Sievo is one of our 50 Providers to Watch. We will be highlighting all 100 companies (50 to Know, 50 to Watch) in our 2015 Spend Matters Almanac over the span of 100 days. Practitioners are encouraged to browse the categories listed in our Almanac to find the provider that best fits their needs.
Spend Matters has been following Sievo’s progress for 5 years or so now, after being fascinated by its software from the first encounter. Founded in Finland in 2003, the firm has expanded at a steady pace into other regions, although Northern and Western Europe are still very much the core market, and the corporate center of gravity is still in Finland.
The cloud-based solution is focused on spend analytics, and its uniqueness is the most detailed savings measurement and tracking tool in the market. “Sievo is the leading spend management software provider that analyzes past purchases, predicts future spend and manages procurement savings from idea to measurable cash,” the company says on its website.
The software analyzes spend, drawing data from enterprise resource planning (ERP) and other sources, and like most analytics products, can provide a breakdown by supplier, spend category and so on. But then the clever part kicks in. The user can identify and separate out the various drivers of price movements. So the system analyzes and identifies the changes in spend that are driven by volume effects, by currency movements and by market price movements. The end result is an identification of what could be called the genuine procurement savings, once all the other factors have been stripped out.
That has enabled clients to gain real credibility for their procurement function. (See this free downloadable Spend Matters case study, which looks at French railway and transport firm SNCF and its experience with Sievo.) As well as making the backward-looking savings data more credible, it also provides a very useful forward view of likely price movements.
I suspect, however, that Sievo’s growth has been held back somewhat, as some potential buyers frankly lack the confidence to use the product. That’s because savings declared by procurement might be exposed as being driven by external non-procurement factors. But CPOs who are confident in the performance of their function will benefit from the understanding and credibility that Sievo’s solution can bring to the whole area of performance analytics and management.
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