This document discusses how procurement functions need to rethink their role to better contribute to innovation within companies. As companies increasingly outsource activities and innovation becomes more open, procurement must leverage suppliers' innovation capabilities. However, procurement traditionally focuses only on cost/risk reduction after specifications are set. To better support innovation, procurement needs to get involved earlier in the process and think beyond traditional metrics like cost reduction. Strong supplier partnerships are also not enough - procurement must tap a wider range of partners to access new innovations.

1. Supplier Relationship Management (SRM)
Research 2010-2011
Solution Analysis and Business Insights

2. Contents
Prepared and edited by:
Sarissa Alleijn Capgemini Consulting NL
Hamish McKechnie-Sharma Capgemini Consulting UK
Ton van Dolder Capgemini Consulting NL
Richte van Wijngaarden Capgemini Technology NL
Special thanks to:
Charlotte Baratti Capgemini Consulting US
Andreas Bernhard Capgemini Procurement Services
Bob Booth Capgemini Consulting UK
Robbert den Braber Capgemini Consulting NL
Sarah Conway Capgemini Consulting UK
Rutger Lamers Capgemini Consulting NL
Merel Plante Capgemini Consulting NL
Willem Scheerder Capgemini Consulting UK
Remy Schook Capgemini Consulting NL
2

3. Contents
4 Foreword
7 Business
Insights 26 Functionality
Analysis
8 The Tipping Point of BPO 32 Analysis per category
Procurement
Rethink Procurement for BPO Procurement
12 a contribution to
52
innovation
16
55 International
Channel selector⁺
supports decision making
for all P2P options Footprint and
Supplier Profiles
20 In-house or as a Service?
– CPOs challenge the role
of the CIO
23 Can we ever fully
automate Spend Analysis
or do we need to have
human intervention
3

4. Supplier Relationship Management Research 2010-2011
Foreword
4

5. W
e are pleased to present to you the In addition to the 2008-2009 SRM survey, we assessed
Supplier Relationship Management (SRM) the level of support in the area of Business Process
survey 2010-2011. It is interesting to see Outsourcing (BPO) Procurement. BPO Procurement
that over the last ten years we have been remains a strong area for growth that is driving current
doing this survey, the market for SRM is demand in organisations. Organisations are seeking the
still growing and investing in these applications. Although ability to migrate easily to such functionality so the need
we all assume that implementing an SRM tool is quite is great given the economic uncertainty that remains in
easy, reality shows different. Q4 2010.
Apart from the survey, which gives you an overview of
Another new item in our research is the implementation
the major players in the market, we also want to share
footprint of the different vendors. We learned through
our experiences, issues and questions we daily see as
our projects that this is valuable information for package
procurement professionals implementing and optimizing
selections. The footprint shows the geographical
SRM. We therefore asked our foremost colleagues to
dimension and the functional dimension of
share their view and experiences on SRM, which resulted
implementations.
in 5 expert opinion stories, each telling something about
SRM, all from a different perspective. Major themes
Our procurement experts have worked on this study with
include: BPO Procurement, Innovative Driven
great pleasure. We hope you enjoy reading it as much as
Procurement (IDP), Channel Selection, In-house or
we enjoyed writing it and look forward to your feedback.
software as a Service (SAAS), Spend Analysis.
Let it be an inspiration for your further initiatives.
Second part of the study analyses the results of the SRM
functionality survey. This analysis is based on a series of We wish to thank all vendors and colleagues who have
questions designed to address whether the software contributed to this year’s SRM study.
covers a specific set of functions within the SRM
functionality.
Ton van Dolder
Procurement Transformation
Practice Leader NL
Capgemini Consulting
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6. 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.
6

7. Supplier Relationship Management Research 2010-2011
Business Insights
7

8. The Tipping Point of BPO
Procurement
The business process outsourcing (BPO) market is one Over the last five years, the BPO Procurement market
that is still relatively immature, particularly when has been growing steadily and while growth rate
compared to the IT outsourcing (ITO) market. This is forecasts for the next five years vary, analysts agree that
about to change: Outsourcing of indirect spend the rate of growth will increase, fuelled by a recession in
becomes more and more popular, as procurement Western economies. The four mature BPO markets have
organizations will have their hands full managing all of matured beyond a point of critical mass of supply and
the risk elements in their direct materials spend. demand, and can be said to have reached the “tipping
point”.
The phrase Tipping Point was popularised by Malcolm
Gladwell in his book, The Tipping Point: How Little Things The BPO Procurement market is starting from a smaller
Can Make a Big Difference. In his book, Gladwell talks base. TPI Momentum’s analysis of the 2009 BPO
about the point at which a trend which may only have a Procurement market is $778m (see figure 1), showing
short life span tips and becomes an epidemic on a global Annual Contract Value (ACV) for deals over $25m. The
scale, i.e. in commercial terms how a fashion or trend market has been growing at between 30 and 40% over
become permanent feature of the business world. Each the last five years. Forecasts for the next five years are
of the larger four BPO markets: customer contact, also varied with no consensus on the expected growth
financial services, HR and finance & administration, have rates.
now passed the point at which they have tipped. They
are here to stay, and are all forecasting healthy growth
rates for the next five years.
Finance Services Outsourcing $4.909 20%
Contact Center Services $4.245 17%
Human Resources Outsourcing $3.138 13%
Finance & Accounting $2.126 9%
Facilities Management $2.045 8%
Document Management $1.557 6%
Industry-specific $1.287 5%
Procurement $778 3%
Supply Chain Management $585 2%
Research & Development $488 2%
Knowledge Process Outsourcing $108 <1%
BPO Multi-Process $1.307 5%
BPO/ITO Multi-Tower $1.783 7%
Figure 1: Cumulative ACV of Active BPO Contracts by Service Line ($US Millions)
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9. What services are included in a BPO- • Compliance management – active reporting on and
Procurement deal? management of compliance. Often involves
interaction with HR to drive changes in or
compliance with HR policies.
BPO Procurement deals typically have one or more of the Reporting is often executed in low cost locations;
following components (unsurprisingly aligned to the often compliance policy is managed locally in
services that a typical procurement department will conjunction with the category managers.
provide): • Reporting – provision of management information
for sourcing category, compliance and supplier
• Strategic sourcing – the negotiation of new contracts management. This is typically managed from a low
with suppliers and the associated services, generally cost Far East location.
in accordance with the commodity or the overall
procurement strategy.
As the BPO procurement market matures, the services
Some providers offer this service locally to the client that are being bought are growing up the value chain.
where the buyers are close to the client and to the Operational procurement deals often now include the
supply market. Some offer this service from low cost spot buy desk, whereas two years ago, the service may
locations and some offer a hybrid of this model with have been only transactional procurement with spot
a local front office supported by low-cost COE in a buying being retained within the client organisation.
low cost country (typically Far East locations such as Similarly some companies are in the market for one or
The Philippines, China or India). more indirect categories and a few stand out as willing to
• Category management – the development of outsource all of their indirect spend.
category strategies, subsequent management of the
category after sourcing and management of the
contracts to ensure that the benefits identified are The group of eligible suppliers is growing
delivered through active compliance management.
Typically, any supplier management is undertaken in
this area. At the beginning of 2008, the only companies who had
Some providers deliver this service local to the made credible inroads into global BPO procurement
business, some regionally in delivery centres and services were Accenture and IBM. Since then, the
some in low cost, typically Far East locations. market has been maturing through partnership, merger
• Tactical procurement (spot buying) – the and acquisition and organic growth.
management of spot buying for high value and
unusual items through a purchasing desk. This is • GenPact has had a successful partnership with ICG
usually augmented with a front office which supports Commerce since April 2008, which has brought two
employees and supplier contact in local languages. powerful players together to market,
This is typically provided regionally from delivery • Steria and HPI GMBH, one of the leading
centres in Eastern Europe, Latin America and Asia procurement services providers across Europe,
Pacific. announced a collaboration in the procurement
• Transactional procurement – the management of outsourcing space in November 2009,
the requisitions and PO process plus master data • In February 2010, Capgemini acquired IBX, the
management and query management that supports European procurement services and SaaS technology
employees and supplier contact in local languages. business, to broaden and deepen their capability in
outsourced procurement
This is typically provided regionally for voice contact
and regionally or in a low cost region for
transactional elements.
9

10. • The pure play Indian providers are placing great The business case for BPO Procurement differs
focus on procurement, with most of the larger from traditional F&A
players recruiting in this area and pricing deals
aggressively to win business and grow their practice.
The business case for traditional business process
outsourcing is well proven; typically the service can be
delivered as effectively, i.e. with no consequential
As a result, the BPO-Procurement supply market is
worsening in quality of service, and more efficiently in a
maturing and there are more eligible suppliers who will
lower cost location, typically with an improved system of
compete for potential business, which makes it easier for
controls.
customers to move into the market confident about
supplier price and capability. The majority of the business case comes from a
combination of efficiency of centralisation,
standardisation, process improvement and automation
Increasing focus on technology as part of the coupled with labour economic benefits of low cost
whole… locations. The combination of these two factors can
result in benefits of 40-50% as against original cost.
With Capgemini’s acquisition of IBX and SAP and Oracle’s However the business case for procurement is more
provision of on demand (Software as a Service, SaaS) often driven out of sourcing savings, or compliance
procurement technology solutions, the provision of SaaS savings, i.e. effectiveness savings, which can dwarf the
procurement technology on demand now seems to be a efficiency savings. Also the efficiency savings in
standard part of the BPO Procurement proposition. For procurement are often less (perhaps 20-30%) as the
both eProcurement and eSourcing, customers expect resources will need to be located across locations other
service providers to be able to provide a suite of than India and other Far Eastern low cost locations,
integrated services and technology as a service. This hence average saving will be less than the 40-50% above.
gives them an option other than undertaking complex
and expensive technology implementations that sit
behind their own firewalls.
Figure 2: Building the business case for BPO Procurement
10

11. We therefore believe that a significant portion of the
benefit from outsourcing can come from effectiveness Conclusion
savings through sourcing and in particular through better
compliance management. 2010 and 2011 will see the announcement of a number
of key new BPO Procurement contracts, with some
customers being prepared to outsource large areas of
However approaching the overall process in a way to
strategic sourcing spend, and with many others
maximise the efficiency (process) savings and maximise
outsourcing operational procurement and spot buying.
the (sourcing) effectiveness is the key to success,
particularly as associated processes such as accounts As with any new market, there will be new entrants and
payable will need to be impacted if compliance savings players who are bold in scope and approach. Whether
are to be maximised. The potential savings can be quite this will become the norm, and at what rate of adoption,
essential - up to 40 percent depending of the maturity of remain to be proven.
the organization. Combined effects of better spend Either way, the pressures on the CPO to make savings are
visibility, better framework agreements and lower cost greater than ever, and outsourcing some areas of
for managing the spend, make such a result possible procurement will be necessary to achieve these savings.
. Whether this results in a tipping point for BPO
Procurement will depend on whether those CPOs who
choose to outsource and their chosen BPO solution
provider can provide a compelling proposition to their
business that locks in the sourcing value required and
enhances the business’ ability to survive in this difficult
market.
11

