Author Archives: thedoctor

Ignite Wants to Spark Your Sourcing Success with Actionable Analytics!

the doctor has written about many Spend Analysis vendors over the last decade*, including Ignite Procurement, which is one of the few newer vendors that he expected would soon breakout of their (Nordic) niche and start expanding, something which they are now starting to do having tripled their customer count in the last 6 months to over 200 customers.

The reason for this expectation? They earned their top right status in the Spend Matters Spend Analysis Solution Map when the (quadrant) maps still existed and the doctor was responsible for grading them as a Top 5 Best-of-Breed Mid-Market focussed Spend Analysis player located in Western Europe / the UK.

Founded by ex-BCG (Boston Consulting Group) consultants in 2017, with the first version of the platform launching in 2018, the key players not only have a firm understanding of spend analysis, but what analysis capabilities a customer needs to find their spend waste and their opportunities. Plus, they understood since day one that spend analysis in a vacuum is not that meaningful and is most meaningful in the context of negotiations, supplier management and development, contract obligation management, labour compliance and ESG reporting, for example. Negotiations work best when they are fact based, supplier development efforts are best focussed on those suppliers where improvements would result in considerable cost reductions or value generation, contracts are meaningless if not adhered to (and the resulting overspend completely unnecessary), labour violations in the supply chain can result in huge fines to your organization, and exceeding your carbon caps can be even more expensive (not to mention the fines if you don’t properly report). (And yes, this is a bit of foreshadowing.)

The core of the Ignite “Spend Management” solution is the analytics offering which, like most spend analysis solutions, has two core components:

1. Data Management

It’s very easy to get data into the Ignite Platform. In fact, it can be as easy as dragging-and-dropping a file onto the browser pane as Ignite allows you to define all of your taxonomies as well as your standard file format mappings to those taxonomies. It can then detect if the data is new, incremental, or updated and allow you to add, add only new records, update existing records, or even load the file into an entirely new cube.

When it comes to taxonomies, you can start with your own or built-in and then, during analysis, you can define and redefine taxonomies on the fly, with reclassification as simple as dragging-and-dropping. You can also define and update mapping rules quickly and easily as well, fixing errors or updating classifications as the need arises.

Data enrichment is easy-peasy compared to generic analytic platforms or suites as they support a number of financial metric, industry classification, currency exchanges, commodity intelligence, CO2 emission sources, and risk metric sources out of the box and provide a full integration platform with APIs, pre-built connectors, and timed data pulls (via SFTP, for example) for those who need custom integrations.

The platform also supports multiple tables and spend cubes and allows you to work on global tables and cubes or local tables and cubes for what-if analysis.

But most importantly, it’s one of the few best-of-breed platforms with a fully integrated visual data flow manager where you can define the entire loading, mapping, enrichment, classification, and automated analytics, reporting, and notification process, including automated supplier normalization.

2. Analytics

The Ignite Platform has just about everything you would expect from a modern analytics platform including arbitrary dimension selection, formula-based dimension derivation, easy (powerful metric based) filters, multiple chart and widget types, easy drill down, easy view/report modification, and ad-hoc analytics.

It also comes with a full suite of out-of-the-box analytics to help you identify potential savings opportunities through contracting (off-contract spend), renegotiation, supplier (re) negotiation, supplier benchmark improvements, spend consolidation, invoice management, payment term rationalization, price improvement, etc. Contract coverage, PO Coverage, key supplier coverage, and a suite of KPI reports are also available out-of-the-box (including a spend development dashboard that can go beyond just spend to impacting metrics such as OTD, quality incidents, etc. if you track the data in the supplier management module).

It’s ability to identify supplier-based (re)negotiation and development opportunities is extremely good and based on its proprietary Ignite Matrix that maps “share of wallet” vs EBIT Margin (which it calculates using mandatory government disclosures and integration with appropriate feeds, such as Enin in the Nordics, and appropriate adjustments) and scatter plots the results to help you quickly identify where your business is contributing to a supplier’s high profit margiin (and where the supplier has room to negotiate without jeopardizing its stability).

