Supplier Relationship Management (SRM) Research 2010-2011

Solution Analysis and Business Insights

Contents
Prepared and edited by:
Sarissa Alleijn Ton van Dolder Richte van Wijngaarden Capgemini Consulting NL Capgemini Consulting NL Capgemini Technology NL Hamish McKechnie-Sharma Capgemini Consulting UK

Special thanks to:

Charlotte Baratti Andreas Bernhard Bob Booth Robbert den Braber Sarah Conway Rutger Lamers Merel Plante Willem Scheerder Remy Schook Capgemini Consulting US Capgemini Procurement Services Capgemini Consulting UK Capgemini Consulting NL Capgemini Consulting UK Capgemini Consulting NL Capgemini Consulting NL Capgemini Consulting UK Capgemini Consulting NL

Contents 4 7
8 12 16 20 Foreword

Business Insights
The Tipping Point of BPO Procurement Rethink Procurement for a contribution to innovation Channel selector supports decision making for all P2P options In-house or as a Service? CPOs challenge the role of the CIO Can we ever fully automate Spend Analysis or do we need to have human intervention

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32 52

Functionality Analysis
Analysis per category

BPO Procurement

55

International Footprint and Supplier Profiles

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Supplier Relationship Management Research 2010-2011

Foreword
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e are pleased to present to you the Supplier Relationship Management (SRM) survey 2010-2011. It is interesting to see that over the last ten years we have been doing this survey, the market for SRM is still growing and investing in these applications. Although we all assume that implementing an SRM tool is quite easy, reality shows different. Apart from the survey, which gives you an overview of the major players in the market, we also want to share our experiences, issues and questions we daily see as procurement professionals implementing and optimizing SRM. We therefore asked our foremost colleagues to share their view and experiences on SRM, which resulted in 5 expert opinion stories, each telling something about SRM, all from a different perspective. Major themes include: BPO Procurement, Innovative Driven Procurement (IDP), Channel Selection, In-house or software as a Service (SAAS), Spend Analysis.

In addition to the 2008-2009 SRM survey, we assessed the level of support in the area of Business Process Outsourcing (BPO) Procurement. BPO Procurement remains a strong area for growth that is driving current demand in organisations. Organisations are seeking the ability to migrate easily to such functionality so the need is great given the economic uncertainty that remains in Q4 2010. Another new item in our research is the implementation footprint of the different vendors. We learned through our projects that this is valuable information for package selections. The footprint shows the geographical dimension and the functional dimension of implementations. Our procurement experts have worked on this study with great pleasure. We hope you enjoy reading it as much as we enjoyed writing it and look forward to your feedback. Let it be an inspiration for your further initiatives. We wish to thank all vendors and colleagues who have contributed to this years SRM study.

Second part of the study analyses the results of the SRM functionality survey. This analysis is based on a series of questions designed to address whether the software covers a specific set of functions within the SRM functionality.

Ton van Dolder

Procurement Transformation Practice Leader NL Capgemini Consulting

A note of thanks.
Capgemini Consulting would like to extend its thanks to the vendors who made time to participate in the Supplier Relationship Management Survey. Without their cooperation and support, research of this nature would not have been possible.
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Supplier Relationship Management Research 2010-2011

Business Insights
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The Tipping Point of BPO Procurement

The business process outsourcing (BPO) market is one that is still relatively immature, particularly when compared to the IT outsourcing (ITO) market. This is about to change: Outsourcing of indirect spend becomes more and more popular, as procurement organizations will have their hands full managing all of the risk elements in their direct materials spend. The phrase Tipping Point was popularised by Malcolm Gladwell in his book, The Tipping Point: How Little Things Can Make a Big Difference. In his book, Gladwell talks about the point at which a trend which may only have a short life span tips and becomes an epidemic on a global scale, i.e. in commercial terms how a fashion or trend become permanent feature of the business world. Each of the larger four BPO markets: customer contact, financial services, HR and finance & administration, have now passed the point at which they have tipped. They are here to stay, and are all forecasting healthy growth rates for the next five years. Over the last five years, the BPO Procurement market has been growing steadily and while growth rate forecasts for the next five years vary, analysts agree that the rate of growth will increase, fuelled by a recession in Western economies. The four mature BPO markets have matured beyond a point of critical mass of supply and demand, and can be said to have reached the tipping point. The BPO Procurement market is starting from a smaller base. TPI Momentums analysis of the 2009 BPO Procurement market is $778m (see figure 1), showing Annual Contract Value (ACV) for deals over $25m. The market has been growing at between 30 and 40% over the last five years. Forecasts for the next five years are also varied with no consensus on the expected growth rates.

Finance Services Outsourcing Contact Center Services Human Resources Outsourcing Finance & Accounting Facilities Management Document Management Industry-specific Procurement Supply Chain Management Research & Development Knowledge Process Outsourcing BPO Multi-Process BPO/ITO Multi-Tower
$108 $1.307 $1.783 $778 $585 $488 $1.557 $1.287 $2.126 $2.045 $3.138 $4.245

$4.909

20% 17% 13% 9% 8% 6% 5% 3% 2% 2% <1% 5% 7%

Figure 1: Cumulative ACV of Active BPO Contracts by Service Line ($US Millions)
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What services are included in a BPOProcurement deal?

BPO Procurement deals typically have one or more of the following components (unsurprisingly aligned to the services that a typical procurement department will provide): Strategic sourcing the negotiation of new contracts with suppliers and the associated services, generally in accordance with the commodity or the overall procurement strategy. Some providers offer this service locally to the client where the buyers are close to the client and to the supply market. Some offer this service from low cost locations and some offer a hybrid of this model with a local front office supported by low-cost COE in a low cost country (typically Far East locations such as The Philippines, China or India). Category management the development of category strategies, subsequent management of the category after sourcing and management of the contracts to ensure that the benefits identified are delivered through active compliance management. Typically, any supplier management is undertaken in this area. Some providers deliver this service local to the business, some regionally in delivery centres and some in low cost, typically Far East locations. Tactical procurement (spot buying) the management of spot buying for high value and unusual items through a purchasing desk. This is usually augmented with a front office which supports employees and supplier contact in local languages. This is typically provided regionally from delivery centres in Eastern Europe, Latin America and Asia Pacific. Transactional procurement the management of the requisitions and PO process plus master data management and query management that supports employees and supplier contact in local languages. This is typically provided regionally for voice contact and regionally or in a low cost region for transactional elements.
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Compliance management active reporting on and management of compliance. Often involves interaction with HR to drive changes in or compliance with HR policies. Reporting is often executed in low cost locations; often compliance policy is managed locally in conjunction with the category managers. Reporting provision of management information for sourcing category, compliance and supplier management. This is typically managed from a low cost Far East location.

As the BPO procurement market matures, the services that are being bought are growing up the value chain. Operational procurement deals often now include the spot buy desk, whereas two years ago, the service may have been only transactional procurement with spot buying being retained within the client organisation. Similarly some companies are in the market for one or more indirect categories and a few stand out as willing to outsource all of their indirect spend.

The group of eligible suppliers is growing

At the beginning of 2008, the only companies who had made credible inroads into global BPO procurement services were Accenture and IBM. Since then, the market has been maturing through partnership, merger and acquisition and organic growth. GenPact has had a successful partnership with ICG Commerce since April 2008, which has brought two powerful players together to market, Steria and HPI GMBH, one of the leading procurement services providers across Europe, announced a collaboration in the procurement outsourcing space in November 2009, In February 2010, Capgemini acquired IBX, the European procurement services and SaaS technology business, to broaden and deepen their capability in outsourced procurement

The pure play Indian providers are placing great focus on procurement, with most of the larger players recruiting in this area and pricing deals aggressively to win business and grow their practice.

The business case for BPO Procurement differs from traditional F&A
The business case for traditional business process outsourcing is well proven; typically the service can be delivered as effectively, i.e. with no consequential worsening in quality of service, and more efficiently in a lower cost location, typically with an improved system of controls. The majority of the business case comes from a combination of efficiency of centralisation, standardisation, process improvement and automation coupled with labour economic benefits of low cost locations. The combination of these two factors can result in benefits of 40-50% as against original cost. However the business case for procurement is more often driven out of sourcing savings, or compliance savings, i.e. effectiveness savings, which can dwarf the efficiency savings. Also the efficiency savings in procurement are often less (perhaps 20-30%) as the resources will need to be located across locations other than India and other Far Eastern low cost locations, hence average saving will be less than the 40-50% above.

As a result, the BPO-Procurement supply market is maturing and there are more eligible suppliers who will compete for potential business, which makes it easier for customers to move into the market confident about supplier price and capability.

Increasing focus on technology as part of the whole

With Capgeminis acquisition of IBX and SAP and Oracles provision of on demand (Software as a Service, SaaS) procurement technology solutions, the provision of SaaS procurement technology on demand now seems to be a standard part of the BPO Procurement proposition. For both eProcurement and eSourcing, customers expect service providers to be able to provide a suite of integrated services and technology as a service. This gives them an option other than undertaking complex and expensive technology implementations that sit behind their own firewalls.

Figure 2: Building the business case for BPO Procurement

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We therefore believe that a significant portion of the benefit from outsourcing can come from effectiveness savings through sourcing and in particular through better compliance management.

Conclusion
2010 and 2011 will see the announcement of a number of key new BPO Procurement contracts, with some customers being prepared to outsource large areas of strategic sourcing spend, and with many others outsourcing operational procurement and spot buying. As with any new market, there will be new entrants and players who are bold in scope and approach. Whether this will become the norm, and at what rate of adoption, remain to be proven. Either way, the pressures on the CPO to make savings are greater than ever, and outsourcing some areas of procurement will be necessary to achieve these savings. Whether this results in a tipping point for BPO Procurement will depend on whether those CPOs who choose to outsource and their chosen BPO solution provider can provide a compelling proposition to their business that locks in the sourcing value required and enhances the business ability to survive in this difficult market.

However approaching the overall process in a way to maximise the efficiency (process) savings and maximise the (sourcing) effectiveness is the key to success, particularly as associated processes such as accounts payable will need to be impacted if compliance savings are to be maximised. The potential savings can be quite essential - up to 40 percent depending of the maturity of the organization. Combined effects of better spend visibility, better framework agreements and lower cost for managing the spend, make such a result possible .

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Rethink Procurement for a contribution to innovation

For companies that focus on innovation as a key business driver, finding innovation with the supply chain remains a challenge. Even though Procurement is regarded as the interface with suppliers, it traditionally has little role in advancing business processes. In this article, we discuss what Procurement should do to take this role successfully and contribute to innovation.

Challenges for Procurement

The move towards open innovation creates the need to leverage and manage the innovation capabilities in the supply base, to: deliver more innovations accelerate design and launch cycles improve quality meet more intense demands to reduce cost and risk These are not the usual Procurement KPIs, with the exception of the cost/risk reduction. The economic downturn has only increased the emphasis on these traditional KPIs. Because of this focus, Procurements involvement in innovation is limited to work on cost/risk reduction by sourcing and contracting suppliers. In practice, this means Procurement is involved once all specifications are set in stone and the innovation is ready for ramp-up. This is a characteristic of siloed thinking, in which departments (silos) are involved one at a time in order to add their value. That has remained while the innovation processes have become more open and collaborative. Although usually working in team structures, silo-thinking remains prevalent within departments and people (typically due to differing CXO directives). The result is a very linear process with handovers to the next department, with a fresh set of specific targets at every step.

Markets develop innovation

towards

more

open

Most industries increase the outsourcing of non-core activities: the average percentage of revenues procured externally has risen to over 60% in the last decade due to increased outsourcing. In addition, companies are increasingly outsourcing critical business functions, including the outsourcing of R&D to the supply base. In some industries, where 70-90% of products are sourced from suppliers, the majority of products are actually designed and developed by these suppliers. This is in part due to a shift in design towards manufacturing of whole systems, which results in an increase in the complexity of supplier relationships. The increase in outsourcing coincides with an increased openness of innovation processes. Companies are finding it more and more difficult to keep up with the pace of innovation through internal R&D alone. Intelligently tapping into knowledge bases of (amongst others) suppliers speeds up the process of innovation and reduces total cost. To manage a greater dependency on supplier innovation, Procurement departments have been moving towards stronger partnership models with a limited set of key suppliers. These partnerships are based on shared risks and rewards instead of traditional transactional relationships. But strong supplier relationships alone are not enough and a limited set of (incumbent) partners is not necessarily a good source of innovation. To leverage that relationship, Procurement needs to feed end-customer needs into the supply base.

