Supply Chain Management Rx
Software that kills the pain
Susan Avery, David Hannon, and Anne Millen Porter -- Purchasing, 9/19/2002 2:00:00 AM
In the lexicon of software developers, the pain point refers to the longstanding problem an application is designed to solve. For purchasing and supply management operations, one might be inclined to say, 'The doctor is in'...
Indeed, what has survived from the dot.com silly season is a group of solid-if still somewhat incomplete-software offerings aimed specifically at resolving some age-old purchasing problems. For example:
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Spend analysis. Every year for its Top 250 project, PURCHASING magazine asks companies to cite their total spend figures for the year. What's amazing is how few purchasing organizations-even at big companies where resources are supposed to be abundant-have more than a vague idea about what their total spend number is, never mind an idea of what they spend on a given commodity in a given year. This essential lack of good data at the commodity level makes true strategic sourcing a statistical impossibility. New software (and service) offerings are out there today capturing, scrubbing and aggregating historical spend data.
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Purchasing paperwork. Remember Ernie Anderson, the father of systems contracting? The archives at PURCHASING magazine are full of his rants about the high costs of controlling a company's spend using paper-based systems that require complex generation and matching of requisitions, purchase orders, receiving documents and invoices. The systems contract was a high-level deal with a supplier against which product end users could issue their own releases. (In fact, it is the precursor to what is known today as strategic sourcing.)
Enterprise e-procurement applications, which rank among the most mature of the e-sourcing software offerings, automate and improve upon Anderson's original concept. The checks and balances are still there (it's called workflow), but they no longer slow the buying process down or heap on costs. Releases come in the form of orders placed through electronic catalogs. E-procurement applications can be integrated with back office systems, meaning the minute someone orders a pen or personal computer, the correct account on the company's general ledger reflects the expenditure. Compliance to corporate purchasing contracts can also be monitored easily as software providers are now pushing e-procurement to the next level, integrating payment functions as well. And, when implemented with decent product coding systems, enterprise e-procurement engines ensure that, going forward, companies can capture and report highly specific product and service spend data on the fly and in real time. -
Knowledge capture. To pursue strategic sourcing, manufacturing companies often assemble cross-functional, multidivisional teams to standardize and source various commodities. Typically, the teams do a great job of putting together long-term corporate contracts with just one or two suppliers. Along the way, however-and this is where the pain comes in-team members create thousands of e-mail, word processing and spreadsheet documents. Then, they all go back to their day jobs, taking with them their own subset of these documents. Some leave the company. Others move on to different jobs. Three years down the line, a new sourcing team finds itself starting at square one because the company failed to capture information about the original process in a usable format. Those days are over. At least they are for companies investing in software applications that layer Web interfaces over powerful database applications to allow unprecedented levels of collaboration, document sharing, data capture and performance tracking in group sourcing environments.
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Decision support/standardization. Who in purchasing has not felt the pain of trying to weigh tradeoffs between product price and other critical supplier performance factors such as delivery or quality? Very often the purchasing pro's job is to obtain lowest possible prices for materials and parts. It's how their performance is typically measured. But there's hell to pay when a production line goes down because a supplier's parts are either late or don't make the quality cut. Purchasing managers have struggled for years to develop decision support systems that incorporate and weigh various performance factors according to their strategic priorities, but these systems frequently give rise to a new pain, that of teaching and persuading buyers to apply complex rules to buying decisions in a consistent fashion.
The good news is that software developers are now working to ease this pain with applications that automatically normalize suppliers' price bids based on established costs (for example: the costs of switching suppliers, currency exchange, or logistics costs) as well as performance factors like suppliers' historical quality or ontime delivery track records. Some offerings also tout advanced mathematical models that permit 'what if' decision modeling and strategy optimization calculations that are simply too complex for most human brains or two-dimensional electronic spreadsheets to handle. -
Competitive market making. The fast-rising popularity of electronic auction and electronic request for quote, proposal, or information (eRFx) software offerings stems, in large part, from their ability to minimize the painful-and costly-tradeoffs between bidding enough suppliers in real-time environments that tend to yield more competitive pricing and consuming vast amounts of time and personnel resources in multiround quoting and negotiation processes.
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Multiround negotiations. Newer e-negotiation software offerings pick up where e-auction and eRFx applications leave off. They offer similar timesaving opportunities while allowing suppliers and buyers to explore electronically the kinds of off-specification deal sweeteners that can yield optimum price/cost points for buyers. Example: Change a design slightly and ACME Manufacturing might be able to offer a 40% discount. That might exceed any potential auction-driven price compression, but could not be captured to the same extent in an e-auction process where specifications must be locked down in advance of the bidding event.
