Looking to simplify the use of its procurement offerings for suppliers, PeopleSoft announced on Tuesday a deal with Perfect Commerce to bundle access to its Open Supplier Network as part of the PeopleSoft Enterprise eProcurement suite.
Responding to the challenge that most companies face in getting tier two and tier three suppliers onto their e-procurement system, the Perfect Commerce deal will give PeopleSoft users access to 8,000 suppliers of indirect and direct goods and services with a total of 21 million SKUs (Stock Keeping Unit).
"What Perfect Commerce has is a way to simplify the connectivity between buyer and supplier," said Bob Shecterle, vice president of supplier relationship management strategy at PeopleSoft.
The issue for PeopleSoft eProcurement suite users is to make it easier than it has been in the past for suppliers to link to the procurement system, according to analyst Carl Lehmann, vice president of technology research services at Meta Group.
"It is a challenge for suppliers to ramp on to the system and get their correct information in, and up until now PeopleSoft clients had to do this stuff themselves," said Lehmann.
Perfect Commerce provides the transaction and translation technology to convert supplier data -- whether it comes in as a flat file, EDI, or as an XML document -- to the formatting requirements of the buyer.
From a buyer's perspective, procurement applications have had limited success beyond deploying to the top 20 or 30 suppliers, said Sandy Kemper, CEO and president at Perfect Commerce. However, Kemper believes that the initial patina of the procurement system is now burnished enough so that companies are looking to get it down further into the supply chain.
"Now that procurement applications are finally getting rolled out, companies need to leverage the investment," Kemper said.
The Open Suppler Network will give users the ability to send RFPs, advance ship notices, invoices, and purchase orders back and forth to customers.
The deal allows PeopleSoft customers to either buy the Enterprise e-Procurement suite only or bundled with the Open Supplier Network. No additional subscription or transaction fees will incur for users accessing the Open Network through the PeopleSoft procurement suite.
The Perfect Commerce Open Supplier Network Connect for PeopleSoft will be available in the third quarter.