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Traditional versus Procurement

Innovation

Driven

The difference between traditional and Innovation Driven Procurement is best explained with a simple example. Say you are looking for a home espresso machine that serves you the perfect coffee in the morning without hassle. You will have a wide range of needs and criteria the product must meet such as newness, appeal, reliability, value for money, etc. As we live in an open innovation world, we would expect the manufacturer to combine internal know-how with the latest technology available in the market to create the best product for your needs. The manufacturer in fact manages a system of solutions including the design, the pressure system and coffee packaging from a wide array of suppliers. The innovation process of this espresso machine will look completely different for the two Procurement business models. Figure 1: Procurement involvement innovation Traditional Procurement Figure 1 gives an indication of the effect this may have. The hand-over to Procurement usually occurs after supplier involvement and beyond a point where a significant impact can be made on cost reduction and value creation of the product. At this point it is too late to deliver new innovations or significantly increase development. The only remaining factors are cost and risk reduction, and even these have been compromised. Procurement can no longer fully influence cost or risk as the specifications are largely set and suppliers have been deeply involved in the design process. Furthermore, traditional Procurement targets (such as savings, security of supply, contract coverage and compliance) conflict with project targets which may compromise the value of the end product for the customer. Delays or unrealistic expectations of supply chain capabilities are likely to occur through these conflicts. To move forward from this situation, Procurement should have an earlier involvement. However, Procurement in its traditional form is not capable of handling the chaotic processes found in early innovation stages. Making a true contribution to innovation processes requires Procurement to redefine its business model. This will enable them to tap into supply base capabilities and manage supplier involvement.
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To deliver this kind of machine, the traditional manufacturer has started an extensive innovation project. This began with efforts by Sales & Marketing to understand your needs, and R&D trying to develop this. As we are in an open innovation domain, R&D will have worked with suppliers or even players from completely different industries to develop a new espresso system. In this traditional Procurement setting, there will have been no involvement until there is a complete picture of the future product and its specifications. Procurement will then be asked to deliver its services. The internal clients needs are often specified in terms of contracts, savings, security of supply, etc. Procurement in other words is expected to negotiate a good deal to drive down total cost and risk. As we have seen before, this may cause serious conflicts as the specifications are largely set and freedom of choice in the supply base is limited. The best Procurement can do now is to set up multi-disciplinary teams to discover what the internal clients needs are and make the most out of it. To do this, Procurement connects with (potential) suppliers and conducts sourcing activities, negotiates contracts and puts the operational processes to work. If conflicts occur (i.e. a part cannot be sourced at a decent price), it will be forced to push the innovation project back into the design phase. This may compromise specifications, the

total cost and the time-to-market. The end result is that you will eventually find your traditional espresso machine on the store shelves at a reasonable price. But youll probably have lost interest in it because it was overtaken by a competitors machine before it even came to market.

organize innovation projects with dual leadership, one R&D and one Procurement leader. Others have dedicated project managers, defined specific roles and responsibilities for Procurement in each innovation stage, and used decision making between innovation stages to enforce further Procurement support. The required competences of Procurement change as well. There will be a stronger need for people with knowledge of technology and supplier management capabilities, together with project management skills and traditional Procurement skills. This can be achieved by for instance recruiting internal technical experts and training them on Procurement skills. In any case the Procurement, Marketing & Sales and R&D experts need to be able to communicate effectively. Beside strong competencies, this requires a rigid data exchange between various systems. Integration of data provides insight on both sides on specifications and impact of changes to designs.

Innovation Driven Procurement (IDP) The IDP producer will also listen to your needs as a potential customer through Marketing & Sales. But now its not just R&D whos listening in; Procurement has joined the project from day one. This enables Procurement to thoroughly understand the external clients needs and to assist R&D with the development effort. Now that Procurement knows what to look for, it can connect the supply base with R&D and at the same time work on a sound supplier involvement strategy (reducing the risk of conflicts). The team setup above changes the partner structure of Procurement; it now consists of both suppliers and the internal clients in the entire innovation process. With involvement in innovation, Procurement must match its activities to early innovation stages. This still includes cost awareness, but there is much greater focus on scouting supplier markets, enabling supplier involvement and managing supplier inputs in the project. All of these are focused on the wide range of targets of the external client. In later stages traditional Procurement activities come back into play to operationalize the new product, but the real value is created in the earliest stages. The end result here is that youre the proud owner of the IDP espresso machine standing on your kitchen table.

Steps to take towards Innovation Driven Procurement

Innovation Driven Procurement starts with a clear focus on the role of Procurement in innovation processes. Once it is clear what Procurement should contribute, a business model of Procurement throughout the innovation process can be set up. A broader focus on the external customer and involvement from the start has a big impact on the organization of Procurement and its activities. After defining the impact, the governance structure needs to be formalized with the role of Procurement in innovation firmly embedded. Once Procurement is firmly rooted in the innovation processes, it can make the step to effectively line up the supply base for a contribution to innovation projects. Implementation involves selecting the right people, embedding the Procurement role in processes, setting up teams and structures and supporting communication technologies. This will enable Procurement to drive much more value from the supply base, while improving time-to-market, collaborating internally and creating a better focus on the end product. In other words, it enables Procurement to make a significant contribution to innovation and the bottom-line.
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Impact of Innovation Driven Procurement

Involvement in innovation exceeds merely involving Procurement earlier. A change of attitude and perspective of Procurement must be embedded in the governance of the organization. The role of Procurement in innovation projects changes, and the way Procurement is managed is clearly different from Traditional Procurement as it breaks through functional silos. This means companies need to review decision making protocols, process design, target setting, leadership involvement, team structures, competences and information flows. For instance, some companies

The Client Case: The Passion Value Chain

A companys corporate image is probably one of its most underestimated assets when it comes to purchasing. Wouldnt we all love to supply well-known companies such as Rolls Royce, Nokia, Audi, Chanel, Asics, eBay or Red Bull? Brands leverage not only sales, but also purchasing success. Even if you are not amongst the brand leaders in your industry, you are more likely to succeed if you stick to the values of your company and communicate these when you qualify new suppliers. Steiff is a German-based plush toy company known for producing high quality toys and teddy bears. The companys co-chief executive Martin Frechen said in a recent Financial Times article that some suppliers only think in terms of price and volume and concludes that for children, surely only the best is good enough the best design, the best production, the best safety standards. This kind of attitude and way of looking at your supplier base makes a difference which cannot be found on an RFQ template. Commitment, dedication and a passionate attitude have a huge influence on your bottom line results. Finding high quality and passionate suppliers leads to lower reclamations, higher adherence to delivery dates and to greater innovation. A supplier who is passionate about your products is much more likely to think about your company and your products and therefore much more likely to deliver innovation to your value chain. Frechen is not looking to discuss about his own needs, or his productions processes, or even the needs of his company Steiff. He talks about the needs of his customers, or to be even more precise, the children of his customers. He demands that his suppliers think about the needs of his end users and that is the first step in creating a passionate supply chain.customers, or to be even more precise, the children of his customers. He demands that his suppliers think about the needs of his end users and that is the first step in creating a passionate supply chain .
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How can your business achieve a passionate value chain?

Firstly, a passionate value chain takes time to create by exchanging ideas and challenging existing processes. To stimulate this kind of change, a good first step is to create regular newsletters and conduct supplier summits. If you can spare 20 minutes a day, you could even consider writing an online blog. When it comes to managing one on one relationships, it pays to be selective about which suppliers to spend time with. The first choice will generally be your most strategic suppliers, however it is always worthwhile to spend time with people who have innovative ideas, even if they are not the biggest position on your category budget. The next step is to integrate truly innovative suppliers with your company. To do, this, think like Mr Frechen from Steiff, but backwards. Once the employees of your supplier have developed a personal connection to your products and services, there will be increased likelihood of innovations, improvements and true commitment. In doing so, be aware that making the value contribution of your supplier visible could have a negative impact on the next price negotiation. However, on balance if your intention is to buy value, integrating your suppliers is a beneficial way to achieve this.

Channel selector supports decision making for all P2P options

The increasing range of commodities that can be supported by Supplier Relationship Management (SRM) tools, together with the increased functionality of the various SRM tools, makes the selection of SRM tools a complex decision. Selecting the most effective sourcing and procurement processes (or channels) for the various commodities represents a formidable challenge. In particular, the lack of understanding of how to organize the entire Purchase-to-Pay P2P process turns out to be a bottleneck for many organizations during the implementation of a SRM tool. The Channel Selector provides a framework that supports the decision making process of all possible variants in the P2P options from requisitioning to payment including approval of requisition, receiving goods or services, invoice settlement and communication.

P2P channel
A channel is a defined combination of processes and tools with common characteristics to support the (sourcing or the) P2P processes. A traditional Purchaseto-Pay process will go through the steps portrayed in the Procurement Order Cycle (right side of figure 1) as soon as the source to contract process is finalized and the contract is implemented.

Figure 1 SRM process model Procurement order cycle

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Channels are grouped according to their level of buyer involvement in the requisition-order process. See the possible channel combinations in figure 2.

Figure 2 Channel combinations

These channel combinations are characterized by different dynamics. It is these characteristics that determine the channel's suitability for a particular commodity. These include: Control: Provide more control for the business and procurement to ensure compliance to suppliers, contracts and specifications. High levels of compliance will result in better use of volume discounts, Visibility: Provide a high level of visibility for spend. High visibility will result in leveraging data with suppliers, which supports the sourcing process and provides savings improvement, Efficiency: Generate transaction savings through the reduction of process time, particularly invoicing processes.

compliance, insight into commodity and process performance and efficient operational support. If the balance between control, visibility and efficiency is not correct, the gains can be absent. For instance, by only maximizing control and visibility of all commodities, unnecessary resources could to be allocated to some of the commodities where there is no need for control or visibility. This could happen in the commodity office supplies, which account for a low percentage of total spend and has a low risk profile. On the other hand, if effort is put only into maximizing efficiency for all commodities, over time the risk of insufficient compliance with the supplier contracts will increase.

Channel selection
The Capgemini Consulting P2P Channel Selector provides a framework that supports the decision-making process of what commodity should be acquired through which P2P Channel. By running the commodity characteristics through a questionnaire, the different channel options are ranked automatically. The Channel Selector includes all the variants of the P2P process, including the largest bottleneck in the
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Commodities have different requirements, in terms of how much control, visibility and efficiency is appropriate to apply to its associated P2P channel. By selecting P2P channels on a commodity basis, companies can optimize: Contract and supplier

implementation of a procurement system, namely how to arrange the P2P process as a whole (requisition approval order receive payment). The Channel + Selector includes: Requisition channels (for example: catalogue, free text order), Purchase channels (for example: planned order, blanket order), Payment channels (for example: p-card, expenses, direct invoice), Approval of requisition Receiving goods/services Invoice settlement Communication Using the Channel Selector, commodities can be characterized according to the following P2P process steps:

1.

2.

3. 4. 5. 6.

(Product profile): complexity, Specify standardization, configurability, service or product, service/product variations, volatility of price, eReadiness of the supplier. Place requisition: purchasing frequency, number of people requisitioning, absolute spend, inventorydriven. Approve requisition: necessity of approval by procurement or expert or management (budget). Place order: Number of orders, necessity of matching invoice with purchase order. Receive goods/services: necessity of goods receipt (standard, qualitative). Verify process and invoice: purchase order based, self billing, specification.

Figure 3 shows the P2P process steps and all possible outcomes of the Channel Selector and includes an example of a standard commodity.

Figure 3 P2P process steps Explanation of the purchase order process in the figure for the standard commodity channel: The requisition will most likely be placed by means of a standard catalogue. Because of the standard specification, there is no need for an expert or Procurement to be involved in the approval of the requisition, instead the approval will be transactional. After approval, the requisition automatically turns into a standard purchase order that is send to the supplier. The goods/services received from the supplier will be checked and recorded based on quantity but not quality. Invoice settlement will probably be based on the purchase order and the preferred way to exchange messages in the P2P process will be electronic.
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In order to apply Channel Selector, at the outset, it is important to involve all stakeholders from the organization in the decision making process. Different commodities are likely to require different channels, therefore a series of multidisciplinary workshops is recommended when selecting channels. Based on the outcome of the questionnaire and a valuation of the benefits and the total cost of ownership, the organization can choose the most appropriate channel for each commodity. Future state channels must be detailed and validated on a commodity basis, to ensure that channel processes fully support additional anticipated future changes. This interaction through workshops is also critical to achieve high levels of user acceptance, few operational exceptions, and not least, robust functional requirements.

