Directworks: Vendor Snapshot (Part 1) — Background & Solution Overview [PRO]

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In North America, the vast majority of procurement technology expenditure, by Spend Matters estimates, has been focused primarily on automating indirect and services procurement activities spanning from strategy to payment. It’s worth noting that the opposite is true in countries such as Germany, where manufacturing is the focus of the economy. This has made it challenging for direct materials-focused technology providers like Directworks (and competitors such as Pool4Tool and SynerTrade, both of which have a strong base among European manufacturers) to be seen as a “must have” toolset compared with areas like indirect procure-to-pay (P2P) solutions and even more targeted modular areas like contract lifecycle management (CLM).

Directworks, along with its peers, is hoping to change this. Founded as Co-eXprise in 2004 with a goal of building a new type of direct sourcing solution not yet available in the North American marketplace, Directworks has since evolved since. What started as a solution to integrate the new sourcing tools of the day (e.g., RFX, auctions, project management, dashboards) with bill of materials, supplier management and collaborative workflow management has been evolving into a direct materials sourcing workbench.

Since then, Directworks has replatformed with an emphasis on being purpose-built for direct materials sourcing and cost management. There are gaps: auctions and sourcing optimization are absent, user-based workflow configuration is limited and product information management (PIM) is minimal. But the sum of how the parts interoperate is of more pragmatic value than before and should capture the attention of manufacturers.

This Spend Matters PRO vendor snapshot provides a history and overview of the Directworks platform, including how it can support direct materials procurement efforts today. This multi-part research brief comprises a company and solution overview, company-level SWOT analysis, product strengths and weaknesses, competitive alternatives, a user selection guide and insider evaluation and selection considerations.

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