesupply chain finance is much less well financial transactions, who is often the the SCF process in an organisation.known. With the current economic buyer with a better credit rating instead Collaboration at the executive level canoutlook still looking quite bleak, it is of a smaller supplier. As the goods are align disparate payment, collections,undoubtedly only a matter of time already delivered and transformed into cash management and inventorybefore companies start to better higher value goods at the buyer site, policies that can otherwise workunderstand the topic of supply chain the basis for the finance is very solid. at cross purposes when operatingfinance and begin to implement some independently.of the many solutions available today. This sounds like a win-win situation. So what do you need to have in place to As key metrics you will find centralisedAs alluded to in the introduction, there start? receipt and imaging (or manual) dataare many potential benefits to supply entry, coupled with decentralisedchain finance solutions. Below is a approvals. Approximately 85% ofselect list of just some of the most What do you need to have the best-in-class companies inobvious benefits for buyers, suppliers in place? SCF have been able to achieve this.and payment providers. We have seen that companies that Furthermore, the majority of best are successful in SCF have the right in class organisations have activeBenefits to Buyers processes, organisation, information cross-functional coordination andBuyers benefit from increased flexibility collaboration amongst functional sharing, performance measurementin cash flow (without changing areas such as accounts payable, and technology in place. In this chaptercontract terms), the potential for procurement, finance and IT. we will elaborate more on these criticalimproved payment terms, and reduced success factors.supplier risk. Moreover, they benefit Information Sharingfrom a reduction of working capital Processes More successful enterprises inrequirements through improved days It all starts with receiving the goods, SCF have translated their paymentpayable outstanding measurements. and matching, and subsequently strategies into policies and specificIn the long term, this results in a processing the invoices to the tasks to direct employee behaviour. Tomore stable supply base, improved receivables. The best companies who fully understand the options availablerelationships with suppliers and a use SCF have clear accounts payable in SCF, employees should be providedreduction of cost of goods purchased policies to guide their staff. Moreover, information they need to understanddue to a better cash flow position of they have applied standardisation of why different financing options canthe supplier. accounts payable processes across be beneficial and how they can be multiple locations or business units. executed once selected.Benefits to Suppliers These companies also have automationSuppliers benefit from lower risk, We see that information sharing is a technologies, to further speed upbetter visibility into invoice settlements, weak area for all types of organisations their already well-defined proceduresimproved and more predictable cash in general. Only about a quarter of the that are necessary to ensure efficientflows as well as payment certainty and best-in-class companies have access invoice processing.increased flexibility for their business. to the financial information pertaining toSimilar to the buyers, they also benefit their business partners. More than half As key metrics, you will find that thefrom an improvement in working of the best-in-class companies have best-in-class companies in SCFcapital through improved days sales system-level controls for segregation have the ability to access SCF at alloutstanding (DSO) measurements at of duties for each transaction, but a stages in the supply chain, and havea lower financing cost. Benefits are little less than half of the firms have implemented or are in the process ofnot one-off, but can take effect when complete audit trails on demand. adopting payment scheduling, spendsettling new contracts in renegotiations.18
  • 19. Supplier Relationship Management (SRM) Research 2012-2013Performance measurement Technology in placeThe successful firms who have At the beginning of an SCF program,adopted SCF have set up performance segmentation of the suppliersbenchmarks to constantly review their needs to be achieved for successfulperformance and take appropriate implementation of the technologyremedial action. These measures can platforms. Furthermore, what we seebe used to further create efficiencies, is that, firms look to minimise one-such as identification and reduction to-one interfaces with their suppliers,of components as labour hours, and which can be achieved by growth oflower costs of goods purchased. e-payment solutions.Of course, many parameters such as Technology is another area wherefinancial performance can be used as organisations face challenges. Thebenchmarks to measure performance. majority of the best-in-class companiesSome parameters which have been are able to segregate partners tomeasured by Aberdeen in a survey are: prioritise SCF enablement. Only a small number have been able to• 64% of best-in-class have online establish a single platform to bring visibility into financial supply buyers, suppliers and financial chain events. institutions together.• 42% of best-in-class firms have online visibility into shipment status Challenging? Definitely. But when and in-transit inventory. all of the activities above are in motion or already implemented to lift your company to a higher maturity level, supply chain finance cannot continue to be ignored as a means to further strengthen the whole supply chain. 19
  • 20. Supplier Relationship Management (SRM) Research 2012-2013Procurement and InnovationBeyond the Establishment of a PartnershipAuthorsKirsten Schipper & Thomas Dahm20
  • 21. Supplier Relationship Management (SRM) Research 2012-2013T he involvement of suppliers for manufacturers in Japan and the innovation in organisations has Netherlands demonstrates that the been a reality for many years. early involvement of suppliers speedsMost organisations consider their up the innovation process, whichsuppliers as being one of the most, if ultimately delivers the benefit of a newnot even the most, important sources product or service being ahead ofof innovation. Supplier relationship the competition and saving time and,management can increase the level of therefore, money.innovation-driven procurement, andprovides the procurement function Secondly, early supplier involvementin the organisation with the tools increases the amount of innovation.and technology to make the early Ensuring that the suppliers areinvolvement of procurement a success. actively participating in the process of innovation in a structured mannerWhen talking about innovation and results in more innovation.the innovative capacity of suppliers,innovation is not solely limited to new Thirdly, even basic research, but evenproduct development or the invention more importantly, the developmentof something new. Many innovations and launch of a new product bearsbecome worthy of their name because risk. The participation of suppliers inthey are the new combination of this process will contribute not onlyexisting elements or because the to sharing of benefits but also theinnovativeness lies in the restructuring mitigation of risks.and improvement of a process, whichresults in a significant advantage over The challenge for procurementthe competition. The classic process departments in organisations hasimprovements focus on cost or time been the balancing act betweensavings while most companies also the traditional role of negotiating theattempt to fulfill the customer’s demand most beneficial form of commercialfor CO2 reduction and sustainability. agreement, whilst also facing the challenge of maintaining a trustingThe decision to make use of a supplier partnership.originated from the realisation of alack of in-house expertise about Many procurement organisations arethe acquired product or service – a aware of the benefits of collaboratingmake or buy decision. Whenever with suppliers as a source of innovation.this externally acquired product or However, many have not yet formalizedservice is involved in any kind of these relationships. The studyinnovation process, the suppliers’ referred to earlier identified six inter-expertise should be incorporated organisational arrangements, whichinto the innovation process since alluded to the involvement of suppliersthe own expertise in this area has in innovation activities: organisationbeen determined to be lesser than of communication, colocation, non-the suppliers’. There are three major disclosure agreements, formalreasons why this involvement should contracts, intellectual property rightstake place early in the innovation and manuals. There are several otherprocess: the speed of innovation, the inter-organisational arrangementsamount of innovation and the reduction where companies share organisationalof risk. infrastructure or even the launch of joint products to the market in orderThe first reason is to be able to innovate to demonstrate the quality of thefaster than the competition. Recent partnership.research conducted with high tech 21
  • 22. Supplier Relationship Management (SRM) Research 2012-2013 Figure 4: Procurement involvement in innovation Cost reduction opportunities Traditional Innovation Driven Procurement Procurement Involvement Involvement Supplier Involvement Life cycle value determined Concept stage Project stage Prototype stage Revision stage Product stage The more these inter-organisational As a next step it is essential to translate arrangements are made that these arrangements into measurable demonstrate the intensity of the Key Performance Indicators partnership, the more an organisation (KPIs). All of the inter-organisational should have SRM as a tool to manage arrangements need to be formalised and structure this relationship. in jointly developed agreements that go beyond a standard non-disclosure In order to reach the next level agreement. For this reason, contract of maturity in innovation-driven management as an element of procurement, SRM can help to supplier relationship management, formalise and digitalise this transition. will become much more complex in Many “old school” procurement the future. Many contracts are still professionals have been struggling limited to commercial terms and the with the balance of negotiating with a level of digitalisation of contracts in supplier, and being the manager of a many organisations is still immature partnership with that same supplier. in that they are paper-based and filed This new mindset allows procurement away into filing cabinets, never to be professionals to organise regular looked on again. Digital cloud contract supplier innovation meetings and management solutions better equip work in an entirely new way. “Sharing procurement professionals with three is winning” and “win-win situation” powerful functionalities with which to approaches to partnerships have been manage supplier partnerships: developed.22
  • 23. Supplier Relationship Management (SRM) Research 2012-2013• SRM systems allow users to store overcome difficulties to bring all of the agreements relating to joint stakeholders of different companies partnership activities in a central and disciplines together and align them. repository; Today’s challenge is to set up• they allow users the flexibility structures to successfully measure to alter agreements by mutual and manage suppliers and build agreement, which is useful in fast processes and procedures to changing dynamic development intervene if KPIs are not met. These projects such as SCRUM systems exist – unfortunately, in processes most organisations, digital contract management is not utilised to its full• and most importantly they allow extent. SRM offers a solution for a procurement professionals to lack of formalisation and control in an measure the success of the often unclear process of collaborative relationship and identify areas innovation. These formalised systems for improvement. can be supported by the structuredThe challenges in Supplier Relationship use of social media platforms toManagement with regards to facilitate communication betweeninnovation-driven procurement are the parties involved. Successfulthat they are no longer limited to the supplier relationship managementmindset and the required paradigm requires social interaction in a trustingshift in the mindset of individuals partnership, within a framework ofin procurement departments. This clearly defined and measured targets,has (in many cases, successfully) and performance measures.been achieved in many companies.Procurement has been able to 23
  • 24. Supplier Relationship Management (SRM) Research 2012-201324
  • 25. Supplier Relationship Management (SRM) Research 2012-2013Functionality Analysis 25
  • 26. Supplier Relationship Management (SRM) Research 2012-2013SRM Functionality AnalysisAnalysis performed bySarissa Alleijn26
  • 27. Supplier Relationship Management (SRM) Research 2012-2013For organisations embarking on their Set up of the Supplier When selecting or evaluating anSupplier Relationship Management application, it is important to determine Relationship Management(SRM) journey, often the most difficult which functions are critical for yourchallenge is the ability to understand Survey company’s procurement processes.the spectrum of suppliers that could A functionality analysis is conducted Therefore a weighted score addressingsatisfy your requirements. based on a list of 171 questions, your preferred functionalities may covering the entire spectrum of the result in a different outcome fromThe key questions in support of this procurement process. These questions those shown in this survey. In order tothat are often considered are: represent the “most asked-for” and distinguish between the functionalities the “most-critical functionalities”, as of the applications, it is necessary• Which applications are available on we recognise them from our client to understand which functionality the market and what functionalities discussions and interactions. Vendors supports the procurement processes. do these applications provide? are given the opportunity to indicate• Do applications offer the same whether the requested functionality is To assess the level of support, we services across all aspects of the available or not. divided the overall SRM process into procurement function or are they nine sub-categories: specific to one component of SRM? When interpreting the data it is 1. Procurement Intelligence important to remember that thisThis chapter will elaborate further on analysis is based on a series of 2. Project Managementthese questions. questions designed to address whether 3. Sourcing the software covers a specific set of a. Electronic TenderingSupplier Relationship Management functions. It is important to note that b. eAuctioningdepends on collaboration amongst all of the questions have been scoredthe enterprise’s internal and 4. Supplier Management without weighing. This means that aexternal suppliers for survival and high or low score does not indicate 5. Contract Managementprogress. Collaboration across whether an application is good or bad; 6. Catalogue Managementsourcing strategies, management it merely states the coverage of theand governance remains critical 7. Operational Procurement SRM functionality within the application.to the success of supplier 8. External Resourcesrelationship management. 9. BPO ProcurementFigure 5: Capgemini Procurement Process Model Procurement Intelligence Analyse Develop Place Approve needs & market Sourcing Requisition Requisition dynamics Strategy Manage Procurement RFQ Strategic Supplier Place Manage Order Process Sourcing Performance content Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract and invoice goods Finalisation Project Management 27
  • 28. Supplier Relationship Management (SRM) Research 2012-2013Overall Functionality offer Operational Procurement 5. Catalogue Management functionality. While the 2010-2012 is an element of OperationalAnalysis SRM research showed that there Procurement. Therefore, it isAs in previous studies, this year’s was still a greater focus on Sourcing not surprising that the vendorsvendor review shows that the than on Operational Procurement, that do not offer Operationaldifferences between applications are this year the survey shows that Procurement functionality also domost visible in coverage at a functional vendors realise the importance not offer Catalogue Managementlevel. of the Operational Procurement functionality. Catalogue Creation cycle as the backbone of the and User Capabilities are theSome applications provide full coverage Procurement process. subcategories with the highestfor all subprocesses, whilst others can functional coverage (average scorebe considered niche players supporting 86 percent of the vendors provide of 80 percent).only a selected functionality. Although Electronic Tendering functionalitythe reviewed SRM applications are while 66 percent provide 6. This survey shows that somevery capable, there are substantial e-Auctioning functionality. In line full suite vendors have starteddifferences between these applications with previous editions, Electronic to develop External Resourceand of course each of them will have Tendering is perceived by all functionality, indicating that thisa different fit within your organisation. vendors as core functionality as functionality is still growing rapidly.Although it might seem that certain compared to eAuctioning. This supports the observationapplications have a low overall score, made in 2010-2011 that there is stillwe cannot conclude these applications 4. In line with the observations made scope for improvement as some fullare of lesser quality. in the previous editions, Contract suite vendors not offering External Management functionality has Resources functionality will startOverall conclusions from this year’s continued to improve (90 percent to develop this functionality in thesurvey: of the vendors offer Contract near future. Most of the vendors Management). Only four vendors offering External ResourcesConsidering the survey as a whole, the responded with a score of less than functionality offer high functionalityfollowing represent the major findings 70 percent coverage in this area, (average >90 percent) regarding theand conclusions: with the average alone above 84 first part of the process (Specify, 1. Out of all of the vendors surveyed, percent. The majority of the vendors Approvals, Requisitioning), more only five do not offer Procurement offer Contract Management than they support the second part Intelligence functionality, which in combination with Sourcing of the process (Selection & Order, demonstrates the importance of and Operational Procurement Monitoring and Aftercare). Since tracking operational improvement functionality. However, there the demand for External Resources benefits, and assessing and are vendors that offer Contract functionality grows in organisations, ensuring compliance. There Management solely as an extension it can be expected that this area is, however, a huge diversity in to the Sourcing or Operational will further increase functionality coverage ranging from 97 percent Procurement cycle. There is even and richness of capability in the to 19 percent. And, in addition, one vendor that offers Contract near future. none of the vendors surveyed Management as a standalone module since the relationship 7. BPO remains a strong area for have full coverage of the service with Sourcing and Operational growth with an average of 62 offerings, which leaves scope for Procurement is totally absent. percent. “Procurement Intelligence” more improvement over the next and “Sourcing” continues to be a few years. Contract Compliance is still the key priority on the list of top 5 BPO- least developed area with an based scenarios in use. “Contract 2. Project Management is still a average of 76 percent. Since Management” and “Catalogue key differentiator, with vendors Contract Compliance is the next Management” are new entrants in either providing functionality in this phase once P2P compliance has the top 5 this year, whereas “Project area (59 percent of the vendors been achieved or is maturing, it is Management” and “External surveyed) or no functionality anticipated that this area will further Resources” are not high on the whatsoever. improve in functionality over the priority list as BPO scenarios. 3. 79 percent of the vendors surveyed next few years. offer e-Sourcing functionality as compared to 76 percent who28
