Vendor Management:
How to determine which BPM software solution is right for your needs.

Vendor management processes are a series of related structured activities, of inputs, outputs and workflows that produce a product or service to meet the specific needs of a customer as well as the process needs of a business. Business Process Management Software is the tool that is used to electronically automate and control this workflow process across an organization and its network of vendors. Because actions taken by one member of the network influence the profitability and functioning of all others, the vital role of a BPM solution is the integration of key business processes within and outside an organization.

Examples of vendor management related processes that can be managed by BPM software platforms include:

• Procurement
• Order management
• Inventory management
• Vendor performance management and reporting
• Vendor qualification and selection
• Management of third-part logistics providers
• Management of approval authorizations and routines
• Documentation handling and storage

The scope and technology platforms of the BPM solutions proposed by different developers vary based on business objectives, priorities and target customers. Business managers need to study available solutions with thorough consideration of its own business requirements when choosing an appropriate BPM solution.

Listed below are 6 decision factors that an organization should keep in mind when selecting a BPM solution to automate and manage their vendor management processes.

Solution Cost: As in most business decisions, the cost of the proposed BPM solution is one of the most important factors. The cost of the solution package should include the cost of the services provided, cost of in-house resources, upgrading, initial implementation, user training costs, new hardware requirements and consultancy fees.

Solution Functionality: How well does the solution address your critical business requirements? Are there any critical functionalities that are not provided or not contained within the breadth and depth that would be required to fully satisfy your business demands? Will the solution actually improve the way in which you manage your vendors and add tangible value to your organization and your customers? System functionality plays a major role in data communication, personnel training, and process improvement that facilitates collaboration between partners and enables remote managing of many key business elements.

Solution Flexibility and Scalability: How much flexibility does the solution provide? How easily can additional functionality be developed and incorporated to meet changes in process and/or market demands? These are critical factors that will partially determine the long-term viability of the selected BPM solution...

Solution Quality: This relates to both functional and technical aspects of the solution. The BPM solution not only needs to increase process efficiency, but also needs to be able to support the desirable number of concurrent users. The solution must increase organizational efficiency without creating additional non-value added work for the user. The solution must be reliable, robust, and user-friendly.

Customer Support and Training: This is considered one of the most important factors by many business managers who evaluate proposed BMP solutions. The solution package should include a documented training plan as well as associated training materials. This should also typically include post-installation troubleshooting and updates support.

Solution ROI: Decision makers need to examine the Return on Investments (ROI) on the proposed BPM solution. This entails considering the type and period of returns as well as associated cost reductions. How long will it take for the investment in the solution to pay for itself in terms of cost reductions (both visible and hidden) and efficiency improvements?

 

Plasma's Promise.
At Plasma we understand that a prime source of competitive advantage for any business is through better coordination of its vendors and suppliers. Therefore a coordinated and integrated vendor management solution is an indispensable requirement that enables efficient and effective flow of materials, information, and funds across the entire process from suppliers to component producers to distributors, and ultimately to the consumer.

1. Cost competitiveness
2. Flexibility
3. Enterprise-ready
4. Cloud-based
5. High Quality
6. Process driven, etc.

Plasma Computing Group, Inc. is a full life-cycle interactive agency providing custom business process management solutions, to organizations around the globe.

Plasma FUSION^TM features include:

• Business Optimization
• Data Modeling
• Capacity & Workload Management
• Role & Decision-based Workflow
• Version & Document Management
• Escalation & Notification Management
• Service Level Agreement Management
• Audit Tracking & Exception Handling
• Dashboards, Scorecards and Customized Reporting
• Governance & Compliance

Cost competitiveness
Plasma supports large and small customers alike. Plasma's FUSION^TM BPM solution is very cost competitive with other BPM solutions that deliver the same or, in some cases, less functionality. Significant cost reductions are achieved as a result of improved vendor management and process controls. This allows an organization to realize a relatively quick return on investment (ROI). FUSION^TM offers a competitive edge with solutions that are agile and flexible allowing clients to react, on their own, to competitive threats. Plasma's customers realize an unprecedented speed to market, low Total Cost of Ownership (TCO), quick Return on Investment (ROI) and on time and on budget execution.

Flexibility:
Plasma's FUSION^TM BPM solution allows for full integration with an organization's existing systems and process. Plasma can help your company define and implement web-based, industry leading, Business Oriented Process Models that are unified, agile, and that allow exception handling, versioning, management control, multiple roles, triggers and audit tracking. The scalability of the FUSION^TM solution allows for rapid deployment of additional functionality as the needs of the organization evolve. Additional functionality can be added without having to write a single line of programming code. The Plasma FUSION^TM environment allows organizations the flexibility to improve and change their business model dynamically.

Enterprise-ready
Plasma's FUSION^TM BPM solution is extremely robust in terms of quality and functionality. It is currently deployed by a fortune 10 company and incorporates all of the enterprise-level characteristics required by today's most demanding organizations. The FUSION platform is fully capable of automating and managing the most complex vendor management routines and processes. Plasma FUSION^TM includes business intelligence features like agile dashboards, scorecards and customized reports that are linked to your departmental and corporate goals, conveying financial and operational data on demand across the organization while highlighting KPIs and creating automated alerts.

Cloud-based
Plasma's FUSION^TM solution can be classified as a web-based Software-as-a-Service (SaaS), or cloud-based application, that can be deployed directly onto the client's internet or be hosted on a Plasma server. With Plasma's solution you are never far removed from the vital information that you need to manage your business. Delivering business processes on the cloud allows companies both large and small to effectively remove ineffciencies on a daily basis. You are no longer locked into a commercial off-the-shelf (COTS) application. Plasma provides one interactive platform that can manage or deliver Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Product Lifecycle Management (PLM), Content Management System (CMS), Vendor Management, Business Activity Monitoring (BAM) and Supply Chain Management (SCM) functionality.

Process Driven:
Each Plasma FUSION^TM BPM deployment is tailored to meet the specific process demands of the client. Plasma takes great care to fully understand the intricacies of a client's vendor management process and works to ensure that the deployed solution captures all the business-critical demands of that unique client. During Plasma's "project discovery" process, we work with our clients to create a process map that will serve as the backbone for development of the end solution. Plasma will work with your organization on analyzing, defining, modeling and optimizing processes; creating role-based workflows and business models; defining business rules; user acceptance testing while improving reporting and auditing capabilities without expensive maintenance or integration issues.

The FUSION Platform
The FUSION platform is based on a traditional 3-tier architecture including the Data, Application and Presentation layers. The Business Model, workflow and Meta Data Management (MDM) resides on an Oracle or MS SQL database inside the Data Layer. Notification, Workflow, Document and Business Model Management sits inside the Application Layer while the Administration, Front-end, Dynamic Forms and Documents reside on the Presentation Layer. The architecture allows us to direct and manage tasks via web browsers and e-mail while connecting to external systems with XML, SAML, message queues and APIs.