Category Archives: Marketplaces

On the Eighth Day of X-Mas … (Supply Chain Trends in 2009)

On the eighth day of X-Mas

my blogger gave to me
thoughts for a shilling,
strategies for winning,
tactics for saving,
five golden rings,
four little words,
tri-focal lens,
two boxing gloves
and a lesson in strategy.

Hot Technologies in 2009 Will Be Spend Analysis and Decision Optimization

Given the current economic climate, organizations will start to adopt these technologies despite their concerns that they are too complicated (which has not been true for years) or too expensive (which is also not true). The emerging leaders in low-cost self-service optimization, like Iasta and Trade Extensions, will take off, as will services companies, such as Lexington Analytics and Opera Solutions, that use leading spend analysis software like BIQ.

Emerging Technologies in 2009 Will Be Specialized Marketplaces and Focussed e-Sourcing Offerings

You’ll not only see an emergence of vertical specific marketplaces like MFG and Co-exprise Energy, but commodity specific marketplaces like cBoxBid.

Sustainability Will Be a Component of Every Sourcing Event

Thanks to Walmart, customers are demanding sustainability, and thanks to the EU, many nations around the globe are in the process of defining and implementing environmental regulations like RoHS and WEEE.

Your Favorite Vendor Will Not Be Around in a Year

This year has seen a couple of big vendors, with credit lines cut off due to bank failures, lost lawsuits, and VC belt-tightening, go through a number of layoff rounds. Two of the largest vendors in the space, despite claims of “regrouping”, are in serious trouble and could soon be on the block … along with a dozen small companies that took too much VC money, and sold too little product, in the last few years. Some have great products, and will be sorely missed if they don’t get sold and close their doors, but it’s a harsh reality when you don’t manage for frugal growth, don’t continually focus on innovation not just in products but internal operations as well, and don’t bring in outside expert help when you need it. (It’s too bad that some of these companies don’t understand that consultants are cheap. Unfortunately, many of these same companies are being run by first-time entrepreneurs — who don’t really understand the difference between a start-up, a small company, and the mid-size or large company they came from.)

You Get More Thoughts for a Pound Than You Do for a Shilling

Twenty times more, to be precise.

See Box, c Box Bid

I was recently alerted to a new niche play in the sourcing market by the name of cBoxBid for buyers and sellers of, you guessed it, cardboard boxes. And just like you’re asking now, the first thing I asked is why would we need a marketplace just for boxes … after all, we have a large number of generic marketplaces already, not to mention a plethora of e-Sourcing applications that can be used to source boxes to your heart’s content.

The answer is we don’t, as there are dozens of ways to source boxes, unless you are a buyer who wants to get the best price possible on your box order. Cardboard boxes, and RSC boxes in particular, are the commodities of commodities … there are over 5,000 plants in the US alone that can make that RSC box for you. Some cities, like Atlanta, have 60 – 70 manufacturers in the local area that can make your box. And unless you’re an expert in the cardboard box marketplace, which you’re probably not if your job is to strategically source critical parts and materials, you’re probably not going to know which manufacturers are going to be able to give you the best quote, which is largely based on their current capacity utilization, at any one time.

Plus, it benefits the supplier, who is able to find more opportunities to increase production without having to spend thousands of dollars on potential client site visits. The average manufacturer is currently operating at 48 to 55% capacity, and spends an average of $700 to $1,000 for every three site visits by its sales force in its local area. A marketplace will bring it dozens, and maybe hundreds, of opportunities for the same price.

Moreover, because the marketplace is built around one commodity, the template is built in. This makes it trivial for a buyer to create a new request, and even more trivial for a supplier to find the requests that best matches their particular capabilities and production lines, and the requests that they can manufacturer cheapest. All a buyer has to do is define the production date, printing, style, wall, board weight/flute, board color, glue tab, dimensions, panel printing, warehousing requirements, quantity, delivery requirements, and bid-by date and the quote is ready to go. All the supplier has to do is enter a price. And the true market price is revealed.

The platform also offers buyers anonymity, suppliers accurate contact information of interested buyers, and both parties the opportunity to explore a potential transaction without a binding contract. A buyer places a bid, suppliers respond, and then a buyer releases her information to the supplier(s) that submit acceptable bids. At this point, an award can be made through the system, through the buyer’s in-house e-Sourcing system, or either party can walk away if a conversation uncovers a misunderstanding.