  • 29. Supplier Relationship Management (SRM) Research 2012-2013 Figure 6: gives an overview of the available functionality of each vendor application. The Y-axis represents the vendors and the X-axis represents the categories within the SRM suite. nt me t ge nt t en ce na e en t en en Ma em em rem lig s ec t g ag em na g roc u tel rce roj na t in ou a an Ma al p en es gP tM M e on lR rci ng cin ac pli er gu ati rem na ll ou ur ntr p at alo er oc u ter O era S So Co Su C Op Pr Ex BP OvSAP SRM 98%Ariba 92%Proactis 91%Eeebid 88%Esize 88%Tblox 85%SynerTrade 82%Proquro services 82%BravoSolutions 75%Hubwoo 71%IBX 70%Pool4Tool 66%Oracle 63%Volt 61%Peoplesoft 59%Inconto 55%JD Edwards 51%Bupros 47%Perfect commerce 42%BasWare 41%Archifact 38%Negometrix 36%VendorLink B.V 32%bipsolutions 30%Upside Software 25%SciQuest 24%Verian Technologies 23%Spend360 19%Ecovadis 9% 29
  • 30. Supplier Relationship Management (SRM) Research 2012-2013 Analysis per Category The in-depth application review is structured according to the nine When selecting an SRM tool, you are subcategories listed earlier. likely to have certain requirements that These subcategories have been further are more critical than others. If you divided into a number of functional are looking for a full-suite application, categories as shown the overall functionality scores may be in Table 7. sufficient for your selection. However, if you are looking for a particular functionality or a set of functionalities, a more in-depth review of the results is required.Table 7: Additional Functional Categories Procurement Project Supplier Contract Catalogue Operational External BPO Sourcing Intelligence Management Management Management Management Procurement Resources Procurmeent General Project General General General General General Specify BPO Management Approvals Strategy Evaluation & Authoring User Requisitioning Development Development Capabilities Requisitioning Spend Demand Compliance Request for Analytics Aggregation Database Supplier Quotation Selection & Repository Capabilities Order Electronic Approval Tendering Administration- Monitoring Content and Purchase Order Operational e-Auctioning Review Approval Transmission Aftercare reporting Negotiation Administration- Receiving and Contract Creation Goods and Signing Services Administration- Maintenance Invoicing30
  • 31. Supplier Relationship Management (SRM) Research 2012-2013 Procurement Intelligence Procurement Intelligence is key to assessing and ensuring compliance, Procurement Intelligence is the process tracking operational improvement of collecting, cleansing, structuring and benefits and in implementing sourcing drawing insight from market analysis, strategies. Procurement Intelligence process measurements (both sourcing software typically supports spend and procurement), spend data, analytics and operational reporting. supplier performance and knowledge management solutions. Procurement The ability to clearly communicate Intelligence solutions support findings is critical to achieve staff and data collection, data processing management buy-in. Therefore, the and validation, Key Performance functionality to graphically represent Indicator (KPI) calculation and report findings is of high importance in this generation. The knowledge gained type of application. from Procurement Intelligence aims to simplify decision making, making this subprocess a critical part of both the strategic sourcing process and procurement governance.Figure 8: Procurement Intelligence Procurement Intelligence Develop Analyse Sourcing needs & market Place Approve Strategy dynamics Requisition Requisition Manage Procurement RFQ Strategic Supplier Place Manage Order Process Sourcing Performance content Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract and invoice goods Finalisation Project Management 31
  • 32. Supplier Relationship Management (SRM) Research 2012-2013 Functionalities Reviewed Commerce and JD Edwards). In addition, none of the vendors within Procurement surveyed have full coverage of the Intelligence service offerings, which leaves scope for further improvement. Procurement Intelligence is divided into Compared to the previous edition, the following sub-functionalities: Negometrix has started offerings in Procurement Intelligence. • Spend Analytics - Mathematical algorithms used for cleansing, 2. Relationship between Procurement normalising and classifying Intelligence and Operational spend data. Procurement and Sourcing, Procurement Intelligence and • Operational Reporting - Operational Operational Procurement: reporting is typically used by the frontline operations personnel. Very In line with the observations in short-term, detailed decisions are 2010-2011 there is an increasing made from operational reports. percentage of vendors working on Procurement Intelligence as well as Observations Regarding Operational Procurement. Yet, 24 Procurement Intelligence: percent of the vendors only offer one functionality and 14 percent 1. Out of all of the vendors surveyed, of the vendors offer Procurement 83 percent offer Procurement Intelligence functionality alone, Intelligence; there is a huge compared to 10 percent for diversity in coverage, ranging from Operational Procurement 97 percent to 19 percent. Only functionality. In addition, there five vendors (17 percent) do not is one vendor (Vendorlink) that offer Procurement Intelligence offers Procurement Intelligence functionality (Upside Software, but no Sourcing and Operational Ecovadis, SciQuest, Perfect Procurement Functionality.32
  • 33. Supplier Relationship Management (SRM) Research 2012-2013 Procurement Intelligence and data at purchasing line level” are the Sourcing: two functionalities offered by most of the vendors surveyed (72 percent Procurement Intelligence is a critical of the vendors). “Vendor and item part of the Strategic Sourcing and knowledge base-fed algorithms” Operational Procurement process. is the functionality with the most Since four vendors offering diversity (45% of the vendors). Sourcing do not offer Procurement Intelligence there is scope for For Operational Reporting, this improvement. year’s survey shows that most vendors offer operational reporting3. For Spend Analytics, “offering a functionality pertaining to the flexible hierarchy to make different “Procurement process” (76 percent) spend cubes (i.e. spend per compared to “Target setting per product group, organisational level, market” (41 percent). supplier)” and “capturing spendFigure 9: Procurement Intelligence ScoresBravoSolutions 97%Spend360 97%SynerTrade 97%VendorLink B.V 97%Tblox 94%Proactis 94%SAP SRM 94%Ariba 92%Eeebid 91%Pool4Tool 91%Esize 88%Proquro services 88%Inconto 78%Volt 72%BasWare 65%IBX 64%Peoplesoft 63%Bupros 60%Hubwoo 60%Archifact 57%Verian Technologies 44%Oracle 38%Negometrix 26%bipsolutions 19% General Spend Analytics Operational Reporting 33
  • 34. Supplier Relationship Management (SRM) Research 2012-2013 Project Management Project Management solutions typically support the following types of activities: Project Management is the discipline creation of a project team, phasing of a of defining and achieving targets while project, maintaining a project calendar, optimising (or just allocating) the use containing an overview of scheduled of resources (time, money, people, and running projects, resource planning materials, energy, space, etc.) over the covering the team members assigned course of a project. Within sourcing, to the project, and running reports for Project Management helps to embed the scheduled projects. sourcing processes, such that savings are gained and knowledge is captured, which can be referred to in future.Figure 10: Project Management Procurement Intelligence Develop Analyse Place Approve Sourcing needs & market Requisition Requisition Strategy dynamics Manage RFQ Strategic Supplier Manage Procurement content Place Process Sourcing Performance Order Order Cycle Cycle Negotiate Supplier Selection Verify process Receive & Contract and invoice goods Finalisation Project Management Functionalities Reviewed within Project Management: • Project Management34
  • 35. Supplier Relationship Management (SRM) Research 2012-2013Observations Regarding do not provide functionality in these visibility and transparency across three areas. These vendors are the entire SRM suite. Therefore, thisProject Management: instead focused on niches areas in percentage is expected to decrease.1. Project Management is still a the SRM process, namely: key differentiator; vendors either 3. The survey shows that the top 5 • Vendorlink: Procurement provide functionality in this functionalities offered are: Intelligence and Supplier area (59 percent of the vendors Management Templates creation with standard surveyed) or it is completely milestones 59% absent from the application. All • Spend 360: Procurement of the vendors from the previous Intelligence Dividing projects into different edition of the SRM survey who phases 59% • Ecovadis: Supplier Management provided Project Management Project Calendar 55% functionality still continue to provide Project Management and Operational Project Management services to Creation of a team 55% Procurement: their clients. Resource planning 43% Six vendors (21 percent) offering2. Relationship between Project Operational Procurement do not offer Management and Operational Project Management functionality. Procurement and Sourcing: Although Project Management is something typically expected to The relationship is currently absent be found in sourcing processes, it from three vendors (Vendorlink, becomes more important to ensure Spend 360 and Ecovadis) as theyFigure 11: Project Management ScoresAriba 100%Proactis 100%BravoSolutions 100%Eeebid 100%Esize 100%Pool4Tool 100%SAP SRM 100%Hubwoo 96%Proquro services 96%SynerTrade 96%Tblox 96%IBX 92%Peoplesoft 88%Oracle 84%Negometrix 76%Volt 76%JD Edwards 72% Total Sourcing Project Management 35
  • 36. Supplier Relationship Management (SRM) Research 2012-2013 Strategic Sourcing the tendering and supplier selection process (strategy implementation). Strategic Sourcing is the part of the Strategic Sourcing solutions support procurement process that continuously strategy development, demand improves and re-evaluates the aggregation, electronic tendering or purchasing activities of a company. eRFX, eAuctioning, negotiation and The sourcing process consists of the contract signing. sourcing strategy development andFigure 12: Sourcing Procurement Intelligence Develop Analyse needs & market Place Approve Sourcing Requisition Requisition Strategy dynamics Manage Procurement Strategic Supplier RFQ Manage Place Sourcing Performance Order Process content Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract and invoice goods Finalisation Project Management Functionalities Reviewed suppliers for the purpose of evaluation and comparison. Often, within Strategic Sourcing this is part of a tendering exercise. Strategic Sourcing is divided into the following sub-functionalities: • e-Auctioning - a negotiation tool, which can help to select • e-Sourcing - the process of appropriate suppliers. identifying sourcing opportunities, developing sourcing strategies, The sub-functionalities Electronic conducting negotiations, and Tendering and e-Auctioning are establishing supply agreements reviewed separately. with vendors of goods and services. • Electronic tendering or eRFX - the process of Request for Information / Proposal / Quotation from potential36
  • 37. Supplier Relationship Management (SRM) Research 2012-2013Observations Regarding Supplier Management is part Sourcing functionality. Only one of the Strategic Sourcing cycle. vendor (SciQuest) offers SourcingStrategic Sourcing: Therefore, it is in line with functionality without Contract1. 79 percent of the vendors surveyed expectations that 86 percent of the Management functionality. offer e-Sourcing functionality as vendors offer both functionalities. compared to 76 percent, which Only four vendors offer Sourcing 3. 86 percent of the vendors provide offer Operational Procurement functionalities without offering electronic tendering functionality, functionality. In the last edition, the Supplier Management functionality. whilst 66 percent provide focus was still greater on Sourcing In contrast, only five vendors offer e-auctioning functionality. In line than on Operational Procurement, Supplier Management without with previous editions, electronic whereas this year the survey shows Sourcing functionality. These tendering is perceived by all vendors realise the importance vendors can be identified as niche vendors a core functionality as of the Operational Procurement players in the SRM process. compared to e-Auctioning. cycle as the backbone of the Relationship between Sourcing and 4. 55 percent of the vendors surveyed Procurement process. Contract Management: offer services above the average combined offerings of all vendors2. Relationship between Sourcing, 97 percent of the surveyed vendors surveyed. Which was 70 percent for Supplier Management, and offer Sourcing and Contract Sourcing compared to 60 percent Contract Management Management functionality, which of vendors with service offerings Relationship between Sourcing and is not surprising since Contract above the average 80 percent of Supplier Management: Management would be the next functionalities in our SRM survey logical step if a vendor offers 2010-2011.Figure 13: Strategic Sourcing scoresAriba 98%Esize 97%Eeebid 97%SAP SRM 96%SynerTrade 93%BravoSolutions 91%Pool4Tool 91%Proactis 82%Hubwoo 82%Negometrix 78%IBX 72%Bupros 71%Peoplesoft 71%Oracle 65%Upside Software 63%Volt 60%bipsolutions 55%Tblox 55%BasWare 52%Perfect commerce 49%Proquro services 44%JD Edwards 42%SciQuest 26% SourcingInconto 18% e-TenderingVerian Technologies 6% e-Auctioning 37
  • 38. Supplier Relationship Management (SRM) Research 2012-2013Electronic Tendering and Table 14: Sub-categories Electronic Tendering and e-Auctioninge-AuctioningSince the functionality within Sourcing Electronic Tendering e-Auctioningtypically lies in support of tendering, General Typesnegotiation and auctioning, two Building Strategysub-categories have been defined: Sending & answering ProcessElectronic Tendering and e-Auctioning.These have then been subdivided Aggregate & analyse Bid formatsin order to compare functionality, as Scoring Calculationillustrated in Table 14. Figures 16 and Distribution of shortlist Viewing17 represent the total scores of theapplication’s functionality within the MessagingElectronic Tendering and e-Auctioningsub-categories.Figure 15: Electronic Tendering and eAuctioning Procurement Intelligence Develop Analyse needs & market Place Approve Sourcing Requisition Requisition Strategy dynamics Manage RFQ Strategic Supplier Manage Procurement Place Process Sourcing Performance content Order Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract goods and invoice Finalisation Project Management38
  • 39. Supplier Relationship Management (SRM) Research 2012-2013Electronic Tendering • General 3. With regards to electronic tendering, the followingThe core functionality of Strategic • Building percentages of the vendors provideSourcing partially lies in support for • Sending and answering a full coverage (100 percent) ofElectronic Tendering. To a large extent, following functionality:this is where the value of Strategic • Aggregation and analysisSourcing is captured. Electronic • Scoring • Building 41%Tendering also includes eRFX (Request • Distribution of Shortlist • Sending and Answering 34%for Information, Request for Proposaland Request for Quote), which is often • Aggregate and Analysis 41%used as part of a tendering exercise. Observations Regarding • Scoring 48%Electronic Tendering can be used bya buyer to request information from Electronic Tendering • Distribution of Shortlist 21%potential suppliers for the purpose of 1. 86 percent of the vendorsevaluation and comparison. The more surveyed offer Electronic Tendering 4. erian Technologies offers Vstructured this information is, the easier functionality, showing that Electronic Tendering functionality;it is to compare the suppliers. Electronic Tendering is perceived by however, it does not offer the all vendors as a core functionality functionalities for Sourcing and as compared to eAuctioning. e-Auctioning.Functionalities Reviewedwithin Electronic 2. The sub-category ”Building” is theTendering category with the highest functional coverage (average 86 percent) asElectronic Tendering is divided into the compared to “Distribuition of afollowing sub-functionalities: Shortlist” (average 61 percent).Figure 16: Electronic Tendering ScoresAriba 99%Esize 99%Eeebid 100%SAP SRM 93%SynerTrade 96%BravoSolutions 88%Pool4Tool 92%Proactis 97%Hubwoo 85%Negometrix 83%IBX 86%Bupros 83%Peoplesoft 89%Oracle 89%Upside Software 63%Volt 61%bipsolutions 69% General - electronicTblox 81% tenderingBasWare 78% BuildingPerfect commerce 65% Sending andProquro services 57% Answering Aggregate andJD Edwards 68% analyseSciQuest 14% ScoringInconto 48% Distribution ofVerian Technologies 14% shortlist 39