12. Rethink Procurement for a
contribution to innovation
For companies that focus on innovation as a key Challenges for Procurement
business driver, finding innovation with the supply
chain remains a challenge. Even though Procurement is
The move towards open innovation creates the need to
regarded as the interface with suppliers, it traditionally
leverage and manage the innovation capabilities in the
has little role in advancing business processes. In this
supply base, to:
article, we discuss what Procurement should do to take
• deliver more innovations
this role successfully and contribute to innovation.
• accelerate design and launch cycles
• improve quality
• meet more intense demands to reduce cost and risk
Markets develop towards more open
innovation These are not the usual Procurement KPI’s, with the
exception of the cost/risk reduction. The economic
downturn has only increased the emphasis on these
Most industries increase the outsourcing of non-core traditional KPI’s. Because of this focus, Procurement’s
activities: the average percentage of revenues procured involvement in innovation is limited to work on cost/risk
externally has risen to over 60% in the last decade due to reduction by sourcing and contracting suppliers. In
increased outsourcing. In addition, companies are practice, this means Procurement is involved once all
increasingly outsourcing critical business functions, specifications are set in stone and the innovation is ready
including the outsourcing of R&D to the supply base. In for ramp-up. This is a characteristic of siloed thinking, in
some industries, where 70-90% of products are sourced which departments (silos) are involved one at a time in
from suppliers, the majority of products are actually order to add their value. That has remained while the
designed and developed by these suppliers. This is in part innovation processes have become more open and
due to a shift in design towards manufacturing of whole collaborative. Although usually working in team
systems, which results in an increase in the complexity of structures, silo-thinking remains prevalent within
supplier relationships. departments and people (typically due to differing CXO
The increase in outsourcing coincides with an increased directives). The result is a very linear process with
openness of innovation processes. Companies are finding handovers to the next department, with a fresh set of
it more and more difficult to keep up with the pace of specific targets at every step.
innovation through internal R&D alone. Intelligently
tapping into knowledge bases of (amongst others)
suppliers speeds up the process of innovation and
reduces total cost. To manage a greater dependency on
supplier innovation, Procurement departments have
been moving towards stronger partnership models with a
limited set of key suppliers. These partnerships are based
on shared risks and rewards instead of traditional
transactional relationships. But strong supplier
relationships alone are not enough and a limited set of
(incumbent) partners is not necessarily a good source of
innovation. To leverage that relationship, Procurement
needs to feed end-customer needs into the supply base.
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13. Traditional versus Innovation Driven
Procurement
The difference between traditional and Innovation
Driven Procurement is best explained with a simple
example. Say you are looking for a home espresso
machine that serves you the perfect coffee in the
morning without hassle. You will have a wide range of
needs and criteria the product must meet such as
newness, appeal, reliability, value for money, etc. As we
live in an open innovation world, we would expect the
manufacturer to combine internal know-how with the
latest technology available in the market to create the
best product for your needs. The manufacturer in fact
manages a system of solutions including the design, the
pressure system and coffee packaging from a wide array
of suppliers. The innovation process of this espresso
machine will look completely different for the two
Procurement business models.
Figure 1: Procurement involvement innovation
Traditional Procurement
Figure 1 gives an indication of the effect this may have.
To deliver this kind of machine, the traditional
The hand-over to Procurement usually occurs after
manufacturer has started an extensive innovation
supplier involvement and beyond a point where a
project. This began with efforts by Sales & Marketing to
significant impact can be made on cost reduction and
understand your needs, and R&D trying to develop this.
value creation of the product. At this point it is too late
As we are in an open innovation domain, R&D will have
to deliver new innovations or significantly increase
worked with suppliers or even players from completely
development. The only remaining factors are cost and
different industries to develop a new espresso system. In
risk reduction, and even these have been compromised.
this traditional Procurement setting, there will have been
Procurement can no longer fully influence cost or risk as
no involvement until there is a complete picture of the
the specifications are largely set and suppliers have been
future product and its specifications. Procurement will
deeply involved in the design process. Furthermore,
then be asked to deliver its services. The internal clients’
traditional Procurement targets (such as savings, security
needs are often specified in terms of contracts, savings,
of supply, contract coverage and compliance) conflict
security of supply, etc. Procurement in other words is
with project targets which may compromise the value of
expected to negotiate a good deal to drive down total
the end product for the customer. Delays or unrealistic
cost and risk. As we have seen before, this may cause
expectations of supply chain capabilities are likely to
serious conflicts as the specifications are largely set and
occur through these conflicts.
freedom of choice in the supply base is limited. The best
To move forward from this situation, Procurement Procurement can do now is to set up multi-disciplinary
should have an earlier involvement. However, teams to discover what the internal clients’ needs are
Procurement in its traditional form is not capable of and make the most out of it. To do this, Procurement
handling the ‘chaotic’ processes found in early connects with (potential) suppliers and conducts
innovation stages. Making a true contribution to sourcing activities, negotiates contracts and puts the
innovation processes requires Procurement to redefine operational processes to work. If conflicts occur (i.e. a
its business model. This will enable them to tap into part cannot be sourced at a decent price), it will be
supply base capabilities and manage supplier forced to push the innovation project back into the
involvement. design phase. This may compromise specifications, the
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14. total cost and the time-to-market. The end result is that organize innovation projects with dual leadership, one
you will eventually find your “traditional” espresso R&D and one Procurement leader. Others have
machine on the store shelves at a reasonable price. But dedicated project managers, defined specific roles and
you’ll probably have lost interest in it because it was responsibilities for Procurement in each innovation
overtaken by a competitors’ machine before it even stage, and used decision making between innovation
came to market. stages to enforce further Procurement support.
The required competences of Procurement change as
well. There will be a stronger need for people with
Innovation Driven Procurement (IDP)
knowledge of technology and supplier management
The IDP producer will also listen to your needs as a capabilities, together with project management skills and
potential customer through Marketing & Sales. But now traditional Procurement skills. This can be achieved by
it’s not just R&D who’s listening in; Procurement has for instance recruiting internal technical experts and
joined the project from day one. This enables training them on Procurement skills. In any case the
Procurement to thoroughly understand the external Procurement, Marketing & Sales and R&D experts need
clients’ needs and to assist R&D with the development to be able to communicate effectively. Beside strong
effort. Now that Procurement knows what to look for, it competencies, this requires a rigid data exchange
can connect the supply base with R&D and at the same between various systems. Integration of data provides
time work on a sound supplier involvement strategy insight on both sides on specifications and impact of
(reducing the risk of conflicts). The team setup above changes to designs.
changes the partner structure of Procurement; it now
consists of both suppliers and the “internal clients” in the
entire innovation process. With involvement in Steps to take towards Innovation Driven
innovation, Procurement must match its activities to Procurement
early innovation stages. This still includes cost
awareness, but there is much greater focus on scouting
supplier markets, enabling supplier involvement and Innovation Driven Procurement starts with a clear focus
managing supplier inputs in the project. All of these are on the role of Procurement in innovation processes.
focused on the wide range of targets of the external Once it is clear what Procurement should contribute, a
client. In later stages traditional Procurement activities business model of Procurement throughout the
come back into play to operationalize the new product, innovation process can be set up. A broader focus on the
but the real value is created in the earliest stages. The external customer and involvement from the start has a
end result here is that you’re the proud owner of the big impact on the organization of Procurement and its
“IDP” espresso machine standing on your kitchen table. activities. After defining the impact, the governance
structure needs to be formalized with the role of
Procurement in innovation firmly embedded. Once
Procurement is firmly rooted in the innovation processes,
Impact of Innovation Driven Procurement it can make the step to effectively line up the supply base
for a contribution to innovation projects.
Involvement in innovation exceeds merely involving Implementation involves selecting the right people,
Procurement earlier. A change of attitude and embedding the Procurement role in processes, setting up
perspective of Procurement must be embedded in the teams and structures and supporting communication
governance of the organization. The role of Procurement technologies.
in innovation projects changes, and the way
This will enable Procurement to drive much more value
Procurement is managed is clearly different from
from the supply base, while improving time-to-market,
Traditional Procurement as it breaks through functional
collaborating internally and creating a better focus on
silos. This means companies need to review decision
the end product. In other words, it enables Procurement
making protocols, process design, target setting,
to make a significant contribution to innovation and the
leadership involvement, team structures, competences
bottom-line.
and information flows. For instance, some companies
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15. The Client Case:
The Passion Value Chain
A company’s corporate image is probably one of its most How can your business achieve a passionate
underestimated assets when it comes to purchasing. value chain?
Wouldn’t we all love to supply well-known companies
such as Rolls Royce, Nokia, Audi, Chanel, Asics, eBay or Firstly, a passionate value chain takes time to create by
Red Bull? Brands leverage not only sales, but also exchanging ideas and challenging existing processes. To
purchasing success. Even if you are not amongst the stimulate this kind of change, a good first step is to
brand leaders in your industry, you are more likely to create regular newsletters and conduct supplier
succeed if you stick to the values of your company and summits. If you can spare 20 minutes a day, you could
communicate these when you qualify new suppliers. even consider writing an online blog.
Steiff is a German-based plush toy company known for When it comes to managing one on one relationships, it
producing high quality toys and teddy bears. The pays to be selective about which suppliers to spend time
company’s co-chief executive Martin Frechen said in a with. The first choice will generally be your most
recent Financial Times article that some suppliers only strategic suppliers, however it is always worthwhile to
“think in terms of price and volume” and concludes that spend time with people who have innovative ideas, even
“for children, surely only the best is good enough – the if they are not the biggest position on your category
best design, the best production, the best safety budget.
standards”. The next step is to integrate truly innovative suppliers
This kind of attitude and way of looking at your supplier with your company. To do, this, think like Mr Frechen
base makes a difference which cannot be found on an from Steiff, but backwards. Once the employees of your
RFQ template. Commitment, dedication and a passionate supplier have developed a personal connection to your
attitude have a huge influence on your bottom line products and services, there will be increased likelihood
results. Finding high quality and passionate suppliers of innovations, improvements and true commitment. In
leads to lower reclamations, higher adherence to doing so, be aware that making the value contribution of
delivery dates and to greater innovation. A supplier who your supplier visible could have a negative impact on the
is passionate about your products is much more likely to next price negotiation. However, on balance if your
think about your company and your products and intention is to buy value, integrating your suppliers is a
therefore much more likely to deliver innovation to your beneficial way to achieve this.
value chain.
Frechen is not looking to discuss about his own needs, or
his productions processes, or even the needs of his
company Steiff. He talks about the needs of his
customers, or to be even more precise, the children of
his customers. He demands that his suppliers think about
the needs of his “end users” – and that is the first step in
creating a passionate supply chain.customers, or to be
even more precise, the children of his customers. He
demands that his suppliers think about the needs of his
“end users” – and that is the first step in creating a
passionate supply chain
.
15

16. Channel selector⁺ supports
decision making for all P2P
options
The increasing range of commodities that can be P2P channel
supported by Supplier Relationship Management (SRM)
tools, together with the increased functionality of the
A channel is a defined combination of processes and
various SRM tools, makes the selection of SRM tools a
tools with common characteristics to support the
complex decision. Selecting the most effective sourcing
(sourcing or the) P2P processes. A traditional Purchase-
and procurement processes (or channels) for the
to-Pay process will go through the steps portrayed in the
various commodities represents a formidable challenge.
Procurement Order Cycle (right side of figure 1) as soon
In particular, the lack of understanding of how to as the source to contract process is finalized and the
organize the entire Purchase-to-Pay P2P process turns contract is implemented.
out to be a bottleneck for many organizations during
the implementation of a SRM tool. The Channel
Selector⁺ provides a framework that supports the
decision making process of all possible variants in the
P2P options from requisitioning to payment including
approval of requisition, receiving goods or services,
invoice settlement and communication.
Figure 1 SRM process model – Procurement order cycle
16

17. Channels are grouped according to their level of buyer involvement in the requisition-order process. See the possible
channel combinations in figure 2.
Figure 2 Channel combinations
These channel combinations are characterized by compliance, insight into commodity and process
different dynamics. It is these characteristics that performance and efficient operational support. If the
determine the channel's suitability for a particular balance between control, visibility and efficiency is not
commodity. These include: correct, the gains can be absent. For instance, by only
• Control: Provide more control for the business and maximizing control and visibility of all commodities,
procurement to ensure compliance to suppliers, unnecessary resources could to be allocated to some of
contracts and specifications. High levels of the commodities where there is no need for control or
visibility. This could happen in the commodity office
compliance will result in better use of volume
supplies, which account for a low percentage of total
discounts, spend and has a low risk profile. On the other hand, if
effort is put only into maximizing efficiency for all
• Visibility: Provide a high level of visibility for spend. commodities, over time the risk of insufficient
High visibility will result in leveraging data with compliance with the supplier contracts will increase.
suppliers, which supports the sourcing process and
provides savings improvement,
Channel selection⁺
• Efficiency: Generate transaction savings through the
reduction of process time, particularly invoicing The Capgemini Consulting P2P Channel Selector⁺
processes. provides a framework that supports the decision-making
process of what commodity should be acquired through
Commodities have different requirements, in terms of which P2P Channel. By running the commodity
how much control, visibility and efficiency is appropriate characteristics through a questionnaire, the different
to apply to its associated P2P channel. channel options are ranked automatically.
By selecting P2P channels on a commodity basis, The Channel Selector⁺ includes all the variants of the P2P
companies can optimize: Contract and supplier process, including the largest bottleneck in the
17

18. implementation of a procurement system, namely how 1. Specify (Product profile): complexity,
to arrange the P2P process as a whole (requisition – standardization, configurability, service or product,
approval – order – receive – payment). The Channel service/product variations, volatility of price,
+
Selector includes:
eReadiness of the supplier.
• Requisition channels (for example: catalogue, free
2. Place requisition: purchasing frequency, number of
text order),
people requisitioning, absolute spend, inventory-
• Purchase channels (for example: planned order,
driven.
blanket order),
3. Approve requisition: necessity of approval by
• Payment channels (for example: p-card, expenses,
procurement or expert or management (budget).
direct invoice),
4. Place order: Number of orders, necessity of matching
• Approval of requisition
invoice with purchase order.
• Receiving goods/services 5. Receive goods/services: necessity of goods receipt
• Invoice settlement (standard, qualitative).
• Communication 6. Verify process and invoice: purchase order based,
Using the Channel Selector⁺, commodities can be self billing, specification.
characterized according to the following P2P process
steps:
Figure 3 shows the P2P process steps and all possible outcomes of the Channel Selector⁺ and includes an example of a
standard commodity.
Figure 3 P2P process steps
Explanation of the purchase order process in the figure for the standard commodity channel: The requisition will most likely
be placed by means of a standard catalogue. Because of the standard specification, there is no need for an expert or
Procurement to be involved in the approval of the requisition, instead the approval will be transactional. After approval,
the requisition automatically turns into a standard purchase order that is send to the supplier. The goods/services received
from the supplier will be checked and recorded based on quantity but not quality. Invoice settlement will probably be
based on the purchase order and the preferred way to exchange messages in the P2P process will be electronic.
18