The tool also supports buyer feedback, and captures ratings from other buyers who have used a supplier.

The tool is free to buyers, and suppliers pay a monthly fee for unlimited use of the system.

The Sourcing Maniacs 2008 Vendor Tour Part V: Co-exprise

When we left the Sourcing Maniacs, they had just finished learning about BIQ (acquired by Opera Solutions, rebranded ElectrifAI) and the true meaning of spend analysis. We join them wandering the streets of Southborough, MA.

Yakko, Wakko, & Dot We’re the sourcing-maniacs
We’re zany to the max
We lost our pay-to-play contracts
Without a job we can’t relax
We’re sourcing-maniacs!
Wakko & Yakko Come join the ‘Riba Brothers
Dot And the ‘Riba Sister, Dot
Wakko, Yakko, & Dot Just for fun we ran around the corp’rate parking lot
They locked us in the boardroom whenever we got caught
But let us loose from the caboose
And now you know the plot!
Wakko So where are we going next, Yakko?
Yakko I don’t know, but I think we should move onto the C’s.
Dot Any cool C companies nearby?
Yakko None that I know of. I think they’re all in Pennsylvania, Illinois, or California.
Dot Well, we’re from California.
Wakko And I always thought Illinois was a railroad!
Yakko So Pennsylvania it is!
Wakko Pennsylvania is a railroad, too!
Dot So who’s in Pennsylvania?
Yakko If I recall correctly, CombineNet and Co-exprise.
Wakko CombineNet? I don’t think we’re smart enough to work for them. I still have problems with double-digit multiplication, I couldn’t do com-bin-a-tore-e-ul op-ti-my-za-shun!
Dot I guess it’s Co-exprise. What do they do?
Yakko Something called SLM.
Wakko Sea Level Measurement? In Pennsylvania? Cool! Do they have any yellow submarines?
Yakko I think it stands for Sourcing Lifecycle Management.
Wakko Oh. Well, maybe they have some baloney sandwiches. I’m hungry!
Dot You just ate two servings of Boston Baked Beans, drank enough tea for a party, and finished it off with an entire Boston Cream Pie!
Wakko I know … but I’m always hungry for baloney sandwiches.
Dot So which way to Pennsylvania?
Yakko Yakko licks his finger, sticks it in the air, and pauses.
This way!
Dot Let’s go!
  As per their nature, they start to sing.
Yakko, Wakko, & Dot We’re off to see Co-exprise
We’re gonna get our exercise
As it’s 600 miles away
But we’ll learn about SLM
And if it has a hidden gem
And how it can help you save
  The song goes on for a few hundred more versus which somehow manage to include references to roman aqueducts, visitors from Beetlegeuse Seven, South-going Zax, and something called PffT, which I always thought was the sound my cat made when she was cross. Including it herein would be almost as bad as subjecting you to Vogon poetry, so we’ll skip ahead to when the Sourcing Maniacs land in Wexford, PA.
Yakko, Wakko, & Dot We’re the sourcing-maniacs
…
Wakko Brooktree Road! I think we’re almost there!
Dot I see lots of office buildings!
Yakko This must be the place!
Dot Do you think they’ll talk to us?
Yakko Why wouldn’t they?
Dot They’ve been in stealth mode, hardly talking to anyone in the media besides the doctor and …
Wakko And?
Dot It looks like this place is access-controlled.
Yakko Well, rumor has it that a number of big companies that have DoD contracts are considering using Co-exprise’s solution. Companies that do military projects have to insure their suppliers have a basic level of data security in place, at least SAS 70!
Wakko Do you think anyone from the military could be in there now?
Yakko Relax, Wakko. I’m sure the military has forgotton all about that little incident where you mistakenly procured a real Tomahawk missile instead of the model rocket you were coveting.
Wakko But I almost blew up the valley!
Yakko But you can’t aim. It harmlessly exploded in the ocean. No harm done.
Wakko But the General said …
Yakko Look, someone’s coming out. Maybe we can talk to them out here. Would that be okay with you?
Wakko Ok …
Yakko Hi, I’m Yakko. Do you work for Co-exprise?
Man-in-Black Yes, I do. Yakko … Yakko … why do I know that name?
Dot I’m Dot.
Man-in-Black Dot. Hmmm. Wait a minute, you’re the Sourcing Maniacs!
Yakko & Dot That’s us!
Man-in-Black I heard you were let go from Ariba a while back. Sorry to hear.
Yakko & Dot Well, can you at least tell us about SLM and what you do?
Man-in-Black Man-in-Black pauses and thinks for a bit.
Well, we have been slowly spreading the SLM message, which we believe is the first major revolution to hit the direct sourcing space since one of our founders co-invented the reverse auction at GE, and we do want to get the Co-exprise message out when the time is right, so I’ll make you a deal. You promise to keep things under your hats for a couple of months, and I’ll tell you about the future of direct sourcing. Deal?
Yakko & Dot Deal.
Man-in-Black Wakko?
Wakko Wakko, who has somehow developed a fear of all men dressed in black, looks out from behind Yakko.
Yes, sir?
Man-in-Black Is it a deal?
Wakko Yes, sir!
Man-in-Black OK, follow me.
Dot Where are we going?
Man-in-Black The coffee shop on the corner. The most discreet place is a public place.
Man-in-Black So, do you know what Sourcing Lifecycle Management is all about?
Dot Managing the e-RFX and e-Auction process?
Man-in-Black Well, that’s what many people think, but it’s much more than that.