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Battle of the forms. How often has PURCHASING's legal writer Dr. John E. Murray addressed the critical 'battle of the forms'? Should a company end up suing (or being sued by) a supplier over a deal that has gone sour; will it be the buyer's or supplier's contract terms that prevail in a court of law? Much has to do with the parties' intentions and the courts' interpretations of the parties' intentions based on peoples' fallible memories of what they agreed to (or did not agree to) over the phone. Online negotiating software addresses this pain as well by creating audit trails for complex negotiations.
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Supply risk. Anyone who has ever put pen to paper on a major corporate sourcing deal will know just how scary it is to commit the company's entire spend for a given commodity to just one or two suppliers. So, the big drive to leverage corporate buys has given rise to a new breed of purchasing pain: the need for predictive information about how suppliers will perform over time. Guess what? There are now data/software companies creating this type of information and delivering it to buyers electronically.
Other purchasing pain points being addressed by software developers include the many trials and tribulations of inventory management, handling complex bills-of-materials, buying services, etc. And, while many of these applications remain in their infancy (see sidebar on page SCov2), the supply management successes that companies are starting to achieve with them are simply too important to ignore.
What follow are functional descriptions for a selection of software applications designed to ease a variety of purchasing pains. Many have been selected for perceived level of traction in the marketplace (they're either being offered by companies with demonstrated longevity or they've turned up in enough PURCHASING case studies or other trade articles to suggest they're going to survive). A few, however, have been included for the sheer scope of what they are attempting to do.
Editors' note: The following descriptions come either directly from the software developers themselves or are derived from public press or marketing materials. Their inclusion in this report should not be taken as an endorsement or review of how well they deliver on the functionality they are claiming. More/more detailed descriptions available at www.purchasing.com.
Agile
Agile 8 provides a single system of record for a product. Includes Product Collaboration, Product Sourcing and Product Servicing and Improvement modules. New addition: Agile Engineering Suite provides program management, real-time design collaboration among internal design teams and with external customers and suppliers, release to manufacturing transitions and ability to interact with product data from within native engineering applications. www.agilesoft.com
Aprisa StraightLine
Modules include Discovery Center, Component Center, Bill of Materials (BOM) Center and Quote Center. Allows electronic product development teams to research, collaborate with team members, and automatically document product concepts, search and investigate component information for millions of active and passive electronic components. Allows users to identify alternate components, upgrade and view comparisons of an average 35 attributes per component. Allows users to document projects by associating component data, search criteria, audit rules and design notes directly to conceptual diagrams. Allows production of fully cleansed BOMs. Enables approved supplier lists to route components to specific suppliers, automatically imports supplier responses in standardized, industry-approved format, identifies incomplete and inaccurate responses through error-gap and no-bid analysis reports, generates costed BOMs with one click 'what if' analysis, measures suppliers on total cost of ownership, including value-added services. www.aprisainc.com
Ariba
An array of modules that integrate and automate the spend lifecycle from plan to pay. Sample: Ariba Analysis allows companies to consolidate demand across divisions, eliminate redundant suppliers, spot emerging trends such as large buys or new areas of demand that indicate a contract opportunity, manage compliance by identifying maverick users, and monitor spend patterns to ensure savings targets are achieved. Ariba Invoice provides workflow-based exception handling and real-time supplier communication while minimizing costs of manual data entry, invoice matching, and exception resolution. Ariba Buyer automates buying cycle. Extensions address additional spend types, including workforce and travel-related spending. Features localization of languages, currencies, and business processes for global applications. Ariba Contracts provides buyers access to centralized repository of contracted products and services. The application allows buyers to launch purchasing transactions, extend contracts, renegotiate service terms, and monitor compliance levels of suppliers. www.ariba.com
A.T. Kearney
Electronic survey tools can be used to create RFIs, RFQs, RFPs, supplier and internal customer requirement surveys. Reverse auction options include hosted and self-service models and can be held on an automatically recurring basis to negotiate on the same category with same terms on a regular basis or on multi-parameter basis. The downward auction model lets buyers negotiate numerous price and nonprice parameters. The upward auction tool hosts invitation-only events. The Sourcing Management Technologies suite includes a spend management application which extracts historical data from an accounts payable system to track spending by commodity, supplier or business unit. www.ebreviate.com
B2eMarkets
The Self-service Procurement Relationship Management suite includes enterprise commodity strategy development, negotiation and auction tools, award and contract management, and enterprise supplier performance management. B2eMarkets content includes self-paced eLearning and coaching for procurement professionals, best practice category methodologies, templates, and commodity and supplier research directory and profiles. www.b2emarkets.com