19. In order to apply Channel Selector⁺, at the outset, it is
important to involve all stakeholders from the Conclusion
organization in the decision making process. Different
commodities are likely to require different channels,
therefore a series of multidisciplinary workshops is When organisations undertake the decision to tackle the
recommended when selecting channels. Based on the P2P challenge, they should not underestimate the
outcome of the questionnaire and a valuation of the challenges they will face. Nor, however should they shy
benefits and the total cost of ownership, the organization away from these challenges, or underestimate the
can choose the most appropriate channel for each strength of the tangible and non-tangible benefits that
commodity. Future state channels must be detailed and are expected to arise.
validated on a commodity basis, to ensure that channel Organisations taking on this challenge must follow a
processes fully support additional anticipated future structured approach in order to realise the benefits.
changes. This interaction through workshops is also Firstly, the organisation needs to have a vision of the P2P
critical to achieve high levels of user acceptance, few objectives it wants to achieve. It must then use a
operational exceptions, and not least, robust functional process-focused, business-driven approach to establish
requirements. the P2P channels by means of the Channel Selector⁺, and
P2P process support it wants to deploy. This, in turn, will
Implementation define the business and technical requirements for the
desired P2P solution.
The critical success factor lies within the organization:
As the implementation of all channels and commodities
None of the above can be achieved without the
cannot be achieved at once, an approach is needed to
appropriate level of sponsorship from senior managers
phase this over time. A preferred approach is to
and buy-in from the key stakeholders which can be
implement the most value adding and easily
achieved by multidisciplinary workshops.
implementable channels and commodities in the first
phase. The second group of channels and commodities is
then selected in terms of value and ease-of-
implementation, and so on. When assessing ease of
implementation, it is important to consider factors like
supplier contractual status and eReadiness, required
processes changes, availability of system support,
organisational impact, change readiness, and resource
availability.
19

20. In-house or as a Service? –
CPOs challenge the role of
the CIO
In his book, “The Big Switch”, the American IT lateral weakening economy the issue is once more gaining
thinker Nicholas Carr challenges CIOs and heralds the appeal. The following are particularly appropriate for
end of IT departments. He compares the trend towards outsourcing: 1. The supporting IT roles where the
cloud computing and away from business computing in decision to outsource is merely an issue of cost; 2.
the company’s own data centres with the transition Specialist IT functions that are not part of the core
from self-generated to centralised power supplies by business. These roles require specialist expertise that is
service providers at the start of the 20th century. generally not available in-house.
According to Carr, IT could be controlled by external
specialists and without hordes of technical experts Purchasing as a central competitive factor
within the company. His forecast may be radical, but it
may also serve as a wakeup call for CIOs to rethink their
strategic role: adviser to the company, communicator or On the backdrop of the global financial downturn and the
engineer. The crux of the matter is essentially looming recession, cost-cutting measures were moving
outsourcing versus in-house: should companies focus on to the fore in the corporate world - and with it,
their core business and outsource those IT tasks that inevitably, the subject of purchasing. After all, the
others can do better? Take the example of purchasing; potential for cutting costs is high in this area: depending
so far in this sector, many CIOs have been somewhat on the sector of business in question, the entire
sceptical of external, web-based SAP e-procurement purchasing volume can account for between 40 and 60
solutions. These models are regarded by many decision percent of the company's total turnover. It is not without
makers as all too unsecure and inflexible. That said, on- reason that the role of purchasing has evolved from
demand models fare well in a precise analysis of the being purely operational to being strategic; companies
individual factors. expect their purchasing to make a significant
contribution to their overall corporate performance. As a
The CIO is pulled in two directions: should he rather benchmark figure, a logical procurement strategy and
assume the role of technology provider, or that of a the use of the right IT solution can save from four to
strategic business designer? Should he provide all the IT eight percent of the total purchasing volume.
in-house, or act as the head of a network of specialists
who each play their part in the added value chain by If the CPO (Chief Purchasing Officer) and the CIO are
controlling the outsourced IT? In his role as CIO, he looking for a suitable IT solution, then the decision
decides on which IT activities are to be outsourced to quickly comes down to a question of faith. For the CIO,
external service providers. the primary factor is whether the solution can be
integrated into the company's own IT systems and
According to a study by Ernst & Young on outsourcing in whether it complements the existing strategy. The
Europe in 2008, 70 percent of all companies’ surveyed – strategic question for the CPO is which operator model is
600 decision makers in European companies – stated the most suitable one for his organisation, and which will
that outsourcing was an integral part of their business bring the greatest possible efficiency in terms of
model. For many years outsourcing has been seen as the procurement activities. He can choose between a
overall cure for a company’s problems. In times of a licensed in-house solution and an equivalent on-demand
supplier model. The solution is then provided and
managed by an external service provider.
20

21. On-demand on the rise
There are important reasons why on-
demand has been on the rise for a number
of years in purchasing especially, and the
cohort of licensing models is in jeopardy.
According to a study by the Aberdeen
Group (figure1) on-demand models are
faring significantly better than licensing
models. They can be implemented more
quickly and provide a faster Return on
Investment (ROI) – especially since the
company no longer needs to implement
the solution itself. If a company, on the
other hand, acquires a software licence, it
is generally dependent on the expertise of
a consulting company for the Source: Aberdeen Group
implementation and customisation of the
software. Many of the company’s own
Figure 1: Top factors driving enterprises to consider on-demand
resources are also taxed in the process,
and high additional costs are incurred.
When solutions are installed, human
resources, running and hardware costs are
found to be hidden cost drivers.
With an on-demand solution for
purchasing the company pays only for the
modular service elements it needs.
Moreover, it has easier and more rapid
access to the modules, since the solutions
already run on the service provider’s
platform and are being used by numerous
customers – each with their own individual
customisations. All the users need is a
popular Internet browser. An on-demand
offer is essentially of interest to all
companies that want to profit from lower
overall costs, faster implementation and a
smooth upgrade process – and want to do
so without high initial investments.
Another benefit is the fact that, according
to an outsourcing study by the Experton Source: IBX
Group, the contracts for on-demand
solutions have become more flexible as a
result of increased demand. Figure 2: Total cost comparison: On-demand vs. software
21

22. They can also be concluded over shorter periods than The second reservation as regards on-demand solutions
previously. A sample calculation by IBX (figure 2) shows is their lack of flexibility. An in-house solution can be
that from the start the overall costs of a software adapted more easily to the company’s specific needs.
installation are higher than the costs with an on-demand The advantages of an on-demand solution and its
solution. The overall costs include Equipment, adaptation to customer-specific requirements
Management and Operations. (customisation) are not easy to combine. The issue is
comparable with the purchase or hire of a weekend
cabin. The purchased cabin can be designed more easily
Reservations about on-demand in line with the owner’s personal tastes. It is much
cheaper to rent, with a lower Total Cost of Ownership
(TCO). It also makes no sense to repaint a house if it’s
Many CIOs still have major reservations about a rental only going to be used once a year anyway. In this case,
model. This is particularly true for the management of the standard functionalities are usually adequate.
enterprise-critical data outside the firewall. Accordingly,
IT security officers first need to check whether the on- The third reservation focuses on the ability of on-
demand solution satisfies the internal security demand solutions to be fully integrated. The end-to-end
regulations. linking of all the functionalities of the solution to the
system is one of the central challenges for the CIO. An in-
Historically, it has been a company’s core business to house solution in this instance, however, has to
safeguard their enterprise network so one might think overcome the same hurdles as an external solution and
that by nature, an in-house installation has an advantage therefore enjoys little advantage.
over the on-demand solution provided by an external
service provider. However, this assumption might not be
as clear cut as it seems due to a variety of factors: The future: coexistence of both models?
One factor is that purchasing solutions are different from
“classic” in-house solutions in the way that they require Many CIOs often regard on-demand supplier models as a
exchange of data with a lot of different external partners threat to their justified existence. On-demand represents
which are outside the enterprise network. This includes an attractive alternative for the CIO, especially in times
information such as catalogues, orders or bids. Many where IT budgets are tight.
times these partners are not even integrated into the
But is an on-demand supplier model the best possible
company’s extranet. Therefore a different approach in
solution for every company and every organisation? The
security infrastructure and operations is required. In that
following factors are crucial for or against an on-demand
case an experienced and specialised on-demand provider
service: cost-benefits analysis, speed and risks.
can actually have a clear advantage over an in-house
installation. The on-demand supplier model will not threaten to oust
the licensing model. The world of procurement has
Another factor is that significant improvements have
enough space for both. They can even complement each
been achieved over the last years in terms of Information
other perfectly.
Security Management Systems that have been
implemented by on-demand operators. Many service The on-demand model drives the focus away from the
providers are in the process of gaining certification based technology and towards strategic usage, as well as
on best practice IT security and process standards like towards the use of purchasing-assisting solutions such as
ISO 27001 and ITIL. There also have not been any high e-sourcing and e-procurement. Buyers can therefore
profile security problems with on-demand solutions focus more effectively on their core tasks, on reducing
either. complexity and on the relationships within the company
and not lose valuable time sorting out technical queries.
Sometimes it seems that the security problem is more of
a philosophical issue: Do I trust the Internet enough to
conduct business over it?
22

23. Can we ever fully automate
Spend Analysis or do we
need to have human
intervention?
Spend Analysis is undertaken by most organisations in The Spend Analysis Process
order to provide spend visibility information on
suppliers, spend and compliancy and is considered a
continuing point of attention of our CPO’s. Spend analysis is essentially a tool; it is the process of
collating, cleansing, categorising and analysing
expenditure information. The end goal of any Spend
Spend analysis tools Analysis should be to provide clear, consistent spend
information which can feed into the sourcing process,
identify sourcing opportunities, enable benefits tracking
Increasingly, tools are becoming available on the market and provide the visibility for compliance monitoring. As a
which highlight the ease and speed that can be delivered concept it should be regarded as the fundamental
by automating the process but does this change our foundation of sourcing however the process can start
approach to Spend Analysis? Over the last few years an from many different data points and by leveraging
abundance of vendors has entered the Spend Analysis different sources and quality of data. The level of
market ranging from those for whom the move into data complexity that this drives often results in a highly
enrichment was a logical step in their respective SRM arduous and time consuming process. So how do the
suite such as Ariba, Oracle and SAP, to more recent increasingly sophisticated software tools feed into this
entrants into the Spend Analysis arena such as Emptoris, process? In order to make sense of data there are various
Zycus and SynerTrade. Our survey findings have levels of intelligence that can be applied. Data analysis
highlighted that both sets of players have a part to play tools use a variety of these methods to enhance data, by
in managing the demand for the market, particularly if rationalisation and consolidation.
some organisations wish to focus purely on a one-off
spend analysis (e.g. Zycus) or have this linked into end to At a basic level, spend data is extracted straight from the
end procurement visibility with an ongoing opportunity source system and displayed in reports. Usually this is
to track and manage spend better. Each of these major the starting point for realising the need for Spend
players will be able to conduct detailed spend analysis Analysis as few organisations have the fundamentals of
however our experience indicates that none of them Master Data so thoroughly embedded that the data can
support entirely automated process. be reviewed immediately and used to guide sourcing
decisions let alone have this conducted dynamically.
Technological and digital automation is increasing in all Often data sits in numerous systems so using one source
areas of our lives. Will we ever reach the point where system alone will not provide a fully comprehensive
robots and computers will do away with the need for picture of the spend landscape. To get the most effective
humans? As Supply Chain professionals we need to result on spend analysis at the very basic level, multiple
consider what technology and automation can mean to extracts from different systems are needed to provide
us and our roles. Thinking about this in the context of the full data set. So from this very first stage humans are
Spend Analysis we’re left with the question – Can we needed in order to identify where the data should be
ever do away with the need for human intervention gathered from; Accounts Payables, Purchase Order or
when conducting something as fundamental as Spend from somewhere else.
Analysis?
23

24. Technology versus human like but are not spelled the same way as the search term.
The logic is based on (seemingly) fuzzy rules that at first
glance don’t make sense but do provide alternative
On their own the analytics tools cannot interpret the interpretations of data that will make sense to the end
data so the tools must be programmed and algorithms user.
developed which ‘tell’ the software how the data should
be mapped. To get the most effective result on spend
analysis at the next level the tool must be ‘told’ what Advancing Technology
data is synonymous and what isn’t. For example some
vendors might have different names, but in reality are
We have now reached a level where human interaction
the same; Capgemini UK, Capgemini Plc, Capgemini Ltd,
with a data analysis tool is diminishing more and more.
CapGem etc. The data analysis tool uses synonyms and
Current technology provides fuzzy logic and learning
associated probabilities to consolidate and recognise
capabilities, though arguably ‘learning’ in a very simple
data before presenting it to the user. This also applies to
way. Human intervention is still required to tell software
misspelled data, or data with typing mistakes, which in
what can be learned.
both cases requires a list of possible alternative content
for certain data, or some routine that checks alternative With more powerful computers and ever larger
spelling of data. Whilst there are some tools which can databases data analysis tools can seem very advanced
recognise and highlight some of the basic inconsistencies when using the methods mentioned above, but even
it still requires human intervention. It requires someone ‘learning’ tools require a person to interpret and
to tell the system what the data looks like, where to find necessitate monitoring of any invalid data or even wrong
it, how to use it, how it could be misspelled or what the results that a tool can produce.
synonyms are or aren’t when incorrect synonyms are
All of these aspects highlighted assume a minimum level
flagged and ultimately what rules to use. That said it is
of information, that of supplier name and item
fair to assume that this type of logic and business rule
categorisation but what of the scenarios where the
based application can be built into spend analysis
information available is almost non-existent? It may be
toolsets but still requires a degree of human
that the only information is the supplier name and a
involvement.
spend total. Can a tool take this data and provide a
The next step in order to ensure the most effective result reliable trusted output? Even the providers of spend
on spend analysis is to have a tool that can ‘learn’ how to analytics software would have to agree that this cannot
make sense of data with minimal intervention of an end be fully automated. For example the tool may be
user. Using a tool that learns how to analyse data at first programmed to state that Capgemini should be classified
will not give great results, and requires the procurement as a Consultancy; however it could also be classified as
professional to interpret the data and extract the reports an IT provider or an Outsourcing organisation. With a
required. The tool however tracks what the professional recent client (a leading CPR Manufacturing company)
does to the data, and as usage of the tool progresses it there were over 3,000,000 lines of vendor and spend
can ‘learn’ from these actions what to do with it. If the details which all had to be categorised. Conversations
professional has extracted data from two different with several spend analytics providers stated that their
systems to obtain purchase order and invoice data, the approach would be to manually categorise in the first
tool can do this automatically next time. If data for two instance and then use the software to harmonise and
product categories is put together manually, next time cleanse the data clearly demonstrating the importance of
the tool can do this automatically. Further improvements human intervention in the process. There may also be an
to data analysis tools can come from methods like ‘fuzzy additional level of analysis needed to re-classify existing
logic’, where the relationship between data is information where items have been mis-classified or
determined based on rules that are less clearly defined simply identified as “miscellaneous”, the software can
than conventional rules. As an example Google search only interpret the data to a finite level before human
can be used, where the search engine interprets the intervention is needed to validate and confirm the
user’s input in multiple ways including words that sound categorisation. A viable alternative is a hybrid approach
where pending the quality of the data, spend analysis
24