Many providers, particularly those that only service the indirect sourcing space, believe that sourcing starts with an e-RFX or auction for a commodity, results in a contract, and ends with order delivery. But things aren’t so simple in the direct space.

In the direct space, the lifecycle starts way back at new product design as you are sourcing not a pre-defined commodity part, but a custom-made part. You have to insure that the design is appropriate with respect to the capabilities of your potential supply base; you have to insure that the raw materials are available, in the requisite quantities, at the appropriate times, in the manufacturing regions; and you have to make sure that the projected cost does not exceed the maximum cost that would make the end product viable for sale in your target market. You also need to collaborate with your supply base in the design, as needed, to optimize the design for production.

Once you have the design, you need to go through a negotiation and collaboration intensive sourcing process to select one, maybe two, suppliers who will manufacture the part for you. This involves the sharing of confidential information, which needs to be done in a secure manner, as well as collaboration on forecasts and target delivery dates.

Once you have an award, you have to manage the procurement, which usually has to coincide with the procurement of other custom parts, which have to hit a single location at the same time for integration into the final end-product, which then has to be packaged and shipped to the end customer. This involves coordination between manufacturers, 3PLs, assemblers, and end retailers. Plus, you still have to insure prices are contract prices, charges are valid charges, and that the i’s are dotted and the t’s crossed, as you would in indirect procurement.

As you can see, whereas indirect sourcing can often be accomplished with just e-RFX, e-Auction, and Contract Management — with Spend Analysis and Decision Optimization for higher-value projects — direct sourcing requires extensive integrated project management capabilities, product lifecycle management, collaboration capabilities, Bill-of-Material management, and the ability to easily integrate with third party platforms.
Yakko, Wakko, & Dot We … we … never knew.
Dot We always thought it was just e-RFX, e-Auction, and good data management.
Yakko & Dot So how do you do all that?
Man-in-Black With a great code-base, of course! Although I have to be really careful with what I say now, especially until our next release hits beta later this year and hits full release late this year or early next year, I can tell you a few things that are already more-or-less public knowledge.

First of all, our platform is entirely new, built from the ground up to handle the direct sourcing process, which our senior management and developers are intimately familiar with. This allows us to do things that retrofitted indirect sourcing platforms can’t do.

Second, we have our own universal data model that underlies our application and it can integrate with data in over 1500 different formats.

Third, we have PLM built in at the core, and this allows us to enable direct sourcing professionals to track a project from beginning to end and always access the most recent data, regardless of which module they are in.

Fourth, we have fine-grained security that allows us to assign access permissions down at the data element level that indicates who can see the data, where (by IP), when, and how they can access it (read-only, view-only, etc.).

Fifth, we’ve integrated a compliance tracking module that allows companies to track regulatory requirements such as REACH, ITAR, etc. from product inception to product end-of-life, and insure that such requirements are met at every stage of the sourcing process.

