Category Archives: Supplier Information Management

Tealbook … Not Just a Journal Anymore!

When you hear teal, you probably think of the colour which gets its name from the coloured area around the eyes of the common teal, and when you hear tealbook, you’re probably thinking of a notebook in the calming hue of teal, perfect for a journal or personal contact book … maybe even one you can keep your supplier contacts in!

But we all know the problems with a contact book. Contact information changes as people are shuffled around the company. Contacts leave the company, and you not only have to update their information but add a new contact. There is only a limited amount of room for notes. It’s really hard to share the information, and, if your peers are also using handwritten ‘teal journals’, get them to share the information, especially when you need it quickly.

That’s why supplier information management (SIM) modules and platforms were developed. All of the supplier and contact information in one place, accessible to, and updatable by, anyone in the organization. Plus, anyone can search the supplier database for suppliers new to them … but not new to the organization. This was one major limitation. Another was lack of community intelligence from peers. Were they selected or known for certain capabilities, or not? Do they have other customers for a product or service who will serve as references? Are they (now) capable of satisfying a minority designation or certification requirement (in a certain geography)? You can ask this, update the system to track it, but a community keeps this information up to date.

But most importantly, with traditional Supplier Information Management (SIM), you know what you know and you don’t know what you don’t know. You have no way of determining how many potential suppliers you don’t know about for any given category or requirement. Or how good the suppliers are for your needs relative to the suppliers you don’t know about.

That’s where a modern Supplier Information Management with Supplier Discovery platform comes into play. A modern supplier discovery platform, which is more than just a supplier network — as a supplier network is nothing more than a database of suppliers that have been transacted with through a particular platform, allows a community of organizations to keep track of, and provide information and recommendations on, potential suppliers (whether transacted through a platform or not); potential suppliers to self-identify and provide relevant information up front (such as diversity status and certifications); and all parties to share information of potential relevance.

tealbook‘s vision is to create a shared, trusted, supplier base with 100M suppliers that provides a central repository of reliable supplier intelligence that can be used as a stand-alone platform or integrated with your current ERP, sourcing, procurement, contract management, and other spend management systems of relevance through an easy to use API and an interface that is configurable to your organization’s processes and privacy preferences. tealbook already includes 1M vetted, and de-duplicated, suppliers with rich insights and expects to grow daily at an exponential rate to reach 4 million within 12 months.

And while this three-year-old start-up doesn’t have the 100M supplier database yet, they have the solid foundations for a reliable, scalable, extensible, and integratable community supplier intelligence platform that can be configured to your organization’s needs. That is getting the attention of some of the biggest organizations and consultancies in North America.

In the tealbook platform, a user can easily do a search for potential suppliers, review verified supplier profiles, review community generated expertise tags (similar to individual specialty tags on Linkedin), review provided supplier content, create a supplier list for vetting, interact with the supplier to get more information, interact with her teammates for initial vetting and review, and then select a subset of those suppliers for export for consideration in her sourcing/procurement project. And she can do it through the web platform, or the mobile app if she is documenting new potential suppliers at trade shows. Plus the database of connections and employees is always up to date, so she knows who to contact, and who she knows, or knows of, at the potential supplier.

Supplier Discovery (incumbent or new) can be quite time consuming without such a platform. Most organizations would resort to searching online databases, getting recommendations from professional societies, going to events to get information from peers, and so on. Discovery can take weeks on its own when a proper platform with a community built and maintained platform can knock that down to hours. And the information is a lot more reliable than that obtained from a single source. This reduces the time, effort, and risk to discover, pre-vet, and qualify new suppliers substantially — which makes for an improved sourcing and procurement process.

And the search in the tealbook platform is quite powerful — it’s not just keyword, industry, tag — it’s also specific to your data and connections — it’s semantic and it uses machine learning to increasingly improve the relevance of supplier recommendations. And that’s key to identifying the right suppliers for you. And it’s a great choice even if your platform has a basic SIM module. For example, tealbook complements newer sourcing platforms such as ScoutRFP (and eliminates the need for a supplier network entirely), Coupa customers can add on tealbook to fill in the holes in the Coupa S2P platform, and Ariba customers are, as you may have guessed from above, finding it provides that missing piece: mobile, user friendly and socially derived supplier intelligence. With tealbook, they are finally able to rapidly and easily look up updated supplier data, identify and qualify known or new suppliers without going through an extensive process before initiating a sourcing event in Ariba.