25. tools are used to drive accelerated categorisation prior to
human intervention. Conclusion
So in answer to the question can we ever do away with
Uncovering the subtleties of expenditure
the need for human intervention in Spend Analysis?
Well it varies on situation but human intervention will
The requirement for human validation of data leads onto increase based on the quality of the data, the complexity
the importance of understanding what level of data of the business rule logic and ultimately the nature of the
accuracy and information is needed by the end user in suppliers for the respective organisations. Will a
order to meet their sourcing requirements. Is it just to procurement professional ever be able to wholly rely on a
know how much is spent and with which Supplier? Does piece of software to perform a full and proper data
it need to go down to category level or should it be to analysis without second guessing the result? Again this
sub-category level? It may become clear that spend with almost seems a rhetorical question which can only be
Capgemini is labelled as Consultancy however in order to answered with an empathic “No”. Whilst the analytical
be useful to the end user, they may need to know if the tools on the market really do a play a part in acceleration
spend is Technical Consultancy, Strategy or Supply Chain of categorisation for procurement professionals and can
– and this supplier is likely to be treated differently expedite what has historically been a time consuming
across organisations. It is at this point that the human process, the systems are not yet advanced or
eye is needed in order to uncover the subtleties of the sophisticated enough to completely remove the need for
real expenditure. This can also highlight the differences human involvement. Spend Analysis continues to be a
in interpretation, in some organisations the category tool to enable us to buy better and importantly it is the
Consultancy is used to identify any services provided by a input into the human generated process of sourcing,
third party be it temporary labour, project management, procuring and negotiation.
and advisory. In other industries and in different
organisations ‘Consultancy’ may be restricted to
Management Consultancy. The need at this point for the
human eye to uncover these idiosyncrasies leads onto
another key aspect of Spend Analysis which requires
human intervention: that of Focus Interviews. All Spend
Analysis should be supported by Focus interviews in
order to put the data into context. As identified every
organisation is different and so the application of data
rules will vary.
25

26. Supplier Relationship Management Research 2010-2011
Functionality Analysis
26

27. F or organisations embarking on their Supplier
Relation Management (SRM) journey, the most
difficult challenge is being able to understand the
spectrum of suppliers that could satisfy your
requirements. •
Top Acquisitions in 2010
Google acquired ITA Software
• SAP acquired Sybase
The key questions in support of this that are often
considered are which applications are available on the • IBM acquired Sterling Commerce, Bigfix
market and what functionalities do these applications • Oracle acquired PhaseForward
provide? Do applications offer the same services across
all aspects of the procurement function or are they • HP acquired Palm
specific to one component of SRM? This chapter will • Capgemini acquiring IBX (now known as
elaborate further on these questions. Capgemini Procurement Services)
• Cisco acquired Optic networks
Insights into the vendor market • Symantec acquired PGP, Versign Security
Increasingly organizations and government agencies are Division
demonstrating that supplier relationship management
• Apple acquired Quattro
has a key part to play in addressing immediate economic
pressures. For those already on the journey, the • VMWare acquired Zimbra
emphasis is on re-evaluating contracts to improve
• Iron Mountain acquired Mimosa
efficiency and savings. Supplier relationship management
depends on collaboration amongst the enterprise’s • CA acquired Nimsoft
internal and external suppliers for survival and progress.
• Avnet acquired Bell Micro
Collaboration across sourcing strategies, management
and governance remains critical to the success of • Juniper Network acquired Akeena
supplier relationship management.
As we move into the first quarter of 2011, the abundance
Today, as companies seek greater synergies and try to
of mergers and acquisitions continues in earnest across
jump-start growth coming out of the recession, the
technology vendors. Market values have dropped,
relationship between IT and Business Process
creating bargains for value shoppers, and smaller
Outsourcing (‘BPO’) is strengthening and becoming
companies have experienced more difficulty obtaining
increasingly vital. Although the IT Outsourcing market
financing, and as such the market for technology
(‘ITO’) is outpacing BPO the BPO market is fast catching
mergers and acquisitions has accelerated. Technology
up. In many instances ITO and BPO are merging into one
vendors have put together several multi-billion dollar
seamless enterprise wide solution. Market exit,
deals so far this year as the economy comes out of what
acquisitions and the ascent of new vendors will
many believe is the worst recession since the 1920s.
rearrange the BPO provider landscape in the coming
Indeed, there have been more than a handful of deals
years.
worth hundreds of millions of dollars as the technology
vendor marketplace has consolidated through these
mergers and acquisitions
.
27

28. Setup of the SRM Survey Good or bad?
A functionality analysis is conducted based on a list of When interpreting the data it is important to remember
221 questions, covering the entire spectrum of the that this analysis is based on a series of questions
procurement process. These questions represent the designed to address whether the software covers a
“most asked-for” and the “most-critical functionalities”, specific set of functions. We stress that it is important
as we recognise them from our clients discussions and that all the questions have been scored without
interactions. Vendors are given the opportunity to weighing. This means that a high or low score does not
indicate whether the requested functionality is available indicate whether an application is good or bad; it merely
or not. states the coverage of the SRM functionality within the
application.
Compared to our previous SRM surveys the setup of this
year’s survey has been changed. We want to ensure that When selecting or evaluating an application, it is
the survey evaluates the market to a level of depth and important to determine which functions are critical for
completion required to accurately present the relative your company’s procurement processes. Therefore a
strengths/weaknesses of the vendor landscape. weighted score addressing your preferred functionalities,
Therefore, we build in a random check to ensure that the may result in a different outcome from those shown for
solutions score as accurate as possible. The following this survey. In order to distinguish the functionalities of
vendors were invited to give a demonstration of the the applications, it is necessary to understand which
functionalities in their solution. functionality supports the procurement processes.
Company Product Modules
To assess the level of support, we divided the overall SRM
Bupros Bupros Open Sourcing, process, into eight sub-categories:
Source Spend Contract
Management Management • Procurement Intelligence
and • Project Management
Procurement
Intelligence • Sourcing
Eeebid.com Inc. ebidQL Operational o Electronic Tendering
Procurement o eAuctioning
and Contract
Management • Contract Management
SynerTrade SA SynerTrade 6 Operational • Supplier Management
Procurement • Catalogue Management
and
Procurement • Operational Procurement
Intelligence
• External Resources
Table 1 Participating vendors in demonstration
Specific details on the participating vendors can be found
in the ‘International Footprint and Supplier Profiles’
chapter.
28

29. In addition to the 2008-2009 SRM survey, we assessed In each chapter we will indicate to which part of the
the level of support in the area of Business Process procurement process the application is relevant in our
Outsourcing (BPO) Procurement. BPO Procurement model as shown below.
remains a strong area for growth that is driving current
demand in organisations. Organisations are seeking the
ability to migrate easily to such functionality so the need
is great given the economic uncertainty that remains in
Q4 2010.
Figure 1: Capgemini Procurement Process Model
Overall Functionality Analysis
As in previous studies, this year’s vendor review shows reviewed SRM applications are very capable, there are
that the differences between applications are most substantial differences between these applications and
visible in coverage at a functional level. of course each of them will have a different fit within
Some applications provide full coverage for all sub- your organisation. Although it might seem that certain
processes, whilst others can be considered niche players applications have a low overall score, we cannot
supporting only a selected functionality. Although the conclude these applications are of lesser quality.
.
29

30. Overall conclusions from this year’s survey immediate economic pressures. Compliance remains
one of the number one aspirational areas of
Considering the survey as a whole, the following reporting which is being identified in the market as a
represent the major findings and conclusions: major driver.
1. Across the top 10 vendors there is little to choose 4. Surprisingly 25 percent of the responding vendors
across the principle functionality, whilst rich and cited no form of Project Management functionality
varied, remains common and meets the majority of being in place. Given the necessity to ensure tighter
requirements in the market – this includes timelines for all procurement activity and the advent
specifically ensuring visibility and transparency of benefits being clearly documented this remains
across the entire Procurement suite of technology. surprising but in essence a differentiator.
At a detailed level this common set of functionality
accounts for over 60 percent functional coverage
across the vendors interviewed, and represents a 5. Year on year the area of functionality that is
marked improvement which witnessed below 50 improving at a pace is Contract Management. It is
percent from previous functional reviews. This this area that is now becoming the pivotal
demonstrates the maturity of the vendor market and component of SRM functionality given its link to both
demand necessity organisations are striving for. operational sourcing through P2P and strategic
sourcing. Only 3 vendors responded with a score of
less than 70 percent coverage in this area, with the
2. In line with the observations in the 2008-2009 SRM average alone above 85 percent. Contract
survey, the survey shows that an integration of Compliance is the next phase once P2P compliance
functionalities is still evolving with respect to those has been achieved or is maturing so it is anticipated
vendors that remain focused either on Sourcing or that this area will only further increase in
Operational Procurement. functionality and richness of capability over the next
In addition, the focus on Sourcing is still greater than year.
on Operational Procurement demonstrated by the
following observations:
6. External resources still proves to be a key
• 90 percent of the vendors offers Sourcing differentiator. A major difference lies within the
functionality, whereas only 75 percent offers dependency between Operational Procurement
Operational Procurement functionality. functionality and External resource functionality. In
• 50 percent of the vendors have a higher score on previous years there was a direct dependency
Sourcing functionality compared to Operational between both functionalities, however this year’s
Procurement; 30 percent of the vendors have a survey shows that the dependency is decreasing.
higher score on Operational Procurement
functionality compared to Sourcing; 20 percent
of the vendors have an equal score for Sourcing 7. With an average of 62 percent and with more 100
and Operational Procurement functionality. percent functional coverage (other than project
management) Business Process Outsourcing (BPO)
remains a strong area for growth that is driving
3. The survey indicates that there is little overall current demand in organisations. Organisations are
increase of Procurement Intelligence functionality seeking the ability to migrate easily to such
compared to the SRM survey of 2008-2009. This was functionality so the need is great given the economic
a surprise as an increase was expected given the uncertainty that remains in Q4 2010.
importance of tracking operational improvement
benefits and assessing and ensuring compliance
which have a key part to play in addressing
30

31. Figure 2 gives an overview of the available functionality of each vendor. The Y axis represents the vendors and the X axis
represents the categories within the SRM suite. In addition a line graph displays the average full suite functionality score of
each vendor.
Figure 2: Overview of the functionality analysis
31

32. Analysis per category We do not aim to show the answers to every question in
this report; rather, we provide the outcomes of the
When selecting a tool, you might have certain analysis per functionality group.
requirements that are more critical than others. If you
are looking for a full suite application the overall Throughout the report the same structure is applied per
functionality scores may be sufficient for your selection. sub-category. First we start each sub-category explaining
However if you are looking for a particular functionality what this specific category means. Secondly the
or a set of functionalities, you will require a more in- conclusions we have drawn for this category are detailed,
depth review of the results. followed by the total scores per vendor, presented in a
graph. This graph shows the scores for each application’s
The in-depth application review is structured according functionality within the category.
to the eight subcategories listed earlier. These sub-
categories have been further divided into a number of
functional categories as shown in Table 2.
Procurement Project Sourcing Supplier Contract Catalogue Operational External
Intelligence Management Management Management Management Procurement Resources
General Project General General General General General Specify
Management
Spend Strategy Evaluation & Authoring User Requisitioning Approvals
Analytics development Development Capabilities
Compliance Request for Requisitioning
Operational Demand Database Supplier quotation
Repository Selection &
reporting aggregation capabilities
Approval Order
Electronic Administration-
Purchase Monitoring
tendering content &
Order
review After Care
eAuctioning transmission
approval
Negotiation Receiving
Administration-
and goods and
creation
services
Contract
Administration-
signing Invoicing
maintenance
Table 2: Additional Functional Categories
32