Conclusion
When organisations undertake the decision to tackle the P2P challenge, they should not underestimate the challenges they will face. Nor, however should they shy away from these challenges, or underestimate the strength of the tangible and non-tangible benefits that are expected to arise. Organisations taking on this challenge must follow a structured approach in order to realise the benefits. Firstly, the organisation needs to have a vision of the P2P objectives it wants to achieve. It must then use a process-focused, business-driven approach to establish the P2P channels by means of the Channel Selector, and P2P process support it wants to deploy. This, in turn, will define the business and technical requirements for the desired P2P solution. The critical success factor lies within the organization: None of the above can be achieved without the appropriate level of sponsorship from senior managers and buy-in from the key stakeholders which can be achieved by multidisciplinary workshops.

Implementation
As the implementation of all channels and commodities cannot be achieved at once, an approach is needed to phase this over time. A preferred approach is to implement the most value adding and easily implementable channels and commodities in the first phase. The second group of channels and commodities is then selected in terms of value and ease-ofimplementation, and so on. When assessing ease of implementation, it is important to consider factors like supplier contractual status and eReadiness, required processes changes, availability of system support, organisational impact, change readiness, and resource availability.

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In-house or as a Service? CPOs challenge the role of the CIO

In his book, The Big Switch, the American IT lateral thinker Nicholas Carr challenges CIOs and heralds the end of IT departments. He compares the trend towards cloud computing and away from business computing in the companys own data centres with the transition from self-generated to centralised power supplies by service providers at the start of the 20th century. According to Carr, IT could be controlled by external specialists and without hordes of technical experts within the company. His forecast may be radical, but it may also serve as a wakeup call for CIOs to rethink their strategic role: adviser to the company, communicator or engineer. The crux of the matter is essentially outsourcing versus in-house: should companies focus on their core business and outsource those IT tasks that others can do better? Take the example of purchasing; so far in this sector, many CIOs have been somewhat sceptical of external, web-based SAP e-procurement solutions. These models are regarded by many decision makers as all too unsecure and inflexible. That said, ondemand models fare well in a precise analysis of the individual factors. The CIO is pulled in two directions: should he rather assume the role of technology provider, or that of a strategic business designer? Should he provide all the IT in-house, or act as the head of a network of specialists who each play their part in the added value chain by controlling the outsourced IT? In his role as CIO, he decides on which IT activities are to be outsourced to external service providers. According to a study by Ernst & Young on outsourcing in Europe in 2008, 70 percent of all companies surveyed 600 decision makers in European companies stated that outsourcing was an integral part of their business model. For many years outsourcing has been seen as the overall cure for a companys problems. In times of a weakening economy the issue is once more gaining appeal. The following are particularly appropriate for outsourcing: 1. The supporting IT roles where the decision to outsource is merely an issue of cost; 2. Specialist IT functions that are not part of the core business. These roles require specialist expertise that is generally not available in-house.

Purchasing as a central competitive factor

On the backdrop of the global financial downturn and the looming recession, cost-cutting measures were moving to the fore in the corporate world - and with it, inevitably, the subject of purchasing. After all, the potential for cutting costs is high in this area: depending on the sector of business in question, the entire purchasing volume can account for between 40 and 60 percent of the company's total turnover. It is not without reason that the role of purchasing has evolved from being purely operational to being strategic; companies expect their purchasing to make a significant contribution to their overall corporate performance. As a benchmark figure, a logical procurement strategy and the use of the right IT solution can save from four to eight percent of the total purchasing volume. If the CPO (Chief Purchasing Officer) and the CIO are looking for a suitable IT solution, then the decision quickly comes down to a question of faith. For the CIO, the primary factor is whether the solution can be integrated into the company's own IT systems and whether it complements the existing strategy. The strategic question for the CPO is which operator model is the most suitable one for his organisation, and which will bring the greatest possible efficiency in terms of procurement activities. He can choose between a licensed in-house solution and an equivalent on-demand supplier model. The solution is then provided and managed by an external service provider.
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On-demand on the rise

There are important reasons why ondemand has been on the rise for a number of years in purchasing especially, and the cohort of licensing models is in jeopardy. According to a study by the Aberdeen Group (figure1) on-demand models are faring significantly better than licensing models. They can be implemented more quickly and provide a faster Return on Investment (ROI) especially since the company no longer needs to implement the solution itself. If a company, on the other hand, acquires a software licence, it is generally dependent on the expertise of a consulting company for the implementation and customisation of the software. Many of the companys own resources are also taxed in the process, and high additional costs are incurred. When solutions are installed, human resources, running and hardware costs are found to be hidden cost drivers.

Source: Aberdeen Group

Figure 1: Top factors driving enterprises to consider on-demand

With an on-demand solution for purchasing the company pays only for the modular service elements it needs. Moreover, it has easier and more rapid access to the modules, since the solutions already run on the service providers platform and are being used by numerous customers each with their own individual customisations. All the users need is a popular Internet browser. An on-demand offer is essentially of interest to all companies that want to profit from lower overall costs, faster implementation and a smooth upgrade process and want to do so without high initial investments. Another benefit is the fact that, according to an outsourcing study by the Experton Group, the contracts for on-demand solutions have become more flexible as a result of increased demand.

Source: IBX

Figure 2: Total cost comparison: On-demand vs. software

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They can also be concluded over shorter periods than previously. A sample calculation by IBX (figure 2) shows that from the start the overall costs of a software installation are higher than the costs with an on-demand solution. The overall costs include Equipment, Management and Operations.

Reservations about on-demand

Many CIOs still have major reservations about a rental model. This is particularly true for the management of enterprise-critical data outside the firewall. Accordingly, IT security officers first need to check whether the ondemand solution satisfies the internal security regulations. Historically, it has been a companys core business to safeguard their enterprise network so one might think that by nature, an in-house installation has an advantage over the on-demand solution provided by an external service provider. However, this assumption might not be as clear cut as it seems due to a variety of factors: One factor is that purchasing solutions are different from classic in-house solutions in the way that they require exchange of data with a lot of different external partners which are outside the enterprise network. This includes information such as catalogues, orders or bids. Many times these partners are not even integrated into the companys extranet. Therefore a different approach in security infrastructure and operations is required. In that case an experienced and specialised on-demand provider can actually have a clear advantage over an in-house installation. Another factor is that significant improvements have been achieved over the last years in terms of Information Security Management Systems that have been implemented by on-demand operators. Many service providers are in the process of gaining certification based on best practice IT security and process standards like ISO 27001 and ITIL. There also have not been any high profile security problems with on-demand solutions either. Sometimes it seems that the security problem is more of a philosophical issue: Do I trust the Internet enough to conduct business over it?
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The second reservation as regards on-demand solutions is their lack of flexibility. An in-house solution can be adapted more easily to the companys specific needs. The advantages of an on-demand solution and its adaptation to customer-specific requirements (customisation) are not easy to combine. The issue is comparable with the purchase or hire of a weekend cabin. The purchased cabin can be designed more easily in line with the owners personal tastes. It is much cheaper to rent, with a lower Total Cost of Ownership (TCO). It also makes no sense to repaint a house if its only going to be used once a year anyway. In this case, the standard functionalities are usually adequate. The third reservation focuses on the ability of ondemand solutions to be fully integrated. The end-to-end linking of all the functionalities of the solution to the system is one of the central challenges for the CIO. An inhouse solution in this instance, however, has to overcome the same hurdles as an external solution and therefore enjoys little advantage.

The future: coexistence of both models?

Many CIOs often regard on-demand supplier models as a threat to their justified existence. On-demand represents an attractive alternative for the CIO, especially in times where IT budgets are tight. But is an on-demand supplier model the best possible solution for every company and every organisation? The following factors are crucial for or against an on-demand service: cost-benefits analysis, speed and risks. The on-demand supplier model will not threaten to oust the licensing model. The world of procurement has enough space for both. They can even complement each other perfectly. The on-demand model drives the focus away from the technology and towards strategic usage, as well as towards the use of purchasing-assisting solutions such as e-sourcing and e-procurement. Buyers can therefore focus more effectively on their core tasks, on reducing complexity and on the relationships within the company and not lose valuable time sorting out technical queries.

Can we ever fully automate Spend Analysis or do we need to have human intervention?
Spend Analysis is undertaken by most organisations in order to provide spend visibility information on suppliers, spend and compliancy and is considered a continuing point of attention of our CPOs.

The Spend Analysis Process

Spend analysis is essentially a tool; it is the process of collating, cleansing, categorising and analysing expenditure information. The end goal of any Spend Analysis should be to provide clear, consistent spend information which can feed into the sourcing process, identify sourcing opportunities, enable benefits tracking and provide the visibility for compliance monitoring. As a concept it should be regarded as the fundamental foundation of sourcing however the process can start from many different data points and by leveraging different sources and quality of data. The level of complexity that this drives often results in a highly arduous and time consuming process. So how do the increasingly sophisticated software tools feed into this process? In order to make sense of data there are various levels of intelligence that can be applied. Data analysis tools use a variety of these methods to enhance data, by rationalisation and consolidation. At a basic level, spend data is extracted straight from the source system and displayed in reports. Usually this is the starting point for realising the need for Spend Analysis as few organisations have the fundamentals of Master Data so thoroughly embedded that the data can be reviewed immediately and used to guide sourcing decisions let alone have this conducted dynamically. Often data sits in numerous systems so using one source system alone will not provide a fully comprehensive picture of the spend landscape. To get the most effective result on spend analysis at the very basic level, multiple extracts from different systems are needed to provide the full data set. So from this very first stage humans are needed in order to identify where the data should be gathered from; Accounts Payables, Purchase Order or from somewhere else.

Spend analysis tools

Increasingly, tools are becoming available on the market which highlight the ease and speed that can be delivered by automating the process but does this change our approach to Spend Analysis? Over the last few years an abundance of vendors has entered the Spend Analysis market ranging from those for whom the move into data enrichment was a logical step in their respective SRM suite such as Ariba, Oracle and SAP, to more recent entrants into the Spend Analysis arena such as Emptoris, Zycus and SynerTrade. Our survey findings have highlighted that both sets of players have a part to play in managing the demand for the market, particularly if some organisations wish to focus purely on a one-off spend analysis (e.g. Zycus) or have this linked into end to end procurement visibility with an ongoing opportunity to track and manage spend better. Each of these major players will be able to conduct detailed spend analysis however our experience indicates that none of them support entirely automated process. Technological and digital automation is increasing in all areas of our lives. Will we ever reach the point where robots and computers will do away with the need for humans? As Supply Chain professionals we need to consider what technology and automation can mean to us and our roles. Thinking about this in the context of Spend Analysis were left with the question Can we ever do away with the need for human intervention when conducting something as fundamental as Spend Analysis?
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Technology versus human

On their own the analytics tools cannot interpret the data so the tools must be programmed and algorithms developed which tell the software how the data should be mapped. To get the most effective result on spend analysis at the next level the tool must be told what data is synonymous and what isnt. For example some vendors might have different names, but in reality are the same; Capgemini UK, Capgemini Plc, Capgemini Ltd, CapGem etc. The data analysis tool uses synonyms and associated probabilities to consolidate and recognise data before presenting it to the user. This also applies to misspelled data, or data with typing mistakes, which in both cases requires a list of possible alternative content for certain data, or some routine that checks alternative spelling of data. Whilst there are some tools which can recognise and highlight some of the basic inconsistencies it still requires human intervention. It requires someone to tell the system what the data looks like, where to find it, how to use it, how it could be misspelled or what the synonyms are or arent when incorrect synonyms are flagged and ultimately what rules to use. That said it is fair to assume that this type of logic and business rule based application can be built into spend analysis toolsets but still requires a degree of human involvement. The next step in order to ensure the most effective result on spend analysis is to have a tool that can learn how to make sense of data with minimal intervention of an end user. Using a tool that learns how to analyse data at first will not give great results, and requires the procurement professional to interpret the data and extract the reports required. The tool however tracks what the professional does to the data, and as usage of the tool progresses it can learn from these actions what to do with it. If the professional has extracted data from two different systems to obtain purchase order and invoice data, the tool can do this automatically next time. If data for two product categories is put together manually, next time the tool can do this automatically. Further improvements to data analysis tools can come from methods like fuzzy logic, where the relationship between data is determined based on rules that are less clearly defined than conventional rules. As an example Google search can be used, where the search engine interprets the users input in multiple ways including words that sound
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like but are not spelled the same way as the search term. The logic is based on (seemingly) fuzzy rules that at first glance dont make sense but do provide alternative interpretations of data that will make sense to the end user.