Bellwether
Integrated modules of Purchasing Management eXtra (PMX) software automate procurement process: supplier management, purchasing, requisitioning, RFQs, receiving, expediting, inventory control, asset tracking, budget controls, payment approval. Purchasing module collects data from requisitions and RFQ modules, feeds data to receiving, inventory and accounts payable interface modules. Interfaces with other systems, allowing users to import suppliers, parts, account codes, material receipts, requisitions and purchasing histories, export PMX data into databases and spreadsheets, export PMX data to accounting, inventory and ERP systems, export PMX invoices to accounts payable system for payment. www.bellwethercorp.com
BMO ePurchasing
FlexPort combines electronic PO delivery, multidimensional file/message mapping, flexible payment capability, and advanced reporting. Procure2Pay offers rules-based customized online catalogs that take users through product search, pricing, ordering, and tracking through payment and general ledger recording. Details Online delivers detailed transaction information for viewing, editing and cost allocation. Can be integrated with ERP and provides standard and customized reporting capabilities. www.bmoeps.com
BOM.com
Allows users to build entire products by capturing mechanical, electrical and packaging BOMs in one tool. Enables users to transfer data (master item lists, entire BOMs, supplier contact information), specify assemblies and components in a database designed for hardware product development, synchronize product-structure and item-related data from SolidWorks 3D CAD assembly, part and drawing files with product data. Allows capture of unlimited sourcing data-manufacturers, suppliers, leadtimes and quotes-for every item. Stores comprehensive supplier contact and item-related information. Users can view suppliers' entire catalogs. They can also organize changes to many items into a single change order (showing exactly which category of data has changed for each), create change boards for different stages of development and types of data and route engineering change orders to the right people automatically. Offers instant access to changes, including quantities and reference designators, from one version of a BOM to another. www.bom.com
CascadeWorks
Automates the services buy, from requisition to payment. CascadeWorks Clarity includes reporting in such key areas as financial analysis, supplier performance, service quality and process management. Clarity includes end-to-end spend management capabilities. Business Relationship Management application infrastructure enables control of application behavior at multiple levels in order to support business unit processes while maintaining consistent enterprise-wide policies and visibility. www.cascadeworks.com
Clarus
Addresses sourcing to payment. Sourcing feature automates supplier selection process (includes an option to let the system select a winner based on criteria other than price.) Catalog management feature accepts virtually any catalog format. Software provides tools for users to load and update catalogs and includes ability to identify updated catalog items, roll back catalogs and schedule catalogs to load automatically. Web-based administration feature provides ability for a user to manage business policies such as users, hierarchies, spending limits, configuration settings, and workflow rules. Reporting and Analytics feature analyzes financial, supplier, commodity and process performance. www.claruscorp.com
Commerce One
Source module includes eRFx, negotiation, supplier performance management, supplier activity reports, integration capabilities and sourcing intelligence. RFx templates allow buyers to build complex bid packages. Negotiation functionality allows structured one-on-one negotiation, with single and multiround capabilities. Quotation analysis supports 'what if' scenarios and allows comparison of bid packages. Supplier Performance Management includes supplier scorecards, performance reports, ratings and categorization, supplier listing, performance analysis reports, price tracking. Sourcing Activity Reporting ranges from basic process activity reports to spend and performance analysis by line item, commodity and supplier. Other modules include Sourcing Intelligence, Contract Management, Buy, Contract Labor, Invoice Management & Payment, Supplier Self-Service, plus integration with legacy systems, information sharing, business process design, information routing and security. www.commerceone.com
Demand Solutions
Rough Cut is a 'what if' tool that allows planners to ensure demand can be met. Requirements Planning is a collaborative planning application for dynamically assessing requirements. Electronic Demand Solutions Interface ( EDSI ) facilitates Vendor Managed Inventory and provides open communication by translating EDI data into the Demand Solutions Software Suite. www.demandsolutions.com
Dun & Bradstreet
Supply Base Optimizer decision support software automates information transfer and renewal. The module enables the supply management process to become repeatable and renewable. Key functionality: manage suppliers, load spend actual on a periodic basis, manage contracts, track contract compliance, refresh supplier information from D&B to get updated information about corporate business relationships, risk and dependency information, assess supplier risk management, assess supplier performance management, identify new opportunities periodically. www.dnb.com
Emptoris
ePass includes tools for RFI, workflow and best practice templates, approved supplier lists, supplier profile management and scoring features. The Sourcing Workflow and Event Management tools include multiparameter RFPs/RFQs and reverse auctions, automated data entry, supplier search, e-mail notification and item and bid search. Collaboration tools include online messaging, document sharing, conferencing, and RFP/RFQ co-management. Completed RFP/RFQs are stored in a hub and buyers control access to the document. Optimization tool evaluates bids across multiple factors. www.emptoris.com
Entomo Inc.