33. Procurement Intelligence diversity in coverage ranging from 98 percent to 48
percent. Reporting remains diverse and
demonstrates that no one vendor has been able to
What is Procurement Intelligence? support the need to address what is ‘standard’ –
partly down to the markets requirements but also in
Procurement Intelligence is the process of collecting, line with the need to be flexible which reporting
cleansing, structuring and drawing insight from market lacks across the majority of providers, without
analyses through process measurements (both Sourcing significant adaptation or customisation
and eProcurement), spend data, supplier performance
and knowledge management applications. The
knowledge gained from Procurement Intelligence aims to 2. Within the Procurement Process Model (see figure 4)
simplify decision making, making this sub-process a a relationship exist between Procurement
critical part of both the strategic sourcing process and Intelligence and:
procurement governance.
• Sourcing
Procurement Intelligence is key to assessing and ensuring
compliance, tracking operational improvement benefits • Operational procurement
and in implementing sourcing strategies. Procurement
Intelligence software typically supports spend analytics Procurement intelligence and Sourcing
and operational reporting.
The three vendors that do not offer Procurement
The ability to clearly communicate findings is critical to Intelligence do offer sourcing functionality. So there
achieve staff and management buy-in. Therefore the is scope for improvement since Procurement
functionality to graphically represent findings is of high Intelligence is a critical part of both the strategic
importance in this type of application. sourcing process and operational procurement.
Functionalities reviewed within Procurement Procurement intelligence and Operational
Intelligence Procurement:
Procurement Intelligence is divided into the following The previous survey highlighted that several vendors
sub-functionalities: were offering Operational Procurement but did not
• Spend analytics- Mathematical algorithms used for offer Procurement Intelligence and vice versa. This
cleansing, normalizing and classifying spend data survey shows that an increasing percentage of
vendors are working on both the functionalities. The
• Operational reporting - Operational reporting is three vendors that do not offer Procurement
typically used by the front-line operations personnel. Intelligence do not offer Operational Procurement
Very short-term, detailed decisions are made from functionality as well.
operational reports
There is one vendor (Vendorlink) that offers
Procurement Intelligence but no Sourcing and
Operational Procurement functionality.
Observations regarding Procurement
Intelligence
3. The survey shows that 30 percent of the vendors
provide full coverage (100 percent) of Spend
1. Out of all the vendors surveyed three vendors (15 analytics (with an average of 76 percent) and
percent) do not offer Procurement Intelligence Operational reporting (with an average of 63
functionality (Upside Software, Commerce hub and percent). This is a positive step in development over
Negometrix). Even though 85 percent of the vendors the last 2-3 years of SRM functionality that is
offer Procurement Intelligence there is huge available on the market and is in part down to the
33

34. acquisitions that have occurred in the last 12-18
months for spend analytics
4. Most diversity within the Procurement Intelligence
functionality can be found across Operational
reporting.
The requirements with the most different offering
per vendor are;
• trend watching functionality;
• the possibility to enter and track cost saving
targets per market and product group.
Within Spend analytics the requirement with the
most different offering per vendor is: depth of
vendor and item knowledge bases that feed
mathematical algorithms used for cleansing,
normalizing and classifying spend data.
Figure 3 Procurement Intelligence scores
Figure 4: Procurement Intelligence
34

35. Project Management timelines for all procurement activity and the advent
of benefits being clearly documented.
What is Project Management?
2. Within the Procurement Process Model a
Project Management is the discipline of defining and relationship exist between Project Management and:
achieving targets while optimising (or just allocating) the
use of resources (time, money, people, materials, energy, • Operational procurement
space, etc.) over the course of a project. The place of • Sourcing
Project Management within the complete procurement
process is illustrated in Figure 5.
Project Management and Operational Procurement:
Last year’s survey showed that Project Management
Within sourcing activities, Project Management helps to is something typically expected to be found in
institutionalise and embed the sourcing processes which Sourcing Processes. Therefore, it was not surprising
in our Clients experience results in greater savings being that the applications that primarily focused on P2P
delivered and increased knowledge captured for future processes did not provide functionality to support
re-use. Project Management. This year 75 percent of the
vendors that offer Operational procurement also
offer Project Management (compared to 80 percent
Project Management software supports: in Sourcing). This highlights the importance to ensure
visibility and transparency across the entire
• Creating a project team Procurement suite of technology.
• Phasing of a project
• Maintaining a project calendar containing an Project Management and Sourcing:
overview of scheduled and running projects 80 percent of the vendors that offer Sourcing
• Resource planning covering the team members functionality also offers Project Management.
assigned to the project Although project management is typically expected
to find in Sourcing Processes four vendors (Bupros,
• Running reports for the scheduled projects Basware, Upside Software and ProcureStaff
Technologies) that do offer Sourcing, do not have the
Project Management functionality. Project
Functionalities reviewed within Project Management Management is not perceived to be a functionality
For the Project Management section of this vendor specifically required in a SRM application. Perhaps
review we analysed the functionality: this is because there are many other solutions to
monitor the progress of the sourcing project.
• Project Management
3. Most diversity across the Project Management
Observations regarding Project Management functionality can be found in the following
requirement: Possibility to link Project Management
to Product development.
1. Project management remains a key differentiator
given it is not provided across all vendors (75
percent). However we are seeing a trend where
vendors are capitalizing on project management
functionality given the necessity to ensure tighter
35

36. Figure 5 Project Management
Figure 6 Project Management scores
36

37. Sourcing supplier and buyer collaboration through eRFX based
activities and events. From a Public Sector
perspective this is proving invaluable given the
What is Sourcing? necessity to demonstrate rigour and audit ability
through the process – coupled with Project
Sourcing is the part of the procurement process that Management this area serves as a core focus for the
continuously improves and re-evaluates the purchasing market as we enter 2011.
activities of a company.
The sourcing process consists of selecting the
appropriate suppliers, the full tendering process, 2. Within the Procurement Process Model a
elements of the go to market strategy and developing relationship exist between Sourcing and:
the required supplier relationships on the basis of the • Supplier Management
defined sourcing strategies. Sourcing strategies are
typically developed per product category. • Contract Management
Functionalities reviewed within Sourcing Sourcing and Supplier Management
Sourcing is divided into the following sub-functionalities: Supplier Management is part of the Strategic
Sourcing Cycle therefore it can be expected that
• Strategy development vendors offering Sourcing also offer Supplier
• Demand aggregation Management functionality. The survey shows that, in
line with the expectations, 90 percent of vendors
• Negotiation and contract signing providing Sourcing functionality also support
• Electronic tendering Supplier Management.
• eAuctioning
Sourcing and Contract Management
The sub-functionalities Electronic Tendering and There seems to be an expectation that if a vendor
eAuctioning are reviewed separately. has sourcing functionality, Contract Management
will be the logical next step. The survey shows that
only one vendor (ProcureStaff Technologies) where
Observations regarding Sourcing Sourcing functionality is present does not offer
Contract Management functionality.
1. Looking at the overall scores in the Sourcing area, we
can conclude that almost all applications provide 3. Interestingly the areas with the most questioning,
some sort of sourcing functionality. Over 60 percent namely eAuctioning and eTendering based
of the vendors are demonstrating an increased focus functionality were answered similarly for those
on eSourcing in line with market demand and only vendors that are providing this functionality.
two vendors have highlighted no functional coverage Consequently it is fair to assume a parallel of
across eSourcing (Vendorlink and INCONTO). functionality moving into a diminishing return
eSourcing is seeing a rapid surge in ‘e’ based advantage similarly to transactional procurement did
requirements and the move from more paper based only a few years ago.
environments. Whilst only two vendors highlighted
no functional coverage across eSourcing those that
have this in place need to continue to demonstrate 4. The majority of the vendors see Strategy
that this is not just a focus on auctioning but genuine Development and Demand Aggregation as the core
functionalities.
37

38. As in previous surveys we see that those vendors
that have a high overall score see an added value in
the functionality Negotiation and Contract Signing.
Indeed it is worthy of attention that 50 percent of
the vendors scored a maximum functionality
coverage of 100 percent in this area of eSourcing.
However in practical terms this is not often used in
the market by Customers and the need to
demonstrate its potency rests firmly with the
suppliers. If suppliers can forge a greater link
towards demand aggregation, the ability to tie in
reporting, spend analytics and procurement
intelligence will be all the more greater as Customers
seek to focus more on 2nd and 3rd generation
sourcing activities
5. Most diversity across Sourcing functionality can be
found in Strategy development.
Most diversity across the Sourcing functionality can
be found in the following requirement:
Recommendations of automated sourcing strategy
regarding the sourcing strategy development.
Figure 7 Sourcing scores
Figure 8 Sourcing
38

39. Electronic Tendering and eAuctioning
Electronic Tendering eAuctioning
Since the functionality within Sourcing typically lies in
support for tendering, negotiation and auctioning, two
sub-categories have been defined: Electronic Tendering General Types of auctioning
and eAuctioning. These were then subdivided in order to Building Strategy
compare functionality, as illustrated in table 3. Figure 10
and 11 represent the total scores of the application’s Sending & answering Process
functionality within the Electronic Tendering and Aggregation & analysis Bid formats
eAuctioning sub-categories
Scoring Calculation
.
Viewing
Distribution of shortlist
Messaging
Table 3 Sub categories Electronic eTendering and
eAuctioning
Figure 9 Electronic Tendering and eAuctioning
39

40. Electronic Tendering 3. Most diversity across Electronic Tendering
functionality can be found in ‘Aggregation and
analysis’ in the following requirements:
What is Electronic Tendering?
Availability of tools for what-if and sensitivity
The core functionality of strategic sourcing partially lies analysis by altering the number of hours, number of
in support for Electronic Tendering. To a large extent, units, transaction values, etc. and re-calculating total
this is where the value of strategic sourcing is captured. score (55 percent diversity);
Electronic Tendering also includes eRfX (Request for
Information, Request for Proposal and Request for Creation of own custom report formatting using the
Quote), which is often part of a tendering exercise. report tool (45 percent diversity).
Electronic Tendering can be used by a buyer to request
information from potential suppliers for the purpose of
evaluation and comparison. The more structured this
information is, the easier it is to compare the suppliers.
Functionalities reviewed within Electronic Tendering
Electronic Tendering is divided into the following sub-
functionalities:
• General
• Building
• Sending & answering
• Aggregation & analysis
• Scoring
• Distribution of shortlist
Observations regarding Electronic Tendering
1. All the vendors offering Sourcing offer Electronic
tendering functionality.
Figure 10 Electronic tendering scores
The scores are particularly high for this functional
category with an average of 89 percent.
2. Compared to eAuctioning, Electronic Tendering is
perceived by all vendors as core functionality.
40

41. eAuctioning 3. For vendors that only partially support eAuctioning,
‘Types of eAuctions’ in addition to ‘Calculation’ and
‘Process’ plays a significant role in the score.
What is eAuctioning?
The main differentiator in the Sourcing functionality
eAuctioning is a negotiation tool which can help to select can be found across Types of eAuctions. Most
the appropriate suppliers. Depending on the approach, diversity across this functionality can be found in the
buyers or sellers may specify costs or invite bids and following requirement: Gives the system an advice
transactions can be initiated and completed. Ongoing on the type of auction that is most suitable (50
purchases may qualify customers for volume discounts or percent diversity).
special offers. eAuctioning software may make it possible
to automate some buying and selling.
Functionalities reviewed within eAuctioning
eAuctioning is divided into the following sub-
functionalities:
• Types of auctioning
• Strategy
• Process
• Bid formats
• Calculation
• Viewing
• Messaging
Observations regarding eAuctioning
1. Responses to the survey questions indicate that
compared to last year’s survey (average score of 82
Figure 11 eAuctioning scores
percent) the eAuction functionality remains stable
with an average of 81 percent. The market is
saturated with specialist auction providers and
indeed the need to enhance the functionality has
dried up given the richness is now in place. This is
less down to technology and more down to strategy
where the ability to tie strategy and technology
together would remain critical to success for a
Customer when deploying and executing eAuctions
2. 75 percent of the vendors offers eAutioning, three
vendors that offer Sourcing do not offer eAuction
functionality.
41

42. Supplier Management Within the Procurement Process Model a
relationship exist between Supplier Management
and:
What is Supplier Management?
• Sourcing
Supplier Management includes supplier performance
monitoring where agreed performance indicators and Supplier management & Sourcing:
scorecards are evaluated and acted upon. Goals and The survey shows that, in line with the expectations,
objectives are set and evaluated; improvements are 90 percent of vendors providing sourcing
identified and implemented in collaboration with functionality also support supplier management.
suppliers. Both hard aspects of the supplier relationship, There is however one vendor (Vendorlink) that does
such as price, quality, delivery and service, and soft offer Supplier Management but no Sourcing
aspects of this relationship such as visits, surveys and functionality.
certifications are managed.
3. The main differentiator in the Supplier Management
Functionalities reviewed within eAuctioning functionality can be found across ‘Evaluation and
Supplier Management is divided into the following sub- Development’. Most diversity across this
functionalities: functionality can be found in the following
• Evaluation & Development requirements
• Database Supplier monitoring on measurement for soft
aspects that are outside limits.
The system supports the automatic aggregation of
Observations regarding Supplier Management the answers on the different questionnaires as filled
out by the buyers.
1. As compared to the previous surveys we see that
there is a trend among the vendors wherein most of
them tend to support supplier management fully.
Out of the vendors surveyed, three vendors (15
percent) do not offer Supplier Management
functionality at all (Basware, INCONTO and
Negometrix).
2. The group that offers this functionality scores very
high with an overall score higher than 82 percent.
When we look at the subcategories, we see that
vendors have extensive elaborate support for
supplier evaluation and development (average 95
percent) and database functionality (average 93
percent).
42