On top of this they have also built:

3. Supplier Management (Information / Performance / Risk / Compliance)

With its strong data management underpinnings, the Ignite Spend Management platform can store any all supplier related you wish to track and analyze, which not only allows deep spend-related insights by supplier, but performance and risk (metric) insight by supplier, with the ability to track and compare over time.

In addition to providing a full Supplier 360 view across all data captured in the platform, the Supplier Management capability includes standard campaign management where a buyer or supplier management can create questionnaires for supplier data augmentation and collection of relevant data and documents for supplier performance / risk / compliance management.

4. Contract Management (Governance)

Due to its strong data management underpinnings, the platform can also store all relevant contract meta-data in addition to the contract documents and allow users to manage, report on, and automatically annotate spend that is covered by a contract (as well as determine if it was billed, and paid, at the contracted rate using the appropriate payment terms). Also, as with most contract management plays, it can support tasks and alerts and the linking of contracts to tasks and alerts.

5. Scope 3 Management / Carbon Accounting

The best foundation for a carbon calculator / carbon reporting application is a true analytics platform that can support the definition of all of the appropriate Scope 1, 2, and 3 Categories of relevance to the organization and/or required by the appropriate authority to which reports must be made; the integration of data feeds to allow for the appropriate carbon emission calculations; the collection of actual data from suppliers that can supply it; the generation of the appropriate reports with the appropriate calculations for mandated reporting; and the tracking of changes over time. This is precisely what the Ignite Procurement platform supports.

The entire platform is easy to use and the UX is quite modern, but you don’t have to take our word for it — you can see a three minute demo on their webpage … just scroll down to the Meet Ignite Procurement section. So if you’re looking for an analytics platform that can provide you actionable spend insights on your contracts, suppliers, and ESG that you act on to reduce waste and increase value, you should make sure that Ignite Procurement is on your shortlist, especially if you are in its current target marketplace in the EU/UK.

* Not all on SI, many write-ups are on Spend Matters, behind the revised paywall.

SupplHi – A Best of Breed Supplier Management Platform for Industrial MRO

In a recent article, we noted that It Does Not Matter Where You Start, You End with BoB in SXM, and if you in the business of industrial MRO, it’s likely that your BoB will be SupplHi.

SupplHi is one of the broadest, and deepest, solutions we’ve seen for Industrial MRO (and Direct in general, but the fact that they have 90% of the supply base in certain MRO categories makes them extremely suited for that categories, as well as the fact that they have the deepest out-of-the-box categorization for MRO which includes 2,600 categories across 250 families in 45 groups of supply [request download] makes them extremely well suited to MRO), covering (at least) baseline functionality across (at least) 7 of the 10 core areas and information tracking in 2 more (Quality and Performance), a claim that only a select few vendors can make in Direct and, as far as we know, none can make in MRO (Maintenance, Repair and Operation) [for both equipment and services).

SupplHi can be summed out as the Closed Loop Supplier Management Hub for your Industrial MRO Supply Base, which not only allows you to centralize all of the data (if not manage it natively) to support all of the supplier related activities, but also gain visibility through multiple levels of the supply chain while evaluating potential (Tier 1) suppliers for risk, compliance, and performance.

If you tried to read that, you’ll realize that’s a mouthful and tightly packed with impressive claims, so let’s talk about how SupplHi supports the Industrial MRO/Classic Direct lifecycle, and then quickly overview the main features.

  • Discovery: a network of over 100K suppliers that is growing daily focused on Industrial MRO
  • Onboarding: a plethora of features and apps to make it easy to onboard suppliers
  • Evaluation: in addition to collecting information on products AND capabilities, collect and store public/shared information on risk, sustainability, certifications, perform due diligence, etc.
  • Monitoring : track all relevant quality, compliance, sustainability, risk, and performance data
  • Management/Development : performance evaluation, sustainability monitoring (including Scope 3), non-conformity management, and development campaigns
  • OffBoarding : status marking, performance evaluations, (de)qualification, etc.

… and if a supplier corrects an issue (lack of certification), adds a capability (factory upgrade), address a major risk, etc., then the cycle can begin again with (re-)onboarding. It’s truly closed loop — and the (pre-defined) master data management capability is among the most extensive data models we’ve ever seen.