Sixth, we’ve re-invented “spend analysis” for direct sourcing. Although I can’t say anything yet … we’re still finalizing the initial product offering and working on getting our first beta projects under way, I can say that our founders and developers have been involved with spend analysis since the days of FreeMarkets, and know why traditional “spend analysis”, developed in the indirect world, just doesn’t cut it in the direct world.
Dot Can we see it?
Man-in-Black Definitely not.
Yakko & Dot Can you tell us more about it?
Man-in-Black Not yet. But you’ll be able to read all about it soon enough.
Dot When?
Man-in-Black When the story hits the blogs. We’ll show the right people at the right time. Right now we’re totally focussed on getting the next release of the product out and pleasing our current customers, who include some of the bigger names in manufacturing, and getting beta projects underway at some of the biggest names in manufacturing.
Yakko & Dot Until then?
Man-in-Black You go on your merry way. Have a nice day.
The man in black gets up and walks away, leaving the Sourcing Maniacs speechless, again, as their view of the Sourcing World broadens with each vendor they talk to.

Annual Vendor Day – Year 2

Editor’s Note: This post was last updated on May 13, 2010.

It’s been one year since my first vendor day post. As it was one of my most popular posts last year at this time, I decided that I would update it for you. I hope it will allow you to quickly and easily find independent, (mostly) objective, third-party analysis of your favorite vendors. Enjoy!

Master Vendor Index:

AECsoft

Akoya

Algorhythm

Apriori

Aptium Global

Aravo

Archstone

Arena

Ariba

Austin Tetra (Equifax)

b-pack

B2B Connex

BIQ

BizNet

Blinco Systems

Bravo Solution

Cambrian House

cBoxBid

Claro

Co-exprise

CombineNet

Compiere

Coupa

CVM Solutions

D&B

Decideware

Denali

EC Sourcing

EcoVadis

Emptoris

Enporion

FieldGlass

Global Data Mining

Head2Head

Hiperos

i2

Iasta

Import Genius

Informance

Integration Point

IQ Navigator

iValua

Ketera

Kinaxis

Lexington Analytics

MCA Solutions

MFG.com

(The) Mpower Group

Nextance (Versata)

Next Level Purchasing

NineSigma

Oracle

Orbian

Power Advocate

Protiviti

Provade

Rapt

Rearden Commerce

Rollstream

Rosslyn Analytics

SAP

Servigistics

Sorcity

SourceOne

SupplierSoft

SYSPRO

The Receivables Exchange

ThomasNet

Trade Extensions

TrueDemand

UGS (Siemens PLM)

Upside Software

Vendormate

Vinimaya

WisdomNet

Vendor Post Index:

Vendor Sourcing Innovation Solution(s)
AECsoft * SIM-Powered e-Negotiation, Part I

* SIM-Powered e-Negotiation, Part II

 * e-Sourcing

* SIM: Supplier Information Management

* Contract Management

* Spend Analysis

Akoya * Ahoya!

* Design Cost Out

 * Cost Analytics
Algorhythm * The Optimization Rhythm in India

* Still Pounding Out the Optimization Rhythm in India (Part I)

* Still Pounding Out the Optimization Rhythm in India (Part II)

* Supply Chain Optimization

* Inventory/Warehouse Optimization

* Distribution Network Optimization

* Manufacturing/Production Planning Optimization

Apriori * Introduction

* Sourcing Maniacs 2008 Vendor Tour

* Cost Analytics

* Process Models & CAD Integration

Aptium Global * An Emerging Spend Powerhouse * Consulting: Direct Materials Sourcing
Aravo * The Arrival

* Supplier Information Management

* Sourcing Maniacs 2008 Vendor Tour

* SIM: Supplier Information Management
Archstone * Actualization * Consulting: Supply Chain Operations

* Consulting: Strategic Sourcing & Procurement

Arena * Introduction * PIM: Product Information Management
Ariba * Ariba + Orbian = ? * e-Sourcing

* e-Procurement

* e-Payment

* Spend Visibility

* Supplier Network

* Supplier Management

Austin Tetra (Equifax) * More Than Just Supplier Master Data

* Is This The Year Austin Tetra Breaks Out?