43. Figure 12 Supplier Management
Figure 13 Supplier Management scores
43

44. Contract Management 2. Within the Procurement Process Model a
relationship exist between Contract Management
and:
What is Contract Management?
• Sourcing
Contract Management includes the construction of
contracts and their terms and conditions, contract • Operational Procurement
registration, and keeping track of contracted products,
financial obligations, critical dates, etc. In addition, it also Contract Management and Sourcing:
includes monitoring agreed targets and practices
specified agreements in the contract. When necessary There seems to be an expectation that if a vendor
the Contract Management software helps to initiate has Sourcing functionality, Contract Management
actions to either adjust agreed terms and conditions, or will be the logical next step. The survey shows, in line
to remedy contract breaching behaviour. with expectations, that 95 percent of the vendors
that offer Sourcing also offer Contract Management
Contract Management software supports the writing of functionality.
contracts, giving overviews of current contracts and
contracted parties. Contract Management provides However 60 percent of the vendors that offer
insight into the related (financial) obligations, flow of Sourcing have a higher score in Contract
funds and critical dates, such as contract renegotiation or Management functionality compared to Sourcing
dates that trigger penalties if they are not met. Contract indicating that Contract Management can be used as
Management applications support team collaboration, a stand alone or as an extension from Operational
contract construction, document management, and Procurement to the Sourcing circle and vice versa.
contract approvals, budget control and contract
evaluation.
Contract Management and Operational
Procurement:
Functionalities reviewed within Contract Management In line with the observation above, 80 percent of the
Contract Management is divided into the following sub- vendors that provide Contract Management
functionalities: functionality also offers Operational Procurement
• Authoring functionality. For the remaining 20 percent, Contract
• Usage Management is used as an extension of the Sourcing
• Compliance cycle (Commerce hub, Iasta, Negometrix and Upside
• Repository Software). Only one vendor (Vendorlink) offers
Contract Management as a stand alone module since
Sourcing and Operational Procurement functionality
Observations regarding Contract Management is totally absent.
1. Vendors appear to have invested significantly in this 3. Although all sub-functionalities of Contract
module, which has resulted in a high score. This is Management score reasonably high, we see that the
not a surprised given the need to link heavily the sub functionalities ‘Compliance’ (average score of
benefits that are identified (Sourcing) through to 76%) and ‘Usage’ (average score of 80%) scored less
benefits being delivered (Operational) – this is and thus there is still scope for improvement.
achieved through benefits being captured as part of Repository is a sub-category where 90% of the
Contract Management activities. Three vendors vendors scored 100 percent. This is partly down to
responded with a score of less than 70 percent the need to tie Operational and Contract compliance
coverage in this area, with the average alone above jointly to demonstrate compliance through the
85 percent. Only one vendor has no Contract Procurement process without leakage.
Management functionality (ProcureStaff).
44

45. Figure 14 Contract Management
Figure 15 Contract Management scores
45

46. Catalogue Management Observations regarding Catalogue
Management
What is Catalogue Management?
Catalogues contain the preferred goods and services 1. The scores of the vendors in the category Catalogue
from suppliers that were selected during the strategic Management are quite similar to the total score of
sourcing process. All the article information is stored in the vendors with regards to the total SRM suite
the catalogue. This makes it possible to select and order coverage. There is little to improve functionally with
items electronically. Catalogues can either be located in most Customers focusing on the uptake and internal
the procurement application itself, at the suppliers’ side adoption within the respective organisations
or at a third party. For companies that have managed to
put the majority of their spend onto catalogues, there is
often a combination of different types because different 2. Within the Procurement Process Model a
purchase-to-pay channels are applicable depending on relationship exist between Catalogue Management
category profile, order profile, spend profile, supplier and:
profile and the business requirements. Static/standard
catalogues, form catalogues and punch-out catalogues • Operational Procurement
are examples of catalogue-based channels. Catalogue
Management involves entering article data, validating Catalogue Management and Operational
the data, and generating and maintaining the catalogue Procurement:
content. Catalogue Management is primarily carried out
by the party keeping the catalogue, but different Catalogue Management is a fundamental part of the
arrangements are possible. An external catalogue can be Operational Procurement process. Therefore, if
accessed in several ways: a relatively simple solution is a there is no Operational Procurement functionality
punch-out or roundtrip, where the user temporarily then there is no Catalogue management
leaves the procurement application and is typically functionality present.
directed to the supplier’s website. After selecting a
product he returns with the article information needed
to generate a requisition, this will then pass through the 3. All sub-categories within Catalogue Management
normal internal approval procedure. In some solutions, score relatively high (average >70 percent), however
the external catalogue data can be viewed and handled in certain instances the administration sub
in the procurement application in the same way as functionalities could be improved (e.g. supplier
internally stored articles. As the critical success factor for capabilities).
self service requisitioning is usability and user
friendliness, a coherent working environment for
employees is of great importance in achieving good 4. The main differentiator in the Catalogue
compliance with preferred products, suppliers and Management functionality is ‘Look and Feel’
contracts. demonstrated by the following requirements;
Punch-out catalogues have the look and feel of the
Functionalities reviewed within Catalogue Management own application (within ‘Catalogue maintenance’;
Catalogue Management is divided into the following sub- Possibility to use different setups for look& feel
functionalities: (within ‘Catalogue creation’).
• User capabilities
• Supplier capabilities
• Administration(content review & approval)
• Administration-Creation
• Administration-Maintenance
46

47. Figure16 Catalogue Management
Figure17 Catalogue Management scores
47

48. Operational Procurement Functionalities reviewed within Operational
Procurement
What is Operational Procurement? Operational Procurement is divided into the following
sub-functionalities
There are several terms for Operational Procurement; • Requisitioning
some well-known terms are Purchase-to-Pay (P2P) and • Request for quotation
eProcurement. Usually eProcurement refers to an • Approval
automated solution for Operational Procurement where • Purchase order transmission
P2P refers to the process. Therefore eProcurement is the • Receiving goods and services
automated solution for the P2P process. • Invoicing
Operational Procurement is primarily made up of the
order process, the supply process and the payment
process. The order process typically follows the following Observations regarding Operational
steps: Procurement
1. Needs capture and requisitioning.
2. Approval, normally by the next level manager, a 1. 75 percent of the vendors offers Operational
subject matter expert, or by the finance department. Procurement functionality. Most of the players
offering Operational Procurement module offer high
3. After approval of the requisition the order is placed
functionality (>70 percent). This is by far the most
at the supplier. If necessary a sourcing process can
common suite of provision from all of the vendors
be entered into prior to the order placement if not
interviewed.
all details are clear yet (for example if the item was
not in a catalogue) 2. Within the Procurement Process Model a
relationship exist between Operational Procurement
4. In the supply process the goods and/or service are
and:
received and an assessment of received goods
and/or services on quality and quantity is done. If • Catalogue Management
necessary exceptions will be processed. • Contract Management (see Contract
5. Finally, in the payment process the invoice is Management)
received and matched against the Purchase order • Procurement Intelligence (see Procurement
and the received goods. If this is correct, the invoice Intelligence)
can be paid. Some companies have a self-billing
process. In this situation the company will make • Project Management (see Project Management)
their own invoice based on the Purchase order and
the goods received.
Operational procurement and Catalogue
Applications for Operational Procurement normally Management:
support both product related goods & services (direct) 25 percent of the vendors do not provide the
and not product related goods & services (indirect). Operational Procurement functionality. These
Examples of the latter are: External resources, MRO, vendors also do not provide Catalogue Management,
capital goods and utilities. since Catalogue Management is an element of
Operational Procurement.
48

49. 3. Most of the vendors support the first part of the
process, Requisition creation, Request for Quotation
and Approvals, more than support the second part of
the process.
4. The main differentiators across Operational
Procurement are:
The way purchase orders acknowledgements can be
received;
The way purchase order acknowledgements can be
handled;
The way (electronic)invoices can be received.
Figure 18 Operational Procurement scores
Figure 19 Operational Procurement
49

50. External Resources Functionalities reviewed within External Resources
External resources is divided into the following sub-
Why External resources? functionalities
• Specify
Over the past few years it has been noted that, • Approvals
predominantly indirect goods have been subjected to
• Requisitioning
some form of SRM implementation. In reviewing the
• Selection & Order
level of benefit generation, it could be expected that
• Monitoring
External resources has already been reviewed at various
• After Care
times. However evidence shows that this is not the case.
Many large organizations have a relatively high level of
spend External Resources, but have very little visibility to
the spend breakdown.. Most companies should know Observations regarding External Resources
exactly how much money they spend per supplier, but
below this level information is inconsistent and they may
not be able to know the grade or level of the hired 1. External resource proves to be a key differentiator;
person, if they are registered, the rate per hour or day or vendors either provide functionality in this area (50
even insight as to whether the vacancy could be fulfilled percent of surveyed vendors) or it is completely
with an internal candidate. absent.
With the expected constraints within the labour market,
companies will need to get a better understanding of 2. There is an assumption that External Resource
their external resources, and it is anticipated that functionality appears in applications that also offer
supporting applications will have a bright future. Operational Procurement processes. In the 2008-
We have chosen to separately survey the vendors on this 2009 SRM survey there was a direct dependency
functionality as we believe that the process of External between both functionalities, however this year’s
resources is very different from any other P2P process. survey shows that the dependency is decreasing. 50
percent of vendors offer External resource
functionality but no Operational Procurement
What is External Resources Management? functionality.
External resources management is a tool to manage an
organization’s external resources to enable the reduction 3. Some of the niche players are not looking from a
in the company’s cost of management of external Procurement point of view, but from a HR
employees. Organization’s often lack insight into their perspective. Some full suit vendors do not offer
obligations with regard to temporary labour, a external External resource functionality yet, which leaves
resource solution can create this insight. A external scope for more improvement.
resource solution will allow an organization to specify its
requirements and select the appropriate workers. The
solution allows creation of a contract between the 4. Most diversity in External Resources functionality lies
organization and workers; ensures that workers are within the ‘Selection and Order’ subcategory. The
monitored by creating reports such as time and main differentiator is whether the application
expenses. The solution allows self-billing and evaluation supports Facility Management Requests.
of employees afterwards thus the solution helps to
mitigate the organization’s risk in employing external
resources.
50

51. Figure20 External Resources scores
51

52. Supplier Relationship Management Research 2010-2011
BPO Procurement
52

53. BPO Procurement interaction with HR to drive changes in or
compliance with HR policies.
• Reporting – provision of management information
What is BPO Procurement? for sourcing category, compliance and supplier
management.
BPO Procurement is a solution that many are turning to
for the delivery of world class procurement services. A Why BPO?
BPO Procurement service consists of two main types of
services (and the combination of these two is called full There are several motivating factors as to why BPO is
service BPO Procurement): gaining ground which include:
• Purchase-to-Pay which is the provision of • Factor Cost Advantage
transaction processing support to manage the • Economy of Scale
administration involved in the ‘procure-to-pay cycle’ • Business Risk Mitigation
for indirect goods and services or direct • Superior Competency
procurement; • Utilization Improvement
• Source-to-Contract includes strategic sourcing and
the management of contracts. The spend managed
by the BPO service provider creates a continuous Observations regarding BPO Procurement:
leverage for spend aggregation
1. With an average of 62 percent, and with more 100
What services are included in a BPO-Procurement deal? percent functional coverage BPO Procurement
remains a strong area for growth that is driving
BPO Procurement refers to the processes and current demand in organisations.
infrastructure associated with, typically, the following 2. Only 45 percent of the vendors indicates that it
items: offers all BPO based scenario’s.
• Strategic sourcing – the negotiation of new contracts
with suppliers and the associated services, generally The survey shows that the top 5 BPO based
in accordance with the commodity or the overall scenario’s in use are:
procurement strategy. • Sourcing
• Category management – the development of
• Electronic tendering,
category strategies, subsequent management of the
category after sourcing and management of the • Supplier Management
contracts to ensure that the benefits identified are
• Procurement Intelligence.
delivered through active compliance management.
Typically, any supplier management is undertaken in • Project Management
this area.
Catalogue management and External resources are
• Tactical procurement (spot buying) – the
used less as BPO scenario’s.
management of spot buying for high value and
unusual items through a purchasing desk. This is
usually augmented with a front office which supports
employees and supplier contact in local languages.
• Transactional procurement – the management of
the requisitions and PO process plus master data
management and query management that supports
employees and supplier contact in local languages.
• Compliance management – active reporting on and
management of compliance. Often involves
53

54. 3. 40 percent of the vendors offer software supporting
BPO based scenarios and customers in all the
following regions; Western Europe, Eastern Europe,
Africa, Northern America, Southern America, Middle
East, Asia, Far East, Australia and New Zealand.
The region where most BPO based scenario’s are
supported by the surveyed vendors is Western
Europe (55 percent). This can be explained by the
fact that most surveyed vendors are based in
western Europe.
4. 35 percent of the vendors are collaborating with
another provider in support of their BPO
Procurement.
Figure 1 BPO Procurement scores
54

55. Supplier Relationship Management Research 2010-2011
International Footprint
and Supplier Profile
55

56. Ariba inc.
Spend Management solutions
Implementation scope
Ariba implemented the
solution: “Globally”
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“Total number of suppliers on the Network - 241,548 unique ANIDs
Connection:
(out of which there are 223,555 unique supplier names)” Information not disclosed
Pricing model:
Geographical scope of connected suppliers Information not disclosed
“Globally”
56

57. Ariba inc.
Spend Management solutions
Availability
Current version operational since 2010
First version operational since Ariba Sourcing Sept 2001, Ariba Category Management Feb 2003, Ariba Contract
Workbench Feb 2004, Supplier Performance Management June 2003, Ariba
Data Enrichment April 2004, Ariba Analysis Feb 2002, Ariba Buyer June 1997,
Ariba Contract Compliance Feb 2002, Ariba Invoice April 2002, Ariba Settlement
Feb 2004, Ariba Travel & Expense Sept. 1998, Ariba Cateogory Procurement Feb
2004, Ariba eForms Sept. 1998,
The On-Demand solutions were first introduced in 2006.
Company Profile
The service is offered as: Inhouse and SAAS
Country in which is the Corporate United States
Headquarter located
Total number of employees 1.663 employees
Total number of employees working on 315
developing the product?
Frequency for delivering patches and Patches are deployed to all users by Ariba's IT team in off-hours, typically after 8
upgrades PM PST on Fridays.
Is there a user association set-up Yes there are ASUG and DSUG user groups for these solutions as well as
around the package? extensive online communities on SAP BPX and SDN, as well as on Linked In and
other forums.
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases and New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support, Bespoke software, Implementation support, Project
management during Implementation, Training on the supplied package
Total number of implementations 1000+ Customers globally
worldwide
Software is available in Dutch, English, German, French, Spanish, Russian, Japanese, Chinese,
The URL of the company's website www.ariba.com
57