The SupplHi site markets a large number of capabilities (which it calls apps, of which there appear to be 25+, in addition to integration services, ad-hoc services, etc.), but six key capabilities that make SupplHi stand out are:

  • DEEP EXTENSIBLE PROFILE: it’s MDM capability allows it to track any and all data you need to track on the supplier, including products, capabilities, certifications, sustainability ratings, quality (metrics), performance metrics, sub-tier supplier linkages, etc.
  • DOCUMENT MANAGEMENT: all product specs, certifications, (insurance) certificates, contracts, assessments, etc.
  • CERTIFICATION AND BANK ACCOUNT VALIDATION: in the platform, no reliance on a buyer NOT fat-fingering a critical piece of info.
  • MULTI-TIER VISIBILITY: few platforms have this, but due to their deep knowledge of the Industrial MRO space and extensible Master Data Management approach that allows suppliers to identify their suppliers, they can map, and visualize, a typical supply chain to the source suppliers even during the Scouting/Discovery phase
  • SUPPLIER CAPABILITY TRACKING: it can track the types of engineer specialties, the machinery available, international codes/standards supported, sub-tier suppliers by category (down to level 3 in the category tree), policies, energy efficiency, and other data required for a proper assessment of an equipment and/or services Industrial MRO supplier
  • ACTION MANAGEMENT: simple information requests, quality issues, development projects (as part of a campaign), etc. all fall under actions that the platform can manage

In other words, as we said before, it’s broad, it’s deep, it has direct capabilities that only a few competitors posses, and it’s built-in category framework and extensive supplier network make it unparalleled in Industrial MRO.

You don’t have to just take our word for it. You can also see:

It Doesn’t Matter Where You Start, You End with BoB in SXM!

In a recent article, we asked in the battle of Suite vs. BoB (Best-of-Breed), which do you choose, and ended up with the answer of neither, but potentially both, because, as indicated in our article we asked in our post on Where’s the Procurement Management Platform, you need a true platform (that enables the creation of a true source-to-pay plus ecosystem for the various workflows and processes that need to be managed).

As a result, we indicated you could start where you wanted, provided:

  • you could conceivably manage it (if you don’t have any reasonably modern e-Procurement applications, expecting you can dive into more than a couple, learn them, and incorporate them in your daily processes in a short-time frame is completely unrealistic, so you shouldn’t buy from a suite vendor unless you can activate modules over time as you are ready for them)
  • the vendor offers, and publicly publishes, a complete Open API that, at a minimum, can be used to import and export all data the platform supports and should support the execution of core functions (so that you can script in a related module a date/time-based import/refresh process, re-execution of a core function/calculation, and retrieval of updated results)
  • the vendor offers the necessary quick-start services (you need to be able to get going quickly — if it requires a 3 to 6 month onboarding process, you’re dead in the water before you begin from both a first year ROI and adoption perspective)

But where do you end up? It depends. On what:

  • the module (Spend Analysis, Sourcing, Contract Management, Supplier Management, e-Procurement, e-Invoicing/AP, etc.)
  • the organization’s biggest need for workflow/process management
  • the organization’s biggest savings/cost avoidance/value creation opportunities

And for some modules, like e-Procurement, standard sourcing (no optimization/automation), AP (accounts payable), it’s quite hard to make the case for one over the other for an average organization (as it’s not how many features, functions, bells, and whistles, but which of those will actually add value to the organization acquiring the solution).

But for others, it’s crystal clear. And the clearest case is Supplier Management. Why? As per our recent article in our Source-to-Pay+ Series, Supplier Management is a CORNED QUIP Mash, and there’s no way that a suite, which is typically only average across-the-board, is going to be deep enough for the key functionalities needed by an organization (and the majority only address SIM reasonably well, with limited SRM-related capabilities). In fact, you’re not even going to find a single BoB provider that provides leading functionality in more than a few areas of what supplier management can encompass (especially if an organization needs quality, enablement/innovation, orchestration, or other specific direct or service support requirements, etc.). (So do you think you’re finding a suite that does everything? Not a chance!)

