Category Archives: Technology

Kinaxis – A New Paradigm for Real-Time End-to-End Supply Chain Management! Part I

Kinaxis, which was first reviewed on SI by the Sourcing Maniacs in their classic 2008 Vendor Tour, is one of the most interesting companies in the entire Supply Management space. Billing themselves as a RapidResponse solution, which was initially designed to be a demand management platform (available on-demand) to assist supply chain professionals in managing their change-ready supply chains, it is actually a very extensive, but deftly integrated, platform that also does:

    • Demand Order Analysis,
    • S&OP (Sales and Operation Planning),
    • Supply & Capacity (Constraint) Planning,
    • Master Production Benchmarking & Scheduling,
    • Inventory Management,
    • New Product Introduction,
    • Order Analysis & Planning,
    • Supply Management,
    • Profitability Management,
    • Supplier Collaboration,
    • Integrated Project Management,
    • Process Orchestration,
    • Change Management,

and

  • Cross-Functional Supply Chain Management.

And it’s used by customers to do all of this, and more. It’s the next level of Supply Management. Once you’ve implemented e-Procurement and put your Spend Under Management, e-Sourcing and Strategic Sourcing Decision Optimization and established processes that keep your costs down and value up, e-Transportation and Trade Management to optimize your distribution and global trade (import/export processes), e-Visibility to manage your risk, and e-Supply Chain Network Optimization to manage your network design, it’s what you do next.

Why? Because each of these solutions only get you so far on their own. e-Procurement eliminates the time-consuming, value-less tactical buying functions that waste time and money, but doesn’t deliver much beyond manpower savings and doesn’t generate value on its own. That’s where e-Sourcing comes in. e-Sourcing takes the spend the organization has under management, analyzes it, and runs strategic sourcing events (such as auctions and optimization driven negotiations) to execute buys and delivery schedules that save the organization time and money, but doesn’t actually manage the distribution or global trade aspects, which can cost time and money if the right documents aren’t executed in the right way at the right time to streamline imports and exports. e-Transportation and Trade Management optimizes the logistics and distribution and ensures everything runs efficiently and smoothly in a non-loss generating manner, but doesn’t optimize the entire transportation and inventory/warehouse management network. When the organization has the opportunity to change its production locations, 3PLs (Third Party Logistics carriers), and/or warehouse and distribution locations, an e-Supply Chain Network Optimization solution will, given current demand and contracts, optimize the entire production, storage, and distribution network to the extent permissible, but will not be able to do anything about change, order analysis and demand generation, optimization of new product development and introduction processes, sales and operations planning around new and upcoming products, production benchmarking and scheduling, cross-functional supply-chain process orchestration, or change management when an unexpected event (such as a material shortage, natural disaster, or supplier bankruptcy) forces a rapid, real-time change to the plan.

This is where Kinaxis comes in. Starting from the premise that what product, risk, and change managers need are answers to common questions like the following in real-time:

  • what is the impact of a supplier shutdown due to a fire in the plant?
  • how can I launch a new product a quarter early?
  • what if a user mistakenly changes an inventory parameter?
  • what would happen to our ability to fulfill demand to our other customers if we accelerate fulfilment of an emergency order for a preferred customer?
  • how can we effectively reengineer our planning processes?

Kinaxis has built a solution that supports very complex, but easily generated, what-if scenarios that will allow a user to ask these questions and get an answer in a few hours, as compared to the days, or weeks, it would have taken them in the past. How? Come back for Part II!

FieldGlass: Adapting to Every Contingency, Part III

In Parts I and II we discussed all of the improvements FieldGlass has made to its contingent workforce management platform since SI first covered FieldGlass back in 2010, including its improved rate guidance, rate structure, job posting process and it’s new ask-an-expert recommendation engine and powerful timesheet module. Today we’re going to dive into FieldGlass’ new Statement of Work (SoW) module.