Advancing Technology
We have now reached a level where human interaction with a data analysis tool is diminishing more and more. Current technology provides fuzzy logic and learning capabilities, though arguably learning in a very simple way. Human intervention is still required to tell software what can be learned. With more powerful computers and ever larger databases data analysis tools can seem very advanced when using the methods mentioned above, but even learning tools require a person to interpret and necessitate monitoring of any invalid data or even wrong results that a tool can produce. All of these aspects highlighted assume a minimum level of information, that of supplier name and item categorisation but what of the scenarios where the information available is almost non-existent? It may be that the only information is the supplier name and a spend total. Can a tool take this data and provide a reliable trusted output? Even the providers of spend analytics software would have to agree that this cannot be fully automated. For example the tool may be programmed to state that Capgemini should be classified as a Consultancy; however it could also be classified as an IT provider or an Outsourcing organisation. With a recent client (a leading CPR Manufacturing company) there were over 3,000,000 lines of vendor and spend details which all had to be categorised. Conversations with several spend analytics providers stated that their approach would be to manually categorise in the first instance and then use the software to harmonise and cleanse the data clearly demonstrating the importance of human intervention in the process. There may also be an additional level of analysis needed to re-classify existing information where items have been mis-classified or simply identified as miscellaneous, the software can only interpret the data to a finite level before human intervention is needed to validate and confirm the categorisation. A viable alternative is a hybrid approach where pending the quality of the data, spend analysis

tools are used to drive accelerated categorisation prior to human intervention.

Conclusion
So in answer to the question can we ever do away with the need for human intervention in Spend Analysis? Well it varies on situation but human intervention will increase based on the quality of the data, the complexity of the business rule logic and ultimately the nature of the suppliers for the respective organisations. Will a procurement professional ever be able to wholly rely on a piece of software to perform a full and proper data analysis without second guessing the result? Again this almost seems a rhetorical question which can only be answered with an empathic No. Whilst the analytical tools on the market really do a play a part in acceleration of categorisation for procurement professionals and can expedite what has historically been a time consuming process, the systems are not yet advanced or sophisticated enough to completely remove the need for human involvement. Spend Analysis continues to be a tool to enable us to buy better and importantly it is the input into the human generated process of sourcing, procuring and negotiation.

Uncovering the subtleties of expenditure

The requirement for human validation of data leads onto the importance of understanding what level of data accuracy and information is needed by the end user in order to meet their sourcing requirements. Is it just to know how much is spent and with which Supplier? Does it need to go down to category level or should it be to sub-category level? It may become clear that spend with Capgemini is labelled as Consultancy however in order to be useful to the end user, they may need to know if the spend is Technical Consultancy, Strategy or Supply Chain and this supplier is likely to be treated differently across organisations. It is at this point that the human eye is needed in order to uncover the subtleties of the real expenditure. This can also highlight the differences in interpretation, in some organisations the category Consultancy is used to identify any services provided by a third party be it temporary labour, project management, and advisory. In other industries and in different organisations Consultancy may be restricted to Management Consultancy. The need at this point for the human eye to uncover these idiosyncrasies leads onto another key aspect of Spend Analysis which requires human intervention: that of Focus Interviews. All Spend Analysis should be supported by Focus interviews in order to put the data into context. As identified every organisation is different and so the application of data rules will vary.

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Supplier Relationship Management Research 2010-2011

Functionality Analysis
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or organisations embarking on their Supplier Relation Management (SRM) journey, the most difficult challenge is being able to understand the spectrum of suppliers that could satisfy your requirements. The key questions in support of this that are often considered are which applications are available on the market and what functionalities do these applications provide? Do applications offer the same services across all aspects of the procurement function or are they specific to one component of SRM? This chapter will elaborate further on these questions.

Top Acquisitions in 2010

Google acquired ITA Software SAP acquired Sybase IBM acquired Sterling Commerce, Bigfix Oracle acquired PhaseForward HP acquired Palm Capgemini acquiring IBX (now known as Capgemini Procurement Services) Cisco acquired Optic networks Symantec acquired PGP, Versign Security Division Apple acquired Quattro VMWare acquired Zimbra Iron Mountain acquired Mimosa CA acquired Nimsoft Avnet acquired Bell Micro Juniper Network acquired Akeena

Insights into the vendor market

Increasingly organizations and government agencies are demonstrating that supplier relationship management has a key part to play in addressing immediate economic pressures. For those already on the journey, the emphasis is on re-evaluating contracts to improve efficiency and savings. Supplier relationship management depends on collaboration amongst the enterprises internal and external suppliers for survival and progress. Collaboration across sourcing strategies, management and governance remains critical to the success of supplier relationship management. As we move into the first quarter of 2011, the abundance of mergers and acquisitions continues in earnest across technology vendors. Market values have dropped, creating bargains for value shoppers, and smaller companies have experienced more difficulty obtaining financing, and as such the market for technology mergers and acquisitions has accelerated. Technology vendors have put together several multi-billion dollar deals so far this year as the economy comes out of what many believe is the worst recession since the 1920s. Indeed, there have been more than a handful of deals worth hundreds of millions of dollars as the technology vendor marketplace has consolidated through these mergers and acquisitions .

Today, as companies seek greater synergies and try to jump-start growth coming out of the recession, the relationship between IT and Business Process Outsourcing (BPO) is strengthening and becoming increasingly vital. Although the IT Outsourcing market (ITO) is outpacing BPO the BPO market is fast catching up. In many instances ITO and BPO are merging into one seamless enterprise wide solution. Market exit, acquisitions and the ascent of new vendors will rearrange the BPO provider landscape in the coming years.

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Setup of the SRM Survey

A functionality analysis is conducted based on a list of 221 questions, covering the entire spectrum of the procurement process. These questions represent the most asked-for and the most-critical functionalities, as we recognise them from our clients discussions and interactions. Vendors are given the opportunity to indicate whether the requested functionality is available or not. Compared to our previous SRM surveys the setup of this years survey has been changed. We want to ensure that the survey evaluates the market to a level of depth and completion required to accurately present the relative strengths/weaknesses of the vendor landscape. Therefore, we build in a random check to ensure that the solutions score as accurate as possible. The following vendors were invited to give a demonstration of the functionalities in their solution.

Good or bad? When interpreting the data it is important to remember that this analysis is based on a series of questions designed to address whether the software covers a specific set of functions. We stress that it is important that all the questions have been scored without weighing. This means that a high or low score does not indicate whether an application is good or bad; it merely states the coverage of the SRM functionality within the application. When selecting or evaluating an application, it is important to determine which functions are critical for your companys procurement processes. Therefore a weighted score addressing your preferred functionalities, may result in a different outcome from those shown for this survey. In order to distinguish the functionalities of the applications, it is necessary to understand which functionality supports the procurement processes.

Company Bupros

Product Bupros Open Source Spend Management

Modules Sourcing, Contract Management and Procurement Intelligence Operational Procurement and Contract Management Operational Procurement and Procurement Intelligence

To assess the level of support, we divided the overall SRM process, into eight sub-categories: Procurement Intelligence Project Management Sourcing o o Electronic Tendering eAuctioning

Eeebid.com Inc.

ebidQL

Contract Management Supplier Management Catalogue Management Operational Procurement External Resources

SynerTrade SA

SynerTrade 6

Table 1 Participating vendors in demonstration Specific details on the participating vendors can be found in the International Footprint and Supplier Profiles chapter.

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In addition to the 2008-2009 SRM survey, we assessed the level of support in the area of Business Process Outsourcing (BPO) Procurement. BPO Procurement remains a strong area for growth that is driving current demand in organisations. Organisations are seeking the ability to migrate easily to such functionality so the need is great given the economic uncertainty that remains in Q4 2010.

In each chapter we will indicate to which part of the procurement process the application is relevant in our model as shown below.

Figure 1: Capgemini Procurement Process Model

Overall Functionality Analysis

As in previous studies, this years vendor review shows that the differences between applications are most visible in coverage at a functional level. Some applications provide full coverage for all subprocesses, whilst others can be considered niche players supporting only a selected functionality. Although the reviewed SRM applications are very capable, there are substantial differences between these applications and of course each of them will have a different fit within your organisation. Although it might seem that certain applications have a low overall score, we cannot conclude these applications are of lesser quality. .

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Overall conclusions from this years survey

Considering the survey as a whole, the following represent the major findings and conclusions:

immediate economic pressures. Compliance remains one of the number one aspirational areas of reporting which is being identified in the market as a major driver.

1. Across the top 10 vendors there is little to choose across the principle functionality, whilst rich and varied, remains common and meets the majority of requirements in the market this includes specifically ensuring visibility and transparency across the entire Procurement suite of technology. At a detailed level this common set of functionality accounts for over 60 percent functional coverage across the vendors interviewed, and represents a marked improvement which witnessed below 50 percent from previous functional reviews. This demonstrates the maturity of the vendor market and demand necessity organisations are striving for.

4. Surprisingly 25 percent of the responding vendors cited no form of Project Management functionality being in place. Given the necessity to ensure tighter timelines for all procurement activity and the advent of benefits being clearly documented this remains surprising but in essence a differentiator.

2. In line with the observations in the 2008-2009 SRM survey, the survey shows that an integration of functionalities is still evolving with respect to those vendors that remain focused either on Sourcing or Operational Procurement. In addition, the focus on Sourcing is still greater than on Operational Procurement demonstrated by the following observations: 90 percent of the vendors offers Sourcing functionality, whereas only 75 percent offers Operational Procurement functionality. 50 percent of the vendors have a higher score on Sourcing functionality compared to Operational Procurement; 30 percent of the vendors have a higher score on Operational Procurement functionality compared to Sourcing; 20 percent of the vendors have an equal score for Sourcing and Operational Procurement functionality.

5. Year on year the area of functionality that is improving at a pace is Contract Management. It is this area that is now becoming the pivotal component of SRM functionality given its link to both operational sourcing through P2P and strategic sourcing. Only 3 vendors responded with a score of less than 70 percent coverage in this area, with the average alone above 85 percent. Contract Compliance is the next phase once P2P compliance has been achieved or is maturing so it is anticipated that this area will only further increase in functionality and richness of capability over the next year.

6. External resources still proves to be a key differentiator. A major difference lies within the dependency between Operational Procurement functionality and External resource functionality. In previous years there was a direct dependency between both functionalities, however this years survey shows that the dependency is decreasing.

3. The survey indicates that there is little overall increase of Procurement Intelligence functionality compared to the SRM survey of 2008-2009. This was a surprise as an increase was expected given the importance of tracking operational improvement benefits and assessing and ensuring compliance which have a key part to play in addressing
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7. With an average of 62 percent and with more 100 percent functional coverage (other than project management) Business Process Outsourcing (BPO) remains a strong area for growth that is driving current demand in organisations. Organisations are seeking the ability to migrate easily to such functionality so the need is great given the economic uncertainty that remains in Q4 2010.

Figure 2 gives an overview of the available functionality of each vendor. The Y axis represents the vendors and the X axis represents the categories within the SRM suite. In addition a line graph displays the average full suite functionality score of each vendor.

Figure 2: Overview of the functionality analysis

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Analysis per category

When selecting a tool, you might have certain requirements that are more critical than others. If you are looking for a full suite application the overall functionality scores may be sufficient for your selection. However if you are looking for a particular functionality or a set of functionalities, you will require a more indepth review of the results. The in-depth application review is structured according to the eight subcategories listed earlier. These subcategories have been further divided into a number of functional categories as shown in Table 2.

We do not aim to show the answers to every question in this report; rather, we provide the outcomes of the analysis per functionality group. Throughout the report the same structure is applied per sub-category. First we start each sub-category explaining what this specific category means. Secondly the conclusions we have drawn for this category are detailed, followed by the total scores per vendor, presented in a graph. This graph shows the scores for each applications functionality within the category.