* Supplier Data Management

* Spend Management

b-pack * Packing It In for A Brave New World, Part I

* Packing It In for a Brave New World, Part II 

 * e-Procurement

* e-Sourcing

* P2P

B2B Connex * e-Document Management * e-Procurement

* e-Document Management
BIQ * Spend Analysis I: The Value Curve

* Spend Analysis II: The Psychology of Analysis

* Spend Analysis III: Common Sense Cleansing

* Spend Analysis IV: Defining “Analysis”

* Spend Analysis V: New Horizons I

* Spend Analysis VI: New Horizons II

* Spend Analysis: What Purchasing.com Got Wrong

* Aberdeen on Spend Analysis: Lost in the Trees

* The Future of Spend Analysis

* Integrating Contract Management and Spend Analysis

* Screwing up the Screw-Ups in BI

* Sourcing Maniacs 2008 Vendor Tour

* Spend Analysis I: It’s the Analysis, Stupid

* Spend Analysis II: Why Data Analysis is Avoided

* Spend Analysis III: Crosstabs Aren’t Analysis

* Spend Analysis IV: User Defined Measures, Part I

* Spend Analysis V: User Defined Measures, Part II

* Spend Analysis
BizNet * Perform-IS * Supplier Performance Management
Blinco Systems * Third Wave * GCM: Global Commerce Management
Bravo Solution * Optimizes Its Way Onto the doctor‘s Short List

* Analysis and Supplier Performance Management

* e-Sourcing

* e-Procurement
Cambrian House * Crowdsourced Software * Software Development
cBoxBid * See Box, c Box Bid * Marketplace for Boxes
Claro * Clarity

* Crystal Customs

* Crown Jewels

* Consulting: Spend Analysis

* Consulting: Strategic Sourcing & Procurement

* Consulting: Spend Management

* Consulting: SRM (Supplier Relationship Management)

Co-exprise * Kick Ass Direct PLM Sourcing, Part I

* Kick Ass Direct PLM Sourcing, Part II

* Sourcing Lifecycle Management I: The Direct Sourcing Cure

* Sourcing Lifecycle Management II: A New Entrant

* Sourcing Maniacs 2008 Vendor Tour

* PLM e-Sourcing

* e-Marketplace

Combinenet * Communique I: Beginnings

* Communique II: Comparisons

* Communique III: Differences

* Communique IV: BoB’s Unique Talents

* Communique V: Expressive Bidding

* Communique VII: BoB’s Power Source

* Communique VIII: Energy!

* Decision Optimization
Compiere * Think Different! * ERP
Coupa * Procurement Independence

* Cabana Cafe Open For Business

* Charges Ahead

* More than Coupacetic

* It’s … It’s … It’s Coupasonic!

* The Sunflower Starts to Blossom

* Coupa + Amazon EC2 = Energized Procurement!

* Fill Your Gas Tank With e-Procurement

* Sourcing Maniacs 2008 Vendor Tour

* QuickDraw Procurement with QuickStart

* e-Procurement
CVM Solutions * Not Just About Supplier Diversity Anymore! * Spend Analysis

* SRM: Supplier Relationship Management

D&B * Not Just for Performance Anymore * Market Intelligence

* Supplier Data Management

* Risk Management

Decideware * Agency Performance Management Experts * Supplier Performance Management

* Scope of Work / Project Management

Denali * Delivers! * Consulting: Strategic Sourcing & Procurement

* Staffing & Recruiting

* Market Intelligence

EC Sourcing * Easy and Affordable Sourcing

* Corrective Action Management

* e-Sourcing Platform

* Corrective Action Management

* Strategic Sourcing Consulting in CPG, Retail, and related verticals

EcoVadis * An Exploration * SaaS Sustainability Solution
Emptoris * Update

* Lies, Damn Lies, And …

* Optimization-Free Advanced Sourcing Services Analysis

* My Response, Part I

* My Response, Part II

* Sourcing Maniacs 2008 Vendor Tour

* Spend Analysis

* e-Sourcing

* SRM: Supplier Relationship Management

* Contract Management

* Decision Optimization

Enporion * Don’t Overlook at the Emporium * Catalog Management

* e-Procurement

* e-RFX & e-Auction

* Contract Management

* Supplier Management

FieldGlass * Sourcing Maniacs 2008 Vendor Tour * Contingent Labor Solution
Global Data Mining * Don’t Underestimate Trade Compliance

* It’s Time To Get Your Trade Data In Order

* Sourcing Maniacs 2008 Vendor Tour

* GCM: Global Commerce Management
Head2Head * For the Supply Chain Nail * Staffing & Recruiting
Hiperos * Is It Time To Get Hip With Hiperos?