You’re probably wondering why SoW gets its own post, because, after all, isn’t a Statement of Work just a formal document that captures and defines the work activities, deliverables, and timeline of a project that can be attached as a PDF? Well, technically, yes, but from a usefulness point of view, no. The problem with SoWs is that they are not a static contract attachment but a living, breathing document, and process, that needs to change and adapt as circumstances change. Every time new information is discovered, resource availability changes, external events introduce delays, unexpected regulatory changes require new approvals or different materials, or requirements change for business reasons, the SoW needs to change. Moreover, in order to effectively manage a project governed by a SoW, hours and resource usage has to be tracked against the SoW, which has to be updated as needed for the tracking to be relevant.

To this end, FieldGlass has built a very powerful, and flexible, SoW that supports the entire project lifecycle from a worker and resource perspective because you can’t just manage the resources, you also have to manage the resources they need to do their jobs. Take construction projects for example, in addition to the digger, he will need a Digger Truck. The workers putting up the frame will need a crane. And so on. And, more importantly, this equipment will have to be inspected on a regular basis, typically every six months, to comply with safety regulations. The ability to track the resources, and their last inspection date, is not only important, but critical to minimizing costs. For example, one customer, that was unable to effectively track and access this inspection data on a project basis, was inspecting a machine every time it was assigned to a new project on a new site. Because some machines are only needed for a few months, it was doing almost three times as many inspections as it needed to, and for one machine which cost 25K an inspection, spending 125K to 150K a year when it only needed to spend 50K. These costs added up and this savings on its own more than paid for the FieldGlass solution.

The SOW is full-featured and supports not only a project description and a list of approved workers but also rates, fees, schedules, milestones, deliverables, resources, roles, and management events. Each worker can be associated with the appropriate rate structure, payment schedule, location, onboarding, and offboarding process. Each resource can be associated with it’s own schedule (for usage, maintenance, inspection, onboarding, and offboarding), fee structure, and payments. Deliverables can be added and modified as required, and reports can be set up to report on the amount paid to date, budget amount, etc. It’s quite powerful and quite useful as the full lifecycle of the project, worker, and resource has been taken into account, made fully visible to the reporting engine, and integrated in such a way that the appropriate information can be used in timesheets, job postings, etc.

The new FieldGlass Statement of Work functionality has the potential to transform the way you manage outsourced projects.

FieldGlass: Adapting to Every Contingency, Part II

Yesterday, in Part I, we outlined all of the improvements FieldGlass has made to its contingent workforce management platform since SI first covered FieldGlass back in 2010, and discussed in detail its improved rate guidance, rate structure, and job posting process. Today, in Part II, we will cover e-mail approvals, FieldGlass’ new Ask-an-Expert recommendation engine and its powerful timesheet module. Then, tomorrow, in Part III we’ll cover its new Statement of Work (SoW) support.

E-mail Approvals
While this is an “old-news” capability for many supply management platforms, what is surprising is just how much e-mail approvals accelerate the worker selection and approval process. Customers who implement e-mail approvals reduce their cycle time, on average, by 66%! A manager who may not log into the system every day is in her email (every working hour of) every day.

“Ask an Expert” Recommendation Engine
This is a powerful tool for customers who want to take the time to customize the default workflow templates for their organization. By defining the appropriate questions and responses, a manager can be directed to the appropriate labour category for any position and the appropriate process. Is this a temporary position? Contingent? Outsourced to a service provider under contract? Or should it be a full time position that should go through a non-contingent process? And are there appropriate contingent labour providers who can staff the position, or will an RFP need to be issued? (For example, let’s say it’s a one-time integration of a new back-office Supply Management system and no currently approved provider has an expert on staff.) Depending on the need, the system will direct the user to the appropriate course of action, which could be as simple as creating a new instance of an archived job-posting for a 6-month temporary labour position to issuing an RFP to find a new provider for an 18 month systems integration project.

New Timesheet Module
Just like e-mail approvals, timesheet solutions are “old-news” too, except when they are expertly integrated into the contingent workforce solution in such a way that usage for both employees and managers is almost effortless. In the average situation, an employee will just have to enter the number of hours they worked each day during the week because the system will automatically retrieve the projects they are working on and the associated billing codes, and automatically classify overtime. For an average worker on one project, they will have to enter five numbers each week. The system automatically validates each timesheet against statements of work; daily, weekly, monthly and SOW hour limits; and employee work hour/day/month restrictions and generates warnings where manager review/approval is required. A manager can then one-click approve all timesheets without warnings, and, through check-box selection, approve all timesheets with warnings that are expected and acceptable (which will happen if a manager approves overtime on a given project to get it done). This greatly reduces the number of timesheets that require individual review and attention and makes managers much more efficient.

