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1.What type
of e-procurement systems are we talking about?
Our product - the ViniSyndicate
Catalog Integration System™ -- works with
any e-procurement system, most notably market
leaders Ariba (Buyer), Oracle (I-Procure), SAP
(Enterprise Professional Buyer) and Peoplesoft
(eProcure). |
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2.What type
of catalogs are we talking about?
Product catalogs for indirect procurement (catalogs
can also be used for direct procurement in some
situations). Examples are Office Supplies (e.g.
Staples, Office Depot), MRO Supplies (e.g. Grainger,
MSC Industrial), Safety Equipment (Vallen Safety,
Encon), Electrical Supplies (e.g. Newark, GE Supply),
Information Technology (e.g. Dell, CDW) and so
on. Depending on the industry, a company's indirect
spend could be anywhere from 30% to 70% of the
entire spend. |
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3.What are
the common problems facing companies deploying e-procurement
systems?
Most companies' face five (5) specific, related
problems that inhibit their ability to successfully
deploy their e-procurement system and generate a
return on investment (ROI). They are:
- LIMITED USER ADOPTION, caused by
- COMPLEX AND INCONSISTANT USER INTERFACES,
exacerbated by
- MISSING CATALOGS (OR SKUs), a problem whose
resolution is inhibited by
- LACK OF SUPPLER CAPABILITY AND/OR COOPERATION,
which in turn
- INHIBITS TRANSACTION VOLUME through the e-procurement
system!
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4.How do these
five problems negatively impact ROI?
Executing a purchase order through the e-procurement
system costs substantially less than via other
means, and companies can save millions by executing
as many orders as possible via the e-procurement
system (e.g. transaction volume). That being said,
less transaction volume lowers equates to less
cost savings and limits system ROI.
Catalog Management solutions were supposed to
provide the answer to these problems, but really
haven't delivered as promised (see next question
for more information). |
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5.What e-procurement
catalog management solutions are available today?
Most companies use a combination of Catalog Management
Tools (e.g. Requisite, Saqqara) for maintaining
"local" supplier catalog files, and
XML "punchout" (e.g. Ariba cXML Punchout,
SAP OCI Roundtrip) to connect directly to their
suppliers' online catalogs. Some also pay service
providers (e.g. SciQuest, ePlus) to do it for
them.
Why two answers to the same problem? Although
today's Catalog Management Tools have excellent
functionality, they can become very resource intensive,
cumbersome and thus costly as the number of SKUs
increases. As a result, they are often used for
smaller catalogs.
Most companies then use XML "punchout"
for larger catalogs, assuming the supplier can
support it (not always a safe assumption). Why?
Using "punchout" moves much of the costs
and complexity of maintaining larger catalogs
using Catalog Management Tools to the supplier.
But "punchout" has it's own issues (see
next question). |
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6.Do today’s
e-procurement catalog management solutions solve
the problems stated above?
NO! THEY ACTUALLY CONTRIBUTE TO THE PROBLEM!
First, this dual approach creates user interface
problems, which contributes greatly to the aforementioned
user adoption problems. How? If you have 10 "punchouts"
and 30 "local" catalogs, your users
must learn to navigate 11 different interfaces
(the 10 supplier online catalogs plus the e-procurement
search interface for accessing the "local"
catalogs) to find what they are looking for!
Second, it limits supply options. If a supplier
can't support "punchout" (many can't),
the buyer must find a supplier who can. In this
case, the buyer is making a sourcing decision
based on a suppliers' ability to support "punchout"
versus price, delivery and service. Or the buyer
can wait for the supplier to provide the support
for "punchout". In this second case,
they are depriving their users of the supplier
catalogs they need to do their jobs, causing users
to usually bypass the system.
Third, it adds cost to the supplier as well because
he is, just like you are, applying resources (people,
software, time) to maintaining catalog files and
build "punchouts". |
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7.Where does
this leave companies using the catalog management
solutions described above?
In most cases, this dual approach has not been
successful. Most e-procurement deployments today
have a few hundred users, 5 - 10 punchout catalogs
and 20 - 25 small "local" catalogs covering
a small percentage of their Indirect spend. Some
have reached the limits of their budgets but still
have a long way to go to reach full system utilization
(and generate ROI).
This is because as they try to scale up the number
of users, catalogs and SKU's using today's catalog
management solutions, their costs increase exponentially
(more files, more connections to web sites, more
errors, more storage, more servers, more people,
etc.), potentially to the point of diminishing
returns. Often they concede that they will never
meet their ROI goals and put the entire system
intro maintenance mode because they just can't
meet the users usability and catalog availability
needs and still control costs! |
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8.How does Vinimaya’s
ViniSyndicate Catalog Integration System™
solve these problems?