* Stay Hip With the Program

* Extended Enterprise Management
i2 * New and Improved

* i2 – Still Truckin’

* Spend Visibility
Iasta * Noteworthy

* Optimization: Can you Afford NOT to do it?

* Sourcing Maniacs 2008 Vendor Tour

* Spend Analysis

* e-Sourcing

* Decision Optimization

* Contract Management

Import Genius * Are you an Import Genius? * US Import & Export Data
Informance * Enterprise Manufacturing Intelligence

* MPM in Disguise

* Manufacturing Performance Management
Integration Point * Another Way to Get Your Trade Data in Order

* Sourcing Maniacs 2008 Vendor Tour

* Trade Compliance to a New Level

* Trade Data Management

* Compliance Solutions

IQ Navigator * IQ-Based Navigation of Contingent Labour Sourcing * Contingent Labour Management
iValua * End-to-End Sourcing and Procurement, Part I

* End-to-End Sourcing and Procurement, Part II

* e-Sourcing

* e-Procurement

Ketera * A Conversation

* Catching Up With

* There’s More than Connect

* Sourcing Maniacs 2008 Vendor Tour

* Spend Analysis

* Contract Management

* Supplier Network

* e-Procurement

* Catalog Management

Kinaxis * Sourcing Maniacs 2008 Vendor Tour * Service Management
Lexington Analytics * Welcome

* How much do you know about your spending?

* Do you have a plan?

* Opportunity Analysis: The Challenge is Having Accurate and Usable Spend Information

* Spend Analysis Consulting Services
MCA Solutions * A Strategic Service Parts Management Platform

* Bringing the Aftermarket Forward, Part I

* Bringing the Aftermarket Forward, Part II

 * Strategic Service Parts Management

* Aftermarket Management

MFG.com * A Community in the Making

* MFGX.com – Exploding onto the Scene

* Sourcing Maniacs 2008 Vendor Tour

* e-RFX

* Supplier Discovery

(The) Mpower Group * Talent, Training, and Transition * Consulting: Talent Management

* Consulting: Risk Management

* Consulting: Strategic Sourcing

* Consulting: Supplier Relationship Management
Nextance (Versata) * Next Generation Contract Management * Contract Management
Next Level Purchasing * Welcome

* Purchasing Certification as a Savings Strategy

* Sourcing Maniacs 2008 Vendor Tour

* Purchasing Training

* Certification: Senior Professional in Supply Management (SPSM)

NineSigma * The Open Innovation Mission * Open Innovation
Oracle * No Advanced Sourcing * e-Sourcing

* e-Procurement

Orbian * Ariba + Orbian = ? * SCF: Supply Chain Finance

* e-Payment

Power Advocate * Sourcing Maniacs 2008 Vendor Tour * Strategic Sourcing

* Category & Market Intelligence

* Spend Analysis

… for the Energy Industry
Protiviti * Manage Risk, Reap Reward * Consulting: Risk Management
Provade * Outsourcing, Part I

* Outsourcing, Part II

* Outsourced Procurement

* Workforce Management

Rapt * Sometimes It’s Okay To Get Rapt Up In Revenue

* Rapt Up In Revenue

* Price Optimization
Rearden Commerce * Unique Challenges of Travel Procurement

* Unique Solution For Travel Procurement

* Personal Travel Assistant

* e-Marketplace: Travel

* Expense Management

Rollstream * Roll Out to Your Community

* Steamroll Your Compliance Problems into Submission

 * ECM: Enterprise Community Management
Rosslyn Analytics * Taking Analytics-Based Insights to the Masses

* A Spend Visibility Platform the Masses will Rally Around

* Spend Analytics

* Spend Visibility

SAP * Sapphire Sensation * SCM: Supply Chain Management
Servigistics * Tomorrow’s Strategic Service Management Today

* Workforce Management: A Servigistics Approach

* Sourcing Maniacs 2008 Vendor Tour

* Service Management
Sorcity * The Sorcerers * e-RFX

* e-Auction

SourceOne * SourceOnce scores a Grand Slam with WhyAbe

* Sourcing Maniacs 2008 Vendor Tour

* Stragic Sourcing & Procurement Consulting

* SaaS Sourcing Tools

SupplierSoft * Sourcing Maniacs 2008 Vendor Tour

* Supplier Process Management

* Supplier Information Management

* Compliance Management

* Supplier Audit Management

SYSPRO * Forecasting and Inventory Optimization for Small & Mid-Sized Businesses, Part I