In other words, while a number of these improvements were evolutionary and to-be expected, what is unexpected is how well some of these improvements were integrated. The bulk of the FieldGlass platform is incredibly easy to use for the average manager and approver once initial configuration is done.

Tomorrow we’ll discuss the new Statement of Work functionality.

It’s 24/7 for Robbie and the Coupa Factory, Part III

In Part I we announced that Coupa has been coding up a storm since we last checked in on them last summer (in Robbie and the Coupa Factory), completing Release 9 with major enhancements in expense management, invoice management, and catalog management; the android app; and the first version of their new sourcing module as well as some major improvements to their cart that will show up in release 10 later this quarter. In Part II, we discussed the major improvements in Release 9 around expense management, invoicing, and catalog management. Today we will discuss the new e-Sourcing module and how it makes Coupa one of the first providers to offer an integrated end-to-end e-Sourcing and e-Procurement solution.

The new Sourcing Module is e-Sourcing 1.0. RFPs, RFQs, RFIs, basic reverse e-Auctions, and basic e-Sourcing project management form the foundations of the new suite, which, to be honest, is not much more than you’d find in any e-Sourcing suite on the market, including the free WhyAbe solution available from SourceOne, but that’s not the point. The point is that the inclusion of this module in the Coupa platform makes Coupa, as far as SI can tell, the first Supply Management provider based in North America with an integrated end-to-end Sourcing and Procurement platform. SI has been saying for years that It’s Sourcing AND Procurement and that the only way to truly revolutionize Supply Management is to have one integrated end-to-end platform, and with Coupa’s current offering, with the exception of Decision Optimization (which is only critical for high(er)-dollar (complex) spend in an average organization just starting their e-Sourcing journey), the platform has the foundations of the remaining four stages of e-Sourcing and nine stages of e-Procurement. Some applications, like Spend Analysis, Contract Management, and Tax Reclamation have a ways to go (as tax codes outside North America can get quite complex), but the point is that there is a foundation that allows the entire process to be e-Managed. End-to-end projects can be created that follow the process from cradle (the initial RFI) to grave (when the final order is shipped, received, invoiced, reconciled, paid, and added to the Spend Under Management database for analysis).

Moreover, the entire process can be made available to every user of the platform. While complex sourcing events need to be driven by senior buyers, there is no reason that simple events for simple commodities or services needed by only one department can’t be driven by a senior person in that department, under the supervision of the appropriate Manager or Director. Why should Supply Management oversee every single sourcing event for temporary labour for a system implementation? If there are approved suppliers, approved budgets, and known requirements, there is no reason that a domain expert can’t drive the project with the help of Supply Management, if required. And if the spend for these one-time projects exceeds a threshold, which will be easily detected if budgets are exceeded or reports show significant spend in a given category, then the category can be the next Supply Management sourcing opportunity.

The sourcing module is as easy to use as the rest of the platform, and sourcing events can be created just as quickly as requisitions can be created. RFXs can have as little or as much content as is required; one or more questionnaires can be attached to get information about finances, supplier capabilities, insurance, Corporate Social Responsibility, etc.; an e-Auction can be triggered from an RFX (and initial bids imported); an award can be pushed into the contract management system and the catalog populated; requisitions can be created against the budget associated with the contract and the catalog items; purchase orders can be created on requisition approval; good receipts can be accepted and tracked against requisitions; invoices can be automatically correlated with the purchase orders; and payment approvals can be automatically submitted to your e-Payment system. It’s end-to-end automation of the tactical process, freeing you up for the strategic work.

