The Category Intelligence (Direct) Category

Merging Jaggaer and Pool4Tool: Strategy Analysis and Questions Customers Should Ask [PRO]

Jaggaer announced Monday it would merge with Pool4Tool. The combination raises a number of questions, primarily from a strategy perspective, beyond just providing expanded distribution to a niche provider and the validation of a new technology segment (manufacturing-centric procurement solutions) in North America. Rather, it raises the broader notion of whether a mutual fund-type holding company structure — regardless of capitalization structure — can help the fortunes of each “member” (and customers) beyond a certain point.

There's no question the two firms are better together than apart. Both “members” can immediately cross-sell and gain certain scale advantages. They can do this because of customer goodwill and the ability to get in the door and deliver. No doubt the professionalism that a private equity-held software firm brings, along with professional services know-how and reach to drive sales and implementations, will be key contributors to initial momentum as well. Jaggaer brings these two areas to Pool4Tool — and then some. But this only goes so far.

Longer term, real technology integration models, including a supplier network and platform-as-a-service (PaaS) strategy, need to be spelled out. While our colleague Tom Finn appreciated Jaggaer and Pool4Tool’s honesty around the topic of integration, strategically, to maximize customer (and likely shareholder) value, our esteemed colleague may not be right. Which brings us to the strategic technology questions Jaggaer and Pool4Tool should be asking as well as those which customers and prospective should zero in on as well.

Jaggaer-Pool4Tool Merger Analysis: Customer Recommendations [PRO]

manufacturing

Jaggaer announced earlier Monday it would merge with Pool4Tool, a Europe-based provider of direct materials procurement solutions. This Spend Matters PRO research brief provides customer recommendations, primarily for organizations already using or considering using Pool4Tool, especially in North America. It also provides insight into commercial, technology and deployment and support considerations surrounding the combination of the two providers, as well as select alternative providers in some of the markets in which Pool4Tool competes.

Jaggaer’s Merger with Pool4Tool: Taking the Contrarian Role Around Integration

contrarian

Jaggaer’s merger with Pool4Tool creates a combined entity approaching $100 million in annual revenues spread across nearly 1,000 customers. That would mean about $100,000 per customer per year, which clearly has a nice ring to it. After going public as SciQuest, then private and then public again before being acquired by Accel-KKR, in May 2016, for $509 million, Jaggaer’s capitalization history is unusual. Throughout that time, the company has made numerous acquisitions that nicely cover the breadth of the source-to-pay (S2P) application space. But it has never promoted itself as a soon-to-be-finished integrated platform — no such vapor.

Jaggaer and Pool4Tool to Merge: The Start of a Trend in Direct Materials Solutions

Jaggaer and Pool4Tool announced Monday the two providers would merge, revealing what was probably one of the better known procurement and supply chain industry secrets in recent memory. The combination creates the only technology provider in the market with end-to-end indirect and direct materials procurement coverage, the companies said in a press release.

Navigating Uncertainty: Pool4Tool’s Roger Blumberg on Where Manufacturing Procurement Technology is Headed

Toyota supply chain

Last week we featured a new interview series focused on the technology renaissance coming to direct materials procurement. In collaboration with our sister site MetalMiner, Spend Matters Founder Jason Busch questioned procurement technology leaders and experts on the reasons this renaissance has begun, as well as how procurement and supply chain professionals are using technology to navigate volatile global trade trends. This interview features Roger Blumberg, chief commercial officer at Pool4Tool, which works with leading manufacturers such as Miele, Swiss Steel and Tower Automotive.

Where is Manufacturing Procurement Technology Headed? An Interview with Keith Baranowski, Global Vice President and GM, Direct Materials Sourcing, SAP Ariba

manufacturing

Our sister site MetalMiner recently started a series of interviews with a range of experts at technology vendors. This interview features Keith Baranowski, global vice president and GM, Direct Materials Sourcing, SAP Ariba, which works with leading manufacturers such as Ford, Microsoft and Johnson & Johnson.

Where Manufacturing Procurement Technology is Headed: A New Interview Series

manufacturing

Why have procurement technology vendors initiated a “direct procurement” renaissance, and what changes within manufacturers have started to make this possible? This line of questioning forms the backbone of a new interview series over on our sister site MetalMiner, in which Spend Matters Founder Jason Busch questions multiple experts at technology vendors on these and related topics.

POOL4TOOL: Solution Review & Analysis [Plus+]

manufacturing

The market for direct materials-centric procurement technology is just beginning to take off in North America (and other parts of the world, outside of Europe). Especially in the US, these solutions have often played "second fiddle" for procurement organizations, especially compared with investments in indirect procurement suites and services procurement capabilities. Yet POOL4TOOL is one of only a handful of technology vendors developing specialized procurement solutions to support manufacturing environments. The Vienna-based procurement solution provider has extensive experience working with industrial firms (e.g., automotive, A&D, diversified manufacturing) across the source-to-pay continuum, especially in support of direct materials procurement activities.This Spend Matters Plus analysis provides an introduction to the POOL4TOOL solution for procurement organizations looking to understand whether they should consider adding the provider to their shortlists for consideration and competitive alternatives.

Energy M&A Outlook: What the Halliburton-Baker Hughes Fail Tells Us About 2017

oil

In Part 1 of our latest energy, mining and utilities outlook, we focused on the precipitous drop in this sector’s M&A activity, outlining exactly how many billions of dollars are at stake. Let's now take a look at 2016's biggest M&A deals — including the failed Halliburton-Baker Hughes marriage — as well as a look ahead to 2017 and the unknowns facing the EMU sector.

The Week in Direct Materials: Oil Prices, China, Steel, and NAFTA

oil oversupply OPEC

Energy and transportation prices bumped up, Chinese aluminum smelters are taking advantage of the subsidization game, and the U.S. steel industry is not all too happy about any of that – but one if its trade organizations still supports NAFTA. Find out why in this week's direct materials update from MetalMiner.

Energy, Mining, Utilities M&A Flat as Price Volatility, Uncertainty Loom

Merger and acquisition activity is down considerably in the energy, mining and utilities (EMU) sector this year, reflecting a rising level of uncertainty as crude oil prices remain volatile and a possible industry-changing U.S. presidential election looms. Total M&A activity in the EMU sector is at its lowest point since before the great recession hit in 2008, Mergermarket notes in its recent update.

Plastic Resin Price Outlook: What to Expect in 2017

e-procurement market outlook

Piggybacking off of our recent plastics outlook for Q4 2016, we had the chance to sit in on a presentation given by Paul Blanchard, director of engineering plastics for IHS Chemical, for The Right Place/Supply Chain Management Council's Commodity Trends 2017 Outlook. Whereas Spend Matters contributor John Hall focused more tightly on the drivers of feedstock costs and pricing — ethylene and propylene, for example — Blanchard dove into three distinct markets: ABS, polycarbonate and nylon 6 (and nylon 6,6). (Although, I'd be remiss not to mention that Blanchard fielded a polypropylene question right off the bat – and late last week we ran a propylene outlook on Spend Matters from our friends at contributing firm Mintec.) Here are some details and price outlooks behind the three resin markets, according to Blanchard and IHS Chemical.