Perfect Commerce — Driving Down a Commerce One Vendor Rationalization M&A Road

Spend Matters recently had the chance to catch up with the Perfect Commerce team. It had been too long since we spoke to Hamp Wall, in particular, whose encyclopedic business knowledge of the history of Commerce One and the marketplaces it spawned is enough to make even us look like dummies (and we also lived through that error, mind you). Yet Hamp and his team aren't academics studying the history of B2B marketplaces. They're active consolidators of Commerce One business and networks that are still out in the market (and it helps that they own the code base, including the maintenance, upgrade and development rights for it). Most recently, Perfect announced it had acquired Supply Chain Connect (SCC), a provider that grew up of its ChemConnect roots and had rigged the old Commerce One stuff to work on direct supply chain connectivity and supplier management.

We would have passed SCC off for B2B road kill (but then again, we're not close to vertical marketplaces these days, at least not for the most part). But they were alive and kicking -- not the chemical bucket, that is. According to the announcement, "SCC has been providing customers with a reliable supplier network for their direct product inventories since 1995 ... New functionalities being introduced to Perfect Commerce customers will include increased availability of direct materials suppliers through the Open Supplier Network as well as full inventory visibility. Suppliers can access customer's minimum, maximum and target inventory amounts enabling automatic order refilling and minimization of purchase order submission."

Sound a bit like a single tier E2open for the chemicals business? You bet. Though E2open-type solutions are where this market is headed overall -- not just for process industries, but more broadly for direct goods -- from a global multitier supply chain perspective, there is some good IP in the SCC code, including vertical knowledge. We'll feature an in-depth analysis of Perfect later this summer on Spend Matters PRO, including how they're sneaking in under the radar in a variety of Global 2000 P2P and supplier enablement/network deals. In the meantime, Spend Matters readers should also be aware that Perfect also recently acquired another firm built on the Commerce One stack, Tier Technologies, provider of an application called WebProcure, which leveraged Commerce One technology at the core an built a layer on top for integration into MSFT Great Plains ERP as well as an integrated source-to-award (and P2P) capability.

- Jason Busch

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