Entomo Inc. offers Online SRM and strategic sourcing applications that link manufacturers with their direct materials supply chain. Its Web-based application, Entomo SmartHub/SRM, delivers transaction automation, online collaboration, supply chain event management, supplier performance measurement, and analytics. Advanced capabilities support aggregation of inventory and purchasing data from multiple sites - delivering cross-plant visibility, consolidated sourcing, centralized commodity management, and inventory sharing. www.entomo.com
Exemplary
Built for manufacturing environments striving toward pull, lean, and build-to-order objectives. Early warning system enables real-time monitoring of supply chain health. System pinpoints problems that require immediate attention and prioritizes alerts and notifications according to business rules or performance factors. Grants visibility to on-hand inventory, material consumption, and replenishment plans. Generates pull signals as inventory consumption occurs. Monitors inventory in motion. Collects and integrates data from separate, often incompatible, ERP and MRP systems and combines it with real-time collaborative information. Supports different types of trading partners with Web, e-mail, system-to-system, and auto fax. www.exemplary.com
FieldGlass
A Web-based application for managing services procurement. Creates a secure, private marketplace that includes only selected suppliers and operates according to a company's business rules. The system lets organizations define individual user roles, set permissions, create supplier tiers, assign accounting codes and build approval chains. A Solution Requisition Module allows buyers to create, distribute and evaluate an RFP-type document; then manage payment to the selected supplier. Buyers can support global deployments with multiple currencies and international date formats. Buyers can also create a budget for a business unit, a project or both, and track financial activity against the budget in real time. www.fieldglass.com
FreeMarkets FullSource
Combines online bidding software with global commodity expertise, industry-specific program management, market intelligence, supplier research, market making operations, and 24-hour technical support. Software supports both reverse and traditional auctions, as well as various event types, lot structures, and feedback configurations in real time. Supports more than 30 pricing formats and features that adapt to varied market conditions. Examples: Transformation bidding allows for a range of total cost factors, including quality, transportation, production process, and equipment requirements; adjustments are made as bids are submitted. Index bidding enables bidding relative to an index. Net Present Value (NPV) bidding allows bidders to see their calculated NPV bid in relation to all other bids, giving them and the buyer the opportunity to compare dissimilar bids. Multiple Offering bidding enables bidders to submit two or more relatively equal offerings in a singular bidding event. Rank-Only bidding allows bidders to see only their own numeric rank in the auction with no indication of distance from other bids. Other FreeMarkets applications include QuickSource and Spend Visibility. www.freemarkets.com
Frictionless Commerce
The Frictionless Sourcing software platform provides functionality for spend analysis, RFx, reverse auctions and contract and supplier management. The Sourcing Performance Management feature provides visibility into existing spending patterns, processes and suppliers, as well as process analysis, savings reports and exception reports. Collaborative project management is facilitated through task management, project schedules and resource allocation to let users share information, review past results and ensure compliance. Through knowledge management templates, users can capture, distribute and reuse sourcing knowledge and best practices from the RFx step, through to reverse auctions and award allocation. The Frictionless Sourcing Optimizer simplifies the analysis of complex supplier bids at the global and line-item level. www.frictionless.com
Frontstep
An extended ERP suite architected on the Microsoft.NET platform. Includes customer relationship management and supply chain management on single technology platform. Supply chain solutions integrate front-office order entry and customer service operations with back-office execution systems. Provide real-time order promising, dynamic synchronization, messaging and analysis in both single- and multi-site, multi-ERP environments. Frontstep APS is an advanced planning and scheduling solution that enhances ERP planning and scheduling by integrating materials, production capacity and process sequencing into real-time, near-term horizon, planning and execution tool. Dynamically synchronizes flow of material and use of resources through entire system. www.frontstep.com
GE Global eXchange
GE Global eXchange Services provides private network tools to create RFQs, evaluate bids and automate procurement approvals and workflow. The Interchange Solutions group offers EDI and integration services, while the procurement service component creates requisitions based on catalog information from supplier products and services coupled with procurement workflow. The Selection tool sets up dynamic auction/RFQ event details, such as time of event, currency used and bidding rules. Users input the items to be sourced, invite suppliers, finalize the pool of potential suppliers then run and evaluate the bids received. GXS is in process of being acquired by technology buyout firm Francisco Partners. www.gxs.com
i2 Technologies
Supplier Relationship Management (SRM) software enables companies and their suppliers to collaborate. SRM provides capability to create, execute and sustain global sourcing strategies. Strategic Sourcing software provides capability to aggregate part, item and supplier usage and projected demand across disparate systems and supplier usage. It also provides part level details and content data cleansing services. Procurement software rationalizes parts, items and suppliers across disparate systems. It gives visibility of sourcing preferences to requisitioners, supports local approval rules, provides integrated negotiation and procurement workflow, supports multiple types of RFx, negotiations through auctions/reverse auctions, requisitions, procurement including blanket purchase order, receipt and three-way invoice matching/reconciliation settlement, financial settlement flexibility and reconciliation to p-cards and direct invoicing. www.i2technologies.com
I-many