  • 40. Supplier Relationship Management (SRM) Research 2012-2013e-Auctioning • Bid formats coverage (100 percent) of the following functionalities:e-Auctioning is a negotiation tool that • Calculation a. Bid formats 24%can help to select suppliers. Depending • Viewingon the approach, buyers or sellers b. Types 21%may specify costs or invite bids, and • Messaging c. Viewing 38%transactions can be initiated andcompleted. Ongoing purchases may Observations regarding d. Messaging 17%qualify customers for volume discounts eAuctioningor special offers. e-Auctioning software 3. The main differentiator in e-Auction 1. The average score of 45 percentmay make it possible to automate functionality can be found in functional coverage has decreasedsome buying and selling. “Messaging” as compared to compared to the 2010-2011 SRM “Process” which has the highest edition. This further highlightsFunctionalities reviewed within functional coverage. that the market is saturated withe-Auctioning specialist auction providers and 4. Diverse results were found in thee-Auctioning is divided into the that vendors do not feel the need following requirements: “Based onfollowing sub-functionalities: to enhance the e-Auctioning the auction results contracts can functionality in-house. be generated in EDI format” (found • Types of auctioning in the submodule ‘Messaging’) and 2. With regards to eAuctioning, • Strategy “The module advises on the type of the following percentages of the auction most suitable” (found in the • Process vendors surveyed provide a full submodule ‘Auction Types’).Figure 17: e-Auctioning ScoresAriba 99%Esize 95%Eeebid 94%SAP SRM 99%SynerTrade 91%BravoSolutions 88%Pool4Tool 92%Proactis 65%Hubwoo 85%Negometrix 78%IBX 58%Bupros 57%Peoplesoft 69%Oracle 46%Upside Software 68% General-e- auctioningVolt 28% Processbipsolutions 43% Bid formats TypesPerfect commerce 44% ViewingSciQuest 16% Messaging40
  • 41. Supplier Relationship Management (SRM) Research 2012-2013Supplier Management measurement and evaluation of Functionalities reviewed mutually agreed performance indicatorsSupplier Management includes within Supplier and scorecards. Both quantitativeSupplier Information Management, aspects of the supplier relationship ManagementSupplier Performance Management (such as price, quality, delivery and Supplier Management is divided intoand Supplier Risk Management. service) and qualitative aspects of this the following sub-functionalities: relationship (such as visits, surveys andSupplier Information Management • General certifications) are handled.consists of identifying and profiling • Supplier Information Managementsuppliers, in order to create and Supplier Risk Managementmaintain an accurate set of relevant • Supplier Performance Management encompasses all tools used to model,providers. The data entailed in these map and track the chance of undesired • Supplier Risk Managementactivities includes supplier master data, events, associated with inboundbut also additional information such supplies, having a detrimental effect onas qualification status summaries and purchasing operations. A Supply Risksupplier programs. Data sources can Management (sub) module thus maybe maintained internally or externally, help in identifying risk sources, developfor example through supplier self risk indicators and subsequently assistservice portals, web services or in managing and monitoring operationalembedded portal functionality. supply risk. Supplier Performance Managementmainly concentrates on performancemanagement, meaning theFigure 18: Supplier Management Procurement Intelligence Develop Analyse Place Approve Sourcing needs & market Requisition Requisition Strategy dynamics Strategic Manage Procurement RFQ Sourcing Supplier Manage Place Performance Order Process content Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract and invoice goods Finalisation Project Management 41
  • 42. Supplier Relationship Management (SRM) Research 2012-2013 Observations Regarding Supplier Risk Management becomes more important for Supplier Management: organisations wanting to identify 1. 83 percent of the vendors surveyed risk sources, develop risk indicators offer Supplier Management- and subsequently manage and based scenarios. Only five monitor operational supply risk. So, vendors do not provide Supplier it can be expected that this area will Management (Basware, Inconto, further increase in functionality and Peoplesoft, Negometrix and Verian richness of capability over the next Technologies). few years. All the vendors of the previous 4. The survey shows that the top year’s survey continue to provide three functionalities offered within Sourcing Project Management Supplier Performance Management services to their clients. are: 2. Relationship between Supplier • Existing questionnaires can Management and Sourcing: be reused to produce a new questionnaire 76% Since Supplier Management • The questionnaire is accessible is usually part of Sourcing, it via the internet 76% is perhaps surprising that four vendors (Archifact, Ecovadis, • It is possible to collect and Spend 360 and Vendorlink) compare all scorecard data for offering Supplier Management do each supplier 76% not offer Sourcing functionality. Survey results showed that “it is However, these four vendors can be possible for suppliers to download a identified as niche players (Spend copy of their survey response” was 360, Vendorlink and Ecovadis are the least offered service, with only already identified as niche players 52 percent of the vendors surveyed within the Project Management offering it. module). Archifact specialises in Procurement Intelligence. 5. 59 percent of vendors surveyed offer a configurable dashboard for 3. The survey shows that Supplier reporting purposes. Information Management is offered by most of the vendors. The average scores per submodule are: • Supplier Information Management 89% • Supplier Performance Management 80% • Supplier Risk Management 50%42
  • 43. Supplier Relationship Management (SRM) Research 2012-2013Figure 19: Supplier Management scoresSAP SRM 100%BravoSolutions 100%Esize 99%Eeebid 97%Proactis 97%Tblox 94%Ariba 94%IBX 94%VendorLink B.V 92%SynerTrade 88%Pool4Tool 85%Ecovadis 85%bipsolutions 77%Hubwoo 73%Oracle 71%Proquro services 69%Upside Software 67%Bupros 66%SciQuest 64%Perfect commerce 59%JD Edwards 59%Volt 58%Archifact 45%Spend360 38% General Supplier Performance Management Supplier Information Management Supplier Risk Management 43
  • 44. Supplier Relationship Management (SRM) Research 2012-2013 Contract Management Contract Management solutions can support the creation of contracts, and Contract Management includes the provide overviews of current contracts authoring of contracts and their terms and contracted parties. It typically also and conditions, contract registration, details the related (financial) obligations, and finally managing contracted flow of funds and critical dates, such products, financial obligations, and as contract renegotiation or dates that critical dates, etc. In addition, Contract trigger penalties if they are not met. Management also includes monitoring Contract Management solutions can agreed targets and results specified in further support team collaboration, the contract, and, where necessary, contract construction, document initiating actions to either adjust agreed management, contract approvals/ terms and conditions, or to remedy sign-off, budget control and contract contract breaching behavior. evaluation. Figure 20: Contract Management Procurement Intelligence Develop Analyse Place Approve Sourcing needs & market Requisition Requisition Strategy dynamics Manage RFQ Strategic Supplier Manage Procurement Place Process Sourcing Performance content Order Order Cycle Cycle Verify process Receive Negotiate Supplier Selection and invoice goods & Contract Finalisation Project Management44
  • 45. Supplier Relationship Management (SRM) Research 2012-2013Functionalities Reviewed Sourcing functionality without Contract Management. Accordingly,within Contract 97 percent of the surveyed vendorsManagement offer Contract Management andContract Management is divided into Sourcing functionality, which isthe following sub-functionalities: not surprising since Contract Management would be the next• Authoring logical step if a vendor has Sourcing functionality. The vendor Archifact• Usage has Contract Management without• Compliance offering Sourcing functionality and offers the module as an• Repository extension of the Operational Procurement cycle.Observations RegardingContract Management: Relationship between Contract Management and Operational1. Out of all the vendors surveyed, Procurement: Four vendors 90 percent of the vendors offer (14 percent) offer Contract Contract Management functionality. Management functionality but Only three vendors (10 percent) do no Operational Procurement. not offer Contract Management These vendors (Upside Software, functionality (Ecovadis, SciQuest Negometrix and Bravo Solutions and Verian Technologies). Four and BIP solutions) use Contract vendors responded with a score Management as an extension of of less than 70 percent coverage the Sourcing Cycle. Spend 360 in this area, with the average score and Vendorlink offer Contract above 80 percent. Management as a standalone module since the relationship2. Relationship between Contract with Sourcing and Operational Management, Sourcing and Procurement is totally absent. Operational Procurement: 3. Full coverage for Compliance, Relationship between Contract Usage and Repository, and Management and Sourcing: Only averages of the vendors surveyed one vendor (SciQuest) offers this year: Company Compliance Usage Repository Eeebid 100% 100% 100% SAP SRM 100% 100% 100% BravoSolutions 100% 100% 100% Average for all 76% 84% 83% companies surveyed 45
  • 46. Supplier Relationship Management (SRM) Research 2012-2013Figure 21: Contract Management ScoresBravoSolutions 100%Eeebid 100%SAP SRM 100%Hubwoo 98%Proquro services 98%SynerTrade 98%Tblox 98%Proactis 98%Inconto 97%Ariba 94%Esize 94%BasWare 93%Upside Software 91%Archifact 88%Bupros 85%Oracle 81%VendorLink B.V 81%Pool4Tool 81%Negometrix 80%Peoplesoft 79%IBX 78%Perfect commerce 70%JD Edwards 68%bipsolutions 65%Volt 45%Spend360 33% General Compliance Usage Repository46
  • 47. Supplier Relationship Management (SRM) Research 2012-2013Catalogue Management Catalogue Management is primarily carried out by the party keeping theCatalogues contain the preferred catalogue, but different arrangementsgoods and services from suppliers are possible. An external cataloguethat were selected during the Strategic can be accessed in several ways: aSourcing process. Catalogues also relatively simple solution is a punch-outcontain article information and these or roundtrip, where the user temporarilyarticles can normally be ordered leaves the procurement application andelectronically. Catalogues can either be is typically directed to the supplier’slocated in the procurement application website. After selecting a product heitself, at the suppliers’ side or at a returns with the article informationthird party. For companies that have needed to generate a requisition, thissucceeded in placing the majority of will then pass through the normaltheir spend onto catalogues, there is internal approval procedure. In someoften a combination of different types solutions, the external catalogue databecause different purchase-to-pay can be viewed and handled in thechannels are applicable depending procurement application in the sameon category profile, order profile, way as internally stored articles. Asspend profile, supplier profile and the the critical success factor for selfbusiness requirements. Static/standard service requisitioning is usability andcatalogues, form catalogues and user friendliness, a coherent workingpunch-out catalogues are examples of environment for employees is ofcatalogue-based channels. Catalogue great importance in achieving goodManagement involves entering compliance with preferred products,article data, validating the data, suppliers and contracts.and generating and maintaining thecatalogue content.Figure 22: Catalogue Management Procurement Intelligence Develop Analyse Place Approve Sourcing needs & market Requisition Requisition Strategy dynamics Manage Procurement RFQ Strategic Supplier Manage Place Order Process Sourcing Performance content Order Cycle Cycle Verify process Receive Negotiate Supplier Selection and invoice goods & Contract Finalisation Project Management 47
  • 48. Supplier Relationship Management (SRM) Research 2012-2013Functionalities Reviewed functionality as compared to 67 Catalogues (64 percent), Standard percent in 2010-2011. Catalogues (64 percent) werewithin Catalogue supported by most vendors.Management 2. Relationship between CatalogueCatalogue Management is divided into Management and Operational In terms of schemes, UNSPSCthe following sub-functionalities: Procurement: (United Nations Standard Products and Services Code) continues to • User capabilities 24 percent of the vendors do not be the most offered functionality by provide Operational Procurement vendors. • Supplier capabilities functionality. These vendors also do • Administration (content review and not provide Catalogue Management 4. Catalogue Creation and User approval) functionality since Catalogue Capabilities are the subcategories Management is an element of with the highest functional coverage • Administration Creation Operational Procurement. (average score of 80 percent) while • Administration Maintenance 72 percent of the vendors provide 3. Punch-out Catalogues are Catalogue Creation; however, supported by most of the vendors none of the vendors provide aObservations Regarding (72 percent) and are followed by full coverage (100 percent) of theCatalogue Management Form Catalogues (62 percent). offering. 1. 72 percent of the vendors surveyed However, last year’s survey provide Catalogue Management shows that along with Punch-outFigure 23: Catalogue Management ScoresSAP SRM 99%Tblox 99%Eeebid 97%Perfect commerce 92%Inconto 92%Hubwoo 92%Proquro services 91%Ariba 90%SynerTrade 90%Proactis 88%IBX 87%Oracle 85%Esize 81%Bupros 75%Verian Technologies 74%SciQuest 74%Pool4Tool 71%BasWare 69%Peoplesoft 64%JD Edwards 58%Archifact 56%Volt 13% General Supplier Capabilities Catalogue Creation User capabilities Catalogue maintenance48
  • 49. Supplier Relationship Management (SRM) Research 2012-2013Operational Procurement 3. After approval of the requisition the Some companies have a self- order is placed with the supplier. If billing process. In this situation,Operational Procurement in this necessary, a sourcing process can the company will make their ownsurvey refers to the purchasing or be entered into prior to the order invoice based on the Purchaseprocurement process. It is often being placed if it is a special order Order and the goods received.referred to as Purchase-to-Pay or P2P (for example, if the item was not in a(sometimes e-Procurement is also Applications for Operational catalogue).used). In this survey e-Procurement Procurement normally support bothrefers to the automated solution of 4. In the supply process, the goods product-related goods and servicesthe purchasing process. Operational and/or service are received and an (direct) and non-product-related goodsprocurement primarily consists of the assessment of received goods and/ and services (indirect). Examples of theorder process, the supply process and or services on quality and quantity latter are: external resources, MRO,the payment process. is done. If necessary, exceptions capital goods and utilities. will be processed.The order process typically follows the 5. Finally, in the payment process, thefollowing steps: invoice is received and matched against the Purchase Order and the1. Needs capture and requisitioning. received goods. If this is correct,2. Approval (normally by the next level the invoice can be paid. manager, a subject matter expert, or by the finance department).Figure 24: Operational Procurement Procurement Intelligence Develop Analyse Place Approve Sourcing needs & market Requisition Requisition Strategy dynamics Manage Procurement RFQ Strategic Supplier Manage Place Order Process Sourcing Performance content Order Cycle Cycle Supplier Selection Verify process Receive Negotiate & Contract and invoice goods Finalisation Project Management 49
  • 50. Supplier Relationship Management (SRM) Research 2012-2013Functionalities Reviewed requisition creation, Purchase Operational Procurement and Order generation, Purchase Order Project Management: See Projectwithin Operational transmission, receiving goods/ Management Page 35Procurement services, and invoicing.Operational Procurement is divided into 3. Communication between supplierthe following sub-functionalities 2. Relationship between Operational and buyer via email is the method Procurement and Catalogue used by the majority of the vendors: • Requisitioning Management, Contract • Purchase order 76 % Management, Procurement • Request for quotation Intelligence and Project • Purchase order • Approval Management: confirmation 66 % • Purchase order transmission • Advanced shipping note 55 % Operational Procurement and • Receiving goods and services Catalogue Management: See • Invoice 72 % Catalogue Management Page 48 • Invoicing Operational Procurement and Contract Management: SeeObservations Regarding Contract Management Page 45Operational Procurement: Operational Procurement and 1. 76 percent of the vendors surveyed Procurement Intelligence: See provide Operational Procurement Procurement Intelligence Page 32 functionality and also support different categories such asFigure 25: Operational Procurement Scores SAP SRM 100% Oracle 96% Proactis 94% Esize 92% Ariba 89% Proquro services 87% Inconto 87% Tblox 87% JD Edwards 87% BasWare 86% SynerTrade 85% Eeebid 84% Peoplesoft 81% Pool4Tool 79% Hubwoo 78% Bupros 69% IBX 67% Perfect commerce 65% Archifact 62% Verian Technologies 60% Volt 59% SciQuest 55% General Requisition creation Purchase order transmission Purchase order generation Receiving goods/services Invoicing50
