With Coupa Taking Aquiire, Only 2 Specialists Left Standing (Updated 2018 E-Procurement Market Forecast and Competitive Sector Implications) [PRO]

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Coupa (cleverly) has been snapping up specialized technology in the e-procurement market to further enhance its capabilities (re: Simeno and Aquiire). In doing so, it has also acted as consolidator, reducing the available e-procurement supply market for both customers and competitors. In North America today (and globally, as far as we are aware), there are only two specialist independent e-procurement specialists remaining in the market: BuyerQuest and Vroozi.

Of course to this list you need to add a few folks in Europe — Wescale (which has not expressed interest in pursuing North American sales opportunities, at least with our clients), OpusCapita and Proactis. And lest we not forget larger providers such as Basware, Ivalua, Jaggaer, etc. (in addition to Oracle and SAP Ariba). But the non-suite, best-of-breed supply market for e-procurement, at least in North America, is getting very thin.

This two-part Spend Matters PRO analysis provides Spend Matters commentary on what Coupa’s acquisitive tendencies, in particular the purchase of Aquiire this week, might suggest for competitors and future competitors. Not to pat ourselves on the back, but continued sector M&A was a top prediction we suggested earlier in 2018.

The research brief begins by sharing our updated 2018 market forecast (CAGR, size, etc.) for e-procurement based on 1H 2018 activity. Then we provide commentary and analysis focusing on the implications of continued market consolidation for three segments of the competitive market: ERP providers that have not yet placed their best foot forward when it comes to e-procurement and procure-to-pay (including NetSuite/Oracle, Sage and Workday), Coupa suite competitors (e.g., Basware, Ivalua, Jaggaer, Oracle, SAP Ariba, etc.) and specialist providers (e.g., BuyerQuest, Vroozi, Wescale, etc.).

Part 2 of this analysis will provide a closer analysis of what Coupa’s increasing “post punch-out” product / IP arsenal (inclusive of Aquiire) might have on top e-procurement competitors when it comes to how customers actually look at and use these technologies — both during a software selection and when deploying/scaling e-procurement programs.

Afternoon Coffee: U.S. Takes on China’s Package Discount, America has Milk Glut

In another move in the chess match with China, the Trump administration is moving ahead with its bid to set its own rates for packages coming into the U.S., The Wall Street Journal reports. The tactic requires that the U.S. withdraw from a 144-year-old international postal body that sets rates. Without the yogurt boom, milk suppliers are left with an overabundance, Bloomberg reports. Afternoon Coffee brings you the latest in procurement and supply chain news.

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