ContractSphere for Procurement automates contract-based procurement processes. Features central contract repository that serves as a complete system of record for all contract components, including clauses, attachments, scanned documents, and provides a full audit history, including versions and amendments. Contracts can be created, stored, imported, exported or shared through the use of OpenForms Technology, which structures terms as XML. ContractSphere for Procurement also provides a contract library with standard templates and preferred/alternate clauses. Since contracts are in one central location, users can free-form search contract clauses, text and actionable items. Key functions include: central repository for electronic contracts, real-time updates to workflow tasks, user defined categories, alerts and notifications (to ensure no contract expires without warning), clause library (which lets users add, change, delete and lock clauses), contract process workflow, and reporting and analysis to measure contract performance and ensure compliance. www.imany.com
Intentia
Movex Procurement supports supplier selection and evaluation, creation and renewal of supplier agreements, requisitioning, purchase order processing and monitoring, receiving and quality control, claims, invoice control and statistics. Purchase inquiries are used to make price and delivery inquiries with suppliers. Delivery schedules simplify the purchase process in high-volume/frequent delivery environments with close supplier relationships. Repair orders provide functionality for the purchase of repair work on serialized items with tracking and retained traceability. Subcontracting manages the planning and execution of work and services performed on suppliers' premises, with or without integration into the manufacturing processes in Movex. www.intentia.com
Itiliti
Targeted to Fortune 1000 companies who traditionally require high volumes of contract or contingent labor and who are looking to decrease cost and gain control of the procurement and management of these assets. Capabilities include automated tasks, flexible forms and workflows, centralized and standardized processes, historical tracking and maintenance, analytics and reporting, integrated timecards. Allows organizations to track details of contractor engagements, especially hours worked on strategic projects and initiatives and total dollars those efforts cost a company. Incorporates online timesheets and billing summaries into the workforce procurement supply chain. Tracks hours and dollars and streamlines internal approvals. Allows administrative users to create reports on the fly. End-users can obtain information in various formats (tables, charts, etc.) through a browser-based portal interface. Portal is customizable by organization. www.itiliti.com
J.D. Edwards
Offers array of supply management modules. Sample: Procurement Management processes requisitions, purchase orders, RFQs, quotations, and receipts. Gives buyers real-time access to inventory levels, expected deliveries, and projected demand. Advanced Pricing helps buyers take advantage of a variety of pricing scenarios offered by suppliers. Demand Consensus enables use of any time-series data, including statistical forecasts from J.D. Edwards Demand Planning or Forecasting, and more qualitative, judgmental forecasts from spreadsheets. Users can manage multiple forecasts while focusing on exceptions and people can collaborate on differences and reconcile forecasts. Demand Planning's statistical algorithms allow users to identify past unusual events, manage safety stock, constrain forecasts based on capabilities, and plan for new product introductions. Other modules include: Agreement Management and Inventory Management. www.jdedwards.com
Logility
Voyager Collaborate automates and manages collaboration between buyers and sellers including order forecasting capability, planning, exception and alert notification, promotion planning and business trend analysis. Voyager Fulfill provides tools to manage communications about customer orders, freight shipments and suppliers' products. WarehousePRO monitors goods in realtime and uses RF technology to increase inventory accuracy, while built-in performance analysis tools measure key performance indicators. www.logility.com
Manugistics
The Strategic Sourcing application within the Supplier Relationship Management suite provides eRFx, reverse auction, and contract management capabilities. The Procurement Execution application is a private marketplace tool emphasizing preferred suppliers with approved catalogs and negotiated contracts. The Supply Chain Management suite offers applications for global logistics management, demand management and manufacturing planning. Buyer's Workbench lets suppliers respond to purchase orders and RFQs while managing change orders, delivery orders, and returns. The acquisition of DigitalFreight gives Manugistics a logistics-specific platform and customer base. www.manugistics.com
MfgQuote
MfgQuote operates a marketplace for buyers and suppliers of contract manufacturing services and provides tools to facilitate RFQ distribution and supplier management. Free subscription service provides buyers with capability to create, manage and collaborate on RFQs. It matches RFQs with suppliers. Quotes are received online and tools are provided to collaborate, analyze quotes, perform due diligence and award RFQs. With RFQ/Supplier Management service, buyers create and work within private marketplaces, perform advanced supplier discovery and have use of sophisticated analytical tools. New MfgQuote Rating System evaluates and rates performance of both buyers and sellers. www.mfgquote.com
Ketera
Founded and funded by American Express for mid-sized companies, Ketera provides a full-cycle e-procurement system (sourcing through payment, tracking and procurement data analysis). Software is designed to work in conjunction with American Express Corporate Services's expense management services: Users can automate procurement-related tasks, such as electronically reconciling purchases and transferring data into back-end financial systems. It manages the process for indirect goods and services from multiple suppliers, through a Web interface. Updated features include improved search functions and supplier catalog content management services. www.ketera.com
MindFlow Technologies
Sourcing Suite 4.0 includes five applications for the sourcing lifecycle. These include: Spend Analyzer, which provides historical spend analysis and extensive modeling capabilities to per-form future spend visibility, and Sourcing Analyzer, which helps users produce optimal supply allocation and supplier decisions. The suite also includes Bid Analyzer, which delivers RFQ/RFI capability, Auction Analyzer, which provides reverse auction capability, and Per-formance Analyzer which offers a sourcing measurement system. Sourcing Desktop brings the applications together through a portal that can be customized by users with personal commodity tracking, cost driver trend reports, etc. www.mindflow.com.
