Supplier Risk and Performance Management – How is it impacting Procurement?
The Forrester Wave™: Supplier Risk And Performance Management Platforms, Q1 2018 has been published. We are delighted that Ivalua is named as a leader. This blog looks at how, more than ever before, uncertainty and Supplier risk is what is keeping Procurement leaders up at night. CPOs have to deal with the impact of supply disruptions, cost volatility, poor quality goods and non-compliance to regulations. These supplier risk factors can cost millions and easily tarnish a business’ brand. We’ve all read multiple headlines related to this in recent years, most recently concerning Carillion.
Forrester Highlights Supplier Risk Management as an area of concern
It is no surprise that supplier risk and performance management (SRPM) has been prioritized by CPOs, but as Forrester puts it in their report “CPOs need help with risk management workloads”. They note that the market for SRPM solutions is growing because CPOs see it as a way to address rising customer expectations around safety and reliability. This is further compounded by the number of suppliers and increasing categories of risk. The result is that the manual processes often still being used are unlikely to be effective.
What is clear is that businesses today must collaborate more closely with suppliers to drive innovation and growth. However, a dependence on suppliers can increase risk if not managed carefully. SRPM solutions that must enable companies to manage risk better and more proactively. In addition SRPM solutions must also enable better collaboration with suppliers. Ivalua sees this as critical to empowering Procurement leaders to meet their objectives.
Ivalua is a leader in Supplier Risk
At Ivalua, our SRPM solution is part of a complete source-to-pay platform that includes analyst-recognized, leading spend analysis, sourcing, contract management and procure-to-pay solutions, all connected seamlessly with a unified data model.
As noted in the report
“siloed risk management processes are expensive and ineffective. Without a single platform to aggregate all the available information about suppliers, procurement, finance, security, and compliance will each develop their own discrete application”
Why does The Forrester Wave highlight the need for a single platform for Supplier Risk Management?
The benefit of having a single platform is that it combines all supplier-related processes (e.g., sourcing events, contracts, transactions). The Ivalua Platform links with the assessment, monitoring and improvement of supplier risk and performance. We’ve seen first hand with our customers that this allows for an overall better experience for all users. Customer can have up-to-date information on risk and performance at their fingertips. They are empowered to make better decisions no matter what source-to-pay process they are executing.
Why Forrester ranks Ivalua as a Leader in the SRPM Wave, Q1 2018
For this report specifically, Forrester evaluated the market for SRPM solutions across 21 criteria and examined past research, user need assessments, and vendor and expert interviews. The high-level criteria include the vendors’ current offering, the strategy around SRPM from a customers perspective and market presence in terms of existing and new customers in this segment.
|Excerpt of Ivalua description in the report.
Ivalua has a leading SRPM solution within its broad sourcing suite. Ivalua originated in Orsay, France, and now has dual headquarters there and in Redwood City, California, reflecting its large US presence. It offers a full range of P2P and S2C modules. Many enterprises have chosen Ivalua’s SRPM product not only for its highly configurable functionality but also because they can later extend it to address all their purchasing processes. It is particularly strong for master data management, so it can be the central source of supplier truth for multiple ERP instances.
Ivalua is extremely proud of being recognized as a leader by Forrester. We certainly see SRPM as an essential capability that will help Procurement leaders meet their objectives and overall have a positive impact on businesses, especially as we address both direct and indirect spend.
To download the full report, click here.
By Vishal Patel