* Forecasting and Inventory Optimization for Small & Mid-Sized Businesses, Part II

* ERP

* Inventory Management

* Forecasting

The Receivables Exchange * Become a Financial Superstar * Receivables Financing
ThomasNet * Taking Sourcing to the Masses

* Sourcing Maniacs 2008 Vendor Tour

* Supplier Registry

* On-line Procurement Tools

Trade Extensions * On the Eleventh Day … (X-Mas 2008)

* Trades Up Its eNegotiation Management Capabilities and UI

* Demonstrates Optimization is Not Just for the Private Sector

 * Strategic Sourcing

* e-RFX

* Decision-Optimization enabled Auctions

True Demand * Overcome the Seven Deadly Sales Suppressors * Inventory Visibility
UGS (Siemens PLM) * Understanding * PLM: Product Life-cycle Management

* e-Sourcing

Upside Software * Sourcing Maniacs 2008 Vendor Tour * Contract Management
Vendormate * Great Fit, Less Fraud! * SRM: Supplier Relationship Management

* Healthcare Solutions

Vinimaya * The Next Wave in Product Catalogue Management (PCM)

* The B2B Search Engine

* Sourcing Maniacs 2008 Vendor Tour

* Catalog Management
WisdomNet * Supply Risk Management * Consulting: Supply Chain Operations

Is your favorite vendor missing? Let the doctor know and — most importantly — let the vendor know! Although the doctor is more than happy to speak with vendors and review their solutions at his earliest opportunity, like many of his blogger brethren, he doesn’t have the time to be making random calls all day trying to chase down elusive vendors. (Especially when some vendors don’t (yet) perceive us bloggers as important enough to bother with. Hard to believe isn’t it? Especially considering Sourcing Innovation now gets more traffic than many of the traditional print publication web sites!)

Also, if you have been covered on Sourcing Innovation before the publication date, and are not on the list, please let the doctor know (and send the permalink) and accept his sincere apologies.

We Didn’t Start the Auction

Free Markets, Ariba, Procuri, Iasta
Perfect Commerce, PurchasingNet, B2E Markets

Ketera Tech, VerticalNet, Trading Partners, and Moai Tech
K2 Sourcing, the Commerce-hub, and e-Breviate

Emptoris, SciQuest, Sorcity, Synertrade
WhyAbe, eDynaQuote, and a Global eProcure

Procusoft, Quadrem, Co-exprise Marketplace
AECSoft, A.T Kearney, B2B Marketplace

We didn’t start the auction
It’s been always raging
Since the world’s been trading
We didn’t start the auction
Though we did ignite it
We just couldn’t fight it

Generally speaking, the conventional wisdom is to run auctions in loose markets where supply exceeds demand and the power resides in the hands of the buyer. However, auctions can also be helpful when supply is tight and commodity costs are rising, when the power theoretically rests in the hands of the supplier, especially if we have an inflationary market. Why? Even though demand may be tight, in an inflationary market, spending goes down, and demand will only remain high if consumers can ultimately afford the products being produced.

In these conditions, if you are unable to control prices, demand for your products will drop. And your suppliers, whether or not they want to admit it, recognize that demand could drop for end-user products at any time, and thus the components and materials they provide, at any time. This means that they are likely desperate to lock in business and should be willing to agree to an ethical auction.

This is good news, because a well-designed and well-run auction allows you to determine the true market price for a product or service, especially those where only part of the cost is due to commodities that have increased in price since your last sourcing event. If a supplier believes its business might drop, it might be a lot more willing to reduce it’s profit margin on the value-add component of its offering.

Thus, if the category is one that you’d normally auction, you should probably still do so. Don’t get jumpy and switch sourcing strategies just because the market has changed since the last time you examined the category. If your analysis indicates that the category is right for a sealed-bid negotiation, do a sealed-bid negotiation; if your analysis indicates that you need strategic sourcing decision optimization, use decision optimization; and if your analysis says that the category is appropriate for an auction, use an auction. As long as it’s well planned and well executed, even though your costs might not decrease, they could still be less than the average market cost. Good analysis and strategies withstand the actions of the market. So stick to them.