Moai
Total Landed Cost (TLC) Calculators allow users to establish built-in formulas to calculate total landed cost of given suppliers, based upon bid price and monetary parameters such as duties, fees, taxes, tariffs and other charges. Threaded Sourcing Projects allows buyers to group individual offerings together as a project. Appropriate information can then be shared and used as a framework for developing future offerings following the desired sourcing process for the organization. Buyer Parameters feature allows buyer to enter values that will be used to determine which supplier is preferable for a particular offering. Buyers can favor one supplier over another based upon whatever parameters are of importance to them, such as price, switching costs, past performance, product quality and delivery times. New database tables and views have been added to assist in developing reports and conducting 'what if' analyses, using industry-standard reporting tools. Due out later this year: tools for contract management/spend analysis. www.moai.com
Noosh
Creates a central platform for all types of noncatalog based spending across multiple business enterprises. Offers object-level security, flexible project management and detailed event tracking to enforce business rules at every commercial level (individual, team, division and company). Data exchange with other systems is enabled using open system standards. Collaborative workspace enables teams to be formed and managed in accordance with privileges assigned to each team member. Commerce process layer includes predefined and configurable business rules. Product management, procurement, multi-tier syndication, brokering and subcontracting processes are available and virtually any process can be enabled using configuration functionality. Application layer defines specifications of objects being managed. In procurement, specs can be created to define key attributes of products or services being purchased. Business intelligence layer includes detailed reporting and analytics. www.noosh.com
Oracle
The iProcurement tool in the Oracle 11i Procurement suite uses multisupplier self-guiding catalog capabilities, optimized for self-service RFQ and PO creation. Oracle Sourcing provides negotiation templates. The Purchasing application automates routine transactions while Purchasing Intelligence provides supplier evaluation capability. The Supplier Scheduling tool forecasts needs for goods and services while buyers receive information on advance shipment notices and confirm receipts online. iSupplier portals let suppliers review purchase agreements, track inventory balances and verify receipts online. www.oracle.com
Open Ratings
The Strategic Performance Impact tool provides supplier scorecarding and performance measurement capabilities. Buyer Performance Impact uses a predictive supplier database to monitor and predict poor performance using a supplier stability indicator developed from internal and external company data. The application also includes supplier sourcing and management tools. www.openratings.com
Palmas
Purchasing plus+ has capability to create purchase orders. System has standard PO info: supplier terms, item leadtimes, prices, general ledger (GL) accounts so users need to enter little data. Purchasing plus+ also can create POs automatically from other modules of the system: Approved reqs and RFQs can be turned into POs or POs can be built for items that are low in stock. Software tracks status of POs (late, received, invoiced, modified, back ordered, etc.) Expediting tools ensure POs arrive on time. System allows for full cost allocation to an unlimited number of GL accounts and/or cost centers either by percentage, dollar value or quantity. Supplier performance evaluation tools evaluate suppliers based on six user-defined criteria. Graphical Forms allows printing of POs and other forms. Flexible reporting allows users to design reports with use of pull-down menus and pop-up windows. Import/export utilities allow sharing of Master File information with other systems. www.palmasdev.com
PeopleSoft
Purchasing and eProcurement modules in PeopleSoft 8 bring the purchasing process online including requisitions, change orders, purchase orders, contracts, and shipment receipts. Modules let users create POs online, capture records, implement workflow rules and view inventory before ordering and review workflow status and delivery dates after ordering. The Strategic Sourcing module lets users more quickly create RFx, conduct real-time auctions, and award contracts and purchase orders. www.peoplesoft.com
Perfect Supply Manager
Sourcing Manager automates RFx creation and distribution, supplier selection and negotiation with reusable library of templates that are accessible across an organization; automatically quantifies best award decisions. Auction Manager accommodates both price-only and total-value auctions. Users can conduct multiround sourcing events, starting with RFI, proceeding to open bid auction, and finishing with private negotiations. Category Manager enables cross-functional and regionally distributed teams to share information, documents, and analysis, as well as collaborate on event creation, execution and review. Scorecard Manager provides configurable framework that enables users to create a closed-loop supplier-performance measurement system with flexible data-input modes. Contract Manager unifies all contract management activities into one system, highlighting information for sourcing, supplier management, and category team collaboration. Other offerings include Insight module, Category Manager, Process Manager, and Bid Manager (formerly MaterialNet Custom Procurement Management System). www.perfect.com
Procuri
The collaborative and automated RFI capability lets buyers and sellers exchange real-time information. The RFQ wizard automates RFQ preparation for direct, indirect and MRO sourcing. Negotiation tools include in-depth reverse auctions with bid structures, sealed bids and e-tender as well as one-on-one negotiation. Collaboration functionality creates and transmits requirements and specifications documents, reviews designs and clarifies information with suppliers. www.procuri.com
PurchasePro