  • 51. Supplier Relationship Management (SRM) Research 2012-2013External Resources What is External Resources Management?In recent times, it has becomenoticeable that companies are often External resources management isusing external labor. The process from a tool to manage an organisation’srequest to approval and hour recording external resources to enable ais complex, as many stakeholders reduction in the company’s cost ofcould be involved and modifications management of external employees.might be required during the process. Organisations often lack insightFor this reason it is very important that into their obligations with regard tothis process is well supported. temporary labour; a external resource solution can create this insight. AnOver the past few years it has been external resource managementnoted that predominantly indirect solution will allow an organisation togoods have been subjected to some specify its requirements and select theform of SRM implementation. Many appropriate resource for a particularlarge organisations have a relatively task or role. The solution allowshigh level of spend on external creation of a contract between theresources, but have very little visibility organisation and workers as well asas to how that spend is broken down ensure that workers are monitoredby business unit, division, capability of by creating reports such as timeexternal resource, etc. Most companies and expenses reports. The solutionshould know exactly how much money allows self-billing and evaluation ofthey spend per supplier. However, employees after a role has ended.below this level of information the Thus, the solution helps to mitigatebreakdown is inconsistent and they the organisation’s risk in employingmay not be able to know the grade external resources.or level of the hired person, if theyare registered, the rate per hour or Functionalities Reviewedday or even insight as to whether within External Resourcesthe vacancy could be fulfilled with aninternal candidate. External resources is divided into the following sub-functionalitiesWith the expected constraints within • Specification of the requirementsthe labour market, companies will needto get a better understanding of their • Approval (approve theexternal resources, and it is anticipated requisition) that supporting applications will have a • Requisitioning (ask supplier forbright future. offer) We have chosen to separately survey • Selection and Order (select on thethe vendors on this functionality as we basis of the offer and place order)believe that the process of External • Monitoring (including hourResources is very different from any recording, hours authorised andother P2P process. invoicing) • Aftercare (terminating the service, evaluating the employee) 51
  • 52. Supplier Relationship Management (SRM) Research 2012-2013Observations Regarding 2010-2011 that there is still scope With regards to Approval for improvement and some full- functionality, all but one ofExternal Resources suite vendors not offering External the vendors offering External 1. Out of all of the vendors surveyed, Resources will develop this Resources provides 100 percent 48 percent offer External Resources functionality in the near future. of the offering (the exception functionality, as compared to 40 being PROACTIS (50 percent). 3. Most of the vendors offering percent in 2010-2011. With regards to Requisitioning External Resources functionality 2. This year’s survey shows that the functionality, all but one of the offer high functionality (average full-suite vendors (Eeebid and vendors provides 100 percent of >90 percent) regarding the first Synertrade) now support External the offering (the exception being part of the process (Specify, Resources functionality, whereas Eeebid (50 percent)). Approvals, Requisitioning), more they did not demonstrate this than they support the second part functionality in 2010-2011. This of the process (Selection & order, supports the observation made in Monitoring and Aftercare).Figure 26: External Resources ScoresEsize 100%Volt 100%BravoSolutions 98%Tblox 96%Proquro services 96%SAP SRM 93%Proactis 91%Peoplesoft 89%SynerTrade 89%Inconto 86%Eeebid 71%Negometrix 68%Ariba 68%Archifact 35%Oracle 4% General Specify Approvals Requisitioning Selection and order Monitoring After care52
  • 53. Supplier Relationship Management (SRM) Research 2012-2013BPO Procurement the commodity or the overall procurement strategy.Business Process Outsourcing (BPO)Procurement is a solution that many • Category management – theare turning to for the delivery of world development of category strategies,class procurement services. A BPO subsequent management ofProcurement service typically consists the category after sourcing, andof two types of services (and the management of the contracts tocombination of these is called Full ensure that the benefits identifiedService BPO Procurement): are delivered through active compliance management. Typically,• Purchase-to-Pay which is any supplier management is the provision of transaction undertaken in this area. processing support to manage • Tactical procurement (spot buying) the administration involved in – the management of spot buying the ‘procure-to-pay cycle’ for for high value and unusual items indirect goods and services or through a purchasing desk. This direct procurement. is usually augmented with a front• Source-to-Contract includes office which supports employees strategic sourcing and the and supplier contacts in local management of contracts. The languages. spend under management by the • Transactional procurement – the BPO provider creates a continuous management of the requisitions leverage for spend aggregation. and PO process plus master data management and queryWhy BPO? management that supportsThere are several motivating factors as employees and supplier contacts into why BPO is gaining ground, which local languages.include: • Compliance management – active• Factor Cost Advantage reporting and management of compliance. Often involves• Economy of Scale interaction with HR to drive changes• Business Risk Mitigation in or compliance with HR policies.• Superior Competency • Reporting – provision of management information for• Utilisation Improvement strategic sourcing, compliance and supplier management.What services are includedin a BPO Procurementdeal?BPO Procurement deals typicallyhave one or more of the followingcomponents:• Strategic sourcing – the negotiation of new contracts with suppliers generally in accordance with 53
  • 54. Supplier Relationship Management (SRM) Research 2012-2013Observations Regarding “Procurement Intelligence” 4. 39 percent of the vendors offering continues to be a top priority on BPO Procurement support BPO-BPO Procurement: the list of the top 5 BPO-based based scenarios and customers in1. 62 percent of the vendors indicate scenarios in use. “Contract the following regions: Asia Pacific, that they offer BPO-based Management” and “Catalogue Eastern Europe and Russia, Latin scenarios, as compared to 45 Management” are new entrants America, Mainland Western Europe percent in 2010-2011. in the list, whereas “Project and Nordics, Middle East, North Management” and “External America, Africa and UK.2. The survey shows that the top 5 Resources” are not high on the BPO-based scenarios in use are: priority list as BPO scenarios. 5. 67 percent of the vendors offering Procurement Intelligence 78 % BPO Procurement support BPO- 3. 56 percent of the vendors offering based scenarios and customers Sourcing 78 % BPO Procurement are collaborating in Mainland Western Europe and Contract Management 72 % with another provider in support of The Nordics. their BPO Procurement. Supplier Management 72 % Catalogue Management 72 %Figure 27: BPO Procurement ScoresAriba 100%SAP SRM 100%BravoSolutions 91%Proactis 77%IBX 73%JD Edwards 73%Hubwoo 64%Proquro services 64%Volt 64%Eeebid 55%Tblox 50%bipsolutions 50%Oracle 41%Perfect commerce 41%Inconto 36%Esize 36%Verian Technologies 18%VendorLink B.V 18% Total BPO54
  • 55. Supplier Relationship Management (SRM) Research 2012-2013 55
  • 56. Supplier Relationship Management (SRM) Research 2012-201356
  • 57. Supplier Relationship Management (SRM) Research 2012-2013Supplier Profiles 57
  • 58. Supplier Relationship Management (SRM) Research 2012-2013ArchifactArchifact is a niche player in software for Dutch SMEs and offers procurement intelligence alongwith a number of specific SRMsolutions. Archifact is a Dutch company that was founded in 1997 and is seated in Haarlem, the Netherlands. Archifact has grownout of the Vereniging Nederlandse Uitgeverijen (VNU, association of Dutch publishing houses). They make a difference betweenstandard products and custom-made products.The SRM solutions part of the standard product portfolio is: • iShopper for procurement. For decentralized orders, showing history of procurement, stock implications and immediate budget implications to management. Both available as an in-house solution and a web application. Modules with respect to SRM are registration and request, ordering, registration of goods received, invoice matching, and budget. • iTrade for warehouse management, procurement, production planning, sales and invoicing. iTrade makes business processes transparent from sales order to invoice. Modules with respect to SRM are order intake, procurement, invoicing and couplings between financial administration and MS Office. • iCU for external resources, where all administration of the external resources you send out is gathered, and invoices are ready to be sent out. Modules with respect to SRM are contract management, hours recording, invoicing, reporting, curriculum vitae management, and couplings to financial administration and MS Office.As an extension of operational procurement, Archifact offers contract management. Interestingly, they do not offer asourcing solution.Archifact demonstrates a little variation from other IT companies: instead of the whole process description in detail, Archifact onlydescribes the conditions that a solution needs to fulfill.58 
  • 59. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2011First version operational since 2001Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located The NetherlandsTotal number of implementations 36-Worldwide Not disclosed-Source to Pay 4-Sourcing NIL-Contract Management 8-Operational Procurement 12Total number of employees 12-15 FTETotal number of employees working on developing the product? 10 FTEFrequency for delivering patches and upgrades two times a year [one functional and one technical]Is there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software business analyses and reportingSoftware is available in Dutch,English, tables for translation available for costumerPricing model fixe price per connectionSustainability policy Not disclosedThe URL of the companys website www.archifact.nl [www.archifact.com] 59
  • 60. Supplier Relationship Management (SRM) Research 2012-2013AribaAriba, incorporated in 1996, is a provider of collaborative business commerce solutions. Ariba provides “Spend Managementsolutions”, which help companies “analyze, understand, and manage their corporate spending to achieve cost savings andbusiness process efficiency”. The company combines software-as-a-service (SaaS) technology with a Web-based communityand a global network of trading partners. This has led to a robust SaaS platform for spend management and collaborative financemanagement, integrated on a single platform. Ariba claims that its platform can easily be integrated with ERP and other backoffice systems. Over 700,000 companies worldwide are enabled on the Ariba Commerce Cloud. Currently, 94 of the Fortune100 and more than 200,000 other companies use Ariba’s SaaS (Software as a Service) solutions to manage their spend andcommerce activities.Ariba is particularly strong in two key things: purchase-to-pay automation and capability on the buy-side, and supplier enablementon the sell-side. Right from the outset, Ariba has put great emphasis on improvement of interactions between business partners.This has led to a large Web-based trading community, the Ariba Network, where customers can discover, connect, andcollaborate with other businesses.The spend management solutions consist of: • Spend Analysis • Sourcing • Contract Management • Procurement • Supplier ManagementThe collaborative finance management solution contains the following products: • Discount Management • Receivables Financing • Supply Chain Finance • Invoice Management • Payment ManagementIn 2012, SAP bought Ariba. It will be worthwhile to monitor what this combination will have in store for the future. It is a potentialpowerhouse, bringing together very strong assets like SAP’s installed base, technological innovations such as HANA (in-memorysolutions), mobile solutions (Sybase) and the truly revolutionary concept of Supplier Infonet (supplier risk management), and on theAriba side, the Ariba platform and Ariba Supplier Network.60
  • 61. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since June 9, 2012 (version 11s4)First version operational since first solution 1997; first SaaS version 2006Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located Not disclosedTotal number of implementations 2352-Worldwide-Source to Pay 1000-Sourcing 650-Contract Management 350-Operational Procurement 320Total number of employees 2622 as of 31st May 2012Total number of employees working on developing the product? 868Frequency for delivering patches and upgrades Patches every six weeks; upgrades one per quarter.Is there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Project management during Implementation Training on the supplied package Bespoke/Customized software Premium Support Services Value Enablement Supplier ManagementSoftware is available in French, German, Chinese, Dutch, English, Russian, Spanish, Danish, PortugesePricing model Suppliers can transact with buyers at no costSustainability policy Not disclosedThe URL of the companys website www.negometrix.com 61
  • 62. Supplier Relationship Management (SRM) Research 2012-2013BaswareBasware was founded in 1985 as Baltic Accounting Systems and was bought by five members of the management team in1990. The company is headquartered in Finland. Basware became internationally well-known with their product for electronicprocessing of purchase invoices. Since 2002, when they started in the US with a subsidiary, they have kept expanding theirsolution and global presence by acquiring specialized software companies.Basware has launched the full Purchase-to-Pay solution in 2005. Currently their solution focuses, next to e-Invoicing andinvoice automation, on Purchase-to-Pay, procurement (including sourcing, catalogues, e-Procurement and contract lifecyclemanagement), and travel and expense management. Their mission is to remove the complexity from B2B commerce. This meansa different focus than a pure procurement solution, where there is also focus on facilitating diverse sourcing modes and vendormanagement, for example.The solution can be offered in different ways: on-premise, cloud, outsourced or a hybrid solution to match individual needs.Basware has a flexible pricing model, software solutions are available with one-time license fee, monthly subscription, andaccording to the SaaS model. Besides the flexibility in pricing models, Basware also offers offers a flexible range in servicesranging from consulting, education to support, independently or via partners.Basware distinguishes itself by enabling organizations to create and sustain more effective, more profitable business relationshipsbased on an open network built for mutual value. Basware solutions work across the B2B Cloud to allow companies to worktogether more efficiently.As a solution provider, Basware has currently more than 1,000,000 end users and over 1,500 organizations in the private andpublic sectors that have chosen Basware to automate their financial processes.62
  • 63. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-06-2010First version operational since 2000Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located FinlandTotal number of implementations 3700-Worldwide-Source to Pay 500-Sourcing 500-Contract Management 700-Operational Procurement 2000Total number of employees 1182Total number of employees working on developing the product? 311Frequency for delivering patches and upgrades Main release Bi-Annual, Patch releases twice a year, Hotfixes on demandIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day?The maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementationSoftware is available in Chinese,Dutch,English,French,German,Japanese,Russian,S panish, All languages available on demandPricing model connection setup and / or pay per transactionSustainability policy Not disclosedThe URL of the companys website www.basware.nl 63
  • 64. Supplier Relationship Management (SRM) Research 2012-2013BipsolutionsBiP was established in 1984 to facilitate business between the public and private sectors. Its head office is located in Glasgowand a second office is located in London.BiP Solutions provides tools that buyers and suppliers can use to engage more effectively with one another. These includeservices that provide details of contract opportunities and other market intelligence, electronic systems that support efficient andeffective tendering, consultancy services, training and development, and events. The focus is on the source-to-contract process.The BiP offering is broader than software. Services are divided into seven areas: business intelligence, consultancy services,training & development, conferences & events, e-Sourcing, IT services & solutions, and marketing services.BiP offers designing, developing, hosting and supporting, robust scalable and secure Internet solutions. They provide more thanone SaaS solution . They build customized solutions. The two SaaS solutions mentioned on the BiP website are Delta e-Sourcingand Select Accredit. This last one is a solution that offers an independent third-party accreditation for suppliers that tender forpublic sector contracts. In the business intelligence area, they mention four brands on their website, and tools to find businessopportunities/tenders. For example, Tracker covers UK and ROI tenders, and European tenders, and Contrax provides a gatewayto new UK and Irish public sector tenders.All solutions are enablers for organizations that do business with, or want to respond to tenders of the public sector.64 
