Making a comeback: supplier management issues revive e-sourcing market

While Software-as-a-Service (SaaS) clearly has become the e-sourcing deployment model of choice, vendors contend a recent upturn in sales is driven more by users’ desire for functionality that helps manage supplier relationships.

10/11/2007


After a rocket-fast start in the late 1990s, the e-sourcing software market suffered a crash landing, largely because the solutions’ primary selling point—the ability to continuously uncover lower-cost suppliers—didn’t generate large enough returns on what for many companies were multimillion-dollar investments.

Recently, however, several e-sourcing vendors have reported surging sales. And not surprisingly, they attribute the trend to new solutions that are supposed to help companies find the right suppliers—not just the cheapest ones.

“This market is reaching a certain level of maturity,” Burton Goldfield, CEO of e-sourcing supplier Ketera , said in a recent interview with MBT. “Most companies have processes in place to address their basic procurement needs. Now they are trying to focus on the business issues connected with procurement.”

Those


With vendors working to address these issues, the e-sourcing software market grew more than 10 percent in 2006, according to Cambridge, Mass.-based Forrester Research , which projects the market exceeding $3 billion in total sales in 2008.

If recent history is an indicator, most of those sales will go to companies choosing to deploy e-sourcing in the Software-as-a-Service (SaaS) model. One vendor, Emptoris , reported that 65 percent of the companies purchasing its solutions in the second half of 2006 adopted the SaaS model.

User preference for this model has caused virtually every vendor in the space to offer a SaaS option. It also prompted Ariba , the company that started the e-sourcing movement, to purchase Procuri, which offered e-sourcing solutions exclusively in

Ketera also is a SaaS-only supplier. Goldfield says the model appeals to customers for two reasons:

While SaaS clearly has become the e-sourcing deployment model of choice, the vendors contend the recent upturn in sales is driven more by users’desire for functionality that helps manage supplier relationships.

Goldfield notes that supplier management issues are more critical than ever with manufacturers routinely adopting global sourcing models. In response, he adds, Ketera has unveiled a new solution known as Supplier Connect.

Goldfield says Supplier Connect fills gaps that exist in most other e-sourcing offerings by giving users more capabilities for managing supplier catalogs as well as grading supplier performance.
Emptoris released a new version of its e-sourcing suite this week that also contains new supplier management functionality. Kevin Potts, Emportis’ VP of marketing, says the new offering contains tools to improve buyers’ ability to negotiate the best possible deals with suppliers, in addition to monitoring suppliers’compliance with contracts after they are signed.

For companies seeking to guard against the risk of any single supplier failing to deliver as promised, Potts says, the new Emptoris suite makes it easy to allocate orders across multiple suppliers of the same parts.





Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
April 2018
Cybersecurity best practices, artificial intelligence, robotic additive manufacturing, embedded systems, IIoT integration, energy efficiency
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
April 2018
Cybersecurity best practices, artificial intelligence, robotic additive manufacturing, embedded systems, IIoT integration, energy efficiency
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
April 2018
Cybersecurity best practices, artificial intelligence, robotic additive manufacturing, embedded systems, IIoT integration, energy efficiency
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me