Spend Matters Analysis: CombineNet is one of the leading providers of next generation sourcing technology. While the vendor originally got its start by providing an integrated software/service solution leveraging technology – but that was only exposed to customers in a limited manner – CombineNet hit the acceleration pedal with a new self-service software/SaaS platform in 2010, and has not stopped accelerating. The transformation that's taken place at CombineNet from Q1 2010 to Q1 2011 is nothing short of remarkable. Since we last met with CombineNet in 2010, the upstart has added 17 new employees, including 3 in the development area. Customer growth has almost kept pace with employee growth (as of February 2011). In Q4210, CombineNet added 14 new customers and 12 existing customers became users of their self-service sourcing platform in the final six months of the year.
Growth like this suggests that CombineNet is succeeding in its vision to drive more aggressively into self-service, SaaS sourcing and optimization software to address a broader portion of company spend while continuing to support the solution requirements for complex and advanced categories with a broader, services-driven delivery model. Many of the customers CombineNet has added include some of the biggest names in the consumer goods and retail area. Yet what is most characteristic of CombineNet's customer traction is not what industries companies are coming from, but their overall sophistication. Using our proprietary procurement and technology sophistication database, a quick analysis of customer wins and upgrades in 2H 2010 and 1Q 2011 that CombineNet shared with Spend Matter suggests that roughly 70% of their customers fall into the "innovator" or "early adopter" camp – a very high number. We believe that has more procurement organizations are exposed to software like CombineNet's ASAP platform, that more companies will take their sourcing in an entirely new direction.
Spend Matters strongly encourages companies that are not regularly using optimization and advanced sourcing models today – or are not using it in a self-service capacity – to consider companies like CombineNet to augment or replacing first generation e-sourcing products. Whether you're tackling such areas as logistics/freight sourcing, make/buy decisions in manufacturing, temporary/contingent labor, commodity market volatility or a wide range of other challenges, the types of capabilities that CombineNet provides won't only drive savings – they'll open your mind to an entirely new realm of sourcing possibilities.
Sponsor Description: CombineNet, Inc. is the advanced sourcing technology company with over 10 years in delivering exceptional value to Global 2000 organizations. We offer the best-in-class sourcing solution delivered through our product CombineNet ASAP (Advanced Sourcing Application Platform), to improve the way organizations source their entire range of spend categories – from the routine to the largest and most complex. CombineNet's ASAP is an optimization-driven Software as a Service (SaaS) solution that helps customers deliver the absolute best total cost of goods and services based on their unique business needs. CombineNet ASAP is used to speed, simplify, and centralize the sourcing of any and all spend categories from global suppliers: direct and indirect materials, all modes of transportation, and services. In the past 10 years, CombineNet has delivered more than $6 billion in bottom-line savings for businesses worldwide including General Mills, PepsiCo, Procter & Gamble, Bayer, Sears, Johnson & Johnson, and many more across all industries.
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