May 17, 2020

Inside: The Forrester Wave: eProcurement Platform report

Supply Chain
Procurement
Sean Galea-Pace
3 min
Supply Chain Digital takes a closer look at Forrester’s new report which evaluates eProcurement platform providers.
Supply Chain Digital takes a closer look at Forrester’s new report which evaluates eProcurement platform providers.

The report, called The Forrester...

Supply Chain Digital takes a closer look at Forrester’s new report which evaluates eProcurement platform providers.

The report, called The Forrester Wave: eProcurement Platforms Q4 2019, identified the 12 most significant providers and analysed them in detail. The 12 reviewed are: Basware, Coupa, GEP, Infor, Ivalua, JAGGAER, Oracle, SAP, Synertrade, Tradeshift, Workday and Zycus.

eProcurement platforms are B2B eCommerce platforms from the second B’s point of view: the customers. eProcurement platforms must deliver B2C eCommerce usability, but in a B2B context. Successful eProcurement platforms:

  • Guide employees to make smart buying decisions that balance price with value.

  • Digitise eCommerce processes across all categories and suppliers.

  • Alert up savings opportunities and problems that require management attention.

In this article, we look at the leaders: Coupa, Basware and Ivalua.

SEE ALSO:

Coupa: The company provides excellent usability for end users and suppliers. Having begun with just eProcurement, it has expanded its offering over the past few years via a range of acquisitions such as Aquiire, DCR Workforce, Exari and Hiperos as well as internal development. Coupa has experienced an approximate 50% revenue growth annually since its IPO in 2016.

Basware: The firm is one of the leading providers of invoice innovation. Basware gets 76% of its revenue in Europe, the Middle East and Africa, although its North American revenue is increasing at 18% per year, building on its 2016 acquisition of Verian. Basware is a leading choice for CPOs and CFOs who hope to achieve 90% or more process automation across their P2P spend, as well as simple and complex strategies. 

Ivalua: Owning one of the smartest, most flexible and easy-to-use suites, Ivalua now gets over half of its revenue from North America. Ivalua is a leader in the sector in infusing AI-driven aids and alerts to users throughout its suite. 

The report found that the vendors were critiqued against 31 criteria and grouped into three high-level categories.

Current offering: Each vendor’s position on the vertical axis of the Forrester Wave graphic shows the strength of its current offering. The key criteria for these solutions include the comprehensiveness of their support for buying several types of products and services, how well they digitise the P2P process and their use of AI to allow smart purchasing decisions to be made.

Strategy: Placement on the horizontal axis showcases the strength of the vendor’s strategies. The report reviewed vendors’ eProcurement commercial and development strategies and the corporate strategy for the wider ePurchasing market.

Market presence: The market presence scores represent each vendor’s current subscription, revenue growth and a number of enterprise clients.

The 12 vendors examined in the assessment were based on scores against four criteria. These are: eProcurement subscription revenue for 2018, eProcurement revenue growth in 2019, overlap between the vendors’ target markets and Forrester’s client base and ongoing eProcurement innovation.
 

Interested in reading the full report? Click here!

For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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