Procurement Intelligence General Spend Analytics Operational reporting

Project Management Project Management

Sourcing

Supplier Management

Contract Management General Authoring Compliance Repository

Catalogue Management General User Capabilities Supplier capabilities Administrationcontent & review approval Administrationcreation Administrationmaintenance

Operational Procurement General Requisitioning Request for quotation Approval Purchase Order transmission Receiving goods and services Invoicing

External Resources Specify Approvals Requisitioning Selection & Order Monitoring After Care

General Strategy development Demand aggregation Electronic tendering eAuctioning Negotiation and Contract signing

General Evaluation & Development Database

Table 2: Additional Functional Categories

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Procurement Intelligence
What is Procurement Intelligence? Procurement Intelligence is the process of collecting, cleansing, structuring and drawing insight from market analyses through process measurements (both Sourcing and eProcurement), spend data, supplier performance and knowledge management applications. The knowledge gained from Procurement Intelligence aims to simplify decision making, making this sub-process a critical part of both the strategic sourcing process and procurement governance. Procurement Intelligence is key to assessing and ensuring compliance, tracking operational improvement benefits and in implementing sourcing strategies. Procurement Intelligence software typically supports spend analytics and operational reporting. The ability to clearly communicate findings is critical to achieve staff and management buy-in. Therefore the functionality to graphically represent findings is of high importance in this type of application.

diversity in coverage ranging from 98 percent to 48 percent. Reporting remains diverse and demonstrates that no one vendor has been able to support the need to address what is standard partly down to the markets requirements but also in line with the need to be flexible which reporting lacks across the majority of providers, without significant adaptation or customisation

2. Within the Procurement Process Model (see figure 4) a relationship exist between Procurement Intelligence and: Sourcing Operational procurement

Procurement intelligence and Sourcing The three vendors that do not offer Procurement Intelligence do offer sourcing functionality. So there is scope for improvement since Procurement Intelligence is a critical part of both the strategic sourcing process and operational procurement.

Functionalities Intelligence

reviewed

within

Procurement

Procurement Procurement:

intelligence

and

Operational

Procurement Intelligence is divided into the following sub-functionalities: Spend analytics- Mathematical algorithms used for cleansing, normalizing and classifying spend data Operational reporting - Operational reporting is typically used by the front-line operations personnel. Very short-term, detailed decisions are made from operational reports

The previous survey highlighted that several vendors were offering Operational Procurement but did not offer Procurement Intelligence and vice versa. This survey shows that an increasing percentage of vendors are working on both the functionalities. The three vendors that do not offer Procurement Intelligence do not offer Operational Procurement functionality as well. There is one vendor (Vendorlink) that offers Procurement Intelligence but no Sourcing and Operational Procurement functionality.

Observations Intelligence

regarding

Procurement

1. Out of all the vendors surveyed three vendors (15 percent) do not offer Procurement Intelligence functionality (Upside Software, Commerce hub and Negometrix). Even though 85 percent of the vendors offer Procurement Intelligence there is huge
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3. The survey shows that 30 percent of the vendors provide full coverage (100 percent) of Spend analytics (with an average of 76 percent) and Operational reporting (with an average of 63 percent). This is a positive step in development over the last 2-3 years of SRM functionality that is available on the market and is in part down to the

acquisitions that have occurred in the last 12-18 months for spend analytics

4. Most diversity within the Procurement Intelligence functionality can be found across Operational reporting. The requirements with the most different offering per vendor are; trend watching functionality; the possibility to enter and track cost saving targets per market and product group.

Within Spend analytics the requirement with the most different offering per vendor is: depth of vendor and item knowledge bases that feed mathematical algorithms used for cleansing, normalizing and classifying spend data.

Figure 3 Procurement Intelligence scores

Figure 4: Procurement Intelligence

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Project Management
What is Project Management? Project Management is the discipline of defining and achieving targets while optimising (or just allocating) the use of resources (time, money, people, materials, energy, space, etc.) over the course of a project. The place of Project Management within the complete procurement process is illustrated in Figure 5.

timelines for all procurement activity and the advent of benefits being clearly documented.

2. Within the Procurement Process Model a relationship exist between Project Management and: Operational procurement Sourcing

Within sourcing activities, Project Management helps to institutionalise and embed the sourcing processes which in our Clients experience results in greater savings being delivered and increased knowledge captured for future re-use.

Project Management software supports: Creating a project team Phasing of a project Maintaining a project calendar containing an overview of scheduled and running projects Resource planning covering the team members assigned to the project Running reports for the scheduled projects

Project Management and Operational Procurement: Last years survey showed that Project Management is something typically expected to be found in Sourcing Processes. Therefore, it was not surprising that the applications that primarily focused on P2P processes did not provide functionality to support Project Management. This year 75 percent of the vendors that offer Operational procurement also offer Project Management (compared to 80 percent in Sourcing). This highlights the importance to ensure visibility and transparency across the entire Procurement suite of technology.

Functionalities reviewed within Project Management For the Project Management section of this vendor review we analysed the functionality: Project Management

Project Management and Sourcing: 80 percent of the vendors that offer Sourcing functionality also offers Project Management. Although project management is typically expected to find in Sourcing Processes four vendors (Bupros, Basware, Upside Software and ProcureStaff Technologies) that do offer Sourcing, do not have the Project Management functionality. Project Management is not perceived to be a functionality specifically required in a SRM application. Perhaps this is because there are many other solutions to monitor the progress of the sourcing project.

Observations regarding Project Management

1. Project management remains a key differentiator given it is not provided across all vendors (75 percent). However we are seeing a trend where vendors are capitalizing on project management functionality given the necessity to ensure tighter

3. Most diversity across the Project Management functionality can be found in the following requirement: Possibility to link Project Management to Product development.

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Figure 5 Project Management

Figure 6 Project Management scores

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Sourcing
What is Sourcing? Sourcing is the part of the procurement process that continuously improves and re-evaluates the purchasing activities of a company. The sourcing process consists of selecting the appropriate suppliers, the full tendering process, elements of the go to market strategy and developing the required supplier relationships on the basis of the defined sourcing strategies. Sourcing strategies are typically developed per product category.

supplier and buyer collaboration through eRFX based activities and events. From a Public Sector perspective this is proving invaluable given the necessity to demonstrate rigour and audit ability through the process coupled with Project Management this area serves as a core focus for the market as we enter 2011.

2. Within the Procurement Process Model relationship exist between Sourcing and: Supplier Management Contract Management

Functionalities reviewed within Sourcing Sourcing is divided into the following sub-functionalities: Strategy development Demand aggregation Negotiation and contract signing Electronic tendering eAuctioning

Sourcing and Supplier Management Supplier Management is part of the Strategic Sourcing Cycle therefore it can be expected that vendors offering Sourcing also offer Supplier Management functionality. The survey shows that, in line with the expectations, 90 percent of vendors providing Sourcing functionality also support Supplier Management.

Sourcing and Contract Management The sub-functionalities Electronic eAuctioning are reviewed separately. Tendering and There seems to be an expectation that if a vendor has sourcing functionality, Contract Management will be the logical next step. The survey shows that only one vendor (ProcureStaff Technologies) where Sourcing functionality is present does not offer Contract Management functionality.

Observations regarding Sourcing

1. Looking at the overall scores in the Sourcing area, we can conclude that almost all applications provide some sort of sourcing functionality. Over 60 percent of the vendors are demonstrating an increased focus on eSourcing in line with market demand and only two vendors have highlighted no functional coverage across eSourcing (Vendorlink and INCONTO). eSourcing is seeing a rapid surge in e based requirements and the move from more paper based environments. Whilst only two vendors highlighted no functional coverage across eSourcing those that have this in place need to continue to demonstrate that this is not just a focus on auctioning but genuine
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3. Interestingly the areas with the most questioning, namely eAuctioning and eTendering based functionality were answered similarly for those vendors that are providing this functionality. Consequently it is fair to assume a parallel of functionality moving into a diminishing return advantage similarly to transactional procurement did only a few years ago.

4. The majority of the vendors see Strategy Development and Demand Aggregation as the core functionalities.

As in previous surveys we see that those vendors that have a high overall score see an added value in the functionality Negotiation and Contract Signing. Indeed it is worthy of attention that 50 percent of the vendors scored a maximum functionality coverage of 100 percent in this area of eSourcing. However in practical terms this is not often used in the market by Customers and the need to demonstrate its potency rests firmly with the suppliers. If suppliers can forge a greater link towards demand aggregation, the ability to tie in reporting, spend analytics and procurement intelligence will be all the more greater as Customers seek to focus more on 2nd and 3rd generation sourcing activities

5. Most diversity across Sourcing functionality can be found in Strategy development. Most diversity across the Sourcing functionality can be found in the following requirement: Recommendations of automated sourcing strategy regarding the sourcing strategy development.

Figure 7 Sourcing scores

Figure 8 Sourcing
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Electronic Tendering and eAuctioning

Since the functionality within Sourcing typically lies in support for tendering, negotiation and auctioning, two sub-categories have been defined: Electronic Tendering and eAuctioning. These were then subdivided in order to compare functionality, as illustrated in table 3. Figure 10 and 11 represent the total scores of the applications functionality within the Electronic Tendering and eAuctioning sub-categories .

Electronic Tendering

eAuctioning

General Building Sending & answering Aggregation & analysis Scoring Distribution of shortlist

Types of auctioning Strategy Process Bid formats Calculation Viewing Messaging

Table 3 Sub categories Electronic eTendering and eAuctioning

Figure 9 Electronic Tendering and eAuctioning

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Electronic Tendering
What is Electronic Tendering? The core functionality of strategic sourcing partially lies in support for Electronic Tendering. To a large extent, this is where the value of strategic sourcing is captured. Electronic Tendering also includes eRfX (Request for Information, Request for Proposal and Request for Quote), which is often part of a tendering exercise. Electronic Tendering can be used by a buyer to request information from potential suppliers for the purpose of evaluation and comparison. The more structured this information is, the easier it is to compare the suppliers.

3. Most diversity across Electronic Tendering functionality can be found in Aggregation and analysis in the following requirements: Availability of tools for what-if and sensitivity analysis by altering the number of hours, number of units, transaction values, etc. and re-calculating total score (55 percent diversity); Creation of own custom report formatting using the report tool (45 percent diversity).

Functionalities reviewed within Electronic Tendering Electronic Tendering is divided into the following subfunctionalities: General Building Sending & answering Aggregation & analysis Scoring Distribution of shortlist

Observations regarding Electronic Tendering

1. All the vendors offering Sourcing offer Electronic tendering functionality. The scores are particularly high for this functional category with an average of 89 percent.

Figure 10 Electronic tendering scores

2. Compared to eAuctioning, Electronic Tendering is perceived by all vendors as core functionality.

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eAuctioning
What is eAuctioning? eAuctioning is a negotiation tool which can help to select the appropriate suppliers. Depending on the approach, buyers or sellers may specify costs or invite bids and transactions can be initiated and completed. Ongoing purchases may qualify customers for volume discounts or special offers. eAuctioning software may make it possible to automate some buying and selling.

3. For vendors that only partially support eAuctioning, Types of eAuctions in addition to Calculation and Process plays a significant role in the score. The main differentiator in the Sourcing functionality can be found across Types of eAuctions. Most diversity across this functionality can be found in the following requirement: Gives the system an advice on the type of auction that is most suitable (50 percent diversity).

Functionalities reviewed within eAuctioning eAuctioning is functionalities: divided into the following sub-

Types of auctioning Strategy Process Bid formats Calculation Viewing Messaging

Observations regarding eAuctioning

1. Responses to the survey questions indicate that compared to last years survey (average score of 82 percent) the eAuction functionality remains stable with an average of 81 percent. The market is saturated with specialist auction providers and indeed the need to enhance the functionality has dried up given the richness is now in place. This is less down to technology and more down to strategy where the ability to tie strategy and technology together would remain critical to success for a Customer when deploying and executing eAuctions

Figure 11 eAuctioning scores

2. 75 percent of the vendors offers eAutioning, three vendors that offer Sourcing do not offer eAuction functionality.
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Supplier Management
What is Supplier Management? Supplier Management includes supplier performance monitoring where agreed performance indicators and scorecards are evaluated and acted upon. Goals and objectives are set and evaluated; improvements are identified and implemented in collaboration with suppliers. Both hard aspects of the supplier relationship, such as price, quality, delivery and service, and soft aspects of this relationship such as visits, surveys and certifications are managed.