ViniSyndicate™ addresses the five (5) specific,
related problems listed above as follows:
ViniSyndicate™ INCREASES USER ADOPTION
(Problem #1) by providing a SINGLE CONSISTANT
USER INTERFACE (Problem #2) to all catalogs whether
locally stored in the e-procurement system database
or online at a supplier's web site. Common user
complaints like "I've been clicking for 10
minutes and I still can't find what I need",
or " I can't compare products across suppliers",
or "it's too hard to use, I get lost in the
system" will become a thing of the past.
Also, ViniSyndicate™ has greatly simplified
the supplier's requirements. They don't have to
support XML "punchout"! They don't have
to provide catalog files, graphics, MSDS sheets!
All they need is an online catalog; most suppliers
can meet this requirement today! Waiting for MISSING
CATALOGS OR SKUs (Problem #3) and LACK OF SUPPLER
CAPABILITY AND/OR COOPERATION (Problem #4) are
no longer issues because ViniSyndicate™
can get everything right from the supplier's online
catalog without him having to do anything!
There are other benefits as well…
Increased Sourcing Reach - Simplified supplier
requirements will drastically increase the pool
of available suppliers! For example, companies
using Ariba Buyer are limited to suppliers who
support .CIF and cXML "punchout". If
you're using SAP, they must support OCI and "roundtrip".
Ditto Oracle, Peoplesoft and so on. With ViniSyndicate™,
you can source from any supplier, irrelevant their
e-procurement systems support capabilities!
Increased Sourcing Flexibility - In most cases
ViniSyndicate™ can have a new supplier catalog
available to users in a DAY, regardless of the
number of SKUs! This ability coupled with lower
costs makes it easy to implement new sources or
move product lines across existing sources fast,
easy and inexpensively, further satisfies users
and increases the attractiveness of the e-procurement
system.
Lower, Fixed Costs - Because ViniSyndicate™
automates the building and management of the catalog
(formerly done by people, tools, etc.), your catalog
management costs will be LOWERED. Because there
is no labor or incremental IT work using ViniSyndicate,
no matter how big the catalog, you know your FIXED
costs upfront. Thus, if you know how many supplier
catalogs you plan to deploy, you can accurately
predict you costs for years going forward!
Better pricing? - The fact that you are NOT asking
the supplier to make an IT investment (e.g. XML
Punchout, etc.) on your behalf or you are not
dependent on his ability to support Ariba, SAP,
Oracle, Peoplesoft and others may help in your
price negotiations. Also, ViniSyndicate's™
Item Compare Functionality allows a commodity
manager or purchasing agent to compare similar
items from multiple suppliers real-time.
All of the above contribute to the overall goal
of INCREASING TRANSACTION VOLUME thru the e-procurement
system (Problem #5)! |
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9.How does ViniSyndicate™
work? The ViniSyndicate
Catalog Integration System™ is the result
of 3+ years of R&D. Developed in Java and
XML, it utilizes Vinimaya's patent-pending Intelligent
Agent Technology Platform™ to integrate
multiple suppliers' online and locally installed
product catalogs to a buyer's e-procurement system
fast, easy and inexpensively providing the buyer
with a complete, easy to use, customizable, aggregated,
supplier-maintained procurement catalog accessible
thru a single user interface that's connected
directly to the e-procurement system.
ViniSyndicate's™ "Intelligent Agents"
interact with Suppliers' online catalogs at the
HTML level, automating the searching, translating,
enhancing and organizing product information real-time.
The "agents" replace invasive XML or
web services interfaces and remove the need to
maintain catalog files. This approach is significantly
easier and faster to deploy and easier to maintain,
(you can enhance the data without changing the
source). This translates into lower costs, less
problems and better performance of your e-procurement
system.
ViniSyndicate™ integrates seamlessly with
leading e-procurement systems from Ariba, SAP,
Oracle, Peoplesoft among others via published
XML interfaces and provides users with full e-catalog
functionality (search, saved lists, compare, shopping
cart, etc.). |
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10.What if a
supplier doesn’t have a web site or online
catalog? Not a
problem. If a supplier cannot provide access to
an online catalog, ViniSyndicate™ has it's
own local catalog interface for loading and maintaining
catalog files. It can also access the catalog
from the existing catalog management system or
directly from the e-procurement system. But this
is the "exception" with ViniSyndicate™
versus the "rule"!
Fortunately, most national or regional suppliers
have at a minimum an online catalog, so you can
usually get a large majority of your SKU's deployed
quickly and start generating ROI. |
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11.How does
ViniSyndicate™ get my specific pricing?
There are four (4) different ways to get your
specific pricing:
First, most suppliers can or are willing to provide
you with logon credentials that will make their
catalog show your prices. ViniSyndicate™
simply leverages this existing capability.
