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Supplier Community Enablement: New Channels for Content ONCE Global Summit May 2005

Supplier Community Enablement: New Channels for Content ONCE Global Summit May 2005. Vance Checketts Global Solution Architect – Procurement. Supplier Community Enablement Defined. Supply base management Identification Qualification Negotiation Catalog & contract management

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Supplier Community Enablement: New Channels for Content ONCE Global Summit May 2005

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  1. Supplier Community Enablement: New Channels for ContentONCE Global SummitMay 2005 Vance Checketts Global Solution Architect – Procurement

  2. Supplier Community Enablement Defined • Supply base management • Identification • Qualification • Negotiation • Catalog & contract management • Catalog content creation & management • Price changes • Contract deliverables & compliance • Purchase/sales execution • Electronic messages • Self-service transactions • Online inquiries

  3. Company A Company D Company C Company B Company E The Problem . . . Supplier enablement has traditionally dictated an “every one for themselves” solution

  4. n2 Effect • 5 buyers, 5 suppliers = 52 or 25 individual connections • The net result is Distributed Complexity • High costs, low performance for everyone Buyers Suppliers

  5. Symptoms of Distributed Complexity • Requires multiple standards, protocols and translators • Buyers need to maintain preferences for each supplier • All supplier changes require work for buyers • IT project for each supplier “enablement” effort • Difficulty maintaining connections • No centralized transaction tracking and error control Result: Even the best companies have only “enabled” a small % of their supply base

  6. Solution – Supplier Networks Centralized information, centralized management

  7. Also . . . Specialized Services • Specialized procurement services are a great compliment to procurement software and traditional implementation services • Perfect Commerce, Saqqara – Catalog management • D&B, Austin-Tetra – Supplier data cleansing • Zycus – Category rationalization • AT Kearney – Sourcing strategy • BearingPoint – Business process definition • IBM – Business process outsourcing

  8. Content ManagementMultiple options to support different needs Option Request Type Item Characteristics 1 No Catalogs, “Smart” Forms One-time requests & services User-specified items Early stages of implementation Local Catalogs 2 Raw materials, assets & mission critical items Items under strict controls (hazardous, etc.) Items under existing long term agreements Loaded from spreadsheets, XML or EDI Remote: Supplier Hosted 3 Dynamic pricing & availability Configurable items Large selection of items Accessed via punchout Services, supplies &non-critical items Remote: Network / Hub 4 Static item and pricing information Approval controls for price changes Items not tightly controlled Accessed via punchout New or sourcing items, supplies & non-critical items

  9. Actual Catalog Implementations Source – Aberdeen Group, Dec ‘04

  10. Other Areas of “Enablement” • Supplier profile management • Invoicing • Contractor time & expense tracking • Inbound logistics • Negotiations • Contract management • Supplier-managed inventory • Consignment • Design & prototype • Forecasting

  11. Software vs. Services • Pure software • Oracle, SAP, legacy PeopleSoft, legacy Ariba • Pure services • D&B, Austin-Tetra, BearingPoint, etc. • Services w/supporting software • CC-Hubwoo, Saqqara, ATK, legacy FMKT, etc. • Software w/supporting services • Emptoris, Requisite, Ariba/FMKT, etc.

  12. Panel Questions • What is supplier “content” beyond a product catalog? • What value-added services complement content? • What are “supplier networks” and where do they fit? • How does regional, vertical and commodity-specific content increase the ROI of procurement software? • Should regional content providers expand globally? How? What is the role of software / service partnerships? • What role will interoperability play in global expansion, especially for large, multi-national buying customers? • What are customers of procurement software requesting re supplier content? • What are customers of supplier content requesting re procurement software?

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