  • 65. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-09-2011First version operational since 1998Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located ScotlandTotal number of implementations 8-Worldwide-Source to Pay 4-Sourcing 4-Contract Management NIL-Operational Procurement NILTotal number of employees 170Total number of employees working on developing the product? 22Frequency for delivering patches and upgrades Pay as you go, users and enterprise licence availabilityIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Advies over uitkomsten en verbeterplannenSoftware is available in English, Arabic, SerbianPricing model License feeSustainability policy Not disclosedThe URL of the companys website www.delta-esourcing.com 65
  • 66. Supplier Relationship Management (SRM) Research 2012-2013BravoSolutionFounded in 2000, BravoSolution has grown to a substantial global presence. Today, the company takes pride in its network of14 offices operating in Italy, France, Spain, UK, Germany, China, USA, the Netherlands, Mexico, Brazil and the UAE, mannedby a team of 500 professionals from as many as 40 countries. Along the way, Bravo has acquired firms such as Mobile Workers(spend analysis), and VerticalNet (supply management company). BravoSolution is a international provider of Supply ManagementExcellence, with a mission to generate value by supporting its clients in the improvement of procurement processes. Thescope of their solution suite is broad and deep, and consists of Spend Analysis, Sourcing, Contract Management and SupplierPerformance Management. BravoSolution truly offers end-to-end sourcing capabilities. Capabilities in these areas are powerful.BravoSolution has no weak spots within its core. The soulution is available in SaaS form.Competitors include Ariba, CombineNet, Emptoris, Iasta, SAP and recent US market entrants, such as TradeExtensionsin categories such as transportation. BravoSolution distinguishes itself from its competitors by offering a powerful blend ofprofessional services content and technical solution capabilities. This is rare when so many companies prefer to partner withconsulting firms or otherwise push ongoing professional services outside their revenue stream. The user interface designcompared to companies such as Ariba, SAP, Oracle, Iasta, Emptoris feels a little stale. Icons and menu bars look a bit flat, withlower resolution and less of an intuitive design.As of today, over 400 companies in the private and public sector, and 50,000 buyers worldwide are benefitting fromBravoSolution’s technology and services.66
  • 67. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2011First version operational since 2001Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located ItalyTotal number of implementations 1300-Worldwide-Source to Pay 100-Sourcing 500-Contract Management 500-Operational Procurement 100Total number of employees 500Total number of employees working on developing the product? Not disclosedFrequency for delivering patches and upgrades AnnuallyIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Project management during Implementation Training on the supplied package A wide variety of spend management services are offered from skills/process training to managed auctions/events Bespoke/customized softwareSoftware is available in Chinese, Dutch, English, French, German, Japnese, Russian, Spanish, PortugesePricing model No ChargeSustainability policy Not disclosedThe URL of the companys website www.BravoSolution.com 67
  • 68. Supplier Relationship Management (SRM) Research 2012-2013EcoVadisEcoVadis was incorporated in Paris in early 2007 and operates a collaborative platform, allowing companies to assess theenvironmental and social performance of their suppliers on a global basis. They combine technology and Corporate SocialResponsibility (CSR) expertise to deliver simple and reliable supplier scorecards, covering 150 purchasing categories and 21CSR criteria. Offered as “Software as a Service”, the EcoVadis SP© collaborative platform allows you to access simple andreliable sustainability scorecards related to CSR performance, supplier benchmarks, and category profiling. These scorecards aresupported by optional products and support services such as country risks, risk analysis and training.EcoVadis also offers a tool that delivers corrective action plans that are a starting point for an effective dialogue between buyersand suppliers in order to improve the suppliers’ CSR performance.EcoVadis is specialized in rating suppliers’ CSR performance, but they don’t offer any supporting software within any part ofthe S2P process. They offer support to implement and integrate their software with existing procurement services in order toavoid separated parallel processes. As EcoVadis argues, that their solution is quickly becoming a recognized standard in CSRrating for procurement/suppliers. They offer suppliers’ evaluation and an accreditation platform that embraces the topic ofsustainable development in order to support suppliers by contributing to the development of better long-term relationships withtheir suppliers.EcoVadis SP© is already used by more than 40 large multinationals to evaluate their suppliers in 150 industries and 85 countries.Examples of their customers are Michelin, Shell, Johnson & Johnson, Geodis, Heineken and Air Liquide.68 
  • 69. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2012First version operational since 2007Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located FranceTotal number of implementations 54-Worldwide-Source to Pay NIL-Sourcing 54-Contract Management NIL-Operational Procurement NILTotal number of employees 65Total number of employees working on developing the product? 45Frequency for delivering patches and upgrades monthlyIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software We provide services to validate the CSR / Sustainability credentials of suppliers on the system in order to provide reliable ratings of their environmental / social / ethical performanceSoftware is available in Chinese, Dutch, English, French, GermanPricing model Annual subscription fee for suppliersSustainability policy Not disclosedThe URL of the companys website www.ecovadis.com 69
  • 70. Supplier Relationship Management (SRM) Research 2012-2013EeeBidThe EeeBid company is a technology-based company with the primary mission of supporting strategic supplier management,optimizing of strategic and operative purchasing processes, raising the purchasing culture standards, and reaching savings to hispartners. Within Central and Eastern Europe, their headquarters are in the Czech Republic and Romania.The Spend Management Suite provided by Eeebid group offers solutions for all the activities of operative and strategicpurchasing, supplier management, spend analysis, catalogue management and contract management. The system wasdesigned based on buyer’s experiences for other buyers with the purpose of transact every day’s tasks on the most efficient way.The system of eeebid QL is built using different modules that are tightly connected, but also individually usable. The followingprocesses are supported: Buyers’ portal, eRFX, e-Auction, Catalogue & Ordering, Supplier Management, Contract Managementand Spend Analysis.EeeBid has gained experience in almost all industry fields since its existence. EeeBid has more than 300 clients in Central Europeachieving more then 2,500 Million EUR savings across 6000 projects. They are active in the public fields as well. The fieldsthey cover with their services are as follows: Institutes, public sector, Airplanes & flying, Automotive, Building industry, Banks,Chemicals, Commerce & facilities, Cosmetics, Electrotechnics, Energy, Food, Health care, IT and Telecommunication, Logistics,Machinery, Medical tools, Metalworking, Medical industry, Mining Paper industry, Press, TV, Textiles & Clothing, Tourism andWaste Management.70
  • 71. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since ebidQL 2012 V3 operational since today - it is an official release day of the new version all systems have been upgraded this night (14/6/2012)First version operational since ebid.com March 2000Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located United StatesTotal number of implementations 531-Worldwide-Source to Pay 41-Sourcing 381-Contract Management 69-Operational Procurement 37Total number of employees 28Total number of employees working on developing the product? 11Frequency for delivering patches and upgrades upgrades 4 times per year, patches once a weekIs there a user association set-up around the package? Not disclosedIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (both full time and part time) Implementation support Project management during Implementation Training on the supplied package Wie offer in addition public procurement support (EU procedure and national procedures) supplier identification, portfolio analysis Bespoke/customized softwareSoftware is available in Chinese,Dutch,English,French, German,Russian,Spanish,Czech, Slovak, Hungarian, RomanianPricing model base service is free, premium service with supplier “facebook” is costing a fixed annual subscriptionSustainability policy Not disclosedThe URL of the companys website www.eeebid.com 71
  • 72. Supplier Relationship Management (SRM) Research 2012-2013ESIZEEsize started to develop a new generation of procurement software in 1999. The market introduction took place at the end of2001 and the first customers were connected. Today, Esize is a recognized leader in Cloud Spend Management. The ambitionof Esize is to help organisations obtain better insight and control over their corporate spending by linking all procurement andinvoicing processes together, and making them more efficient and transparent.Their solutions fully integrates the procurement and invoice management processes (Esize modules: Sourcing, ContractManagement, Vendor Management, Procurement, Workforce, Invoice Management, Invoice Scan and Capture, Reporting,Inventory Management and Project Management). This is where the strength of the solution lies. All functionality is deliveredfully integrated on the same platform. This also allows growth, as the different modules can be activated separately. This trulydistinguishes Esize from comparable solutions in the market.Esize solution is offered as Software as a Service (SaaS). You can configure all financial and organisational parameters based onthe working method in your organisation due to the flexible system set up. Compared to competitors, e.g. SAP and Oracle, it isnot possible to fully customize the solutions to your specific needs.Esize realized a number of successful implementations for leading organisations in various sectors. For example, they acquireda leading position within the government sector in the area of electronic ordering and invoicing, in the Netherlands. The solutionsoffer support to the full procurement cycle, regardless of the sector in which organisations are active. Their customers can befound amongst the financial and business services, construction industry, healthcare, education, and public organisations.72
  • 73. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-05-2012First version operational since 1999Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located The NetherlandsTotal number of implementations 127-Worldwide-Source to Pay 15-Sourcing 6-Contract Management 34-Operational Procurement 53Total number of employees 150Total number of employees working on developing the product? 100Frequency for delivering patches and upgrades 2 product development releases; 6 product maintenance releases; patches as necessaryIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (both full time and part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Maintenance, BPOSoftware is available in Chinese, Dutch, English, French, German, Japanese, Russian, Spanish, Italian, other languages upon requestPricing model free for portal usage, otherwise upon requestSustainability policy Not disclosedThe URL of the companys website www.esize.com 73
  • 74. Supplier Relationship Management (SRM) Research 2012-2013HubwooHubwoo is a cloud service provider where all procurement solutions and services are delivered on a SaaS platform. This meansthat the procurement software does not need to be in-house, but is placed on a system in the cloud, while users only need toconnect to the SaaS in order to start working with the procurement software. Hubwoo is built on SAP® software, so the solutionscan be hybrid: for example, customers can run SAP SRM on-premise and subscribe to a supplier network, ensure supplierenablement, catalog content management, SAP Sourcing and SAP BusinessObjects Spend Performance Management, viathe cloud.Hubwoo is a worldwide provider of electronic procurement and consulting services for midsize and large enterprises. Hubwoohas a business-to-business (B2B) community with over 100 companies involved and more than 13,000 suppliers connected.Hubwoo was founded in 1999 as CC-Hubwoo with their main office in Paris and it is listed on the French CAC Small stock index.They also have offices in Germany (Bonn), Belgium (Leuven), UK (Marlow), USA (Chicago) and the Philippines (Manila).Clients are (amongst others) A.P. Moeller-Maersk, BASF, Berliner Stadtreinigung, Bitburger, Boehringer Ingelheim, Bundesagenturfür Arbeit, Coca Cola Enterprises, Deutsche Bahn, Evonik, Gaz de France, Henkel, Honeywell, K+S, Merck, Shell, Total, Vattenfalland Vaillant.Hubwoo is a global leader of cloud procurement solutions and services, powered by SAP® software. Their trade platform handles5 million transactions annually amounting to 10 billion EUR. Hubwoo provides a fully integrated suite of purchasing tools andservices, delivered as a service to companies.Their solutions involve (amongst others): • eAnalyse for spend analysis • eSource for sourcing • eContract for contract management • eBuy for procurement • eInvoice for invoice managementAll solutions are in the cloud and powered by SAP® software.Both Spend Matters and a number of former employees of Hubwoo advise Hubwoo to be acquired by a larger player in the SRMmarket to leverage more possibilities than Hubwoo has on its own. For example, using of Hubwoo’s client base and the SAPrelationship to upsell other solutions, or using the suitor’s client base to upsell Hubwoo solutions.74 
  • 75. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since the most recent release dateFirst version operational since 2000Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located FranceTotal number of implementations 125-Worldwide-Source to Pay 50-Sourcing 35-Contract Management 10-Operational Procurement 30Total number of employees 250Total number of employees working on developing the product? 25Frequency for delivering patches and upgrades For our own IP: 3 major releases per year. Patches as needed. for SAP products - per their Ramp UP delivery release modelIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software We offer a standardized solution via the Cloud but can implement customer specific enhancements as neededSoftware is available in Chinese, Dutch, English, French, German, Japanese, Russian, Spanish, HungarianPricing model DependsSustainability policy Not disclosedThe URL of the companys website www.Hubwoo.com 75
  • 76. Supplier Relationship Management (SRM) Research 2012-2013IBX (IBXplatform by Capgemini)IBX Group AB, a Swedish company, was established in 2000. In 2010, IBX Group was acquired by Capgemini and has been apart of Capgemini BPO since. Under the IBXplatform, former IBX is developing their procurement services further. IBXplatformsupports large and medium sized organisations by providing procurement expertise in terms of consulting, operational andstrategic procurement based on the IBX On-demand Platform. Among the customers of IBX are companies from all sectors suchas Ericsson, SEB, Volvo Group, Deutsche Post World Net, Skanska, Novo Nordisk, and Lufthansa.The IBX platform is being praised by (amongst others) www.spendmanagement.nl, especially for its ease of use and user- friendy.Now, shopping and searching are easier and more intuitive so that compliance is easily achievable and training of the end user ishardly necessary, even if the end user rarely uses the IBX platform.The IBX platform uses SAP SRM technology. The technology is currently being upgraded to SAP SRM7. The full procurementsuite offers: • Source-to-Contract: This solution supports the full strategic process, with tools for sourcing, spend analysis, category management, and contract management and implementation. • IBX e-Procurement is a Web-based, on-demand solution based on SAP SRM that supports the full procurement process, from requisition to purchase order, providing a solid platform for efficient procurement. • IBX Contract Management enables sourcing professionals to proactively manage the entire contract lifecycle – reducing legal and financial risk, and protecting the bottom line. • BPO Procurement: To meet the demands of modern CPOs, our BPO Procurement service, Procurement as a Service™, provides procurement process best practices and tools/technology in order to maximize savings. • The scalable cloud-based (SaaS) delivery model of our sourcing and procurement software accelerates deployment and puts the emphasis on the users and the usage instead of technology issues. • IBX Supplier Network is one of the largest independent supplier networks providing you with instant access to thousands of suppliers.The IBX platform is a full-suite procurement solution, with special attention to procurement as a managed service. This meansthat the IBXplatform can be installed on the existing SAP SRM suite, but also as a SaaS solution. In the full managed servicesoffering, IBX will manage the content and the suppliers.e-Procurement of temporary labour is not fully supported. For the Norwegian government an easily accessible solution has beendeveloped on which temporary labour can be requested, but a full system solution is not (yet) available.76