Within the Procurement Process Model a relationship exist between Supplier Management and: Sourcing

Supplier management & Sourcing: The survey shows that, in line with the expectations, 90 percent of vendors providing sourcing functionality also support supplier management. There is however one vendor (Vendorlink) that does offer Supplier Management but no Sourcing functionality.

Functionalities reviewed within eAuctioning Supplier Management is divided into the following subfunctionalities: Evaluation & Development Database

3. The main differentiator in the Supplier Management functionality can be found across Evaluation and Development. Most diversity across this functionality can be found in the following requirements Supplier monitoring on measurement for soft aspects that are outside limits. The system supports the automatic aggregation of the answers on the different questionnaires as filled out by the buyers.

Observations regarding Supplier Management

1. As compared to the previous surveys we see that there is a trend among the vendors wherein most of them tend to support supplier management fully. Out of the vendors surveyed, three vendors (15 percent) do not offer Supplier Management functionality at all (Basware, INCONTO and Negometrix).

2. The group that offers this functionality scores very high with an overall score higher than 82 percent. When we look at the subcategories, we see that vendors have extensive elaborate support for supplier evaluation and development (average 95 percent) and database functionality (average 93 percent).

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Figure 12 Supplier Management

Figure 13 Supplier Management scores

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Contract Management
What is Contract Management? Contract Management includes the construction of contracts and their terms and conditions, contract registration, and keeping track of contracted products, financial obligations, critical dates, etc. In addition, it also includes monitoring agreed targets and practices specified agreements in the contract. When necessary the Contract Management software helps to initiate actions to either adjust agreed terms and conditions, or to remedy contract breaching behaviour. Contract Management software supports the writing of contracts, giving overviews of current contracts and contracted parties. Contract Management provides insight into the related (financial) obligations, flow of funds and critical dates, such as contract renegotiation or dates that trigger penalties if they are not met. Contract Management applications support team collaboration, contract construction, document management, and contract approvals, budget control and contract evaluation.

2. Within the Procurement Process Model a relationship exist between Contract Management and: Sourcing Operational Procurement

Contract Management and Sourcing: There seems to be an expectation that if a vendor has Sourcing functionality, Contract Management will be the logical next step. The survey shows, in line with expectations, that 95 percent of the vendors that offer Sourcing also offer Contract Management functionality. However 60 percent of the vendors that offer Sourcing have a higher score in Contract Management functionality compared to Sourcing indicating that Contract Management can be used as a stand alone or as an extension from Operational Procurement to the Sourcing circle and vice versa.

Contract Management Procurement:

and

Operational

Functionalities reviewed within Contract Management Contract Management is divided into the following subfunctionalities: Authoring Usage Compliance Repository

Observations regarding Contract Management

1. Vendors appear to have invested significantly in this module, which has resulted in a high score. This is not a surprised given the need to link heavily the benefits that are identified (Sourcing) through to benefits being delivered (Operational) this is achieved through benefits being captured as part of Contract Management activities. Three vendors responded with a score of less than 70 percent coverage in this area, with the average alone above 85 percent. Only one vendor has no Contract Management functionality (ProcureStaff).
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In line with the observation above, 80 percent of the vendors that provide Contract Management functionality also offers Operational Procurement functionality. For the remaining 20 percent, Contract Management is used as an extension of the Sourcing cycle (Commerce hub, Iasta, Negometrix and Upside Software). Only one vendor (Vendorlink) offers Contract Management as a stand alone module since Sourcing and Operational Procurement functionality is totally absent.

3. Although all sub-functionalities of Contract Management score reasonably high, we see that the sub functionalities Compliance (average score of 76%) and Usage (average score of 80%) scored less and thus there is still scope for improvement. Repository is a sub-category where 90% of the vendors scored 100 percent. This is partly down to the need to tie Operational and Contract compliance jointly to demonstrate compliance through the Procurement process without leakage.

Figure 14 Contract Management

Figure 15 Contract Management scores

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Catalogue Management
What is Catalogue Management? Catalogues contain the preferred goods and services from suppliers that were selected during the strategic sourcing process. All the article information is stored in the catalogue. This makes it possible to select and order items electronically. Catalogues can either be located in the procurement application itself, at the suppliers side or at a third party. For companies that have managed to put the majority of their spend onto catalogues, there is often a combination of different types because different purchase-to-pay channels are applicable depending on category profile, order profile, spend profile, supplier profile and the business requirements. Static/standard catalogues, form catalogues and punch-out catalogues are examples of catalogue-based channels. Catalogue Management involves entering article data, validating the data, and generating and maintaining the catalogue content. Catalogue Management is primarily carried out by the party keeping the catalogue, but different arrangements are possible. An external catalogue can be accessed in several ways: a relatively simple solution is a punch-out or roundtrip, where the user temporarily leaves the procurement application and is typically directed to the suppliers website. After selecting a product he returns with the article information needed to generate a requisition, this will then pass through the normal internal approval procedure. In some solutions, the external catalogue data can be viewed and handled in the procurement application in the same way as internally stored articles. As the critical success factor for self service requisitioning is usability and user friendliness, a coherent working environment for employees is of great importance in achieving good compliance with preferred products, suppliers and contracts. Functionalities reviewed within Catalogue Management Catalogue Management is divided into the following subfunctionalities: User capabilities Supplier capabilities Administration(content review & approval) Administration-Creation Administration-Maintenance
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Observations regarding Catalogue Management

1. The scores of the vendors in the category Catalogue Management are quite similar to the total score of the vendors with regards to the total SRM suite coverage. There is little to improve functionally with most Customers focusing on the uptake and internal adoption within the respective organisations

2. Within the Procurement Process Model a relationship exist between Catalogue Management and: Operational Procurement and Operational

Catalogue Management Procurement:

Catalogue Management is a fundamental part of the Operational Procurement process. Therefore, if there is no Operational Procurement functionality then there is no Catalogue management functionality present.

3. All sub-categories within Catalogue Management score relatively high (average >70 percent), however in certain instances the administration sub functionalities could be improved (e.g. supplier capabilities).

4. The main differentiator in the Catalogue Management functionality is Look and Feel demonstrated by the following requirements; Punch-out catalogues have the look and feel of the own application (within Catalogue maintenance; Possibility to use different setups for look& feel (within Catalogue creation).

Figure16 Catalogue Management

Figure17 Catalogue Management scores

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Operational Procurement
What is Operational Procurement? There are several terms for Operational Procurement; some well-known terms are Purchase-to-Pay (P2P) and eProcurement. Usually eProcurement refers to an automated solution for Operational Procurement where P2P refers to the process. Therefore eProcurement is the automated solution for the P2P process. Operational Procurement is primarily made up of the order process, the supply process and the payment process. The order process typically follows the following steps: 1. 2. 3. Needs capture and requisitioning. Approval, normally by the next level manager, a subject matter expert, or by the finance department. After approval of the requisition the order is placed at the supplier. If necessary a sourcing process can be entered into prior to the order placement if not all details are clear yet (for example if the item was not in a catalogue) In the supply process the goods and/or service are received and an assessment of received goods and/or services on quality and quantity is done. If necessary exceptions will be processed. Finally, in the payment process the invoice is received and matched against the Purchase order and the received goods. If this is correct, the invoice can be paid. Some companies have a self-billing process. In this situation the company will make their own invoice based on the Purchase order and the goods received.

Functionalities Procurement

reviewed

within

Operational

Operational Procurement is divided into the following sub-functionalities Requisitioning Request for quotation Approval Purchase order transmission Receiving goods and services Invoicing

Observations Procurement

regarding

Operational

1. 75 percent of the vendors offers Operational Procurement functionality. Most of the players offering Operational Procurement module offer high functionality (>70 percent). This is by far the most common suite of provision from all of the vendors interviewed. 2. Within the Procurement Process Model a relationship exist between Operational Procurement and: Catalogue Management Contract Management Management) (see Contract

4.

5.

Procurement Intelligence (see Procurement Intelligence) Project Management (see Project Management)

Applications for Operational Procurement normally support both product related goods & services (direct) and not product related goods & services (indirect). Examples of the latter are: External resources, MRO, capital goods and utilities.

Operational procurement and Catalogue Management: 25 percent of the vendors do not provide the Operational Procurement functionality. These vendors also do not provide Catalogue Management, since Catalogue Management is an element of Operational Procurement.

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3. Most of the vendors support the first part of the process, Requisition creation, Request for Quotation and Approvals, more than support the second part of the process. 4. The main differentiators Procurement are: across Operational

The way purchase orders acknowledgements can be received; The way purchase order acknowledgements can be handled; The way (electronic)invoices can be received.

Figure 18 Operational Procurement scores

Figure 19 Operational Procurement

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External Resources
Why External resources? Over the past few years it has been noted that, predominantly indirect goods have been subjected to some form of SRM implementation. In reviewing the level of benefit generation, it could be expected that External resources has already been reviewed at various times. However evidence shows that this is not the case. Many large organizations have a relatively high level of spend External Resources, but have very little visibility to the spend breakdown.. Most companies should know exactly how much money they spend per supplier, but below this level information is inconsistent and they may not be able to know the grade or level of the hired person, if they are registered, the rate per hour or day or even insight as to whether the vacancy could be fulfilled with an internal candidate. With the expected constraints within the labour market, companies will need to get a better understanding of their external resources, and it is anticipated that supporting applications will have a bright future. We have chosen to separately survey the vendors on this functionality as we believe that the process of External resources is very different from any other P2P process.

Functionalities reviewed within External Resources External resources is divided into the following subfunctionalities Specify Approvals Requisitioning Selection & Order Monitoring After Care

Observations regarding External Resources

1. External resource proves to be a key differentiator; vendors either provide functionality in this area (50 percent of surveyed vendors) or it is completely absent.

What is External Resources Management? External resources management is a tool to manage an organizations external resources to enable the reduction in the companys cost of management of external employees. Organizations often lack insight into their obligations with regard to temporary labour, a external resource solution can create this insight. A external resource solution will allow an organization to specify its requirements and select the appropriate workers. The solution allows creation of a contract between the organization and workers; ensures that workers are monitored by creating reports such as time and expenses. The solution allows self-billing and evaluation of employees afterwards thus the solution helps to mitigate the organizations risk in employing external resources.

2. There is an assumption that External Resource functionality appears in applications that also offer Operational Procurement processes. In the 20082009 SRM survey there was a direct dependency between both functionalities, however this years survey shows that the dependency is decreasing. 50 percent of vendors offer External resource functionality but no Operational Procurement functionality.

3. Some of the niche players are not looking from a Procurement point of view, but from a HR perspective. Some full suit vendors do not offer External resource functionality yet, which leaves scope for more improvement.

4. Most diversity in External Resources functionality lies within the Selection and Order subcategory. The main differentiator is whether the application supports Facility Management Requests.

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Figure20 External Resources scores

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Supplier Relationship Management Research 2010-2011

BPO Procurement

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BPO Procurement
What is BPO Procurement? BPO Procurement is a solution that many are turning to for the delivery of world class procurement services. A BPO Procurement service consists of two main types of services (and the combination of these two is called full service BPO Procurement): Purchase-to-Pay which is the provision of transaction processing support to manage the administration involved in the procure-to-pay cycle for indirect goods and services or direct procurement; Source-to-Contract includes strategic sourcing and the management of contracts. The spend managed by the BPO service provider creates a continuous leverage for spend aggregation What services are included in a BPO-Procurement deal? BPO Procurement refers to the processes and infrastructure associated with, typically, the following items: Strategic sourcing the negotiation of new contracts with suppliers and the associated services, generally in accordance with the commodity or the overall procurement strategy. Category management the development of category strategies, subsequent management of the category after sourcing and management of the contracts to ensure that the benefits identified are delivered through active compliance management. Typically, any supplier management is undertaken in this area. Tactical procurement (spot buying) the management of spot buying for high value and unusual items through a purchasing desk. This is usually augmented with a front office which supports employees and supplier contact in local languages. Transactional procurement the management of the requisitions and PO process plus master data management and query management that supports employees and supplier contact in local languages. Compliance management active reporting on and management of compliance. Often involves
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interaction with HR to drive changes in or compliance with HR policies. Reporting provision of management information for sourcing category, compliance and supplier management.

