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									Supplier Community Enablement:
          New Channels for Content

              ONCE Global Summit
                           May 2005


Vance Checketts
Global Solution Architect – Procurement
Supplier Community Enablement Defined
       Supply base management
          –   Identification
          –   Qualification
          –   Negotiation
       Catalog & contract management
          –   Catalog content creation & management
          –   Price changes
          –   Contract deliverables & compliance
       Purchase/sales execution
          –   Electronic messages
          –   Self-service transactions
          –   Online inquiries
The Problem . . .
Supplier enablement has traditionally dictated an “every
              one for themselves” solution




                                        Company B
           Company A




                         Company C

                                              Company E

     Company D
 n2 Effect
 5 buyers, 5 suppliers = 52 or 25 individual connections
 The net result is Distributed Complexity
 High costs, low performance for everyone
           Buyers                  Suppliers
Symptoms of Distributed Complexity
   Requires multiple standards, protocols and translators
   Buyers need to maintain preferences for each supplier
   All supplier changes require work for buyers
   IT project for each supplier “enablement” effort
   Difficulty maintaining connections
   No centralized transaction tracking and error control


     Result: Even the best companies have only
             “enabled” a small % of their supply base
Solution – Supplier Networks




               Centralized
               information,
                centralized
               management
Also . . . Specialized Services

 Specialized procurement services are a great
  compliment to procurement software and
  traditional implementation services
      Perfect Commerce, Saqqara – Catalog management
      D&B, Austin-Tetra – Supplier data cleansing
      Zycus – Category rationalization
      AT Kearney – Sourcing strategy
      BearingPoint – Business process definition
      IBM – Business process outsourcing
Content Management
Multiple options to support different needs

    Option     Request Type          Item Characteristics
1   No Catalogs,      One-time
                      requests &
                                         User-specified items
    “Smart” Forms                        Early stages of implementation
                      services

2   Local             Raw materials,     Items under strict controls (hazardous, etc.)
    Catalogs          assets &           Items under existing long term agreements
                      mission critical
                      items              Loaded from spreadsheets, XML or EDI


    Remote:
3   Supplier Hosted
                      Services,          Dynamic pricing & availability
                      supplies &         Configurable items
                      non-critical       Large selection of items
                      items
                                         Accessed via punchout

    Remote:
4   Network / Hub     New or sourcing Static item and pricing information
                      items, supplies Approval controls for price changes
                      & non-critical  Items not tightly controlled
                      items
                                      Accessed via punchout
   Actual Catalog Implementations

             70
             60
Percentage




             50
             40
             30
             20
             10
             0
                  3rd Party    3rd Party    Punchout to       Internal
                  Supplier    Catalog Hub    Supplier         Catalog
                  Network




                                                  Source – Aberdeen Group, Dec „04
Other Areas of “Enablement”

     Supplier profile management
     Invoicing
     Contractor time & expense tracking
     Inbound logistics
     Negotiations
     Contract management
     Supplier-managed inventory
     Consignment
     Design & prototype
     Forecasting
Software vs. Services

 Pure software
   –   Oracle, SAP, legacy PeopleSoft, legacy Ariba
 Pure services
   –   D&B, Austin-Tetra, BearingPoint, etc.
 Services w/supporting software
   –   CC-Hubwoo, Saqqara, ATK, legacy FMKT, etc.
 Software w/supporting services
   –   Emptoris, Requisite, Ariba/FMKT, etc.
Panel Questions
   What is supplier “content” beyond a product catalog?
   What value-added services complement content?
   What are “supplier networks” and where do they fit?
   How does regional, vertical and commodity-specific
    content increase the ROI of procurement software?
   Should regional content providers expand globally?
    How? What is the role of software / service partnerships?
   What role will interoperability play in global expansion,
    especially for large, multi-national buying customers?
   What are customers of procurement software requesting
    re supplier content?
   What are customers of supplier content requesting re
    procurement software?

								
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