In other words, if you are looking to know more about suppliers who have already transacted with your company or regularly need to discover new suppliers (including increasing access to innovative and diversity suppliers) check out tealbook. It might be the platform for you.

The More Things Change … Supplier Intelligence

This week we’re revisiting posts from ten years ago to demonstrate that, to date, the more things change in Procurement, the more they have, unfortunately, stayed essentially the same.

Ten years ago we published a post on what you can’t afford not to know about your suppliers that summarized some key insights from Jim Lawton (who was VP of Marketing at Open Ratings until its acquisition by D&B, where he became SVP and General Manager of Supply Management Solutions).

Jim, who noted that global supplier insight can become as indispensable to sourcing and supply management as a stage is to an actor, also noted that in order to acquire this insight, an organization has to focus on:

  • supplier performance and quality management,
  • supply risk management, and
  • supplier content and connectivity

And nothing has changed. Any organization that wants to understand total landed cost from global markets and with predictability still needs these capabilities today. Considering that the the final cost of any purchased product is ultimately dependent on the supplier and its ability to delivery a product to spec on time and on budget with minimal defects, supplier performance management is as critical today as it was a decade ago.

Similarly, considering that a single disruption can wipe out the entire identified and negotiated savings on a category (as the result of a six week disruption), supply risk management still takes center stage. (This goes double when the chance of an organization not experience a disruption is 15% or less for any 12 month period.)

Finally, without an understanding of supplier policies, practices, and the providers your suppliers employ, you’ll never know whether or not they are adhering to your corporate social responsibility standards, whether or not they are implementing six sigma and other best practices to ensure quality and keep defects down, and whether or not they are buying from, or subcontracting component development to, third parties that don’t adhere to your quality, responsibility, or ethical standards.

Supplier Intelligence is as important now as it was then, and, most importantly, many organizations don’t have the depth of intelligence they should have, as evidenced on the relative lack of uptake of modern Supplier Relationship Management solutions.

PRGX – The Biggest Analytics Provider You Don’t Know!


For those that do not know it, PRGX would appear to be one of a select number of dominant services provider in the niche market for recovery audit services — a market that unlike other procurement services faces tremendous price pressure for its core recovery, statement and related auditing and profit recovery services.

the doctor and the prophet, PRGX Intro on Spend Matters Pro (membership required)

In particular, PRGX would appear to be a recovery audit specialist for the global retail sector. And that is what they are, but that is not all they are.


PRGX has started to remake itself quietly from within — out of necessity, given these broader market trends — building and acquiring technology capabilities in the spend analytics and supplier management areas, both to expand its relevance and to start driving automation and scale in its core business.

PRGX has built the most complete, and in many ways the most advanced, analytics and recovery solution for the retail sector and, in doing so, has built one of the most complete and advanced analytics and recovery solutions for just about any sector that buys and relies on goods. Pharma, Manufacturing, and Aerospace and Defense, just to name a few, could all benefit intensely from the out-of-the-box PRGX solution.

This is because it has evolved it’s application from a simple recovery analytics application to a full featured analytics solutions with modules for:

  • Payment Analytics
  • Spend Analytics
  • Product Analytics
  • Recovery Avoidance Analytics
  • Supplier Information Management

With the latter two coming through its recent acquisition of Lavante.

It can analyze what you paid (payment analytics), what you should have paid (recovery analytics), what you are spending (spend analytics), how much that is costing you and profiting you on a product level (product analytics), and what suppliers are supplying that product and how they are performing (SIM with a hefty dose of SPM).

And it can do this analysis end to end around a product or category, and allow you to simultaneously see what you ordered, spent, overspent, took in on sales, lost on returns, and profited when all was said and done. It’s one of the most powerful analytics solutions you don’t know about. Stay tuned — there is more to come!

Supplier Solutions – All About the Space …

… of Supplier Enablement. In our recent post about Supplier Networks, we discussed the value wasn’t what the provider typically promoted, but the fact that it greatly decreased the effort required by the supplier to do business. It enabled them to be efficient, whereas most sourcing and procurement applications just suck their time.