  • 77. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2001First version operational since 2001Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located SwedenTotal number of implementations 184-Worldwide-Source to Pay 85-Sourcing 15-Contract Management 4-Operational Procurement 80Total number of employees 120Total number of employees working on developing the product? 150Frequency for delivering patches and upgrades 3 yearly releasesIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Operational services: supplier onboarding, content management Strategic services: changes management, spend analysisSoftware is available in Dutch,English,French,German, Spanish, Nordic languages, portuguesePricing model subscriptionSustainability policy Not disclosedThe URL of the companys website www.ibxplatform.com 77
  • 78. Supplier Relationship Management (SRM) Research 2012-2013Inconto ®Inconto is a procurement services solution developed by of Emeritor® which has been specializing in procurement services since1998. It offers an e-Procurement module, which supports the complete purchase-to-pay process from ordering to permissions,and delivery to payment. This module is also equipped with a report generator, which generates several standardized reports butalso offers the opportunity to create customized reports. For the invoice handling process Inconto offer two additional modules.The first is the ‘Scan and Identify’ module which makes use of identification techniques (OCR). The second is the ‘ElectronicInvoicing’ module.Besides the purchase-to-pay modules, they also offer a contract management, and a supplier management module. The source-to-contract cycle, on the other hand, seems somewhat underutilized with only an RFQ-module.In addition, Inconto offers a budget and stock control module, and functional management. Functional management entails thatInconto manages all the customers’ data.Customers can choose between two different deployment options: SaaS, in which the customers pay a monthly fee andon-premise deployment, in which the customer pays once for the license, while the number of users is unlimited.Inconto cooperates with twenty catalogue suppliers such as Staples, Office Depot and Overtoom, by integrating the suppliers’catalogues in the procurement software. This makes convenient for customers of Inconto more convenient to purchase fromthose suppliers.Inconto says that it distinguishes itself by offering consultancy, which is important in the implementation of the software. Inconto’sstrength may also lie in being able to rely on the consultants Emeritor®.More than fifty organizations, such as Samskip and Manpower, with thousands of users in thirty countries, have streamlined theirprocurement or contract management processes with Inconto’s software.78
  • 79. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since version 2.8 since may 2012First version operational since 1999Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located The NetherlandsTotal number of implementations 140-Worldwide-Source to Pay 60-Sourcing NIL-Contract Management 40-Operational Procurement 40Total number of employees 85Total number of employees working on developing the product? 10Frequency for delivering patches and upgrades patches whenever necessary/upgrades twice a yearIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Purchasing services, services focussed on creating strong purchasedepartments and implementing state of the art purchaserelated processes; Managed services/SAAS; Digitizing the invoice as a serveSoftware is available in Dutch, English, French, GermanPricing model existing connections for free; newly connected suppliers fixed feeSustainability policy Not disclosedThe URL of the companys website http://www.inconto.com 79
  • 80. Supplier Relationship Management (SRM) Research 2012-2013JD EdwardsJD Edwards was founded in 1977, in Denver Colorado. The goal, when they launched the venture, was to produce standardisedsoftware applications that actually worked in a predictable and reliable way, making users more effective at their jobs. Initially,until the mid 1990s, JD Edwards focused on developing accounting software for IBM hardware. Currently, they are providing a fullsuite of ERP software for midsize companies. JD Edwards was bought by PeopleSoft in 2003. Two years later, Oracle acquiredPeopleSoft.Oracle’s JD Edwards products are currently known as JD Edwards EnterpriseOne and JD Edwards World. The former is anERP-based system that is suitable for IBM and other platforms. Oracle announced that JD Edwards support would continueindefinitely. The latest offering of EnterpriseOne is application version 9.1 and World with version A9.3, which were both releasedin April 2012.Shortly after Oracle’s acquisition of PeopleSoft and JD Edwards in 2005, Oracle announced the development of a new productcalled Oracle Fusion Applications. Fusion was designed to coexist or replace JD Edwards EnterpriseOne and World, as well asOracle E-Business Suite Applications and other products acquired by Oracle, and was finally released in September 2010.For the existing client base of JD Edwards, its procurement applications offer the following procurement functionalities: • Agreement Management • Buyer Workspace • Operational Sourcing • Procurement and Subcontract Management • Requisition Self Service • Supplier Self ServiceHowever, the ultimate goal of Oracle is to move the existing clients for the Oracle E-Business Suite, JD Edwards or Peoplesoft tothe Oracle Fusion platform. Since this client base is very diverse in terms of industry sector, size, installed systems base, etc. thisis a matter for the long haul. Therefore, for the years to come, the different solutions will remain available, although the real newdevelopments will only be done in Oracle Fusion Applications.(see also the company profile of Oracle)80
  • 81. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since Apps - 9.1 Apr. 2012; Tools - 9.1 Dec.2011First version operational since 1984Company ProfileThe service is offered as: Not disclosedCountry in which is the Corporate Headquarter located United StatesTotal number of implementations Not disclosed-Worldwide-Source to Pay Not disclosed-Sourcing Not disclosed-Contract Management Not disclosed-Operational Procurement Not disclosedTotal number of employees Not disclosedTotal number of employees working on developing the product? 108000Frequency for delivering patches and upgrades 30000Is there a user association set-up around the package? There is no set schedule for Oracle software releases as this varies between products. In general major releases are typically every 12 to 18 months, with interim releases (minor releases) as necessaryIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (both full time and part time) Implementation support Project management during Implementation Training on the supplied package Bespoke/customized softwareSoftware is available in Chinese,Dutch,English,French,Japanese,German,Russian,S panish,Czech, Danish, Finnish, Hungarian, Italian, Norwegian, Polish, Portuguese, SwedishPricing model Price per connected supplierSustainability policy Not disclosedThe URL of the companys website www.oracle.com 81
  • 82. Supplier Relationship Management (SRM) Research 2012-2013NegometrixIn February 2000, Negometrix was established (as Eumedix - European Medical Exchange) and the first Web-based version of aplatform for purchasing for hospitals was built. In 2001, the name Negometrix has been adopted to indicate that the platform ismore widely usable than for hospitals only.Negometrix offers Web-based software for tender-based projects for both the public and the private market, supported byconsultancy and helpdesk services. Negometrix also prepares bidders for reverse auctions and they can play the role ofauctioneer in a reverse auction.According to Negometrix, the core of their platform is: “An interactive Web-based module accessible to both sellers and buyers.This core module contains a multiple attribute supply and demand analysis with online dynamic quotation algorithms calculatingthe Best Buy proposal.Some of the features mentioned by Negometrix are: creation via the Web, of public and private tender-based projects, creation ofa weighted multi-criteria decision making structure and specification library for the most common tenders. Suppliers can log in viathe Web, answer questions and upload documents, conduct price/quality calculation and simulation, exchange messages withsuppliers, share documents, Web-based Auction (reverse clock auction).Negometrix states that dozens of tenders are conducted on their platform on any given day, and that more than 3 billion worth ofcontracts has been conducted so far. Besides 45 hospitals, references include the Ministry of Finance, Defense, Housing/SpatialPlanning/Environment and Internal Affairs, 10 public housing groups, cities of Amsterdam and Rotterdam, and the National TaxAuthority as well as businesses such as HEMA, Sligro and Bouwmaat.82
  • 83. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2009First version operational since 2000Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located HollandTotal number of implementations 1100-Worldwide-Source to Pay 500-Sourcing 500-Contract Management 100-Operational Procurement NILTotal number of employees 21Total number of employees working on developing the product? 10Frequency for delivering patches and upgrades 8-10 times a yearIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Project management during Implementation Training on the supplied packageSoftware is available in Dutch, English, French, German, Russian, Spanish, HungarianPricing model No PricingSustainability policy Not disclosedThe URL of the companys website www.negometrix.com 83
  • 84. Supplier Relationship Management (SRM) Research 2012-2013OracleOracle Corporation, founded in 1977, is an enterprise software company. It operates across three segments: software, hardware,and systems and services. Its software business consists of two operating segments: new software licenses and softwarelicense updates, and product support. Oracle, already an important player in the market for enterprise software (ERP), acquiredPeopleSoft in 2005. This entailed a significant consolidation in the ERP market, since PeopleSoft had shortly before that momentincorporated JD Edwards. In the same period Oracle also acquired Siebel (CRM software). The consequence of all theseacquisitions is that Oracle offers a wide array of solutions under the brand labels of Oracle, JD Edwards and Peoplesoft. Under theOracle label the following solutions are available.Oracle E-Business Suite Advanced Procurement • iProcurement • anded Cost Management L • iSupplier Portal • Procurement Contracts • racle Procurement & Spend Analytics O • Purchasing • racle Spend Classification O • Services Procurement • racle Supplier Network O • Sourcing • racle Supplier Hub O • upplier Lifecycle Management SOracle Fusion ProcurementOracle Fusion Applications were envisioned as an Enterprise Resource Planning suite - a combination of features andfunctionalities taken from Oracle E-Business Suite, JD Edwards, PeopleSoft and Siebel product lines. The suite is built on topof the Oracle Fusion Middleware technology stack. One of the Fusion applications is Oracle Fusion Procurement. This productrepresents a big leap forward for Oracle, not so much in functional capability (at least not yet) relative to Oracle E-Business Suite,but rather in integrated capabilities and design philosophy.In its current release, Oracle Fusion Procurement includes the following modules: • Oracle Fusion Purchasing • Oracle Fusion Self-Service Procurement • Oracle Fusion Sourcing • Oracle Fusion Procurement Contracts • Oracle Fusion Supplier Portal • Oracle Fusion Procurement and Spend AnalyticsObviously, all the acquisitions have saddled Oracle up with the challenge of developing a sound strategy to align and integratethe different solutions. The foundation of the strategy is Oracle’s Co-Existence strategy combined with Fusion Middleware. Thisstrategy is designed to facilitate integration between different applications and systems, whether it is from Oracle or from othersoftware vendors such as IBM, Microsoft, and SAP. The ultimate goal is to move the existing clients from the Oracle E-BusinessSuite, JD Edwards or PeopleSoft products to the Fusion platform. Since the customer group is very diverse, in terms of industrysector, size, installed base, etc. this is a matter for the long haul. For the years to come, the different solutions will remain available,although the real new developments will be done in Oracle Fusion Applications.84
  • 85. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2010First version operational since 1987Company ProfileThe service is offered as:Country in which is the Corporate Headquarter located United StatesTotal number of implementations NIL-Worldwide-Source to Pay NIL-Sourcing NIL-Contract Management NIL-Operational Procurement NILTotal number of employees 108000Total number of employees working on developing the product? 30,000Frequency for delivering patches and upgrades There is no set schedule for Oracle software releases as this varies between products. In general major releases are typically every 12 to 18 months, with interim releases (minor releases) as necessaryIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (both full time and part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized softwareSoftware is available in Chinese, Dutch, English, French, German, Japanese, Russian, Spanish, The system supports over thirty languages: Finnish, Turkish, Ukrainian, Danish, Egyption etcPricing model Several options are possibleSustainability policy Not disclosedThe URL of the companys website www.oracle.com 85
  • 86. Supplier Relationship Management (SRM) Research 2012-2013PeopleSoftSince Oracle acquired PeopleSoft Inc. in 2005, the company is no longer an independent provider of enterprise software. ThePeopleSoft solutions are offered as a separate product line of Oracle. The company was founded in the mid-1980s when it begandesigning human resources software geared for client/server systems. After they had become the leader in the market for high-end human resource programs, they entered into the market for financial applications and subsequently applications those forsupply chain management and customer relations management. At present, the suite of PeopleSoft applications consists of: • Human Capital Management • Financial Management • Supplier Relationship Management • Service Automation • Supply Chain ManagementPeopleSoft Supplier Relationship Management is an integrated suite of procurement applications consisting of: • Catalog Management • eProcurement • eSettlements • eSupplier Connection • Financials • Cash Management • Payables • Procurement and Spend Analytics • Purchasing • Services Procurement • Strategic Sourcing • Supplier Contract ManagementFor the existing client base of PeopleSoft, its procurement applications offer solid solutions, especially in the area of purchase topay. However, the ultimate goal of Oracle is to move the existing clients for the Oracle E-Business suite, JD Ewards or PeopleSoftto the Oracle Fusion platform. Since this client base is very diverse in terms of industry sector, size, installed systems base, etc.this is a matter for the long haul. Therefore, for the years to come, the different solutions will remain available, although the realnew developments will only be done in Oracle Fusion Applications.(see also the company profile of Oracle)86
  • 87. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2009First version operational since 1992Company ProfileThe service is offered as:Country in which is the Corporate Headquarter located United StatesTotal number of implementations 2700-Worldwide-Source to Pay 1000-Sourcing 100-Contract Management 100-Operational Procurement 1000Total number of employees 108000Total number of employees working on developing the product? 30,000Frequency for delivering patches and upgrades There is no set schedule for Oracle software releases as this varies between products. In general major releases are typically every 12 to 18 months, with interim releases (minor releases) as necessaryIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (both full time and part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software We offer a standardized solution via the Cloud but can implement customer specific enhancements as neededSoftware is available in Chinese, Dutch, English, French, German, Russian, Spanish, Portugese, Polish, Norwegian, ItalianPricing model Enterprise $M Revenue or Application userSustainability policy Not disclosedThe URL of the companys website www.oracle.com 87
  • 88. Supplier Relationship Management (SRM) Research 2012-2013Perfect CommercePerfect Commerce develops supplier software that streamlines processes such as accounts payable and receivable, invoicing,purchasing, sourcing, and spend analysis. Their on-demand applications cover every aspect of Spend Management, from spendanalytics and source-to-contract, procurement, and invoice management. Each application works well with other applications orin concert with a leading procurement or ERP system, including SAP and Oracle/PeopleSoft. Perfect Commerce has four coreofferings: their Open Supplier Network (OSN), PerfectShopSM, PerfectProcureSM and PerfectSourceSM & PerfectContractSM. Atpresent they do not have a solution for Project Management, Contingent Workforce and Procurement Intelligence.Perfect Commerce was born as an SaaS (Software as a service) provider since its inception, as opposed to most of the softwareproviders trying to propose a so-called “on-demand” model. With Perfect Commerce, all customers access the same uniqueversion of the software through the Internet. Perfect Commerce has a track record in supporting large international rolloutprojects. Perfect Commerce serves more than 200 clients (majority in the Fortune 500) in 75 countries and 11 languages. PerfectCommerce serves over 1.3 million users and 80,000 suppliers across a wide variety of industries, including chemicals, retail,education, energy, financial services, food products, health/medical, hospitality, manufacturing, technology and transportation.Perfect Commerce global customers include market leaders such as IBM, Hitachi, Lexmark, State Street, TIAA-CREF, BNPParibas, UCLA, Schlumberger, and others.88
