LogicSource was founded in 2009 by experienced professionals who wanted to improve sourcing and procurement in organizations that didn’t have the knowledge, experience, and infrastructure to execute in an efficient, effective, and transparent manner. Their view was that every consultancy can offer advice, but not every consultancy can help the customer implement that advice and get results.
In order to do this, they built an in-house product which they released to the market as OneMarket three years later, and which we covered here on Sourcing Innovation back in 2014 when we discussed their Interesting Solution for Sourcing Projects. In 2018, they released OneMarket Insights which was followed by OneMarket Portfolio, Sourcing, and Contracts in 2020. Then, a year and a half ago (in 2022 Q4) they released a new version with a new UX which tightly integrated their Insights, Portfolio, Contracts, Sourcing, and Supplier Management (and P2P, which will be covered in a separate update) modules.
The new UX and design, which was built with intake and visibility in mind, and their new Portfolio Management capability, was built with one goal: to be the SalesForce.com for the indirect Sourcing Professional who needed a platform, and a third party, to help with Sourcing and Procurement, and, more specifically, an easy way to follow along, provide input where needed, and learn to take over sourcing programs, projects, and processes when they are ready.
Sourcing
Sourcing in OneMarket is organized into Programs, which are broken down into Sourcing Projects that are managed within the OneMarket Portfolio product. The meaning of each Program is organization dependent, and allows organizations to structure their sourcing efforts by category, department, budget authority, etc. depending on what makes the most sense for the organization. For example, a Retailer may want a Program by geographic region or organizational category (Internal, Services, Resale, etc.), and projects by individual goods and services being sourced (IT, Office Suppliers, and MRO for internal; Legal, Janitorial, and Marketing for services; individual goods categories for resale).
Programs will require very little definition to define — as little as a name and an ID can set the Program up (if the organizational users understand their individual portfolios) as most of the detail is in the associated projects. When it comes to projects, it just needs a corresponding program, a category, an owner and a leader, an expense type, a starting date, an expected cutover date, an expected savings (effective) date, a priority, and an estimate of the value and effort (as a few indicators help with the future analysis and system level statistics).
Projects in OneMarket go beyond just the initial sourcing event and live from the time they are created until the last unit of the good or service is delivered as the OneMarket platform was built to track projects from start to finish, as well as savings and process (time) statistics. Projects also support detailed project plans with as many milestones as desired, each with their own start and end dates. The system will also track the actual end dates, the estimated versus actual duration, and allow the buyer to do analytics across projects.
Furthermore, projects can be templated for quick launch and LogicSource can provide the customer organization with a set of project plans that cover the breadth of their sourcing categories for a quick start upon LogicSource engagement and OneMarket go live. In addition, the Sourcing platform contains an attachment library that can be used to store all standard eligibility documents, contracts, product specifications, and other documents that need to be regularly used in projects. LogicSource can help the client organization load this on implementation to further simplify quick and easy project creation.
After every milestone is complete, the buyer can record key developments, (remaining) issues, next steps, and update the current project status. In this way, a complete project record is maintained in the application. This not only serves as an audit trail but allows the client to have a record of what happened they can refer back to in the future. This way, when the client is ready to take over more activity on their own, they have a guide for future instantiations of the project.
Projects can also be associated with strategies, (project) types, and event types. For example, it can be a cost avoidance event centered around an RFP, a cost savings event centered around an auction, or a supply assurance event centered around a contract renewal. Once the sourcing event project is created, the buyer defines the prerequisites for supplier participation (must agree to the payment terms and delivery timeframes, must complete the environmental assessment, must complete the security assessment, etc.), selects the suppliers, defines the schedules, attaches any necessary documents that must be agreed to and completed, and when the buyer is ready, it goes out to the supplier.
