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Sourceit: Vendor Introduction, Analysis and SWOT [PRO]

Marketing procurement can be a touchy subject for businesses. This critical category can make or break a company’s ability to attract new customers, yet it is rarely managed in an efficient, effective manner — at least as a procurement professional would define it.

Within most businesses, marketing procurement is plagued by poor corporate governance, uncompetitive sourcing practices and unfocused project management, frequently leading to cost overruns and delivery delays. This in turn leads to a strained relationship between marketing departments and their peers in procurement, who find it difficult to overcome their seemingly incompatible goals. The problem is so bad and so distinct to this particular category that it practically begs for a niche technology solution to address it.

This is precisely the inspiration behind Sourceit, a four-year-old provider of sourcing and e-procurement tools for marketing services. Born out of a homegrown print sourcing solution at Finsbury Green, an Australian printer and managed services provider, Sourceit market and catalog offers a targeted set of capabilities that illustrate a deep understanding of the common hurdles of marketing procurement as it applies to print technology. The technology was spun out of Finsbury Green in 2015 as a standalone SaaS platform, then over the past four years has expanded from Australia into the UK, Canada, Brazil and, as of 2017, the U.S., under a reseller model in each market.

This Spend Matters PRO Vendor Introduction offers a candid take on Sourceit's capabilities. The brief includes an overview of “sourceit market” and “sourceit catalog” applications, 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.

Simplify Workforce: Vendor Introduction, Analysis and SWOT [PRO]

Because of recent M&A consolidation and multiple external drivers, the market for vendor management system (VMS) solutions has become fairly complex. Competing vendors have been absorbed or combined, draining the field of vendor choices that can be applied in a wide number of scenarios. Concurrently, businesses have shifted away from their focus on temporary staffing labor to a rising emphasis on statement of work (SOW) spend, while also exploring new talent engagement models that increase program complexity, to include the exploratory enterprise adoption of the “gig economy” in the form of independent contractors. Add in the typical challenges of effectively operating a temporary staffing program — from cost control issues to quality maintenance and the management of intermediaries like MSPs — and it’s easy to see why procurement organizations are finding the old paradigm for VMS solutions is no longer holding up.

Going against the grain of complexity is a newer VMS provider that incorporates simplicity (i.e., ease of use) into its name — and its solution. Founded in 2016, Simplify Workforce provides an end-to-end SaaS solution for managing the extended workforce.

The Jersey City, New Jersey-based provider enables this through separate modules for contingent workforce (or in our SolutionMap classification, Temp Staffing) and statement of work (Contracted Services/SOW), with an emphasis on configurability, adaptability and ease of use that has typically eluded past VMS solutions. In doing so, Simplify Workforce aims to address the long-underserved middle market — specifically, businesses with annual contingent workforce spend of $1 million to $100 million — with the ability to scale up or down on spend easily, with a VMS and SOW solution that can solve the majority of daily contingent workforce challenges without overwhelming users, implementation teams and budgets with unnecessary complexity.

This Spend Matters PRO Vendor Introduction offers a candid take on Simplify Workforce and its capabilities. The brief includes an overview of Simplify Workforce’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.

SourceDay: Vendor Introduction, Analysis and SWOT [PRO]

The broader procurement technology market has always had a tenuous relationship with the direct procurement technology solutions. Old timers may remember SupplyWorks from the early 2000s, but it folded — and the SupplyWorks brand name now belongs to a janitorial/sanitation service provider (we won’t go down the easy joke paths on this one). More recently, DirectWorks, a perfectly decent solution for direct materials sourcing, also struggled until getting picked up by Ivalua.

Part of the challenge is that direct procurement is not only a subset of spend but also a superset of processes, because it’s essentially infused into the broader supply chain. This makes it addressable from multiple solution sectors like SCM apps, supply chain networks, integration players and industry players.

Source-to-pay application suites, for their part, are picking off some low-hanging fruit functionality here, but the broader requirements are spelled out well in our coverage of a distinct segment that may be forming for direct materials procurement solutions.

Manufacturers today are slowly seeing an expanding set of purchasing tools beyond ERP and MRP alone, and choice is generally a good thing if you have your overall solution strategy/approach nailed down before you go tool shopping. Many will be more than happy to explore this new market.

One of these newer choices is SourceDay, an Austin, Texas-based vendor that directly integrates with ERP and MRP systems to automate the management of purchase orders and supplier performance. By providing a more usable and procurement-centric layer over the data housed by a legacy ERP or supply chain application, SourceDay takes on many of the problems that procurement organizations find in managing direct materials spend.

