Solution Providers Content

Corcentric to Acquire Determine: Exploring Determine’s Procure-to-Pay Strengths and Weaknesses (Part 3) [PRO]

Corcentric recently announced its pending acquisition of Determine (see previous Spend Matters PRO analysis: Transaction Overview and Customer Recommendations and Competitive Landscape Analysis — and news coverage here). But in buying Determine, what exactly is Corcentric gaining from a procure-to-pay perspective (i.e., product, solution and platform strengths and weaknesses)? And how do Determine’s capabilities stack up in the market overall relative to peers on a granular basis?

To answer the latter question, you can turn to the latest Q4 2018 SolutionMaps for e-procurement, invoice-to-pay and procure-to-pay SolutionMap Insider provider scoring summaries. For those interested in viewing Determine from a broader source-to-pay perspective, there is a SolutionMap for you as well. Each report provides comparative overall and “deep-dive” capability insight (e.g., catalog management, requisitioning, invoicing compliance, etc.) as well as detailed customer reference benchmarks. Determine is one of dozens of providers featured in these granular, comparative vendor ratings analyses — others include Basware, BuyerQuest, Coupa, Ivalua, Jaggaer, Oracle, SAP Ariba, Tradeshift, Taulia, Vroozi and Zycus — designed to aid shortlisting and selection decisions.

But to provide insight into overall product strengths and weaknesses for P2P, let’s dive right in today as we offer a summary view of where Determine stands out from the pack — and where it trails its peers. We’ll offer a similar analysis for sourcing, supplier management, contract lifecycle management (CLM) and spend/procurement analytics (collectively Strategic Procurement Technologies in SolutionMap) in a subsequent research brief in this series.

Corcentric to Acquire Determine: Valuation, Transaction Overview, Customer Recommendations and Competitive Landscape Analysis (Part 1) [PRO]

Earlier this week, Corcentric — a provider focused at the intersection of accounts payable automation, order-to-cash, trade financing, procurement consulting and group purchasing organization (GPO) software and services — announced its most strategic software acquisition to date: Determine.

But what are the highlights of the transaction? How do the proposed terms of the combination address Determine’s balance sheet liabilities — and more important, what is our summary analysis of Corcentric + Determine?

In this two-part Spend Matters PRO brief, we will provide an overview of the combination (by the numbers), an analysis of the transaction/valuation, our “elephant in the room” observations, summary recommendations for Corcentric and Determine customers and an analysis of the competitive landscape implications of the transaction.

In later PRO research briefs, we will offer our perspective on Determine’s functional strengths and weaknesses in both the procure-to-pay (i.e., e-procurement and invoice-to-pay) and strategic procurement technologies (e.g., sourcing, CLM, etc.) areas and what these bring to Corcentric, and, with sufficient distribution (that they lack today, at least in North America), what they could bring to the broader source-to-pay market.

Corcentric to Buy Determine

Spend management provider Corcentric announced early Monday that it is buying Determine, a provider of source-to-pay and contract lifecycle management solutions, in a deal worth about $32 million for most of Determine’s assets, according to a press release. Corcentric, based in New Jersey, is a provider of procurement and finance solutions that help companies purchase, pay and get paid, and Determine is a French company that’s main offering is the Determine Cloud Platform, which provides procurement, legal and finance professionals with analytics for their supplier, contract and financial performance, the press release said.

Govtech in 2019: These 8 Public Sector Start-ups Already Making a Difference

Public Spend Forum (PSF), one of our sister sites, has taken a look at civic tech companies whose solutions “hold great promise for improving the way we live, work and engage within the public sector.” These emerging government technology contractors are featured in this PSF outlook for the year ahead, and the solutions focus on everything from monitoring stormwater to building better municipal websites to giving first responders on-demand, real-time information on how to respond to people with mental illnesses and other conditions. Check out the list of 8.

