The capability of most e-sourcing suites has evolved relatively slowly compared with other procurement technology areas in the past decade. Yet there is one exception to this rule: sourcing optimization, or as some label it, “advanced sourcing.”
While advanced sourcing technologies got their start supporting logistics procurement events across thousands of lanes, they have now evolved to support just about any strategic category of spend where a direct competition route that encourages apples-to-apples bids in a reverse auction manner will likely not yield the best result. Sourcing optimization solutions today have supported some of the largest and most complex sourcing events ever conducted — in some cases, single events spanning multiple tiers of the supply chain with more than $1 billion in expenditure being awarded. Yet overall, adoption has lagged the market for general-purpose e-sourcing tools and suites.
Keelvar, a four-year-old firm that started as a spinout from a research lab at a university, is hoping to change this. Keelvar’s primary differentiation is that, unlike the majority of sourcing optimization software providers, it realized from day one that the solution wasn’t a better optimization module, it was a better sourcing platform where ease of use was the most important driver of adoption. This Spend Matters Plus analysis provides an introduction to the Keelvar solution for procurement organizations looking to understand whether they should consider adding the provider to their shortlists for consideration and competitive alternatives.