Second, if a supplier only provides list pricing,
ViniSyndicate™ can be configured with "business
rules" that can properly discount list pricing
real-time to reflect the contractual agreement
between the buyer and the supplier.
Third, if neither of the first two options will
work, the supplier catalog has no pricing or the
buyer prefers to maintain pricing himself for
governance reasons, ViniSyndicate™ comes
with a Supplemental Data Interface which allows
you to maintain a pricing table internally.
Lastly, ViniSyndicate™ can retrieve pricing
information from any item or contract master application
non-invasively using the "Intelligent Agents"
or direct database or API access. |
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12.Will my users
get direct benefits from ViniSyndicate™?
Yes! Your users will have ONE interface that
gives them access to ALL catalogs. They'll be
able to build packages, order lists, save carts
and compare products across multiple suppliers
(can't do that with "punchout"!). It
WILL be easier, faster and better than dialing
the phone, sending an email or fax, or going directly
to the supplier's site. They'll find what they
want when they want it. They'll WANT to order
from the e-procurement system! |
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13.Will my suppliers
like the fact that I’m using ViniSyndicate™?
Absolutely! No longer do they have to provide
you with catalog files and updates. Nor do they
have to build and maintain a "punchout"
site just for you (remember, they have many, many
clients making similar requests). You'll be saving
them money because you will be using their online
catalog for all your orders (their lowest cost
selling channel). |
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14.Will my IT
department like ViniSyndicate™?
Yes! ViniSyndicate is designed to be easy to
install, deploy and maintain. It's based on widely
used, standard Internet technologies like J2EE
Java and XML. It has an open, web services ready
architecture. It can operate on Unix or Intel
platforms. It has dashboard-type administration
interfaces. It's certified to work with Application
Servers from Apache, BEA, IBM, Microsoft and Oracle
and all leading JDBC compliant databases such
as Oracle, Microsoft SQL Server and IBM DB2. |
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15.What makes
ViniSyndicate™ so different?
Vinimaya's patent-pending, Java and XML-based
Intelligent Agent Server Platform™ is the
result of over 4 years of R&D. This unique
application of "intelligent agent" technology
allows ViniSyndicate™ to integrate with
non-structured data interfaces, specifically HTML
as well as XML, EDI and other structured interfaces. |
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16.How is ViniSyndicate™
licensed? Can I get it hosted?
ViniSyndicate™ is a software product, so
you can buy it (Perpetual License) or your can
lease it annually (Term License). We also offer
full hosting and administration thru our strategic
partner, US Internetworking (www.usi.net).
Together, Vinimaya and USi can offer clients a
turnkey, fully managed ViniSyndicate implementation. |
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17.How long
does it take to implement ViniSyndicate™?
How do I integrate it to my procurement system?
Our Client Services organization can usually
have ViniSyndicate™ up and running for a
client in two weeks. Unlike most software vendors,
who sell you the software then charge you five
times that much in consulting fees to implement
it, we include the initial implementation and
ongoing support in the price of the software.
Because of this, our product needs to be easy
to install, maintain and be very, very reliable
(it is!).
As an example of this, we use the e-procurement
systems existing published XML interfaces (Ariba
- cXML, SAP - OCI, etc.), so although ViniSyndicate™
is tightly integrated with your e-procurement
system, it requires NO MODIFICATIONS to the e-procurement
system! |
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18.What kind
of customer support does Vinimaya offer?
In addition to the initial installation, also
included in your license fees is full technical
support and our Mon-Fri, 8-8 EST Help Desk. Additionally,
our Client Services Organization is ready, willing
and able to provide you with additional support
including software customization and even offshore
technical services (we have an R&D center
in Bangalore India) |
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19.Why should
I work with Vinimaya -- do they have the proper
expertise? The
Vinimaya management team has a long-standing reputation
in the e-procurement and catalog management market.
Our CEO was co-founder of TPN Register, one of
the first companies dedicated to supplier catalog
enablement. Many of today's solutions are based
on the same technology and processes developed
at TPN Register (TPN Register was sold to GXS
in 2001).
In other words, we've designed, built and implemented
most kinds of catalog management tools and punchout-type
solutions at one time or another. We've listened
to tons of customer feedback, prototyped new technologies
and applied all this knowledge and "lessons
learned" regarding the issues and limitations
of catalog management tools and punchout solutions
into the development of the ViniSyndicate™
product.
We've seen the good, the bad and the ugly of
catalog management and are doing something about
it! |
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20.Does this
really work as advertised?
It does. ViniSyndicate™ is a brand new
product that uses a brand new approach to a long-standing
problem, but behind it is years of expertise,
hard work and lessons learned!
Also, we'd be glad to let some of our current
clients (Sunoco, Sylvan Learning) confirm this. |
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