Report

January 2002

Standalone Sourcing Apps Vanish

Jennifer Chew 		Users aren't adopting today's best-of-breed sourcing apps -- instead they're waiting for integrated solutions from ERP, SCM, and product-design vendors. The result? Standalone sourcing app vendors fade by 2003.
by Jennifer Chew with Stacie Kilgore, Laurie Orlov, Marli Porth, Meredith Child

MARKET OVERVIEW
  • 52% of all manufacturers conducted RFPs online in Q3 2001.
  • Spreadsheets remain the most prominent sourcing app.
ANALYSIS
  • Standalone sourcing app vendors get swallowed up.
  • Remaining vendors will target solutions to users' direct material product portfolios.
ACTION
  • Users should market sourcing projects internally based on competitive advantage.
WHAT IT MEANS
  • Plant managers fight to retain control over their P&L.
 
Figures & Data
  • Figure 1.  Manufacturers' Online Buying Experiences
  • Figure 2.  Standalone Sourcing Apps Lack Service Expertise
  • Figure 3.  Emerging Trends: Sourcing Processes Overlap
  • Figure 4.  Tailor Sourcing Solutions By Product
  • Figure 5.  Innovative Products Require Collaborative Sourcing Apps
  • Figure 6.  Service-Driven Products Require Hands-Free Sourcing Apps
  • Figure 7.  Success Strategies For Standalone Sourcing Vendors
  • Figure 8.  Evolution Of Targeted Sourcing App Solutions
  • Figure 9.  Users Should Target Sourcing Apps To Product Portfolios
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Introducing a new app: Brent In A Box.
  • Sourcing factoid of the day.
  • Never-ending commodities.
  • The military's discount knob.

 

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