e-MarketMaker is a private trading network tool while the 2001 BayBuilder acquisition brought the e-Source application, including a Web-based reverse auction tool that weights supplier services. The e-Procurement application offers online RFQs and ordering, catalogs and supplier evaluation tools. www.purchasepro.com
PurchasingNet
E-procurement software for mid- to large-sized companies in services industries. Capabilities of PurchasingNet-SQL e-procurement system include requisitioning, approval routing, purchasing, receiving, inventory control, stock requisitioning and invoice matching. Back-office procurement products include software to streamline the purchasing, invoice matching, inventory control and budgeting processes in mid- to large-sized companies. Front office applications extend to employee desktops and support browser-based requisitions, direct orders, approvals and receipt transactions. Catalog Junction software allows users to download and manage supplier catalog content from disparate sources and in varying formats. Suppliers can transmit data in spreadsheets, through the Internet, on CDs, in ASCII format, etc. Catalog Junction middleware gives system administrators ability to periodically update catalogs with new items, descriptions, pricing, etc., eliminating the need to subscribe to third-party aggregators. www.purchasingnet.com
QAD
MFG/PRO eB Purchasing includes integrated purchasing, supplier schedules, and quality management modules. The purchasing module links plans, operations, and trading partners and lets users add requisitions, purchase orders, receiving documents, invoices and supplier performance tracking. The supplier schedules module supplements purchasing functions for support of high-volume deliveries. A supply chain management module helps consolidate inventories. www.qad.com
RiverOne
Enables users to set expectations and measure performance with valued trading partners. Metrics are based on the Supply Chain Operations Reference (SCOR) model performance on both buy and supply sides of transactions. Maintains entire history of each order for accurate calculation of a wide range of supply chain metrics. Allows for multiple joint service agreements with unique performance thresholds for each trading partner. Provides exception alerts with links to associated metrics. Demand-Supply Manager creates a private shared environment where buyers and their supply chain partners can respond to each other's forecasts and plans with automated notifications and flats. Order Lifecycle Management solutions enable users to view and manage orders from placement to payment. Event-based tracking and automated alerts enable teams to pinpoint and resolve issues before they turn into problems. Supports supply chain partners' different communication protocols. INTERactive Suite delivers multiple shared inventory views, one for inside and unique views for each trading partner. www.riverone.com
SAP
Offers array of supply management modules. Sample: Supply strategy development allows users to analyze purchasing history, project future spending, identify commodity groups and consolidate purchase agreements. Supplier qualification helps define criteria by which suppliers are qualified and tested. Supplier selection performs structured RFQs and real-time reverse auctions. Custom-designed and engineered goods can also be sourced using capabilities for document collaboration and communication. Contract negotiation and management allows business units to jointly negotiate contracts for parts they need, allowing them to leverage combined volume while at the same time ensuring their specific requirements are met. Tasks can be managed, and business deals can be negotiated online while ensuring version control, privacy and security. Self service procurement allows employees to create and manage their own requisitions for all categories of spend. Relationship Monitoring tracks supplier relationships and performance, including financial stability, external rankings, sourcing contracts and so on. www.sap.com
Softface
The recently released Procurement Intelligence suite of spend analysis tools clarifies historical data from ERP or other systems, extracts details about the items purchased, highlights where rich data exists and creates analysis-ready data and reports. The Content Suite for eProcurement focuses on buy-side catalogs, converting unstructured text that comes with implementing e-catalogs into more usable data. Another suite of tools focuses on sell-side catalogs. www.softface.com
supplyFORCE
SupplyFORCE network of 300 independent distributors with 2500 stocking locations delivers e-catalog content (descriptions of product lines of electrical, industrial, plumbing/PVF and power transmission and bearings distributors) and industry and new product information. It provides end-to-end product procurement, from RFQ to fulfillment and invoicing, inventory management, on-demand product and technical support, and information management capabilities, including reporting, tracking and trend analysis. www.supplyforce.com
SupplyWorks
Offers supply management solution for discrete manufacturers, including automotive, electronic, high-tech, and other industrial verticals. Connects buyers with suppliers over a variety of communications pathways. Automates and streamlines transaction execution with exception-based management and user-configurable alerts. Eliminates paper and manual processes. Supports multiple transaction types and replenishment strategies, including blanket orders, supplier-managed inventory, Kanban, min-max triggered replenishment, and supplier scheduling. Enables buyers to exchange materials plans, inventory usage, and capacity availability with suppliers. Integrates with multiple ERP systems to provide supply visibility and unified cost data and transaction history across the enterprise. Leverages ERP system capabilities while providing buyers and planners with more direct support for business objectives. Strategic sourcing capabilities, including RFQ, BOM quoting and cost analysis, facilitate cost management, contract manufacturing, and faster new product introduction. Supplier scorecards and other analysis and measurement features provide feedback for benchmarking supply chain strategy and driving continuous improvement. Web-based architecture facilitates multi-enterprise deployment, communication and synchronization. www.supplyworks.com