  • 89. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2012First version operational since 1998Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located USATotal number of implementations 458-Worldwide-Source to Pay 200-Sourcing 45-Contract Management 60-Operational Procurement 150Total number of employees 140Total number of employees working on developing the product? 35Frequency for delivering patches and upgrades 3 times each yearIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support ( both full time and part time) Implementation support Training on the supplied package Project management during implementation Good eSourcing Practices, Good eProcurement PracticesSoftware is available in Chinese, Dutch, English, French, German, Spanish, ItalianPricing model fixed annual fee for supportSustainability policy Not disclosedThe URL of the companys website www.perfect.com 89
  • 90. Supplier Relationship Management (SRM) Research 2012-2013POOL4TOOLHeadquartered in Vienna (Austria), POOL4TOOL also runs subsidiaries in Munich and Stuttgart (Germany), as well as in Detroit(USA) and Singapore. Since 2000, POOL4TOOL has specialized in the integration of client, and supplier processes and consultingand development services in e-Business and ERP environments. They have more than 10 years of experience in cloud computingand they aim on a high level of security by providing SaaS solutions that are certified by independent institutions(ISO27001, TÜV).Their modular portfolio includes solutions for over 40 processes, including supplier relationship management, sourcing, supplybase management, supply chain management, e-Collaboration, quality control, and product costing. Although they offer someoperational modules, their focus is more on the tactical and strategic part of procurement.With POOL4TOOL, you can implement a single, natively integrated suite to support multiple internal processes and communicatewith suppliers (which are electronically integrated in your systems without additional costs).Offering a wide set of solutions is not unique anymore, but POOL4TOOL distinguishes itself from its competitors by specializingin integrating their solutions into ERP and building one central platform for all their clients’ systems and processes. Throughnumerous ready-made interfaces, POOL4TOOL claims that they can also get more out of your existing IT investments.If desired, POOL4TOOL can accompany their customers from the draft, through implementation, up to worldwide rollout and offerconsulting products and individual support services.Best practice user guidance and integrated POOL4TOOL workflow management helps to standardise and accelerateprocesses. Workflows, user interfaces, reports and menus can be configured to individual requirements, based on roleswithout programming.With over 10 years of experience in the manufacturing industry, POOL4TOOL claims that this industry is their specialisations byoffering tailor-made solutions for manufacturing procurement (e.g. sourcing of direct material based on Bill of Material or CADdrawings, Should Cost Model, VMI functionality). They serve international clients like Zeiss, Miele and ThyssenKrupp.90
  • 91. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-06-2012First version operational since 2001Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located AustriaTotal number of implementations 640-Worldwide-Source to Pay 320-Sourcing 150-Contract Management 30-Operational Procurement 140Total number of employees 80Total number of employees working on developing the product? 25Frequency for delivering patches and upgrades monthly release updates (free of charge)Is there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? Not disclosedThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Project management during Implementation Training on the supplied package eSourcing/SRM/category strategy definition, KPI definition, Rollout Support, Sourcing Event Support (RFQs, eAuctions), User Training (Basic, Advanced, Admin, etc.) Bespoke/customized softwareSoftware is available in German, Japanese, Spanish, Chinese, English, French, Czech, Portuguese, Polish, Hungarian, ItalianPricing model free of chargeSustainability policy Not disclosedThe URL of the companys website www.pool4tool.com 91
  • 92. Supplier Relationship Management (SRM) Research 2012-2013PROACTISPROACTIS was founded in 1996 and is headquartered in the UK, with operations in Europe, North America and Asia Pacific.PROACTIS is a provider of Spend Control and e-Procurement solutions. Their approach is based first and foremost onunderstanding and improving business processes. PROACTIS solutions automate and streamline the entire Source-to-PayProcurement process. In addition, PROACTIS solutions provide a framework of sourcing, contract, catalog, compliance andsupplier management capabilities that enable the organization’s full buying power, gain best value agreements, and maximise thepercentage of “spend under management” across all categories of spend.PROACTIS scores very high in terms of overall functionality. Used in mid-to-large sized organizations across private, publicand not-for-profit sectors, PROACTIS is routinely integrated with ERP and financial systems. PROACTIS also offers a range ofon-premise and cloud-based delivery options, including Software-as-a-Service (SaaS) and dedicated-hosted application delivery,and flexible licensing models.92
  • 93. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2012First version operational since 1998Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located UKTotal number of implementations 540-Worldwide-Source to Pay 70-Sourcing 80-Contract Management 120-Operational Procurement 270Total number of employees 80Total number of employees working on developing the product? 30Frequency for delivering patches and upgrades Patches/weekly and Upgrades/annualyIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (full time) Implementation support Training on the supplied package Project management during implementation Full functional & technical application managementSoftware is available in Chinese, Dutch, English, French, German, Russian, Spanish, Finnish, Welsh, US-English, MX-Spanish, ItalianPricing model Connection is free, Catalogue OTCSustainability policy Not disclosedThe URL of the companys website www.proactis.com 93
  • 94. Supplier Relationship Management (SRM) Research 2012-2013ProquroProquro is a Dutch company founded in 1999. Proquro develops, manages and supports the software, while implementationsare performed by its partners. The implementations are performed by Proquro Services, an independent company and partner ofProquro, Capgemini Netherland and PinkRoccade Healthcare Services. This means that setup and trainings are mostly performedthrough their partners. Their client base consists of clients both in private and government sectors, educational services andhealthcare companies such as hospitals. A large number of suppliers are already connected with Proquro through Punch-outCatalogs.Modules offered are the full procure-to-pay cycle, such as sourcing, contract management, order request module, e-Procurement,invoicing, staffing, spend view, Key Performance indicators, Business Intelligence, procurement portal and connect (interfacing).Before implementation of any proqurement software, a potential client can use Proquro Spendview to gain insights and perform aprocurement diagnosis. Proquro Spendview is an ASP service and is accessible through the Internet without installing (temporary)programs.Proquo is very user-friendly. Their unique feature is the Order Request Module. ORM is a pre-request module that provides theopportunity for anyone within the company to request anything. This makes it so easy to place a request through the system sothat barriers are even lower than emailing or picking up the phone. Using ORM, compliance can be maximised as all requests andorders go through the system.Proquro Staffing has been set up with (ex-)professionals from the external staffing industries, and is therefore more targetedtowards the needs clients will have towards hiring an external workforce. Also, insights in spend management on external staffingand other business intelligence statistics (e.g. normal hours and overtime) can easily be provided.Proquro can both be implemented standalone and as an SaaS solution, and can be connected to all available ERP systems.94 
  • 95. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-01-2012First version operational since 1999Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located NetherlandsTotal number of implementations 330-Worldwide-Source to Pay 10-Sourcing 10-Contract Management 150-Operational Procurement 150Total number of employees 30Total number of employees working on developing the product? 10Frequency for delivering patches and upgrades Minor releases: Monthly, Major releases: yearlyIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (both full time and part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized softwareSoftware is available in Dutch, English, French, GermanPricing model Not disclosedSustainability policy Not disclosedThe URL of the companys website www.proquro.nl 95
  • 96. Supplier Relationship Management (SRM) Research 2012-2013SAPSAP, founded in 1972, is a dominant player in the market for procurement applications. It is a German multinational softwarecorporation that makes enterprise software to manage business operations. It is a true global player with representation acrossall continents.SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, financialservices, and public services. It offers more than 25 industry solution portfolios for large enterprises, and more than 550 micro-vertical solutions for midsize companies and small businesses.SAP’s main product is SAP ERP (Enterprise Resource Planning). Other important applications are: Customer RelationshipManagement (CRM), Product Lifecycle Management (PLM), Supply Chain Management (SCM), and Supplier RelationshipManagement (SRM).SAP is one of the old hands in the market for specific procurement applications. This has yielded the SAP SRM platform. In 2006,SAP acquired Frictionless Commerce - a provider of online commerce technologies. This was converted into SAP Sourcing, anon-demand solution consisting of strategic sourcing, contract lifecycle management, and supplier management.As recently as 2012, Ariba was overtaken by SAP. Ariba is a leading provider of on-demand solutions for procurement. It is unclearyet how this acquisition fits in the overall strategy of SAP. Whether SAP SRM would be kept for on-premise clients and Aribaoffered for on-demand is something that will become clear in the future. It is a fact that there is a huge overlap in functionalitybetween the different SAP offerings in the procurement space.After the recent acquisition of Ariba, nobody can deny that SAP has the richest portfolio of procurement applications. Bothin functionality (strategic, tactic, and operational) and in deployment options (on-premise, on-demand). Given the overlap infunctionality across the different solutions, it has become quite a puzzle for customers with an SAP backbone to select the rightsolution.It will be worthwhile to monitor what this combination will have in store for the future. It is a potential powerhouse, bringingtogether very strong assets like SAP’s installed base, technological innovations like HANA (in-memory solutions), mobile solutions(Sybase) and the truly revolutionary concept of Supplier Infonet (supplier risk management), and on the Ariba side, the AribaPlatform and Ariba Supplier Network.96 
  • 97. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since SAP ERP - Materials Management 6.0 Ehp 5 (Q2, 2012) SAP Spend Performance Management version 3.0 (Q2 2012), SAP Sourcing version 9.0/Wave 9 (Q2 2012), SAP Contract Lifecycle Management version 9.0 (Q2 2012), SAP Supplier Relationship Management version 7.0 EhP 2 (Q2 2012). Supplier Lifecycle Management (Q3 2011), and Data Enrichment Classification On Demand (Q3 2011)First version operational since SAP ERP - Materials Management (1992 with SAP R/3) SAP Spend Performance Management (2007), SAP Sourcing version and SAP Contract Lifecycle Management (1998 as part of Frictionless), SAP Supplier Relationship Management (1998). Supplier Lifecycle Management (2012), and Data Enrichment Classification On Demand (2011)Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located GermanyTotal number of implementations 6000-Worldwide-Source to Pay 2000-Sourcing 1000-Contract Management 1000-Operational Procurement 1500Total number of employees 55,000Total number of employees working on developing the 1000+ on Procurement solutionsproduct?Frequency for delivering patches and upgrades Yearly for enhancement packs and patches are as necessaryIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Value Engineering/ Benchmarking BPO servicesSoftware is available in Chinese, Dutch,English,French,German,Jpanese,Russian,Spanish,Ov er 30 languages including but not limited to Arabic, Hebrew, Portuguese, Brazilian Portuguese, Greek, ItalianPricing model SAP Information Interchange option charges by one time per- connection to make direct connections; partner networks charge usage fees typically based on number of suppliers or transactions. Customers using SAP Netweaver connectivity pay for the license and by connections neededSustainability policy Not disclosedThe URL of the companys website www.sap.com 97
  • 98. Supplier Relationship Management (SRM) Research 2012-2013SciQuestAs on 24th of July 2012, Upside Software has been acquired by Sciquest. For the latest information on this acquisition we directyou to www.sciquest.com.SciQuest was founded in 1995 as an e-Commerce business-to-business exchange for scientific products. In 2001, SciQuestbegan selling their on-demand strategic procurement and supplier enablement solution of which they say that they are designedto drive user adoption, bring more spend under management, reduce operating costs, increase contract compliance, and improvevisibility into spend. In January 2011, they acquired AECsoft, a leading provider of supplier management and sourcing technology,resulting in additional supplier and sourcing modules, and increased functionality of some other modules.SciQuest claims to be a global leading SaaS provider in on-demand strategic procurement and supplier enablement technology.They tailor their solution for each vertical marketplaces they serve.SciQuest’s e-Procurement solutions comprise individual Web-based modules: Supplier Information Management, Sourcing &Contract Management, Marketplace & e-Procurement, Inventory & Supply Chain Integration, Accounts Payable, and Spend &Performance Analysis. These modules can be deployed together in order to automate the complete source-to-settle process, ormodules can be seperately deployed to meet an organization’s specific procurement automation needs.They offer customers their SciQuest Supplier Network, in which customers have access to thousands of integrated suppliercatalogues with millions of products in an easy-to-use Web-based shopping environment. SciQuest distinguishes itself fromcompetitors with its ‘Power of Q’, which is a philosophy within SciQuest, in which they establish a partnership with their customerand put their customer at the center of everything that they do.SciQuest helps customers from across all industries to discover a better way to conduct the Source-to-Settle. SciQuest’scustomer base represents a diverse mix of public and private sector organizations including: Airlines & Automotive, Construction,Government, Finance & Banking, Healthcare, Higher Education, Hospitality & Gaming, Life Science & Pharmaceuticals,Manufacturing, Oil & Gas, Retail & Consumer Products, and Utilities.98 
  • 99. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-03-2012First version operational since 2001Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located United StatesTotal number of implementations NIL-Worldwide-Source to Pay NIL-Sourcing NIL-Contract Management NIL-Operational Procurement NILTotal number of employees ~300Total number of employees working on developing the product? cannot report due to SEC regulationsFrequency for delivering patches and upgrades 3 major releases per year - bi-weekly minor releases for bug fixes and minor enhancementsIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support (full time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software SciQuest offers managed services around the supplier enablement processSoftware is available in English, French, German, Spanish (For a fee, we will translate to other languages)Pricing model We do not charge suppliers. Customers pay annual license fee which covers the supplier enablementsSustainability policy Not disclosedThe URL of the companys website www.sciquest.com 99
  • 100. Supplier Relationship Management (SRM) Research 2012-2013SynerTradeSynerTrade is a German-French company with its main offices in Munich and Paris. SynerTrade has a broad internationalpresence with more than 100 global sourcing experts (50% technology consultants) based in France, Germany, Romania, theUnited States, Brazil, Sweden, Denmark and China. SynerTrade, provides solutions and expertise that fully empowers purchasing.The software suite SynerTrade, 6 with 10 functional modules (Purchasing Portal, eRFX, e-Auctions, Procurement and Ordering,Performance Manager, SRM, Contract Manament ,Spend analysis, Connect and SCoRe) covers the entire purchasing process.It is a software solution to enhance the efficiency and visibility of the purchasing process, to build synergies, and to capitalize onknow-how within the company. The Operational Procurement module provides the least functionality at 85%.SynerTrade 6 is available in ASP mode and can also be installed behind firewalls. It is backed by a full set of services including:technical integration, customer support and a deployment program.With 205 customers, including 50 companies ranked in the Fortune 1000, SynerTrade has in-depth knowledge of purchasingissues across numerous industries (Aerospace, Automotive, Building, Chemistry-Pharmaceuticals, Consumer Goods, Energy andUtilities, Finance, Healthcare, Manufacturing, Retail and Transportation). SynerTrade’s customers include : Alstom, Audi, BayerSchering AG, Carbone Lorraine, Crédit Suisse, Décathlon, Lafarge, PPR Buyco, Saint-Gobain, Sanofi-Aventis, Thomson,SPAR, etc.100 