So you can start with a suite (that serves as a foundation for comprehensive SIM), or even a module from a BoB provider (that likely provides baseline Supplier Information Management as a Sourcing/CLM/Analytics add-on), but if you are serious about improving supplier performance (quality, compliance, cost of service), you will eventually progress to one (or, for extensive, different, Supplier Management needs, multiple) BoB solutions.

There’s Some Really Awful Procurement Job Seeking Advice Out There — Truly Awful!

On a weekly basis, the doctor scours the internet for recent developments and news in sourcing, procurement, and supply chain that major publications, analysts, bloggers, and the major LinkedIn trolls … errr … influencers might have missed. If you follow a half dozen thought leaders, analysts, major sources, etc., you won’t miss much, but deep searching can sometimes dredge up interesting tidbits, and other times can dredge up decaying waste that really should be left in the deep.

Recently, deep searching for procurement news dredged up one of the worst Procurement job seeker interview questions and answer articles he’s ever read. (These are bad in general, but if I was hiring, and you gave a single one of these answers, I’d end the interview then and there. You would have clearly demonstrated you do NOT have what it takes to survive one of the hardest back-office jobs there is, with new, unforeseen challenges arising daily.)

I’m not going to link to the article in case the author is a real person who was assigned the grisly task by the publication of writing about something they clearly had no clue about and not auto-generated by a BS OpenAI tool trained on the worse mush it can find, because they don’t deserve the embarrassment if they are a person assigned to write about a subject they were clearly clueless about. However, I am going to quote the first three questions and responses and point out why any Procurement Director worth their weight in any commodity would quickly judge you as unworthy and show you the door, before it had time to finish closing, if you rattled off one of these extremely poor canned responses presented to you.

Q1: Describe your previous experience.

Not a bad question (but the interviewer should ask you about unique aspects of your relevant experience). But

With a background of over 10 years in procurement, I bring comprehensive experience spanning various aspects of the field. My expertise includes sourcing, supplier management, contract negotiation, and administration. Throughout my career, I have consistently delivered noteworthy cost savings and streamlined processes. Additionally, I possess in-depth knowledge of both local and international procurement laws and regulations.

Is NOT a good answer.

1) Presumably if you are applying for a senior procurement role, you have significant relevant experience, how many years you have is going to be clear from your resume, and if you don’t meet a baseline, you don’t get the interview. More meaningful is related experience that brings unique insights to the role.

2) Buzzwords are meaningless. If you don’t have any experience in sourcing, supplier management, or contracts, you’re not Procurement. This is super obvious. If you don’t have any specific skills, or deep knowledge of certain processes, back to the sea with you.

3) If you didn’t deliver savings or process improvements, you would have been fired. Multiple times. It would show on your resume, and you wouldn’t get the interview.

4) What local and international laws? There are 195 countries. These all have laws and regulations that affect Procurements in, from, and through their countries. These could be finance (post-audit/clearance, anti-bribery, etc.), human welfare, sustainability, or other laws. Get specific. If you spent a decade buying fruit from South America but the company wants you to buy semiconductor chips from China, Taiwan, and Japan — how does that help?

Q2: Tell us about your qualifications for this job.

Again, not a bad question (but the interviewer should focus in on your strongest or most unique). But

I hold a bachelor’s degree in business administration with a specialization in supply chain management. Over the course of 5 years, I have actively worked in procurement, honing my skills and expertise. My experience spans the management of both direct and indirect spend, granting me a comprehensive understanding of procurement operations. Moreover, I possess proficiency in various procurement software systems and boast a solid comprehension of contract law.

Is also NOT a good answer.

1) Obvious from the resume, but I can, and probably will in a later article, argue that most business / operations / supply chain programs are NOT (on their own) qualifications for Procurement. (Future article, because this rant is more than an article in itself.)

2) Repeating an answer, inconsistently (10 to 5 years), is useless and adds nothing beyond the resume (except confusion).

3) Again, buzzwords are meaningless. Indirect to one company is direct to another and vice versa. What did you buy? And what insights did you glean (that the average schmuck has no understanding of)?