It’s a great step in the right direction. While Coupa‘s e-Sourcing suite is still at least two versions behind what is being offered by the large e-Sourcing suppliers, it’s the perfect solution for a mid-size organization that doesn’t have a sourcing solution or a current Coupa customer that doesn’t have a widely used sourcing platform due to cost or personnel restrictions. It’s a step in the right direction, and one that is sure to keep the big sourcing providers on their toes, as the big sourcing providers will have to keep innovating to keep two steps ahead of this fast-moving SaaS company.

It’s 24/7 for Robbie and the Coupa Factory, Part II

In Part I we announced that Coupa has been coding up a storm since we last checked in on them last summer (in Robbie and the Coupa Factory), completing Release 9 with major enhancements in expense management, invoice management, and catalog management; the android app; and the first version of their new sourcing module as well as some major improvements to their cart that will show up in release 10 later this quarter. Today, we will discuss the major improvements in Release 9 around expense management, invoicing, and catalog management.

The major changes in Expense Management focus around rapid entry and ease-of-use. Designed to work with their Mobile Expense Reporting app for iOS and Android, the goal is to make it as easy as possible for a user to:

  • capture their expenses with easy line item entry,
  • submit their expenses into the system with one button submit,
  • get a scanned copy of their receipt into the system by a single click with the smart phone camera, and
  • get an approval, rejection, or hold for further information by an approver who can also approve, reject, or hold on the go.

In addition, the expense module makes it easy for an approver to:

  • see expenses by day as the system can automatically itemize multi-day expenses like hotel bills and compute the average cost per day,
  • see expenses against budgets and benchmarks to see if a user is spending more or less than the company budget and/or industry average, and
  • stop fraud in its tracks as the expense report audit feature automatically detects missing receipts and/or line items, expenses over category maximums, expense similarity across expense reports, and audit score history.

Catalog Management has also been improved as well, with a big focus on usability and flexibility, with the most significant improvements in the free-form request capability. The reality is that no matter how many vendor catalogs you integrate with, you’re never going to be able to buy everything out of a catalog. Temporary labour, event catering, moving services, etc. just aren’t in your Staples or CDW punch-out. However, you still need to get all external spend flowing through the e-Procurement solution if you ever hope to get that Spend Under Management, widen the funnel, and increase the contribution you make Straight to the Bottom Line.

If the service, or product, you need is not in the catalog, it’s easy to create a requisition and route it to the appropriate manager for approval. All a user needs to do is define the product or service required (using a free-form description if necessary) and any additional information that is known, such as price (range), need by date, (preferred) payment terms, (preferred) supplier(s), etc. and the request is routed to the appropriate approver in the appropriate department, and, if necessary, up the approval chain. In addition, if a match is made on the free form text, the product or service recommendations are automatically displayed. Also, Coupa has built in the ability to do dynamic real-time comparisons on multiple items brought up during a search. A user just has to select / de-select the products or services of interest and they are compared, in a grid-like manner, on all attributes defined for the product or service of interest.

This takes us to invoicing, which is where the most significant improvements to the existing platform occurred. Coupa has also realized that e-Procurement doesn’t deliver savings unless the end-to-end Procurement cycle is automated. In Procurement, a significant amount of the time is spent entering, reconciling, and approving invoices. Savings come from automating the entry, reconciliation, and approval of invoices that match purchase orders which have been appropriately approved. So, in addition to the XML and EDI submission options, the Coupa Supplier Network, and the ability to send scanned invoices through 3rd party OCR networks, Coupa has created a new tab-based quick entry invoice module that can be used by supplier AR clerks and buyer AP clerks to quickly create an invoice using the tab-based entry system that finance people are accustomed to. Plus, the system supports full invoice matching and exception handling at the line item level. If something doesn’t match, an exception is generated and an alert is displayed to the appropriate approver who can review the alert, and depending on the nature of the exception, either approve (if it was an approved cost increase), send it back for more information (if a new item appears), or reject it (if the quantities, etc. don’t match). As per our recent piece on Points to Ponder when People are Pushing Off Procurement Platforms, it has to be automated, it has to be usable, and it has to work. And it does.

Come back Monday for our next post where we’ll cover the new Sourcing Module, which is the most significant new addition to the Coupa platform in a number of years.