  • 101. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 6.11 is operational since Mai / 2012First version operational since SynerTrade 6.0 was operational in June / 2005Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located LuxembourgTotal number of implementations 571-Worldwide-Source to Pay 130-Sourcing 270-Contract Management 70-Operational Procurement 90Total number of employees 112Total number of employees working on developing the product? 52Frequency for delivering patches and upgrades 8 version per year, hot-fixes dailyIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (both full time and part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software The focus of the services of SynerTrade is clearly on our SRM solution, project management, integration with ERP systems, etc. On some customers we also do invoice processing and negotiation support, but this is just to offer the customers the complete package they want and not of strategic importance. Over time we want to develop integration partners who do the project management, the integration, etc. In a lot of cases the strategic consulting (concept work) is done together with 3rd party consltancies on the projects chosen by our customersSoftware is available in Chinese, Dutch, English, French, German, Japanese, Russian, Spanish, Chinese, Korean, Italien, Portuguese, Polish, Czech, Hungarian, Swedish, Finnish, Slovak, in total 19Pricing model free of chargeSustainability policy Not disclosedThe URL of the companys website www.synertrade.com 101
  • 102. Supplier Relationship Management (SRM) Research 2012-2013TBloxTBlox was founded in 2004, in the Netherlands, and is headquartered in Rotterdam. Their main client base is Western Europe(Germany, France and the Netherlands) and Northern America. In a partnership with IntraKoop, their largest market is thehealthcare segment, where they claim to serve over 15% of the Dutch healthcare organisations.TBlox is unique through its pure SaaS and cloud-based solution based on subscription fees. TBlox consists of a numberof procurement modules such as purchase and source within an ERP setting with Finance, CRM and HRM. It can be usedstandalone or integrated with an existing (financial) system. Managers can create their own e-Desktop using iGoogleTM.com tomake management reports available. Information can be made available through Apps, especially setup for different target groupswithin their client base.TBlox has introduced the ‘box’ concept where one can subscribe to a full-cloud solution. Solutions offered include theprocurement box for the full procurement process, the finance box for handling and payment of invoices, the Purchase-to-Paybox for sourcing to procurement and payment, the e-Catalog box for use of all connected suppiers including e-Invoicing, and ane-Invoice box for handling of electronic invoices with suppliers in the healthcare segement through their free supplier portal.TBlox invites suppliers to link with their webshop beforehand so that all products from the supplier are available for users and noseparate catalogues need to be uploaded. It promotes a pure paperless process, which is underscribed by its users.TBlox procurement modules offer e-Purchasing, e-Sourcing e-Catalog management and e-Invoicing, Contract Management andBusiness Intelligence (Spend Management) and reporting. Warehouse management and logisitics are also offered, together withadvanced workflow, and a shared service center dashboard. Additional services, such as Project Management and TimeWritersoftware are also provided. Using the HRM module, this can be extended to full workforce management including externalworkforce management.102 
  • 103. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2012First version operational since 2004Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located The NetherlandsTotal number of implementations 3110-Worldwide-Source to Pay 1000-Sourcing 70-Contract Management 1000-Operational Procurement 1000Total number of employees 60Total number of employees working on developing the product? 40Frequency for delivering patches and upgrades more than 250 upgrades on the SAAS platformIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Additional consultancy: procurement services (partner network) Implementation support Project management during Implementation Training on the supplied packageSoftware is available in Chinese, Dutch, English, German, French, Spanish, Russian, Danish, PortugesePricing model Free use for suppliersSustainability policy Not disclosedThe URL of the companys website www.tblox.com 103
  • 104. Supplier Relationship Management (SRM) Research 2012-2013Upside softwarePer 24th of July 2012 Upside Software is acquired by Sciquest. For the latest information on this acquisition we direct youto www.sciquest.com.Upside Software was acquired this year (2012) by SciQuest, a leading provider of modular, on-demand source-to-settle solutions.The first version of the Contract & Commitment Lifecycle management software was realized in 1998 by Upside Software’s CEO.From that moment research and development commenced. The final version of the Upside Software solution covers the entirespectrum of procurement and sales management systems with a foundation in contract management.The upside software solution offers multiple options for contract management and contract creation. Besides this they offer anRfX Tool and a billing/invoices tool. UpsideForms is a module that allows users to define their own forms for data capture andintegrates these forms with the contracting process. If this is as user friendly as it sounds it is for sure a plus in the comparisonwith other SRM solutions, it increases flexibility of the data model and enables a user to add all additional information in astructured way.Upside Software was offered as a Saas solution. Upside Software won large enterprise deals worldwide. Its software is usedglobally (about 180 countries), in different languages (including Asian character sets). Upside Software has customers in virtuallyevery industry.104 
  • 105. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since Version 7.2, released May 2012First version operational since 2000Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located CanadaTotal number of implementations 400-Worldwide-Source to Pay NIL-Sourcing NIL-Contract Management 400-Operational Procurement NILTotal number of employees 160Total number of employees working on developing the product? 30Frequency for delivering patches and upgrades Patches every 8 weeks, minor upgrades every 3 to 6 months, and full version uprades every 12 to 18 monthsIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (full time) Implementation support Project management during Implementation Training on the supplied package Bespoke/customized softwareSoftware is available in EnglishPricing model Not applicableSustainability policy Not disclosedThe URL of the companys website www.upsidesoft.com 105
  • 106. Supplier Relationship Management (SRM) Research 2012-2013Vendorlink BVVendorlink BV was established in 2009 in The Netherlands. It should not be confused with VendorLink LCC, which is alsoa procurement solution provider headquartered in Florida. The Dutch Vendorlink has been founded by four procurementprofessionals. The main focus of Vendorlink’s procurement solution is spend visibility and performance of both suppliers andcontracts. It provides user-friendly dashboard functionality.The solution does not coverall Source-to-Contract and Procure-to-Pay processes, but it uses the data from ERP systems toenable users to link this data to the performance indicators agreed upon with suppiers, or with the business.The four focus areas of the Vendorlink solution are: spend management, contract management, vendor rating and a vendorcommunity. The scores on the self-defined indicators are shown in management dashboards which facilitates preparation ofvendor and contract evaluations. These indicators can be objective as well as subjective.Vendorlink is an SaaS solution. The fourth module, “Vendor community”, offers connectivity functionality. It enables users to sharebest practices with related organizations. It also offers a supplier portal to enable collaboration with suppliers.The references mentioned on the Verdorlink website are Dutch (semi-)public organizations (municipalities and universities) and acouple of organizations in the insurance, chemical and healthcare sector.106 
  • 107. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2012First version operational since 2008Company ProfileThe service is offered as: SaaSCountry in which is the Corporate Headquarter located NetherlandsTotal number of implementations 30-Worldwide-Source to Pay NIL-Sourcing NIL-Contract Management 30-Operational Procurement NILTotal number of employees 8Total number of employees working on developing the product? 3Frequency for delivering patches and upgrades Saas oplossing kent geen directe uitlevering van pathes upgrades. Uitgangspunt is max. 2 keer per jaar te updateIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web YesThe company provides Helpdesk support (part time ) Implementation support Training on the supplied package Project management during implementation Bespoke/customized software Advies over uitkomsten en verbeterplannenSoftware is available in Dutch, EnglishPricing model connection setup and / or pay per transactionSustainability policy Not disclosedThe URL of the companys website www.vendorlink.nl 107
  • 108. Supplier Relationship Management (SRM) Research 2012-2013Verian TechnologiesVerian Technologies, a private company established in 1996 and incorporated in North Carolina (USA), is a leading providerof Purchase-to-Pay and Invoice Automation technology solutions. Verian Technologies` solutions support midsize andlarge organizations to reduce costs, gain organizational control over spending, and improve regulatory compliance throughimplementation of their Purchase-to-Pay and Invoice Automation suites that include the following software modules: PurchasingManagement, Accounts Payable, Expense Management, Asset Management, Inventory & Material Management, VendorConnectivity and Spend Intelligence.What distinguishes Verian from their competitors is the flexibility they offer to their customers in the choice of software (modules),and set-up and deployment options. This helps them offer unique Web-based solutions for their customers. In line with thisflexibility, their website looks like a menu card in which customers first choose the modules they want, then choose their methodfor setup (FAST – for cost-conscious companies with rapid deployment needs, FLEX - for companies who want a robust systemconfigured to meet their unique business needs and FIT - for companies that have unique needs that justify customisations ordeep real-time integrations into other systems). Finally, customers can choose from three deployment options of their Web-basedsolutions: SaaS, Private Hosted and On-Premise. Later on, customers can easily add more modules and independent of theselected modules, customers can have one common platform interface for all users. Their focus is purely on P2P and AP, andtheir set of modules does not contain any Sourcing modules.Customers of Verian Technologies can be found in several markets, such as: from Oil & Gas and Retail and Heavy equipmentdealerships, to Healthcare, Financial services and Government & Non-Profit solutions.108 
  • 109. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 01-06-2011First version operational since 1997Company ProfileThe service is offered as: SAASCountry in which is the Corporate Headquarter located United StatesTotal number of implementations 325-Worldwide-Source to Pay 160-Sourcing NIL-Contract Management NIL-Operational Procurement 160Total number of employees 60Total number of employees working on developing the product? 25Frequency for delivering patches and upgrades 3 monthsIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include Not disclosedA demo-version of the software is available on the web NoThe company provides Helpdesk support (both full time and part time) Implementation support Training on the supplied package Project management during implementation Bespoke/customized softwareSoftware is available in EnglishPricing model Not disclosedSustainability policy Not disclosedThe URL of the companys website www.verian.com 109
  • 110. Supplier Relationship Management (SRM) Research 2012-2013VoltFounded in 1950, Volt operates a network of locations throughout North and South America, Europe and Asia. They havedeveloped a wide range of services and solutions such as comprehensive range of staffing resources, IT infrastructure andsupport, directory services, telecommunications support, data and project management, and customer care.Volt has a subsidiary called ProcureStaff Technologies, which provides specialized software applications to streamline andmanage procurement of temporary staffing, project work, consultants, and other human capital services.Consol, ProcureStaff Technologies’ VMS (Vendor Management System) solution, is an e-Procurement solution (SaaS) that helpscompanies in sourcing highly-skilled contingent workers and managing contingent labor spend. It consists of four modules:Collaborate, Transact, Integrate, and Analyze. Consol’s built-in workflow capabilities automate the procurement lifecycle –including vendor management, sourcing, spend management, invoicing, reconciliation and payment and competitive-bidmanagement features to ensure vendor-neutral sourcing. Consol redefines the VMS space with a collaborative tool that honoursbusiness unit and country specific configurations, yet aggregates spend globally, to create maximum visibility.According to ProcureStaff Technologies, Consol has an easy-to-use interface, which brings the services procurement deliverynetworks together to work efficiently. It is possible to integrate consol with your existing ERP software. It can use your companyterminology and follow your company’s workflows. Unlike many other software vendors, ProcureStaff Technologies can provideexperts for implementing Consol within your organization. Although very comprehensive with respect to the process of theprocurement of services, their focus is solely on services and ignores all other categories. Volt serves all kinds of servicesindustries worldwide including aerospace, banking & finance, consumer electronics, IT, insurance, life sciences, manufacturing,media & entertainment, pharmaceutical, software, telecommunications, transportation and utilities.110
  • 111. Supplier Relationship Management (SRM) Research 2012-2013Availability Current version operational since 2011First version operational since 1996Company ProfileThe service is offered as: 100Country in which is the Corporate Headquarter located NILTotal number of implementations NIL-Worldwide-Source to Pay NIL-Sourcing 175-Contract Management 86-Operational Procurement patches and upgrades – major releases are bi-annual but maintenance releases occur frequently (as required throughout the year)Total number of employees YesTotal number of employees working on developing the product? YesFrequency for delivering patches and upgrades 3 monthsIs there a user association set-up around the package? YesIs there a helpdesk operational for 24 hours a day? YesThe maintenance contract include New Releases Bg fixes/patches New VersionsA demo-version of the software is available on the web NoThe company provides Helpdesk support Implementation support Training on the supplied package Project management during implementationSoftware is available in Chinese, Dutch, English, French, German, Japnese, Russian, Spanish, Consol be translated in any languagePricing model supplier fundedSustainability policy Not disclosedThe URL of the companys website www.consolvms.com 111
  • 112. Supplier Relationship Management (SRM) Research 2012-2013Sourceswww.archifact.nl [www.archifact.com] http://www.referenceforbusiness.com/history2/68/J-D- Edwards-Company.htmlwww.negometrix.com www.spendmatters.comwww.basware.nl http://en.wikipedia.org/wiki/JD_Edwardswww.delta-esourcing.com www.negometrix.comwww.BravoSolution.com www.perfect.comwww.eeebid.com http://www.pool4tool.comwww.esize.com www.pool4tool.comwww.Hubwoo.com www.proactis.comwww.reuters.com www.proquro.nlhttp://en.wikipedia.org/wiki/Ariba http://en.wikipedia.org/wiki/SAP_AGwww.spendmatters.com http://www.sap.comhttp://www.ecovadis.com http://www.sciquest.com/www.ibxplatform.com www.synertrade.comwww.spendmatters.com www.tblox.comhttp://www.inconto.com/en/ www.vendorlink.nlhttp://nl.wikipedia.org/wiki/Oracle_Corporation http://www.verian.comwww.spendmatters.com http://www.rfpconnect.com/organization/verian-technologieshttp://en.wikipedia.org/wiki/Oracle_Fusion_Applications http://www.manta.com/c/mm5sy7w/verian-technologieswww.oracle.com http://www.volt.com/http://nl.wikipedia.org/wiki/Oracle_Corporation http://www.consolvms.comwww.spendmatters.com www.upsidesoft.comhttp://www.referenceforbusiness.com/history2/16/PeopleSoft-Inc.html112
  • 113. Supplier Relationship Management (SRM) Research 2012-2013 113
  • 114. AuthorsSarissa Alleijn Fleur Baarspul Merel PlantePostbus 2575 – 3500 GN Utrecht Capgemini Nederland BV Capgemini Nederland BVNederland Postbus 2575 – 3500 GN Utrecht Postbus 2575 – 3500 GN Utrechtsarissa.alleijn@capgemini.com Nederland Nederland+31 (0) 30 689 5078 fleur.baarspul@capgemini.com merel.plante@capgemini.com +31 (0) 30 689 5745 +31 (0) 30 689 2436 About Capgemini Capgemini Consulting is the global strategy and transformation With around 120,000 people in 40 countries, Capgemini consulting organization of the Capgemini Group, specializing is one of the world’s foremost providers of consulting, in advising and supporting enterprises in significant technology and outsourcing services. The Group reported 2011 transformation, from innovative strategy to execution and with global revenues of EUR 9.7 billion. Together with its clients, an unstinting focus on results. With the new digital economy Capgemini creates and delivers business and technology creating significant disruptions and opportunities, our global solutions that fit their needs and drive the results they want. A team of over 3,600 talented individuals work with leading deeply multicultural organization, Capgemini has developed its companies and governments to master Digital Transformation, own way of working, the Collaborative Business ExperienceTM, drawing on our understanding of the digital economy and and draws on Rightshore®, its worldwide delivery model. our leadership in business transformation and organizational change. Learn more about us at www.capgemini.com. Find out more at: http://www.capgemini-consulting.com/ Rightshore® is a trademark belonging to CapgeminiCapgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary.© 2012 Capgemini. All rights reserved.

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