58. Basware.
Basware.
Enterprise Purchase to Pay
Enterprise Purchase to Pay
Implementation scope
Basware implemented the
solution: “Globally”
Headquarter: Finland
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Information not disclosed
Suppliers: “Integration of
supplier processes as far as
possible”
Sourcing: “Basware has a
RFx Module which is
continiously improved”
Operational Procurement:
“Basware has a
Procurement Module
Figure 2 Total number of implementations worldwide and per SRM module which is continiously
improved”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
Total number of suppliers connected is not specified.
Connection: “Via 1
“Via roamingagreements with the biggest operators”
Basware platform, direct
and partnering”
Geographical scope of connected suppliers
Pricing model: “Staffed
“Suppliers are connected all over the world” based on volume”
58

59. Basware.
Basware.
Enterprise Purchase to Pay
Enterprise Purchase to Pay
Availability
Current version operational since 2010
First version operational since 1988
Company Profile
The service is offered as: Inhouse and SAAS
Country in which is the Corporate Finland
Headquarter located
Total number of employees 761
Total number of employees working on 195
developing the product?
Frequency for delivering patches and 1 major release and 4 patches per year
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No
available on the web
The company provides Helpdesk support ,Implementation support, Project management during
Implementation, Training on the supplied package
Total number of implementations More than 8000
worldwide
Software is available in Dutch, English
The URL of the company's website www.basware.com
59

60. Black Peacock Procurement
Solutions
PROACTIS
Implementation scope
BBPS implemented the
solution in: Information
not disclosed
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Information not disclosed
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
Information not disclosed
Connection:
Information not disclosed
Geographical scope of connected suppliers
Pricing model:
Information not disclosed Information not disclosed
60

61. Black Peacock Procurement
Solutions
PROACTIS
Availability
Current version operational since 2009
First version operational since 1999
Company Profile
The service is offered as: Inhouse and SAAS
Country in which is the Corporate USA
Headquarter located
Total number of employees 12
Total number of employees working on
developing the product?
Frequency for delivering patches and Patches regular, new release per year
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 No
hours a day?
The maintenance contract include New Releases
New Version
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 380
worldwide
Software is available in Dutch, English, German, French, Spanish, Russian
The URL of the company's website www.proactis.com
61

62. Bupros
Open Source Spend Management
Bupros is launching the Sourcing, Contract Management, Supplier Management and Procurement
Intelligence modules in Q4 2010
Implementation scope
Bupros implemented the
solution in:
The Netherlands (30) and
Germany (20)
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“Total number of suppliers: 20”
Connection: “Down- and
unloadable file in supplier
Geographical scope of connected suppliers
portal and punch out”
“ The Netherlands and Germany “
Pricing model:
“unsupported for free, a
fee in case of managed
services”
62

63. Bupros
Open Source Spend Management
Availability
Current version operational since 2008 (Bupros Open Source Spend Management operational procurement)
First version operational since 2003 (Bupros Procurement)
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands Antilles
Headquarter located
Total number of employees 30
Total number of employees working on 10
developing the product?
Frequency for delivering patches and Continuously
upgrades
Is there a user association set-up No
around the package?
Is there a helpdesk operational for 24 Currently operational at West European business hours.
hours a day?
The maintenance contract include New Releases
New Version
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 50
worldwide
Software is available in Dutch, English, German, French
The URL of the company's website www.bupros.com
63

64. Commerce-hub
C- Source
Implementation scope
Commerce – hub
implemented the solution
in: The Netherlands,
Belgium, Romenia, US
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
Information not disclosed
Connection:
Information not disclosed
Geographical scope of connected suppliers
Pricing model:
Information not disclosed Information not disclosed
64

65. Commerce-hub
C- Source
Availability
Current version operational since 2007
First version operational since 2000
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 15
Total number of employees working on 3
developing the product?
Frequency for delivering patches and Monthly
upgrades
Is there a user association set-up Commerce-hub is in the process of setting up user groups which are planned to
around the package? become operational second half 2010. Currently Commerce-hub customers
meet informally during release update meetings, presentations and workshops.
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No
available on the web
The company provides Helpdesk support
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 75
worldwide
Software is available in Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish,
Japanese, Chinese
The URL of the company's website www.commerce-hub.com
65

66. Eeebid.com inc.
ebidQL
Implementation scope
Eeebid.com implemented
the solution in: USA,
Germany, Switzerland/
Liechtenstein, Hungary,
Czech Republic, Romania,
France, Denmark, Sweden,
China
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: “eeebid offers
an eeebid supplier
directory including
sustainability criteria”
Sourcing: “eeebid
supports verification of
social and environmental
standards in its sourcing
and software solutions”
Figure 2 Total number of implementations worldwide and per SRM module Operational Procurement:
“Similar to sourcing”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“245.000 suppliers are connected”
Connection: “Key model is
private marketplace /
Geographical scope of connected suppliers
direct partnering”
“160.000 Europe, 53.000 Asia, 27.000 USA;
Pricing model: “Free of
Rest of the world: 5.000”
charge for basic
connection, annual fee for
extended listing in eeebid
supplier directory”
66

67. Eeebid.com inc.
ebidQL
Availability
Current version operational since 2010
First version operational since 2000
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate United States
Headquarter located
Total number of employees 29
Total number of employees working on 12
developing the product?
Frequency for delivering patches and 4 annual versions, weekly patches all managed comprehensively via CVS
upgrades sourcecode management
Is there a user association set-up Yes, there is a customer club
around the package?
Is there a helpdesk operational for 24 Yes, if you order Platinum support
hours a day?
The maintenance contract include New Releases: depending on negotiation
New Version: depending on negotiation
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 280
worldwide
Software is available in Dutch, English, German, French, Czech, Chinese
The URL of the company's website www.eeebid.com
67

68. ESIZE
ESIZE procurement solutions
Implementation scope
ESIZE implemented the
solution in: The
Netherlands, Belgium,
Germany, France, UK,
Nordics, Middle-East,
Spain, Portugal, Italy,
Austria, Switzerland,
Luxembourg, USA, Baltics,
Russia, Mexico, Brasil,
China, Japan, Australia
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers, Sourcing and
Operational Procurement:
“ESIZE complies with
common sustainability
policies that are checked
by their
controllers/advisors”
Figure 2 Total number of implementations worldwide and per SRM module
Type of connection and
pricing modelPrimodel:
Supplier connections “ ff d b d l ”
Connection: “Market
Total number of suppliers connected: place, direct integration, e-
mail, fax, XML,
“More than 150.000” Webservices, EDIFACT,
C-XML, CSV, eb-XML EDI,
Geographical scope of connected suppliers PDF, Hr-XML ,etc.”
“The Netherlands, Belgium, Germany, France, UK, Nordics, Middle-East, Pricing model:
Spain, Portugal, Italy, Austria, Switzerland, Luxembourg, USA, Baltics, Russia, “Depending on the type of
Mexico, Brasil, China, Japan, Australia” connection it ranges from
a free connection to full
customisation/integration
with various price levels”
68

69. ESIZE
ESIZE procurement solutions
Availability
Current version operational since 2010
First version operational since 1999
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 150
Total number of employees working on 100
developing the product?
Frequency for delivering patches and 3 major releases (new development) and 4 minor releases (pro-active
upgrades maintenance).
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 70
worldwide
Software is available in Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish,
Japanese, Chinese
The URL of the company's website www.esize.com
69

70. Hubwoo
Cloud Procurement Suite
Implementation scope
Hubwoo implemented the
solution in:
Global eProcurement
implementations that
span 20+ countries
including: USA, Canada,
Mexico, Columbia, France,
Spain, Germany, UK,
Poland, Turkey, Italy, The
Netherlands, Hungary,
Romania
Headquarter:
France
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers, Sourcing and
Operational Procurement:
“Huwboo enables supply
risk data from various third
party sources such as
Kortera, Compass, and
Coface”
Figure 2 Total number of implementations worldwide and per SRM module
Type of connection and
Supplier connections pricing modelPrimodel:
“ ff d b d l ”
Total number of suppliers connected: Connection: “The Hub.
Hubwoo's connect once -
“74. 000 suppliers are connected” connect to all marketplace
solution”
Geographical scope of connected suppliers
Pricing model: “Pricing
“USA, Europe, Asia, Latin America” depends on whether it's a
"direct connect" or
Integrated supplier, a
Portal supplier or a
Fax/eMail supplier”
70

71. Hubwoo
Cloud Procurement Suite
Availability
Current version operational since 2007
First version operational since 2001
Company Profile
The service is offered as: SAAS
Country in which is the Corporate France
Headquarter located
Total number of employees 250
Total number of employees working on 40
developing the product?
Frequency for delivering patches and 3 major upgrades per year. Minor patches and enhancements as needed.
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 150
worldwide
Software is available in Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish,
Japanese, Chinese
The URL of the company's website www.hubwoo.com
71

72. Iasta Inc
SmartSource SRM
Implementation scope
Iasta implemented the
solution in : USA (70%)
and UK (30%)
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Information not disclosed Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
Information not disclosed
Connection:
Information not disclosed
Geographical scope of connected suppliers
Pricing model:
Information not disclosed Information not disclosed
72

73. Iasta Inc
SmartSource SRM
Availability
Current version operational since 2010
First version operational since 2002
Company Profile
The service is offered as: SAAS
Country in which is the Corporate United States
Headquarter located
Total number of employees 52
Total number of employees working on 15
developing the product?
Frequency for delivering patches and All patches and upgrades are done 2-3 times per year. Patches are done as
upgrades needed.
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 No
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Project management during Implementation
Training on the supplied package
Total number of implementations > 150
worldwide
Software is available in Dutch, English, German, French, Spanish, Polish
The URL of the company's website www.Iasta.com
73

74. IBX
IBX eProcurement
Implementation scope
IBX implemented the
solution in: USA, Portugal,
Finland, Canada,
Australia, Russia, Italy,
Spain, Poland, The
Netherlands, Czech
Republic, Hungary,
Slovakia, UK, Sweden,
Japan, France, Ireland,
Austria, Switzerland,
Belgium, Norway,
Germany, Denmark
Headquarter:
Sweden
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“27.000 suppliers are connected worldwide”
Connection: “Supplier
activation program
Geographical scope of connected suppliers including methodology,
tools and resources”
“Suppliers are connected in more than 100 countries”
Pricing model: “Per
supplier”
74

75. IBX
IBX eProcurement
Availability
Current version operational since 2005
First version operational since 2003
Company Profile
The service is offered as: SAAS
Country in which is the Corporate Sweden
Headquarter located
Total number of employees 400
Total number of employees working on 50
developing the product?
Frequency for delivering patches and 3 yearly releases of enhancements
upgrades
Is there a user association set-up No
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Version
A demo-version of the software is Yes - but not public
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 13
worldwide
Software is available in Dutch, English, German, French, Spanish, Czech, Polish
The URL of the company's website www.ibxgroup.com
75

76. INCONTO
INCONTO E-Procurement and Contract Management
Implementation scope
INCONTO implemented
the solution in:
The Netherlands, Belgium,
UK
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Type of connection and
Supplier connections
pricing modelPrimodel:
“ ff d b d l ”
Total number of suppliers connected:
Connection: “Supplier
“100 suppliers are connected” connections are initiated
by the clients, INCONTO is
an independent supplier of
Geographical scope of connected suppliers
procurement software”
“Mainly The Netherlands”
Pricing model:
“Connections are easily
created and therefore are
low in cost. Clients forward
the invoice to the
suppliers”
76

77. INCONTO
INCONTO E-Procurement and Contract Management
Availability
Current version operational since Version 2.7 since April 2010
First version operational since 2000
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 75
Total number of employees working on 10
developing the product?
Frequency for delivering patches and Upgrades are delivered twice a year, patches as soon as necessary
upgrades
Is there a user association set-up No
around the package?
Is there a helpdesk operational for 24 No, only during working hours
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No, we prefer to demonstrate the software to our prospects.
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 30
worldwide
Software is available in Dutch, English
The URL of the company's website http://www.inconto.com
77

78. Negometrix
Negometrix
Implementation scope
Negometrix implemented
the solution in:” Most
european countries ( 80%
in the Netherlands)”
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Information not disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected: “ ff d b d l ”
Information not disclosed Connection: “Sourcing
market place, pooling of
buying power”
Geographical scope of connected suppliers
Pricing model:
“Most european countries, 80% in The Netherlands”
Information not disclosed
78

79. Negometrix
Negometrix
Availability
Current version operational since 2009
First version operational since 2000
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 14
Total number of employees working on 4
developing the product?
Frequency for delivering patches and 1 x per month
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Only for special projects
hours a day?
The maintenance contract include New Releases
New Version
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 10.000
worldwide
Software is available in Dutch, English, German, French, Russian
The URL of the company's website www.negometrix.com
79