Field Nation: Vendor Snapshot (Part 2) — Product Strengths and Weaknesses [PRO]

In the first of this three-part Spend Matters PRO series, we introduced you to Field Nation, a digital platform that enables companies and their managers to conduct “on-demand” sourcing, engagement, dispatch, management and payment of technical field services contractors, services providers and, recently, employees.

For a number of years, Field Nation has been providing what was basically a many-to-many online spot-buy marketplace. But last year, the company launched an enterprise-level, blended-workforce sourcing and management platform solution called Field Nation ONE, and that is the focus of this product evaluation.

Among other enterprise technology solutions that address independent contract workers (ICWs) and are featured in the Spend Matters ICW SolutionMap, Field Nation ONE stands out with laser-like focus in the field services vertical and its integrated proprietary marketplace of roughly 15,000 field service contractors in the U.S. and Canada. But while Field Nation ONE is an enterprise, S2P solution addressing the ICW work category, it is nonetheless a specialized one and needs to be evaluated on that basis. It also bears noting that Field Nation ONE is at the very beginning of its product maturity curve.

Part 1 of this Spend Matters PRO series provided company background and a detailed solution overview, plus a set of solution-fit considerations. In Part 2, we now cover what we see as the strengths and weaknesses of the solution as well as a rating of UI/UX. Part 3 will provide competitor and SWOT analyses, and insider evaluation and selection considerations.

Scanmarket Sells the Strategic Sourcing Vendor to Verdane

Global Risk Management Solutions (GRMS)

Scanmarket, a strategic e-sourcing provider, announced it has sold a 90% stake in its source-to-contract (S2C) company to private equity firm Verdane. The founders of Scanmarket, CEO Betina Nygaard and CCO Ole Nielsen, will retain a 10% share and continue to lead development at the Denmark-based software firm, according to the announcement. Spend Matters lead analyst Michael Lamoureux said the company has “a lot of potential, and a track record to back it up.”

Certify, a T&E Veteran, Launches a Procure-to-Pay Solution

Known for its travel-and-expense software solution, Certify on Thursday announced that it is launching a procure-to-pay product. The new cloud-based P2P product is called Certify Purchasing and is billed as a way to automate key accounts payable tasks like requisitions and vendor payments. The SaaS-offering works with desktop and mobile devices, Certify said. CEO Robert Neveu said the move builds on the company’s travel-and-expense experience.

How to Succeed with Systems Integrators and Procurement Technology Implementation: Lessons From Spend Matters UK/Europe and Determine [PRO]

e-procurement

In too many cases, system integration (SI) and consultancy partnering decisions take a back seat to technology selection and related business process considerations when in fact all three areas are important to consider in equal measures as parts of source-to-pay and procure-to-pay deployments. This misstep is often one of the root causes of procurement organization dissatisfaction with technology decisions and adoption.

In this PRO brief, Jenny Draper, Spend Matters’ managing director for UK/Europe, shares her experience and best practices on the topic from serving as a procurement consultant over two decades before recently joining Spend Matters.

This best practice essay includes Jenny’s lessons learned on the importance of systems integration partners and how to set them up for success (and get the most out of a relationship). It covers such topics as when (and why) superior technologies fail, change management missteps, the role of the modern SI and finding the right fit partner. She then explores specific lessons learned from Determine’s boutique partner ecosystem in Europe.

Throughout, the brief also includes key takeaways and summary recommendations for procurement organizations going through procurement technology selections and deployments.

ERP vs. Best-in-Class Spend Management Solutions: Making the Tough Choice

Spend Matters welcomes this guest post from RiseNow Managing Partner Matt Stewart.

With an endless list of options in the procurement software space, how is it possible to choose between spend management solutions like Ariba, Basware, Coupa and Jaggaer? Should you even consider such options when your existing enterprise resource planning (ERP) system is capable of handling basic spend management needs?