Why BPO? There are several motivating factors as to why BPO is gaining ground which include: Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement

Observations regarding BPO Procurement:

1. With an average of 62 percent, and with more 100 percent functional coverage BPO Procurement remains a strong area for growth that is driving current demand in organisations. 2. Only 45 percent of the vendors indicates that it offers all BPO based scenarios. The survey shows that the top 5 BPO based scenarios in use are: Sourcing Electronic tendering, Supplier Management Procurement Intelligence. Project Management

Catalogue management and External resources are used less as BPO scenarios.

3. 40 percent of the vendors offer software supporting BPO based scenarios and customers in all the following regions; Western Europe, Eastern Europe, Africa, Northern America, Southern America, Middle East, Asia, Far East, Australia and New Zealand. The region where most BPO based scenarios are supported by the surveyed vendors is Western Europe (55 percent). This can be explained by the fact that most surveyed vendors are based in western Europe. 4. 35 percent of the vendors are collaborating with another provider in support of their BPO Procurement.

Figure 1 BPO Procurement scores

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Supplier Relationship Management Research 2010-2011

International Footprint and Supplier Profile

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Ariba inc.
Spend Management solutions
Implementation scope

Ariba implemented the solution: Globally Headquarter: USA

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Total number of suppliers on the Network - 241,548 unique ANIDs (out of which there are 223,555 unique supplier names) Geographical scope of connected suppliers Globally Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

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Ariba inc.
Spend Management solutions
Availability
Current version operational since First version operational since 2010 Ariba Sourcing Sept 2001, Ariba Category Management Feb 2003, Ariba Contract Workbench Feb 2004, Supplier Performance Management June 2003, Ariba Data Enrichment April 2004, Ariba Analysis Feb 2002, Ariba Buyer June 1997, Ariba Contract Compliance Feb 2002, Ariba Invoice April 2002, Ariba Settlement Feb 2004, Ariba Travel & Expense Sept. 1998, Ariba Cateogory Procurement Feb 2004, Ariba eForms Sept. 1998, The On-Demand solutions were first introduced in 2006.

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include A demo-version of the software is available on the web The company provides Total number of implementations worldwide Software is available in Inhouse and SAAS United States 1.663 employees 315 Patches are deployed to all users by Ariba's IT team in off-hours, typically after 8 PM PST on Fridays. Yes

Yes New Releases and New Versions Yes Helpdesk support, Bespoke software, Implementation support, Project management during Implementation, Training on the supplied package 1000+ Customers globally Dutch, English, German, French, Spanish, Russian, Japanese, Chinese,

The URL of the company's website

www.ariba.com

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Basware. Basware.
Implementation scope

Enterprise Purchase to Pay Enterprise Purchase to Pay

Basware implemented the solution: Globally Headquarter: Finland

Figure 1 Geographical scope & location headquarter

Sustainability Policy:
Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Suppliers: Integration of supplier processes as far as possible Sourcing: Basware has a RFx Module which is continiously improved Operational Procurement: has a Basware Procurement Module which is continiously improved

Supplier connections
Total number of suppliers connected: Total number of suppliers connected is not specified. Via roamingagreements with the biggest operators Geographical scope of connected suppliers Suppliers are connected all over the world Type of connection and pricing modelPrimodel: ff d b d l Connection: Via 1 Basware platform, direct and partnering Pricing model: Staffed based on volume

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Basware. Basware.
Availability
Current version operational since First version operational since

Enterprise Purchase to Pay Enterprise Purchase to Pay

2010 1988

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include Inhouse and SAAS Finland 761 195 1 major release and 4 patches per year Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides Total number of implementations worldwide Software is available in The URL of the company's website No Helpdesk support ,Implementation support, Project management during Implementation, Training on the supplied package More than 8000 Dutch, English www.basware.com

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Black Peacock Procurement Solutions

PROACTIS
Implementation scope

BBPS implemented the solution in: Information not disclosed Headquarter: USA

Figure 1 Geographical scope & location headquarter

Sustainability Policy:
Information not disclosed

Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers Information not disclosed Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

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Black Peacock Procurement Solutions

PROACTIS
Availability Current version operational since First version operational since Company Profile The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include Patches regular, new release per year Yes No New Releases New Version A demo-version of the software is available on the web The company provides Yes Helpdesk support Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 380 Dutch, English, German, French, Spanish, Russian Inhouse and SAAS USA 12 2009 1999

The URL of the company's website

www.proactis.com

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Bupros
Open Source Spend Management
Bupros is launching the Sourcing, Contract Management, Supplier Management and Procurement Intelligence modules in Q4 2010 Implementation scope

Bupros implemented the solution in: The Netherlands (30) and Germany (20) Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Total number of suppliers: 20 Geographical scope of connected suppliers The Netherlands and Germany Type of connection and pricing modelPrimodel: ff d b d l Connection: Down- and unloadable file in supplier portal and punch out Pricing model: unsupported for free, a fee in case of managed services
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Bupros
Open Source Spend Management
Availability
Current version operational since First version operational since 2008 (Bupros Open Source Spend Management operational procurement) 2003 (Bupros Procurement)

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands Antilles 30 10 Continuously No Currently operational at West European business hours. New Releases New Version A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 50 Dutch, English, German, French

The URL of the company's website

www.bupros.com

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Commerce-hub
C- Source
Implementation scope

Commerce hub implemented the solution in: The Netherlands, Belgium, Romenia, US Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers Information not disclosed Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

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Commerce-hub
C- Source
Availability
Current version operational since First version operational since 2007 2000

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands 15 3 Monthly Commerce-hub is in the process of setting up user groups which are planned to become operational second half 2010. Currently Commerce-hub customers meet informally during release update meetings, presentations and workshops. Yes New Releases New Versions A demo-version of the software is available on the web The company provides No Helpdesk support Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 75 Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish, Japanese, Chinese

The URL of the company's website

www.commerce-hub.com

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Eeebid.com inc.
ebidQL
Implementation scope

Eeebid.com implemented the solution in: USA, Germany, Switzerland/ Liechtenstein, Hungary, Czech Republic, Romania, France, Denmark, Sweden, China Headquarter: USA Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: eeebid offers an eeebid supplier directory including sustainability criteria Sourcing: eeebid supports verification of social and environmental standards in its sourcing and software solutions Operational Procurement: Similar to sourcing Type of connection and pricing modelPrimodel: ff d b d l Connection: Key model is private marketplace / direct partnering Pricing model: Free of charge for basic connection, annual fee for extended listing in eeebid supplier directory
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Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 245.000 suppliers are connected Geographical scope of connected suppliers 160.000 Europe, 53.000 Asia, 27.000 USA; Rest of the world: 5.000

Eeebid.com inc.
ebidQL
Availability
Current version operational since First version operational since 2010 2000

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include United States 29 12 4 annual versions, weekly patches all managed comprehensively via CVS sourcecode management Yes, there is a customer club Yes, if you order Platinum support New Releases: depending on negotiation New Version: depending on negotiation A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in The URL of the company's website 280 Dutch, English, German, French, Czech, Chinese www.eeebid.com

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ESIZE
ESIZE procurement solutions
Implementation scope

ESIZE implemented the solution in: The Netherlands, Belgium, Germany, France, UK, Nordics, Middle-East, Spain, Portugal, Italy, Austria, Switzerland, Luxembourg, USA, Baltics, Russia, Mexico, Brasil, China, Japan, Australia Headquarter: The Netherlands Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers, Sourcing and Operational Procurement: ESIZE complies with common sustainability policies that are checked by their controllers/advisors

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: More than 150.000 Geographical scope of connected suppliers The Netherlands, Belgium, Germany, France, UK, Nordics, Middle-East, Spain, Portugal, Italy, Austria, Switzerland, Luxembourg, USA, Baltics, Russia, Mexico, Brasil, China, Japan, Australia

Type of connection and pricing modelPrimodel: ff d b d l Connection: Market place, direct integration, email, fax, XML, Webservices, EDIFACT, C-XML, CSV, eb-XML EDI, PDF, Hr-XML ,etc. Pricing model: Depending on the type of connection it ranges from a free connection to full customisation/integration with various price levels

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ESIZE
ESIZE procurement solutions
Availability
Current version operational since First version operational since 2010 1999

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands 150 100 3 major releases (new development) and 4 minor releases (pro-active maintenance). Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 70 Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish, Japanese, Chinese

The URL of the company's website

www.esize.com

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Hubwoo
Cloud Procurement Suite
Implementation scope
Hubwoo implemented the solution in: Global eProcurement implementations that span 20+ countries including: USA, Canada, Mexico, Columbia, France, Spain, Germany, UK, Poland, Turkey, Italy, The Netherlands, Hungary, Romania Headquarter: France Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers, Sourcing and Operational Procurement: Huwboo enables supply risk data from various third party sources such as Kortera, Compass, and Coface Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 74. 000 suppliers are connected Geographical scope of connected suppliers USA, Europe, Asia, Latin America

Type of connection and pricing modelPrimodel: ff d b d l Connection: The Hub. Hubwoo's connect once connect to all marketplace solution Pricing model: Pricing depends on whether it's a "direct connect" or Integrated supplier, a Portal supplier or a Fax/eMail supplier
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Hubwoo
Cloud Procurement Suite
Availability
Current version operational since First version operational since 2007 2001

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS France 250 40 3 major upgrades per year. Minor patches and enhancements as needed. Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides No Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 150 Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish, Japanese, Chinese

The URL of the company's website

www.hubwoo.com

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Iasta Inc
SmartSource SRM
Implementation scope

Iasta implemented the solution in : USA (70%) and UK (30%) Headquarter: USA

Figure 1 Geographical scope & location headquarter

Sustainability Policy:
Information not disclosed

Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers Information not disclosed Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

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Iasta Inc
SmartSource SRM
Availability
Current version operational since First version operational since 2010 2002

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS United States 52 15 All patches and upgrades are done 2-3 times per year. Patches are done as needed. Yes No New Releases New Versions A demo-version of the software is available on the web The company provides Yes Helpdesk support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in The URL of the company's website > 150 Dutch, English, German, French, Spanish, Polish www.Iasta.com

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IBX
IBX eProcurement
Implementation scope
IBX implemented the solution in: USA, Portugal, Finland, Canada, Australia, Russia, Italy, Spain, Poland, The Netherlands, Czech Republic, Hungary, Slovakia, UK, Sweden, Japan, France, Ireland, Austria, Switzerland, Belgium, Norway, Germany, Denmark Headquarter: Sweden Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 27.000 suppliers are connected worldwide Geographical scope of connected suppliers Suppliers are connected in more than 100 countries Type of connection and pricing modelPrimodel: ff d b d l Connection: Supplier activation program including methodology, tools and resources Pricing model: Per supplier

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IBX
IBX eProcurement
Availability
Current version operational since First version operational since 2005 2003

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS Sweden 400 50 3 yearly releases of enhancements No Yes New Releases New Version A demo-version of the software is available on the web The company provides Yes - but not public Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 13 Dutch, English, German, French, Spanish, Czech, Polish

The URL of the company's website

www.ibxgroup.com

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INCONTO
INCONTO E-Procurement and Contract Management
Implementation scope

INCONTO implemented the solution in: The Netherlands, Belgium, UK Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 100 suppliers are connected Geographical scope of connected suppliers Mainly The Netherlands

Type of connection and pricing modelPrimodel: ff d b d l Connection: Supplier connections are initiated by the clients, INCONTO is an independent supplier of procurement software Pricing model: Connections are easily created and therefore are low in cost. Clients forward to the the invoice suppliers

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INCONTO
INCONTO E-Procurement and Contract Management
Availability
Current version operational since First version operational since Version 2.7 since April 2010 2000

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include The Netherlands 75 10 Upgrades are delivered twice a year, patches as soon as necessary No No, only during working hours New Releases New Versions A demo-version of the software is available on the web The company provides No, we prefer to demonstrate the software to our prospects. Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in The URL of the company's website 30 Dutch, English http://www.inconto.com

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Negometrix
Negometrix
Implementation scope

Negometrix implemented the solution in: Most european countries ( 80% in the Netherlands)

Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers Most european countries, 80% in The Netherlands

Type of connection and pricing modelPrimodel: ff d b d l Connection: Sourcing market place, pooling of buying power Pricing model: Information not disclosed

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Negometrix
Negometrix
Availability
Current version operational since First version operational since 2009 2000

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands 14 4 1 x per month Yes Only for special projects New Releases New Version A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 10.000 Dutch, English, German, French, Russian