80. Oracle Corporation
Oracle Advanced Procurement
Implementation scope
Oracle implemented the
solution: Globally
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
“Oracle has 35.000+ applications customers amongst
Suppliers, Sourcing and
which a great deal has procurement functionality
Operational Procurement:
implemented. No specific numbers are disclosed”
“Find out more on
www.oracle.com/green/in
dex.html”
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“Oracle connects suppliers via the Oracle Supplier Network transaction platform”
Connection: “Marketplace
No specific numbers are disclosed (Oracle Supplier Network)”
Pricing model: “Oracle
Geographical scope of connected suppliers
Supplier Network is the
“Mostly USA” free online service”
80

81. Oracle Corporation
Oracle Advanced Procurement
Availability
Current version operational since 2008
First version operational since 1988
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate United States
Headquarter located
Total number of employees Approximately 86.000 full-time employees
Total number of employees working on Approximately 1/4 the of the employees are in product development
developing the product?
Frequency for delivering patches and In average a major release every two years, and point releases in between.
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No, self running demos can be downloaded.
available on the web
The company provides Helpdesk support
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 75
worldwide
Software is available in Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish,
Japanese, Chinese
The URL of the company's website www.oracle.com
81

82. ProcureStaff Technologies
Consol
Implementation scope
ProcureStaff Technologies
implemented the solution
in: Australia (2), Brazil,
Belgium (1), Canada (2),
Czech Republic (2), France
(3), Germany (3), India (1),
Ireland (1), Italy (2), Japan
(1), Malaysia (1), The
Netherlands (2), Singapore
(1), Scotland (1), Slovakia
(1), Spain (3), United
Kingdom (6), United States
(32)
Headquarter: USA
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“1.357 suppliers are connected”
Connection:
Information not disclosed
Geographical scope of connected suppliers
Pricing model:
“Australia (2), Brazil (1), Belgium (1), Canada (58), China (1), Czech Republic (4),
Information not disclosed
France (45), Germany (23), India (2), Italy (2), Japan (21), Malaysia (12),
The Netherlands (45), Poland (3), Puerto Rico (10), Singapore (1), Scotland (12),
Slovakia (1), Spain (37), United Kingdom (190), United States (870)”
82

83. ProcureStaff Technologies
Consol
Availability
Current version operational since 2009
First version operational since 1996
Company Profile
The service is offered as: SAAS
Country in which is the Corporate United States
Headquarter located
Total number of employees 233
Total number of employees working on Proprietary
developing the product?
Frequency for delivering patches and There is a release schedule for Nov 2010 and June 2011
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 65
worldwide
Software is available in English , Spanish
The URL of the company's website www.procurestaff.com
83

84. Proquro B.V.
Proquro
Implementation scope
Proquro implemented the
solution in: The
Netherlands (more than
100), Belgium (1)
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: Information not
disclosed
Sourcing: Information not
disclosed
Operational Procurement:
Information not disclosed
Figure 2 Total number of implementations worldwide and per SRM module
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“Unknown” Connection: “Proquro
Connect module”
Geographical scope of connected suppliers
Pricing model:
“Netherlands, Germany, Belgium” “Connecting Module”
84

85. Proquro B.V.
Proquro
Availability
Current version operational since 2010
First version operational since 2000
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 13
Total number of employees working on 7
developing the product?
Frequency for delivering patches and Depends on new developments and bug fixes, 1 major update per year
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 No, only during working hours
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is yes, but only for consultants
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations >100
worldwide
Software is available in Dutch, English, German, French
The URL of the company's website www.proquro.nl
85

86. SAP AG
SAP SRM, SAP E-Sourcing, SAP Contract Lifecycle Management,
SAP Spend Performance Management, SAP Invoice Management
Implementation scope
SAP implemented the
solution: Globally
Headquarter:
Germany
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: “SAP is taking a
leading corporate role in
this critical topic area, both
in our own actions as well
as how we develop our
solutions”
Sourcing and Operational
Procurement: “SAP is
building new sustainability
Figure 2 Total number of implementations worldwide and per SRM module parameters, metrics and
tools into their
procurement portfolio”
Supplier connections
Type of connection and
Total number of suppliers connected:
pricing modelPrimodel:
“Hundreds of thousands. Some of these are customer-to-supplier direct connections, “ ff d b d l ”
while some customers use partners' networks” Connection: “Direct
connection (e.g., EDI
Geographical scope of connected suppliers tools), partners' networks”
“Customers are connecting to suppliers all over the globe, both directly and Pricing model: “No usage
via partner networks” charges from SAP to make
direct connections; partner
networks charge usage
fees typically based on
number of suppliers or
86
transactions”

87. SAP AG
SAP SRM, SAP E-Sourcing, SAP Contract Lifecycle Management,
SAP Spend Performance Management, SAP Invoice Management
Availability
Current version operational since SAP Spend Performance Management version 2.1 (Q2 2009),
SAP E-Sourcing version 6.0 (Q4 2009), SAP Contract Lifecycle Management
version 3.0 (Q4 2009), SAP SRM version 7.0 (Q2 2009).
First version operational since 1998 for most applications in the portfolio, 2007 for Spend Analytics.
Company Profile
The service is offered as: Inhouse and SAAS
Country in which is the Corporate Germany
Headquarter located
Total number of employees 47.500
Total number of employees working on Approximately 1000+ across the portfolio
developing the product?
Frequency for delivering patches and For on premise solutions, approximately 1x per 12 - 18 months for major release
upgrades and patches as needed. For on demand solutions, approximately 2x per year
releases.
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases and New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support, Bespoke software, Implementation support, Project
management during Implementation, Training on the supplied package
Total number of implementations Across portfolio over 1800 implementations
worldwide
Software is available in Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish,
Japanese, Chinese
The URL of the company's website www.sap.com
87

88. SynerTrade SA
SynerTrade 6
SynerTrade implemented
the solution in: 65
Implementation scope countries this includes all
EU countries, in Asia
(China, India, Japan,
South-Korea, Vietnam,
Thailand, Pakistan, some
10 more), Austrialia/
NewZealand, America
(USA, Kanada, Mexico),
South/MiddleAmerica
(Brazil, Argentine, Chile,
Venezuela,), Africa
(Algeria, Lybia, Agyt,
South-Africa, Mozambic,
Kongo) MiddleEast
(Arabia, Kuwait, Jordania,
Iran)
Headquarter:
Figure 1 Geographical scope & location headquarter
Luxemburg
Sustainability Policy:
“We have an advanced
sustainability methodology
developed jointly on
international level with EY,
it has preconfigured
templates of
quetsionnaires, KPI,
certificats, processes,
controlling reports,
Figure 2 Total number of implementations worldwide and per SRM module interactive drill downs and
management reports”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
“25.000 suppliers are connected”
Connection: “Default is
direct partnering, we offer
Geographical scope of connected suppliers self-service, hotline
supported onboarding, full
“65 countries”
service, catalog creation
service
Pricing model: “Basic
connection free of charge”
88

89. SynerTrade SA
SynerTrade 6
Availability
Current version operational since 6.6.2 (since February 2010)
First version operational since Release 1.0.0 (April 2000)
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate Luxemburg
Headquarter located
Total number of employees 105
Total number of employees working on 38
developing the product?
Frequency for delivering patches and 2 Sub-Releases per year, 10 sub-sub releases and daily automatic patches
upgrades
Is there a user association set-up Yes, the SynerTrade Key Customer Club
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases: ASP yes / license typically not
New Versions: ASP yes/ license yes
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations More than 186
worldwide
Software is available in Dutch, English, German, French, Spanish, Russian, Czech, Polish, Japanese,
Chinese
The URL of the company's website www.synertrade.com
89

90. TBlox
TBlox online software
Implementation scope
TBlox implemented the
solution in: USA and
Europe
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: “Suppliers have
free choices to accept or
reject client invitations.
Sourcing: “TBlox offers
both basic and advanced
sourcing solutions via
TBlox-PAAS”
Operational Procurement:
“TBlox offers new
Figure 2 Total number of implementations worldwide and per SRM module generation ERP software”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected: “ ff d b d l ”
Information not disclosed Connection: “Free Supplier
Portal and services
provided via partner
Geographical scope of connected suppliers
network”
“USA and Europe”
Pricing model: “ Free for
use. Supplier can connect
own OCI-enabled webshop
or activate free webshop.
Optional free and paid
service packages available”
90

91. TBlox
TBlox online software
Availability
Current version operational since 2010
First version operational since 2004
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 120
Total number of employees working on 35
developing the product?
Frequency for delivering patches and +200 upgrades per year, stage policy for releases, client may select stage
upgrades (frequency upgrades)
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 1
worldwide
Software is available in Dutch, English, German, French, Spanish
The URL of the company's website www.tblox.com
91

92. Upside Software
UpsideRFX
Implementation scope
Upside implemented the
solution in: “More than
180 countries”
Headquarter:
Canada
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: “Suppliers must
demonstrate consistent
efforts in ensuring green
practices and these are
followed and monitored”
Sourcing and Operational
Procurement: “Processes
are automated and
electronic to ensure
Figure 2 Total number of implementations worldwide and per SRM module minimal paper usage”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected:
“ ff d b d l ”
Information not disclosed
Connection:
Information not disclosed
Geographical scope of connected suppliers
Pricing model:
Information not disclosed Information not disclosed
92

93. Upside Software
UpsideRFX
Availability
Current version operational since 2010
First version operational since 2000
Company Profile
The service is offered as: Inhouse
SAAS
Country in which is the Corporate Canada
Headquarter located
Total number of employees 160
Total number of employees working on 160
developing the product?
Frequency for delivering patches and Patches every 10 weeks, upgrades every 3 to 6 months.
upgrades
Is there a user association set-up Yes
around the package?
Is there a helpdesk operational for 24 Yes
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is No
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 300
worldwide
Software is available in English
The URL of the company's website www.upsidesoft.com
93

94. Vendorlink B.V.
Vendorlink
Implementation scope
Vendorlink implemented
the solution in:
The Netherlands
Headquarter:
The Netherlands
Figure 1 Geographical scope & location headquarter
Sustainability Policy:
Suppliers: “Vendorlink
partners with EvoSwitch
for hosting activities.
Vendorlink tries to select
suppliers and partners
based on their
sustainability policy”
Sourcing: “Not applicable”
Figure 2 Total number of implementations worldwide and per SRM module Operational Procurement:
“Not applicable”
Supplier connections
Type of connection and
pricing modelPrimodel:
Total number of suppliers connected: “ ff d b d l ”
“Not applicable” Connection:
“Not applicable”
Geographical scope of connected suppliers Pricing model:
“Not applicable” “Not applicable”
94

95. Vendorlink B.V.
Vendorlink
Availability
Current version operational since 2009
First version operational since 2008
Company Profile
The service is offered as: SAAS
Country in which is the Corporate The Netherlands
Headquarter located
Total number of employees 7
Total number of employees working on 3
developing the product?
Frequency for delivering patches and Maximum of 2 major upgrades per year.
upgrades
Is there a user association set-up No
around the package?
Is there a helpdesk operational for 24 No, only during working hours
hours a day?
The maintenance contract include New Releases
New Versions
A demo-version of the software is Yes
available on the web
The company provides Helpdesk support
Bespoke software
Implementation support
Project management during Implementation
Training on the supplied package
Total number of implementations 150
worldwide
Software is available in Dutch, English
The URL of the company's website http://www.vendorlink.nl
95

96. Australia France
Susan Stuart Jean-Gabriel Padovani
E-mail: susan.stuart@au.capgemini.com E-mail: jean-gabriel.padovani@capgemini.com
Tel.: +61 2 9293 4055 Tel.: +33 1 49672140
Dave White Jean-Pierre Pellé
E-mail: dave.white@au.capgemini.com E-mail: jean-pierre.pelle@capgemini.com
Tel.: +61396133222 Tel.: +33 1 49675159
Italy Sweden
Marco Alberti Bo Karlsson
E-mail: marco.alberti@capgemini.com E-mail: bo.x.karlsson@capgemini.com
Tel.: +39 02 414931 Tel.: +46 8 5368 4065
Michael Skordby
Belgium E-mail: michael.skordby@capgemini.com
Tel.: +46 8 5368 4021
Philip Van Gasse
E-mail: philip.vangasse@capgemini.com
Tel.: +32 2 7081111 UK & Ireland
Filip Paenhuysen Graham Skinner
E-mail: filip.paenhuysen@capgemini.com E-mail: graham.skinner@capgemini.com
Tel.: +32 2 708 13 63 Tel.: +44 870 366 0704
Hamish Mckechnie-Sharma
Netherlands E-mail: hamish.mckechnie-sharma@capgemini.com
Tel.: +44 870 366 0435
Ton van Dolder
E-mail: ton.van.dolder@capgemini.com
Tel.: +31 30 689 1323 Finland
Markus Karki
Central Europe E-mail: markus.karki@capgemini.fi
Tel.: +358 9 4526 5612
Martin Raab
E-mail: martin.raab@capgemini.com
Tel.: +49 221 9126 44150 Spain
Stefan Becker Pedro Provedo
E-mail: stefan.becker@capgemini.com E-mail: pedro.provedo@capgemini.com
Tel.: +49 89 9400 1126 Tel.: +34 91 657 7521
North America India
Matthew Shull Sanjeev Itagi
E-mail: matthew.shull@capgemini.com E-mail: sanjeev.itagi@capgemini.com
Tel.: +1 312 395 5805 Tel.: +91 984 545 3017
Global (all other queries):
Adrian Penka
E-mail: adrian.penka@capgemini.com
Tel.: +1 404 806 5082
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