If you’re reading this, you’ve likely considered or are considering whether best-in-class source-to-pay (S2P)/procure-to-pay (P2P) solutions are worth your time, money and effort. You’ve probably wondered how the benefits compare between the solutions, whether one far exceeds another in ROI, what is best for your end users and suppliers, and if the rate of adoption is greater with one solution over another.

This story offers a few good places to start when determining whether your ERP provider or a best-in-class spend management solution is best for your organization.

TenderEasy: Vendor Introduction, Analysis and SWOT [PRO]

trucking

Despite the current tide of populism, the growing globalization of businesses and, thus, corporate supply chains is a trend no procurement organization can ignore.

Alongside this push into new markets for both sales and production comes a need to more effectively procure transportation because moving commodities or finished goods between facilities, like factories or distribution centers, and their final destinations has become more complex. Add to this a litany of procurement-specific obstacles to effective freight sourcing and management — from a dearth of qualified internal resources to sparse, inaccurate data about freight spend — and the challenge becomes even more daunting.

This combination of logistics category complexity and insufficient procurement capability to manage it is what originally gave rise to the sourcing optimization solutions that most North American organizations are familiar with.

Trade Extensions (now Coupa Sourcing Optimization), CombineNet (now Jaggaer Advanced Sourcing Optimization) and Keelvar (one of the few independent sourcing vendors that currently supports bid optimization) all got their starts enabling logistics procurement across thousands of lanes. As they grew, however, each of these vendors evolved their solutions to support additional categories beyond freight, enabling larger and more complex scenarios while leaving other elements of the transportation equation (like execution) to other technology providers.

TenderEasy, a 14-year-old firm that launched its SaaS solution for freight procurement in 2012, has taken the opposite approach. Rather than expand its sourcing optimization capabilities beyond logistics, TenderEasy has doubled down on freight, positioning itself as the entry point to a broader transportation management ecosystem. It committed to this strategy in 2018 when it became part of the Alpega Group, a global logistics software company that offers end-to-end solutions for transport needs, including not only freight sourcing but also access to freight exchanges and transportation management systems.

Leveraging this network of transportation solutions, Stockholm-based TenderEasy is hoping to bring its Europe-centric expertise across the Atlantic — the company already counts Heinz, adidas Group and British American Tobacco (BAT) as clients — taking on incumbent sourcing optimization vendors in the process.

This Spend Matters PRO Vendor Introduction offers a candid take on TenderEasy and its capabilities. It includes an overview of TenderEasy’s offering, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for companies that might consider the provider.

BirchStreet Systems: Vendor Snapshot (Part 1) — Background and Solution Overview [PRO]

services sector

While BirchStreet Systems, a 16-year-old provider of purchase-to-pay solutions, is best known as a provider with deep expertise in the hospitality industry, followers of Spend Matters SolutionMap know the company offers more than just vertical-specific functionality. In fact, based on its performance in the Q4 2018 E-Procurement and Procure-to-Pay SolutionMaps, BirchStreet consistently holds its own, from a feature/function perspective, with other solutions taking a more horizontal approach, including SAP AribaCoupaDetermineGEP, Ivalua, Jaggaer, SynerTrade and Zycus.

This Spend Matters PRO Vendor Snapshot provides an overview of the BirchStreet Systems, along with facts and expert analysis to help buying organizations evaluate the vendor. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations might want to consider BirchStreet. The rest of this multipart research brief will cover product strengths and weaknesses, competitors and SWOT analysis, user selection guides, insider evaluation and selection considerations.

SolutionMap in 2019: Where We’ve Been and the Year Ahead

Ah, the memories. When it comes to preparing for The Year in Comparative Rankings of Procurement Software Companies, it’s hard not to gravitate immediately to Spend Matters SolutionMap. For one thing, SolutionMap provides quarterly updates, keeping in real-time lockstep with advancements and innovations in the procurement software and technology market. For that reason, we saw some cool things happen over the past 12 months — and have some exciting updates to share for 2019.