Projects in OneMarket Sourcing are completely document centric, including bidding, which centers around bid sheets compatible with every Procurement Professional and Sales Professional’s favourite tool — Microsoft Excel. When we say centers around bid sheets, we actually mean it is entirely based on the bid-sheets as there is no in-tool bidding (or even bid-comparison, you need to use an analytics solution for that). This is contrary to most sourcing platforms which have in-tool bidding and bid-sheet export and import (usually in a rigid format), but this is because they primarily support organizations that want Sourcing-as-a-Service/Procurement-as-a-Service (from LogicSource), are used to working in documents and sheets, and want to stay with what they are comfortable with.
Unlike big self-serve suite platforms that try to be everything to everyone, LogicSource has found that the companies bringing them in for help are overworked, understaffed, need to get more spend under control, and just need to run more sourcing events — and do so without having to adapt to a new tool or drown in the details for low-cost, low-volume, tactical, or tail spend. For them, this means the ability to quickly instantiate a project, send out the documents, get the results, select a winner, cut a contract or append to a master contract, and keep going — and do so with the tools they already use every day — email, Word/Adobe and Excel. Their redesign went document-centric because this is what the subset of the market they serve go after. Some of their customers in retail and food and beverage have teams of less than ten (10), and sometimes five (5), responsible for eight (8), nine (9) and even ten (10) figure events and their ability to focus on just what they need to is paramount — this is especially common in their market suite spot of 500M to 5B companies that have smaller Procurement departments.
Similarly, their platform was re-built from the ground up to support third party organization observation and management, allowing them to run higher-volume, higher cost, and/or strategic events for their customers and let them observe or serve as the project owner for the events they don’t want to manage themselves, which they run while the customers observe.
Once a bid sheet is accepted, the key commercial terms can be captured in the project as well as the total addressable spend and target savings, and all of the commercial terms can be pushed into the contract module that captures everything Legal needs to craft the contract. Once the post-sourcing procurement process starts, after each invoice is paid, the buyer can track the approved savings (as well as the date the savings were approved).
Supplier Management
The Supplier Management module, which tightly integrates with the Sourcing and P2P modules, maintains supplier information. In addition to the standard supplier information, it also stores the categories that the supplier provides products and services in, with the ability to associate the supplier all the way down to Level 3.
Core information associated with a supplier are its NAICS, DUNS, and EIN number, diversity status, and location. It also stores contact information, associated documents, eligibility status (for inclusion in sourcing events), and associates the supplier with all sourcing events it is part of.
As with Sourcing, Supplier Management is document based, including eligibility. For each prerequisite, the supplier uploads a document, possibly a revised (executed) version, and then it is a buyer’s decision as to whether the (executed) document meets the eligibility requirement or not.
Note that the standard information fields are not yet extensible (but this capability is planned for a future release), but you can add and associate as many forms as you like to keep track of relevant supplier information. The Supplier Management module was not designed to be a supplier master, as most companies have ERPs/MRPs that house the master data, but to house all of the relevant data for Sourcing and Procurement and help the organization keep the master data up to date, as they can push updates to the ERP (as well as pull suppliers in for onboarding during system implementation).
When it comes to onboarding, LogicSource manages the onboarding and helps the suppliers with any questions or issues they have or training they need, making it as easy as possible for the client to determine supplier eligibility, conduct sourcing events, or just follow along with what a LogicSource sourcing professional is doing on their behalf.
Contract Management
The contract management system is primarily a governance system that revolves around a contract repository of all contracts which are indexed by appropriate contract detail metadata. The system captures all of the commercial terms that come out of the sourcing event for the Legal team to cut and negotiate the contract, and once the contract is signed and executed, it captures all of the relevant metadata (through AI extraction that can be corrected and augmented by the user) and allows for contract management from that point on.
Key information includes company, supplier, parent contract (if it’s a subcontract to a master), category, owners, effective and expiry dates, and associated sourcing event. Currently, it can also store up to 84 fields per contract, including related party information, renewal and termination details (and associated alerts), pricing & payment details, key terms, associated attachments, etc.
Search is quite advanced and can be on any collection of meta data fields.
