Raja Hammoud, Coupa’s VP of Product Management, was the second main presenter this morning at Coupa’s One Vision Roadshow this morning in Chicago. The focus of her discussion was Coupa’s positioning, vision, and roadmap. Front and center of her talk was Coupa’s goal of helping companies get external “dollars under management” as a first step when they work with a new organization. This is because control and management of spend becomes the ante for enabling procurement and finance to optimize spend in such areas as sourcing and working capital management.
During her presentation, Raja shared some additional numbers and context around the adoption of Coupa’s solutions, including how they’re succeeding on their first goal of helping companies gain control of spend under management. Today, Coupa is processing $1.5 billion in monthly spend (which is up approximately 300% from this time last year). Coupa expects this number to increase by 400% in 2014 (and to be a weekly number versus a monthly number). Additional numbers/metrics shared include:
- Coupa currently supports 10+ API calls per second across its suite and integrated customer systems
- 50+ currencies currently in use
- 700K suppliers in system (the key question to ask, however, is how many “active” suppliers – something we’ve not had the chance to drill down on yet)
- 155% increase in purchase orders through the system (year over year)
- 188% increases in invoices (year over year)
- 766% increase in expense reports filed (year over year)
Raja also noted that Coupa currently has the “largest free supplier network” for supplier connectivity. Now, Spend Matters has not validated this claim. And based on the data shared above, we would suggest that Coupa offers one of the larger free supplier networks, but not necessarily the largest.
In addition, Raja observed that “the notion of suppliers paying to submit an invoice is a thing of the past. They will ultimately find a way to charge you at the next negotiation, factoring in these costs.” While we would agree with Raja’s statements around supplier fee models for connectivity, Spend Matters research suggests that per document or EDI-like models (based on the number of transactions or data quantity consumed) where suppliers pay flat fees do not create the same level of vendor heartburn as percentage-of-transaction based e-invoicing and connectivity models.
Perhaps more important, our analysis suggests that suppliers are more than willing to pay higher fees for value-added areas (e.g., early payment discounting, FX/currency exchange, pay to participate in RFPs, etc.) And it is in these more valuable areas where we see providers such as Ariba/SAP, Coupa and many others ultimately capturing the majority of their revenue and margin.
Stay tuned as our coverage from Coupa's One Vision roadshow continues!