The result is that procurement can save time, reduce errors and systematically manage supplier performance from a common cloud or mobile interface while still claiming the benefits that an ERP system can offer. There are obviously caveats to this statement — namely around integration — but we’ll touch on this later.

This Spend Matters PRO Vendor Introduction offers a candid take on SourceDay and its capabilities. The brief includes an overview of SourceDay’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.

Coupa to Acquire Exari: What Type of CLM Solution Is Coupa Getting? (Part 1) [PRO]

Coupa just announced that it intends to acquire Exari, a leading provider of contract lifecycle management (CLM) solutions. Terms of the deal were not provided, but with Exari having almost 150 employees, it’s not unreasonable that the private firm would have over $30 million in revenues and a deal size valued at just over nine figures. Contract management is a red-hot space right now, and Coupa has a very strategic need for this product. Spend Matters believes that this acquisition is a very smart hand-in-glove acquisition even though it’ll require some alterations to truly fit properly.

Coupa currently has a basic contracting module as part of its “Business Spend Management” application suite within the source-to-pay market, but it was missing two critical aspects of modern CLM that are major strengths for Exari. On a product functionality basis, Exari is one of the very top performers in Spend Matters’ CLM rankings on SolutionMap, and it “ticks all the right boxes” for a best-of-breed CLM performer. It’s also unique in its knowledge-based approach to deep contract modeling rather than just straight AI and machine learning based on contract text analytics.

CLM is also not a one-size-fits-all proposition, and the market landscape depends heavily on many factors. Some providers are much more oriented toward the sell-side — e.g., CPQ-oriented providers such as Apttus or SpringCLM (recently acquired by DocuSign). Some are focused on the mass market with usability being a key focus (e.g., Concord, Outlaw, PandaDoc, etc.). And even within large enterprises looking at firms like Exari, Icertis, Agiloft, SirionLabs, and others, they differ in their requirements as to whether they want “deep” functionality, maximum configurability, ease-of-integration, attractiveness to many functions (e.g., the legal department), and/or being part of a larger application suite.

So, what is Coupa getting with Exari? What types of organizations are the best fit for this solution and the combined solution of Coupa and Exari? Is Exari a solution optimized for legal, procurement or both? And what will Coupa need to do to integrate Exari since this acquisition is not some simple bolt-on, but rather, a core platform component? Finally, what is the impact of this acquisition on the S2P and CLM markets?

This Spend Matters PRO quick take analysis provides insight for Coupa customers and the broader market on specifically what the provider is acquiring. Unlike past acquisitions, we believe Exari represents the greatest stretch away from its core economic buyer (at least historically). Find out why.

For an introduction to Exari, we encourage you to read our Spend Matters PRO review: Introduction & Solution Overview, Strengths/Weakness and Market/Competitive Analysis.

SAP Fieldglass Takes Center Stage at SAP Ariba Live (Part 2) — Product Roadmap Insight + Procurement & HR Recommendations [PRO]

At SAP Ariba Live last week, SAP Fieldglass played a key role not only on the main stage, but in over a dozen breakout sessions. From our research at the event, it is clear that SAP intends to bring these two offerings much closer together in the quarters and years to come.

This Spend Matters PRO brief provides insight into what we learned around the combined product roadmap, including the persona-driven approaches SAP Fieldglass and SAP Ariba are taking to integration scenarios.

Finally, we provide concrete recommendations to two stakeholder groups (Procurement and Human Capital Management executives) in terms of how they should think about the combination of SAP Ariba and SAP Fieldglass and the role they should take in selecting the best fit solutions for their current and emerging needs. 

SAP Ariba Live (Part 1): SAP Fieldglass Integration, the Ariba Network and Other Topics & Analysis [PRO]

Accenture

For the industry analysts in attendance, SAP Ariba Live 2019 kicked off Monday in Austin, Texas, with a candid Q&A session with Barry Padgett, president of SAP Ariba and SAP Fieldglass; Darren Koch, chief product officer of SAP Ariba; and Vish Baliga, chief technology officer of SAP Fieldglass. During the session, Padgett, Koch and Baliga shared the latest from SAP in terms of numbers growth and SAP Fieldglass’ integration into a common business unit with SAP Ariba, among other topics.

Many of these themes were echoed throughout the 100-plus breakout (and mainstage) sessions that took place Tuesday and Wednesday, including multiple sessions on the SAP Fieldglass integration as well as the Ariba network, among other topics.

This Spend Matters PRO live report provides insight into these updates from the public sessions and what’s driving them. It also includes an analysis and key takeaways from our first 24 hours at SAP Ariba Live. In subsequent briefs, we will explore these and other topics in more detail.