Analytics / Insights
OneMarket Insights is a service-driven solution designed first and foremost to provide the client with insights, and not necessarily deep analytics — although that is there if you have the right depth of data and are willing to learn how to use the Do-It-Yourself Cube Explorer.
Integral to the analytics process is the preparation of a normalized, categorized and enriched spend dataset where various sources of spend data, including P2P, ERP, Expenses and Card data files are consolidated by LogicSource into a single spend dataset, which is then enriched to extend the number of data fields available for the analysis experience. Each month the most recent spend data is ingested into this tool so customers always have the last month’s spend data on hand.
The solution revolves around a set of custom developed and delivered dashboards that are relevant to your organization and your efforts, as determined during the initial needs assessment and the results of the initial spend assessment exercise that looks at 16 different standard spend views across spend, compliance, and traditional opportunities. The standard areas that LogicSource will look at, once they get all of the relevant data integrated and loaded, are:
Overview
- By Company / Division – how is the spend breaking down across companies or divisions
- L1 Category – what are the top categories of spend
- L2 Category – what are the top subcategories
- Suppliers – what are the top suppliers
- Sourcing Segment & Tier – how does the spend breakdown under an ABC analysis
- Buying Channel – how does the spend breakdown by buying channel
Compliance
- Purchase Order – how much is on PO
- After-the-Fact Purchase Order – how much is on after-the-fact PO
- Payment – how many payments are compliant with terms
- Spend Under Contract (by Category) – how much category spend is contracted
- Spend Under Contract (by Supplier) – how much supplier spend is contracted
- IT Spend on Expenses/Cards – a policy view of what IT spend should be on PO/Invoice
Discovery
- Unmanaged Spend – usually one of the largest opportunities
- Top Suppliers by L2 – large opportunity if NOT under contract
- Monopolies – single sources can be uncompetitive
- Fragments – overly fragment spend presents opportunities as well
Once LogicSource gets an understanding of the organization’s spend, they work with the organization to customize dashboards that will provide the management, sourcing professionals, and analysts with the insight they need to track spend, do fact-based negotiations, and identify potential opportunities for future sourcing, supply base consolidation, payment term standardization, and other initiatives.
They will start with their standard dashboards for Spend, Compliance, Opportunity, Variance, Supplier Analysis, Category Manager, and Diversity, customize them to the most relevant metrics and insight, and promote the most insightful metrics to the CPO and/or CFO Dashboards.
Dashboards have the standard, expected, interlinked views that can be filtered on any and all data dimensions. For example, the Category Manager dashboard overviews spend by category, top 10 suppliers for the categories in view (all, some or just one), invoice supplier count by category, spend trend by quarter and volume, graphical views by country and state for key countries, PO compliance, Payment Performance, and Spend Metrics, etc. The Diversity dashboard summarizes key metrics, suppliers by diversity type, diverse spend trends, and other information of interest to the company and can be broken down by category if the organization has the raw data.
It’s not just limited to spend data, should the organization have the appropriate metadata, they also have a contract clause summary dashboard that allows the organization to query contract statistics by expiration, summary, status, type, category, payment terms, renewal terms, termination type/terms, privacy clause presence, FCPA clause presence, PII clause presence, etc.
The heart of the insights application is the cube explorer that allows the user to select any dimension as a row, any dimension as a column, and any of these as aggregates for pivot-table based exploration of the spend. With the cube explorer it is possible for the analyst to drill in and see any cross section of the data they deem appropriate, and, of course, when they get down to the L3 Category by Supplier by Quarter by Division, for example, they can drill down to the source transactions.
The cube explorer can work on any cube supported by the application, and the application can support as many cubes as you like. Whereas some spend analytics applications try to build one master cube that will support all of the analytics that a user is expected to perform, LogicSource realized that one cube is not always enough. First of all, if you try to augment a record with every piece of data possible, the cube will become bloated to the point of uselessness when the cube gets so large that you can’t do real time drill downs. Secondly, if there are hundreds of fields in a record, the record becomes incomprehensible. Thirdly, it doesn’t make sense to mix spend data with detailed contract data with detailed product data etc. Moreover, sometimes you just want to look at a subset of data, or federate only some of the data across systems.