So if you are going to buy a supplier management solution, then it better be one that truly, truly, truly enables suppliers. So what does this mean?

Find a solution that focuses suppliers on missing, outlier, and information that can’t be confirmed.

Many solutions just send out regular “please review and correct” alerts and call that supplier information management. But information management isn’t about reminders and checking boxes, it’s about finding issues and fixing them. A good solution identifies missing information, information that is outlier from norms (i.e. an insurance certificate is usually only 1 year, but the supplier entered 10), and information that can’t be confirmed (such as third party audits from organizations that can’t be found in government registries).

Find a solution that makes integration with supplier’s systems (MRP, CRM, order management, etc.) easy.

Suppliers need to quickly get POs out of your portal and into their order management, MRP, ERP, accounts receivable, etc. system for which your vendor will likely not have an out-of-the-box integration solution that you are able to implement on behalf of your supplier. So make sure the solution has a well-defined API that makes it easy for the supplier to integrate their systems if they want to and well defined file formats that will allow them to export orders, etc. from your system and import shipping notices, invoices, etc. from theirs.

Find a solution that includes cash forecasting capability for the supplier based on your early payment discounting schedule.

Face it. A supplier isn’t going to go for your early payment discount program just because you say it’s a good idea — they need to run their own numbers and realize that 2% is less than they are paying in interest, etc. Give them an easy to use calculator, especially since their Procurement or AR guys are likely NOT as financially adept as your financial modellers.

In other words, if you want a true supplier solution, find one that truly, truly, truly enables the supplier. Not just you.

You Need a Supplier Network – But Not For the Reasons The Vendor Says!

Every vendor with a supplier network touts their wares, and usually does so quite loudly. They go on and on and on (and on and on) about how their industry leading supplier network:

  • makes it easy to find new suppliers
  • makes it easy to search those suppliers catalogs
  • makes it easy to send out RFXs
  • makes it easy to place orders
  • makes it easy to collaborate with suppliers
  • … and so on and so on and so on (and so on and so on) …

Now, these are valuable benefits, but they are by no means unique to a supplier network. Taking ‘em one by one (we’ll knock ‘em all down as the satellite circus won’t leave town) …

  • you can find new suppliers from online marketplaces, industry associations, co-opetition, and from within your own organization (through better data management)
  • a number of online marketplaces make it easy to search catalogs, and there are a number of suites with integrated catalog management that work quite well, no network needed
  • just about every sourcing, procurement, and related application (suite) has RFX functionality
  • dozens upon dozens of procurement suites, e-commerce applications, etc. make order placement a snap
  • e-mail, online screen sharing, online workplaces, embedded messaging, and so on make collaboration easy

In other words, no supplier network is needed. So why do you need a supplier network?

Could it be for supplier management? Some of the more advanced vendors will submit that with a supplier network will help you:

  • detect supplier performance issues early
  • initiate and manage corrective actions
  • manage innovation management

And it will, but:

  • good metric and performance tracking and regular score-carding can detect issues early just as well
  • there are a number of best of breed corrective action management solutions out there, and many good sourcing suites have this functionality built in
  • and there are solutions for innovation management, and most SXM solutions, which do not necessarily have supplier network capability, have these …

So why do you need a network? And, to be more precise, an open supplier network?

Because supplier information management solutions, supposed to ease the burden of information management, don’t really ease it — they just transfer it to the supplier (who is supposed to log into the portal and maintain it). This sounds great, but given that a given supplier will have hundreds (or thousands) of customers, each with their own sourcing / procurement / SXM solution, instead of one customer having to maintain thousands of supplier profiles, each supplier has to maintain hundreds of their own profile instances for their customers.

In other words, you’ve just transferred costs through the supply chain, shifting your overhead into your suppliers who will, surprise, have to pass that cost onto you. But if you have an open supplier network, a supplier only has to maintain one profile, either in the network, or in the system of their choice that is capable of exporting and updating their profile in a standard (XML) format to the open network as needed. Instead of shifting information management through the chain, and the associated costs, you’ve minimized it, and eliminated the majority of the cost.