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Thursday, August 28, 2008
Thursday, August 28, 2008
Latest Procurement News
Posted: Thursday, July 03, 2008, 5:15PM
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KNOWLEDGE MANAGEMENT TAGS
"Spend Management"
Ariba looks to Bloomberg for spend management inspiration - Procurement Leaders Exclusive
The Bloomberg for spend management - that's how Ariba president Kevin Costello described the company's new supplier network, as he outlined what he views as the future of spend management.In an exclusive interview with Procurement Leaders, Costello outlined how the company's new spend management offering that will, he believes, take Ariba and their customers to the next level - moving away from juggling multiple supplier networks and gravitating towards a process that improves the effectiveness and efficiency across the external supply chain or, as he terms it - the external trading networks.
Costello described what he viewed as the three crucial supply chain elements, and didn't stop by likening Ariba's Supplier Network to the role played by Bloomberg in the global stock markets - the names Google, PayPal and MySpace also received an airing.
"The past several years have been focused on controlling the cost and spend management within their four walls," he tells Procurement Leaders. "The time has come to expand.
"When you do that expansion there are three supply chains you really need to manage - the physical supply chain, the financial supply chain and the information supply chain.
"The physical supply chain is all about the movement of good and services, how buyers discover suppliers and how suppliers discover
buyers. It's a lot like Google for spend management because it allows for the open interaction and the search capability." Costello went on to outline the working capital advantages available to companies using the Ariba's supplier network, claiming that these mirror those available to consumers using the PayPal platform.
Finally, explaining the Bloomberg link, Costello said that there was a growing need in the spend management marketplace for both buyers and suppliers to understand and appreciate the underlying trends that are occurring in a constantly evolving market place.
"There's a lot of information that resides out there in the market place," Costello explains. "A buyer needs to understand how commodity prices are moving or a supplier needs to understand how buyer habits are changing in how they procure goods or services. This is what Bloomberg does for the stock exchanges around the world."
The current economic climate was also leading to a rapid growth in the company's on-demand services, Costello said.
"The reason it's important especially in these economic times is faster time to value - customers are looking faster savings to really drive benefits to the bottom line and on-demand offers clear advantages in this area."
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