In addition to the cube explorer, there is also the cube manager that allows the user to select the cube of interest and the cube viewer, which allows the user to easily manipulate any bookmarked cube view that was custom tailored for a specific purpose through easy on-off filters on each dimension and easy drill downs. This is especially useful when the data has been segmented into tiers (strategic, tactical, tail; ABC, etc.) through aggregation and you want to get to the largest tier 2 / 3 unmanaged categories or the categories with the largest variance (if the organization has detailed line item data available). (Any customized view in the view explorer can be bookmarked by a user.)
In other words, it’s a considerably more powerful spend analysis solution than one might expect from a services-based firm (since the user can define aggregates and derived dimensions and measures using complex formulas in the cube explorer), but it does depend on the right cubes being defined, the data being appropriately categorized, and the data being refreshed regularly. This work is all done by LogicSource, as they do not support self-serve categorization, updates, or enrichment. They can also enrich and standardize your supplier data during the process, as well as create a supplier ownership cube that tracks parent-child relationships. And, of course, if you want your data enriched from third party diversity, risk, or compliance sources, they can do that as well.
The LogicSource process is to work with the organization to help them define the right taxonomy, and the majority of clients use a subset of the LogicSource 3-Level indirect taxonomy with over 500 Level 3 sub-sub-categories (that LogicSource has refined based on over a dozen years of sourcing projects), while the minority use a customized version that starts with the LogicSource taxonomy as a base and customizes it to specific needs. Once the taxonomy is defined, LogicSource works with the client to identify the appropriate data sources; extract the data, do the mappings, cleansing, and cross-system enrichment; and build the initial cubes for data review and verification. Then they replicate and customize their standard dashboards to support each user (type) that will be using the application, and, finally, they define a refresh interval where they will handle all the updates and verifications of the data. All data is tagged by source, so that the user always knows the source of the data, and can even compare data (and totals) across systems, which is useful to identify any potential process and data gaps and leakage, which could signify process abuse, waste, or even fraud within the organization that needs to be stopped immediately. Note that while they automate the categorization and updates, there is a “human in the loop” for all initial classification, so no matter what technique they use, the data is always verified.
Finally, in addition to cubes and dashboards, they can also automatically generate reports of interest on a schedule and share/send those to affected and interested parties. As they can be output to Excel with all the underlying data, this also enables offline data exploration as well.
Furthermore, since they realize that most clients who haven’t had a proper analytics solution before or done analytics don’t always know where to start, their offering includes training on what to look for and how to use the tool to get the client going as well as a number of work-alongside projects and monthly review sessions to keep their clients on track.
Summary
LogicSource OneMarket platform is an indirect sourcing suite that was custom designed for companies that wanted a services-led solution where the provider either handled key sourcing events for them, where they followed along and provided input on the goal and the bids, or where they handled tactical or lower cost categories, but could tag in the services firm for guidance or help as-needed as their sourcing/account manager always had visibility and could tag in help when he needed it.
As such it has more functionality than one might initially expect (as classical S2C offerings from services-centric firms didn’t always compete well with best-in-class pure SaaS providers), and offers a solid solution for mid-market and larger firms that have a lot of indirect spend and need assistance getting it under control. And while some features may not be best in class or on par with standard expectations (e.g. no in line bid comparison in RFX), they were developed to support the processes typically used by over worked, under resourced, and tech inexperienced Procurement shops that wanted to be able to use their tools of comfort (documents, spreadsheets, traditional data repositories) but still have a best-in-class Sourcing Process. So if you’re looking for services-led or services-supported integrated Source-to-Contract solution for indirect spend, the new iteration of LogicSource‘s OneMarket is one you should definitely check out.