![]() It also has partnered with i2 Technologies to cater for the supply chain needs of direct procurement.Ĭommerce One has entered into an alliance with SAP leading to a joint B2B strategy. Ariba has acquired providing it with manufacturing customers and technology for its platform. In order to cope with the complexity of direct procurement, vendors have been forging partnerships with or acquiring companies that equip them with the right elements of the solution. Direct materials procurement - with increased emphasis on supply chain - requires an even wider range of technology in order to satisfy the needs of businesses. ![]() However, even in the MRO space partnerships have proven essential to vendors looking to provide all the elements of a solution. As direct goods account for the vast majority of most firms' procurement spend, this shift not only offers manufacturing companies competitive advantages but also creates an important new marketplace for technology vendors. The first large vendors into this space were the leaders of today's B2B market and include Ariba, Commerce One and Oracle, which developed or acquired the software capable to serve a wide range of industries, first through an internal application then through horizontal B2B marketplaces.īut during the last year, these software vendors have started to focus on direct materials procurement, meaning the buying of parts that contribute to companies' end products. These range from office supplies and computers to spare parts and are usually dubbed maintenance, repair and operations (MRO) products. ![]() In the B2B space, vendors have traditionally been striving to serve companies' procurement needs for indirect products. ![]() Here, Frost & Sullivan analyst Andrew Tanner-Smith explains the changing lie of the land. The B2B procurement and e-marketplace space is maturing.
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