4) Various systems. Do you mean email and Excel? A 20 year old version of SAP Ariba? A modern suite like Coupa or Jaggaer? Or BoB solutions like Anydata, Bonfire, ContractPodAI, DecideWare, EC Sourcing, etc. etc. etc.

5) Contract Law? Great! But what countries, states/provinces, and contract types are you most adept with. (And remember, expertise in contracts is NOT expertise in contract law. It’s pretty easy to be an expert in contracts if you do them enough, but without a solid legal understanding, it’s pretty hard!)

Q3: How would you describe your procurement process?

Finally, a good question. But

The procurement process typically starts with the receipt of a request for proposal (RFP) from a potential customer. This document outlines the customer’s specific requirements for the desired product or service. The procurement team will leverage this information to compile a comprehensive list of potential suppliers. Subsequently, they will issue a request for quotation (RFQ) to these suppliers.

Is NOT a good answer. It’s actually even worse then the answers above!

1) If you worked for a make-to-order / build-to-order organization, that’s typically the process. If you make off-the-shelf CPG, then the process starts with a forecast and an assignment to “get ‘er done“.

2) If the interviewer doesn’t know what an RFP is, you should run for the door.

3) You can’t procure without suppliers, so this is a standard step in every 5/6/7/8/9 step process out there!

4) DUH!

Not once does it get into any specific, unique, best practice details that show the deep understanding you possess of Procurement processes.

At this point in the article, the questions got slightly better — but the answers continued to be bad or even worse than this one.

It’s sad. None of them address what a Procurement Director / Chief Procurement Officer (CPO) is looking for.

The relative priority of desires will vary from CPO to CPO, but these are the big ones that all CPOs have in the back of their minds.

1) Education – a university degree; relevant to what you are buying is typically preferred if you are junior, any degree if you are senior; how does your education relate to the position you are applying for?

2) Experience – relevant experience in what you will be buying, not necessarily as a buyer, possibly as an engineer, depending on the expertise needed to do the job (just like you can teach a mathematician accounting but you can’t always teach an accountant advanced mathematics, you can teach a trained professional Procurement but you can’t always teach an average buyer the fundamentals of technology or engine engineering).

3) EQ (Emotional Quotient) – you will have to work in a team; how did you work in a team in previous job(s) for complex procurements

4) TQ (Technology Quotient) – you will have to use technology, and hopefully continually improving and evolving tech; what modern tech have you used?

5) Think-on-Your-Feet Adaptability – nothing will ever go according to plan, and you will have to fight fires on a daily basis and find solutions quickly to prevent minor bumps leading to major derailments

6) Strategic Thinking – how should you approach a category or a problem; how could you improve current processes based on current learning; what did you do that improved a process in the past or solved a difficult problem?

7) Risk Management Mindset – you can’t eliminate all risks, but you can mitigate many and manage others; how do you embed this in your process

8) Sustainability – both environmental and corporate; you often have to find a delicate balance; what requirements did you have and how did you meet them without skyrocketing costs

9) Mathematics and Cost Modelling – a quote is not a cost, it’s a quote; you need to understand core cost drivers to judge quotes; demonstrate this in at least one answer

10) Independence – you will need to continually learn and continually self manage; your boss won’t be available 24/7 and definitely not when you need to make a critical decision quickly to keep a project moving

Five Best Practices for Buyers (when searching for software solutions)

Building on our piece on five easy mistakes source to pay tech buyers can avoid, here’s a piece on five (5) best practices to get the buy right. We’re even throwing in a bonus practice since we dove deep into the critical sixth mistake most tech buyers make in source to pay (who need to realize that No Tech Should Be Forever).

#1 Understand your core pain points

Don’t buy based on hype, buy based on need. Any good salesperson can spin you a good yarn on how much that sourcing solution will save, how that SRM will get your suppliers in line, and how that tail-spend solution will prevent your spend from going into a tail-spin. But there’s no guarantees that any of those solutions will solve your current problems, which might require e-Procurement or Spend Analysis.