SynQuest
SynQuest's supply chain planning solutions model operations (covers transportation, manufacturing, warehousing) across the supply chain and capture variable, fixed, inventory, start-up, shut down and other costs as they occur. The SynQuest Inbound Planning Engine helps users manage inbound flow of goods from suppliers to match inventory consumption. www.synquest.com
Thomas Publishing
The Thomas Register online provides sourcing information on industrial products and services providers, along with specifications and availability information from manufacturers. Users can search supplier databases, online catalogs and Web sites for information. Additional features include RFQ submission capabilities, online purchasing and access to CAD drawings. www.thomasregister.com
Tigris Consulting
Provides strategic sourcing and supply chain management software and consulting solutions for large corporations. The company develops customized software applications in the following areas: strategic sourcing and spend diagnostic services, eRFX applications, including supplier collaboration, data management, optimization, supply chain management, including manufacturing network analysis, SKU rationalization, cycle time reduction, contingency planning and order fulfillment. By helping clients harness the power of their data and information to make better business decisions, resulting in reduced costs and improved operating performance, Tigris targets ROI in the neighborhood of 15 to 20 times the cost of its solutions. Tigris also provides extensive consulting services during each project. Each Tigris consultant is armed with a combination of business knowledge and technology expertise. www.tigris.com
Transentric
ItemVision gives inter-enterprise visibility of inventory, equipment, and information. Collects and presents supply chain information that can be searched, shared, stored, accessed remotely, and linked to other relevant data and systems. It does this by reconciling product names, unique identifiers, and units of measure from companies and their trading partners automatically. Allows trading partners to understand how much product is in the supply chain: where it is, who has it, and what has been promised, ordered, and shipped along with visibility to key critical events that can affect available supply to meet changing product demand. www.transentric.com
TSA
Puridiom enterprise e-procurement software allows users to electronically control every aspect of the purchasing operation, from Web-based requisitioning to end user receiving. Dynamic workflow management expedites requisitions from inception to fulfillment. Requisitioners can follow their orders through the process. Buyers know when orders are due and can track them with the supplier. History logs are updated automatically, allowing users to track record status. System also includes extensive access controls to provide security. www.purchasing-solutions.com
Verian
Spend management solution aimed at small and mid-size enterprises. Can be installed with any database supporting Open Database Connectivity (ODBC) standards. Functionality includes online requisitioning, transaction-based audit trails, online approvals and purchasing, automated faxing, internal messaging, RFQ, e-ordering, standing orders, freeform orders, rule builder, transaction-based reporting, predictive reporting, multi-user defined pick lists, in/out status tracking, PO attachments, real-time status updates, PO consolidation. Inventory sharing functionality allows users to check warehouses within the company before placing orders with suppliers. Other offerings include demand forecasting capabilities, economic order quantity, travel and expense and asset tracking. www.procureit.com
Verticalnet
Application provides analytical capabilities and templates to support price optimization, supplier rationalization, part/SKU rationalization, and cross-commodity leverage (sourcing a greater breadth of commodities with fewer suppliers). Enables online quoting, negotiations, and reverse auctions. Users can create auctions and RFQs with multiple attributes. Normalizes performance data from multiple divisions and information systems regardless of naming conventions, ship-from locations, or product naming classifications; enables analysis based on user-defined performance metrics including, but not limited to pricing, quality, customer service, on-time delivery, contract compliance, and spot vs. contract purchasing. Communicates changes in market demand throughout supply chain in real-time. Security is configurable down to data field level to ensure that sensitive data is accessible only to authorized users. www.verticalnet.com
Works Procisa
Allows organizations to automate existing payment processes and reduce reliance on checks using Visa commercial payment to comply with financial policies and process controls. Includes enforcement of signature authority, approval chains and separation of duties associated with authorizing payments. Provides real-time visibility into spending activity and offers back-office reconciliation efficiencies that improve the speed and accuracy of transaction allocation. New version allows transactions with specific suppliers to be automatically tagged with associated general ledger (GL) codes, and allows users to reallocate spending after it occurs, ensuring that expenses are properly attributed to the right accounts within organizations. Administrators can also track taxable card spending as it occurs for easier tax reporting. www.works.com
XPORTA
Global Strategic Sourcing application provides cost analysis tools to identify optimal suppliers on a global scale. Evaluates a company's mix of suppliers based on various trade and logistics terms including import and export taxes, international licensing fees, mode of transport and country of origin and destination. Buyers can model the total cost of different supply scenarios and purchase terms to establish the most effective scenario for their supply chain. www.xporta.com
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