The URL of the company's website

www.negometrix.com

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Oracle Corporation
Oracle Advanced Procurement
Implementation scope

Oracle implemented the solution: Globally

Headquarter: USA

Figure 1 Geographical scope & location headquarter

Sustainability Policy:
Oracle has 35.000+ applications customers amongst which a great deal has procurement functionality implemented. No specific numbers are disclosed

Suppliers, Sourcing and Operational Procurement: Find out more on www.oracle.com/green/in dex.html

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Oracle connects suppliers via the Oracle Supplier Network transaction platform No specific numbers are disclosed Geographical scope of connected suppliers Mostly USA Type of connection and pricing modelPrimodel: ff d b d l Connection: Marketplace (Oracle Supplier Network) Pricing model: Oracle Supplier Network is the free online service

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Oracle Corporation
Oracle Advanced Procurement
Availability
Current version operational since First version operational since 2008 1988

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include United States Approximately 86.000 full-time employees Approximately 1/4 the of the employees are in product development In average a major release every two years, and point releases in between. Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides No, self running demos can be downloaded. Helpdesk support Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 75 Dutch, English, German, French, Spanish, Greek, Russian, Czech, Polish, Japanese, Chinese

The URL of the company's website

www.oracle.com

81

ProcureStaff Technologies
Consol
Implementation scope

ProcureStaff Technologies implemented the solution in: Australia (2), Brazil, Belgium (1), Canada (2), Czech Republic (2), France (3), Germany (3), India (1), Ireland (1), Italy (2), Japan (1), Malaysia (1), The Netherlands (2), Singapore (1), Scotland (1), Slovakia (1), Spain (3), United Kingdom (6), United States (32) Headquarter: USA

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 1.357 suppliers are connected Geographical scope of connected suppliers Australia (2), Brazil (1), Belgium (1), Canada (58), China (1), Czech Republic (4), France (45), Germany (23), India (2), Italy (2), Japan (21), Malaysia (12), The Netherlands (45), Poland (3), Puerto Rico (10), Singapore (1), Scotland (12), Slovakia (1), Spain (37), United Kingdom (190), United States (870) Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

82

ProcureStaff Technologies
Consol
Availability
Current version operational since First version operational since 2009 1996

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS United States 233 Proprietary There is a release schedule for Nov 2010 and June 2011 Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides Yes Helpdesk support Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 65 English , Spanish

The URL of the company's website

www.procurestaff.com

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Proquro B.V.
Proquro
Implementation scope

Proquro implemented the solution in: The Netherlands (more than 100), Belgium (1) Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Information not disclosed Sourcing: Information not disclosed Operational Procurement: Information not disclosed

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Unknown Geographical scope of connected suppliers Netherlands, Germany, Belgium Type of connection and pricing modelPrimodel: ff d b d l Connection: Proquro Connect module Pricing model: Connecting Module

84

Proquro B.V.
Proquro
Availability
Current version operational since First version operational since 2010 2000

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include The Netherlands 13 7 Depends on new developments and bug fixes, 1 major update per year Yes No, only during working hours New Releases New Versions A demo-version of the software is available on the web The company provides yes, but only for consultants Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in The URL of the company's website >100 Dutch, English, German, French www.proquro.nl

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SAP AG
SAP SRM, SAP E-Sourcing, SAP Contract Lifecycle Management, SAP Spend Performance Management, SAP Invoice Management
Implementation scope

SAP implemented the solution: Globally Headquarter: Germany

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: SAP is taking a leading corporate role in this critical topic area, both in our own actions as well as how we develop our solutions Sourcing and Operational Procurement: SAP is building new sustainability parameters, metrics and tools into their procurement portfolio Type of connection and pricing modelPrimodel: ff d b d l Connection: Direct connection (e.g., EDI tools), partners' networks Pricing model: No usage charges from SAP to make direct connections; partner networks charge usage fees typically based on number of suppliers or transactions

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Hundreds of thousands. Some of these are customer-to-supplier direct connections, while some customers use partners' networks Geographical scope of connected suppliers Customers are connecting to suppliers all over the globe, both directly and via partner networks

86

SAP AG
SAP SRM, SAP E-Sourcing, SAP Contract Lifecycle Management, SAP Spend Performance Management, SAP Invoice Management
Availability
Current version operational since SAP Spend Performance Management version 2.1 (Q2 2009), SAP E-Sourcing version 6.0 (Q4 2009), SAP Contract Lifecycle Management version 3.0 (Q4 2009), SAP SRM version 7.0 (Q2 2009). 1998 for most applications in the portfolio, 2007 for Spend Analytics.

First version operational since

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include A demo-version of the software is available on the web The company provides Total number of implementations worldwide Software is available in Inhouse and SAAS Germany 47.500 Approximately 1000+ across the portfolio For on premise solutions, approximately 1x per 12 - 18 months for major release and patches as needed. For on demand solutions, approximately 2x per year releases. Yes

Yes New Releases and New Versions Yes Helpdesk support, Bespoke software, Implementation support, Project management during Implementation, Training on the supplied package Across portfolio over 1800 implementations
English, French, German, Japanese, Simplified Chinese, Traditional Chinese, Russian, Italian, Portuguese, Spanish, Catalan, Croatian, Czech, Danish, Dutch, Finnish, Greek, Hebrew, Hungarian, Korean, Norwegian, Polish, Romanian, Slovakian, Swedish, Thai, Turkish.

The URL of the company's website

www.sap.com

87

SynerTrade SA
SynerTrade 6
SynerTrade implemented the solution in: 65 countries this includes all EU countries, in Asia (China, India, Japan, South-Korea, Vietnam, Thailand, Pakistan, some 10 more), Austrialia/ NewZealand, America (USA, Kanada, Mexico), South/MiddleAmerica (Brazil, Argentine, Chile, Venezuela,), Africa (Algeria, Lybia, Agyt, South-Africa, Mozambic, Kongo) MiddleEast (Arabia, Kuwait, Jordania, Iran) Headquarter: Luxemburg

Implementation scope

Figure 1 Geographical scope & location headquarter

Sustainability Policy: We have an advanced sustainability methodology developed jointly on international level with EY, it has preconfigured templates of quetsionnaires, KPI, certificats, processes, controlling reports, interactive drill downs and management reports Type of connection and pricing modelPrimodel: ff d b d l Connection: Default is direct partnering, we offer hotline self-service, supported onboarding, full service, catalog creation service Pricing model: Basic connection free of charge
88

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: 25.000 suppliers are connected Geographical scope of connected suppliers 65 countries

SynerTrade SA
SynerTrade 6
Availability
Current version operational since First version operational since 6.6.2 (since February 2010) Release 1.0.0 (April 2000)

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include Luxemburg 105 38 2 Sub-Releases per year, 10 sub-sub releases and daily automatic patches Yes, the SynerTrade Key Customer Club Yes New Releases: ASP yes / license typically not New Versions: ASP yes/ license yes A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in More than 186 Dutch, English, German, French, Spanish, Russian, Czech, Polish, Japanese, Chinese

The URL of the company's website

www.synertrade.com

89

TBlox
TBlox online software
Implementation scope

TBlox implemented the solution in: USA and Europe Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Suppliers have free choices to accept or reject client invitations. Sourcing: TBlox offers both basic and advanced sourcing solutions via TBlox-PAAS Operational Procurement: TBlox offers new generation ERP software

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers USA and Europe

Type of connection and pricing modelPrimodel: ff d b d l Connection: Free Supplier Portal and services provided via partner network Pricing model: Free for use. Supplier can connect own OCI-enabled webshop or activate free webshop. Optional free and paid service packages available

90

TBlox
TBlox online software
Availability
Current version operational since First version operational since 2010 2004

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands 120 35 +200 upgrades per year, stage policy for releases, client may select stage (frequency upgrades) Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 1 Dutch, English, German, French, Spanish

The URL of the company's website

www.tblox.com

91

Upside Software
UpsideRFX
Implementation scope

Upside implemented the solution in: More than 180 countries Headquarter: Canada

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Suppliers must demonstrate consistent efforts in ensuring green practices and these are followed and monitored Sourcing and Operational Procurement: Processes are automated and electronic to ensure minimal paper usage

Figure 2 Total number of implementations worldwide and per SRM module

Supplier connections
Total number of suppliers connected: Information not disclosed Geographical scope of connected suppliers Information not disclosed Type of connection and pricing modelPrimodel: ff d b d l Connection: Information not disclosed Pricing model: Information not disclosed

92

Upside Software
UpsideRFX
Availability
Current version operational since First version operational since 2010 2000

Company Profile
The service is offered as: Inhouse SAAS Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include Canada 160 160 Patches every 10 weeks, upgrades every 3 to 6 months. Yes Yes New Releases New Versions A demo-version of the software is available on the web The company provides No Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in 300 English

The URL of the company's website

www.upsidesoft.com

93

Vendorlink B.V.
Vendorlink
Implementation scope

Vendorlink implemented the solution in: The Netherlands Headquarter: The Netherlands

Figure 1 Geographical scope & location headquarter

Sustainability Policy: Suppliers: Vendorlink partners with EvoSwitch hosting activities. for Vendorlink tries to select suppliers and partners based on their sustainability policy Sourcing: Not applicable Figure 2 Total number of implementations worldwide and per SRM module Operational Procurement: Not applicable Type of connection and pricing modelPrimodel: ff d b d l Connection: Not applicable Pricing model: Not applicable

Supplier connections
Total number of suppliers connected: Not applicable Geographical scope of connected suppliers Not applicable

94

Vendorlink B.V.
Vendorlink
Availability
Current version operational since First version operational since 2009 2008

Company Profile
The service is offered as: Country in which is the Corporate Headquarter located Total number of employees Total number of employees working on developing the product? Frequency for delivering patches and upgrades Is there a user association set-up around the package? Is there a helpdesk operational for 24 hours a day? The maintenance contract include SAAS The Netherlands 7 3 Maximum of 2 major upgrades per year. No No, only during working hours New Releases New Versions A demo-version of the software is available on the web The company provides Yes Helpdesk support Bespoke software Implementation support Project management during Implementation Training on the supplied package Total number of implementations worldwide Software is available in The URL of the company's website 150 Dutch, English http://www.vendorlink.nl

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Australia
Susan Stuart E-mail: susan.stuart@au.capgemini.com Tel.: +61 2 9293 4055 Dave White E-mail: dave.white@au.capgemini.com Tel.: +61396133222

France
Jean-Gabriel Padovani E-mail: jean-gabriel.padovani@capgemini.com Tel.: +33 1 49672140 Jean-Pierre Pell E-mail: jean-pierre.pelle@capgemini.com Tel.: +33 1 49675159

Italy
Marco Alberti E-mail: marco.alberti@capgemini.com Tel.: +39 02 414931

Sweden
Bo Karlsson E-mail: bo.x.karlsson@capgemini.com Tel.: +46 8 5368 4065 Michael Skordby E-mail: michael.skordby@capgemini.com Tel.: +46 8 5368 4021

Belgium
Philip Van Gasse E-mail: philip.vangasse@capgemini.com Tel.: +32 2 7081111 Filip Paenhuysen E-mail: filip.paenhuysen@capgemini.com Tel.: +32 2 708 13 63

UK & Ireland
Graham Skinner E-mail: graham.skinner@capgemini.com Tel.: +44 870 366 0704 Hamish Mckechnie-Sharma E-mail: hamish.mckechnie-sharma@capgemini.com Tel.: +44 870 366 0435

Netherlands
Ton van Dolder E-mail: ton.van.dolder@capgemini.com Tel.: +31 30 689 1323

Finland
Markus Karki E-mail: markus.karki@capgemini.fi Tel.: +358 9 4526 5612

Central Europe
Martin Raab E-mail: martin.raab@capgemini.com Tel.: +49 221 9126 44150 Stefan Becker E-mail: stefan.becker@capgemini.com Tel.: +49 89 9400 1126

Spain
Pedro Provedo E-mail: pedro.provedo@capgemini.com Tel.: +34 91 657 7521

North America
Matthew Shull E-mail: matthew.shull@capgemini.com Tel.: +1 312 395 5805

India
Sanjeev Itagi E-mail: sanjeev.itagi@capgemini.com Tel.: +91 984 545 3017

Global (all other queries):

Adrian Penka E-mail: adrian.penka@capgemini.com Tel.: +1 404 806 5082

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