Review your source-to-pay processes and determine where your pain points are. Is it in quote collection or analysis? Adequate supplier discovery, identification, or certification? Contract negotiation, implementation, or obligation management? Purchase orders and approvals? Invoice verification and matching? Opportunity identification? Supplier proliferation? If you don’t know where the majority of time is being spent and how much of that time is fighting fires, doing unnecessary tactical work, or taking too long to do something that should be quick, then you’re letting someone else identify your problems, which might turnout to be problems relatively small in the grand scheme of things.

#2 Understand which pain points can be best alleviated with technology vs. those that can be best alleviated with process improvements.

Technology can’t solve all of your ills. (And it especially can’t solve all of your ills if it is based on Automated Idiocy. Remember, that’s what the “AI” they are selling you is.) It’s important that you understand what technology can and can’t do before you look for a solution. This will help you identify honest providers offering honest wares and vapourware vendors selling silicon snake oil.

Consider the above pain points. If it’s quote collection, a good RFP system will help. If it’s quote analysis, maybe, maybe not. It may be the complexity of the ask, and not the complexity of the process, that’s the problem. If it’s supplier discovery, you will likely need a discovery platform or a large supplier network; if it’s supplier identification, possibly just a better process of identifying which suppliers you’re already using who can solve a new problem for you. Supplier certification, that requires manual review and sometimes tech can’t help at all. When it comes to contract negotiation, while platforms can shuttle contract drafts back and forth, negotiation is between people. Implementation and obligation management, that’s the kicker, and more than what you can accomplish with just an electronic filing cabinet, which is what many “contract management” systems are. Purchase orders are as much a process problem as a technology problem, most AP systems can generate them. Approvals, process problem to identify it, but often a technology problem to ensure that the process is followed. Invoice verification — manual approval is required but m-way invoice matching can help with the process by identifying the corresponding purchase order, any payments made to date, any credits accrued to date, any approvals required, and so on. Opportunity identification? Well, all of the pain points you identified represent opportunities, but beyond that, you’ll likely need spend analysis. Supplier proliferation — that’s a process and management issue. All the SRM does is track the suppliers.

If you don’t understand what the pain points are that tech can actually solve, you’ll never select the right tech.

#3 Identify your top 3 pain points that can be addressed with technology and the corresponding source-to-pay module(s) you need to address those pain points.

Once you’ve identified the pain points, whittled down to the subset of pain points that can be best addressed by technology, and then identified the three (3) that will have the biggest impact if addressed, you can continue with your quest for tech.

#4 Compile an appropriate shortlist of vendors.

Once you know what you want to address with tech, and why, you can start the process of identifying an appropriate short-list of vendors. This is not just three to five vendor names given to you, or three to five vendor names that come up first in a Google search — it’s three to five vendors that are confirmed to offer a module that will address the same (sub)set of problems you are looking to address.

This is not three to five vendors that claim to offer the same technology, as many vendors will purposely use, and sometimes abuse, the same terminology in an effort to sell completely different products. For example, sourcing, procurement, and purchasing are sometimes used to mean the same thing by three vendors, and sometimes mean completely different things by three vendors. There are vendors that call their sourcing systems procurement, purchasing vendors which just offer catalogs, and so on. You have to research their offerings carefully to determine whether or not they truly offer a solution to what you are looking for.

#5 Determine what you need in a partner before you start evaluating vendors and the RFPs they submit.

You don’t just need a vendor that can provide technology, you need a vendor that can provide a solution and work with you, offering as little or as much as you need in the way of training, implementation, integration, and services. You need a venture that will match your culture, get along with your team and make sure you are successful with their product. You need to identify everything that makes a good vendor before you start the evaluation, otherwise you will grade just on the tech, and the tech is not enough. (It’s a necessary part of the solution, but not a sufficient part on its own.) All supply chain problems have a human element. Never forget that.

#6: Bonus Get help with the shortlist and the RFP.

If you’re not familiar with the technology, the vendors, or the terminology, it can be difficult to determine which vendors might actually be able to solve your problems and what vendors will just bamboozle you into thinking they can* when you send them the RFP. Get help from someone who is an expert in the technology, the vendors, and the true capabilities the vendors offer.

* Not necessarily on purpose; a misunderstanding caused by different usages of terminology (see point #4) can cause a vendor to believe they have the perfect solution for you.