K2 Sourcing: Vendor Introduction, Analysis and SWOT [PRO]

The history of e-sourcing software stretches back to before the dot-com bubble burst, yet few of the original providers of RFX and auction management tools exist today as they did at their inception.

Some were bought and consolidated into the mega organizations we know today (e.g., SAP Ariba, which acquired FreeMarkets and Procuri), while others have slowly drifted into oblivion (RIP Emptoris). The result is that, with a few notable exceptions, procurement organizations today have few choices for standalone providers of e-sourcing tools.

One of those remaining options is K2 Sourcing, a provider of RFX and auction management software that has quietly served mid-market procurement organizations since 2003. Based in the Milwaukee area, K2 grew out of its founder’s frustrations as a procurement professional with the RFX and reverse auction platforms available then.

The young provider set out with one of the first cloud-based solutions in the space with a goal to “create the fastest, easiest and most transparent method for buyers to screen and select suppliers.” And while a lot has changed in the procurement and technology worlds in the past 16 years, K2 has managed, through a combined offering of subscription software and supporting sourcing services engagements, to build a stable and respectable client base, counting brands as varied as Verifone, Lozier Corp., Big Lots, Milwaukee Tool, Tempur Sealy, Kaiser Permanente and others.

This Spend Matters PRO Vendor Introduction offers a candid take on K2 Sourcing and its capabilities. The brief includes an overview of K2 Sourcing’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.

WPS Management (Wescale): Vendor Snapshot (Part 3) — Summary and Competitive Analysis  [PRO]

Procurement organizations today don’t have to do a lot of legwork to build an initial shortlist for choosing an e-procurement or procure-to-pay solution. A Google search will return dozens of companies vying for your business, and the Spend Matters SolutionMaps for E-Procurement and Procure-to-Pay Suites make the process even simpler, rating top providers of these solutions against specific organizational requirements based on buyer demographics and psychographics.

Figuring out the differences between all of these choices, however, is easier said than done.

One of the key ways procurement organizations can do this is by understanding what type of market a vendor seeks to address. Although in concept the potential market a vendor is targeting could appear similar to how others position their solutions, the reality is that each provider is unique in terms of their best-fit customers, their capabilities and the technological foundations of their platform.

This is especially true of Wescale, which provides P2P functionality fit for a variety of businesses through an open business integration platform approach (PaaS, or platform as a service) not commonly seen from e-procurement or P2P providers in the North American market. For that matter, Berlin-based Wescale is not commonly seen outside of Europe — but to the detriment of potential U.S. and global customers that might overlook it due to its primary geographic focus.

This third and final installment of this Spend Matters Vendor Snapshot covering Wescale, the branded name for WPS Management, includes an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also has a recommended shortlist of candidates as substitute providers to Wescale as well as provider-selection guidance. Finally, it offers a summary analysis and recommendations for companies that can best take advantage of Wescale’s capabilities.

Part 1 of this series provided an in-depth look at Wescale as a company and its specific solutions, and Part 2 gave a detailed analysis of its solution strengths and weaknesses as well as a review of the user experience.

WPS Management (Wescale): Vendor Snapshot (Part 2) — Product Strengths and Weaknesses [PRO]

FM Global Resilience Index

While not well known outside of the European market, Wescale delivers a unique set of procure-to-pay capabilities originally built from its e-procurement plumbing and catalog management roots as Wallmedien and WPS Management, now branded as Wescale.

For many years, we have watched with admiration as this R&D-centric provider has taken a road-less-traveled approach to enabling procurement users. But when it comes to procure-to-pay, where is it strong and where is it weak?

This Spend Matters PRO Vendor Snapshot explores Wescale’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider the vendor. Part 1 of our analysis provided a company and detailed solution overview, as well as a recommend fit list of criteria for firms considering Wescale. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

WPS Management (Wescale): Vendor Snapshot (Part 1) — Background and Solution Overview [PRO]

Wescale is the broader “procurement umbrella” and new open business integration platform of WPS Management, a provider that traces its roots to 1997 with the creation of Wallmedien AG, one of the first e-procurement solutions for the SAP environment in Europe. We’re sorry if this sounds confusing (it is). But what matters is that since its founding, Wallmedien AG has managed to grow its core business in e-procurement while also adding additional capabilities through its affiliated businesses and product lines, including WPS4/Procure, Meplato and recently Wescale.

Wescale is the platform through which all WPS Management solutions are integrated. WPS Management (branded as Wescale) has participated in the Spend Matters E-Procurement SolutionMap, competing with specialists such as Vroozi, BuyerQuest, OpusCapita (jCatalog) and others with similar platforms like Basware, Tradeshift and Determine (now Corcentric).

This three-part Spend Matters PRO Vendor Snapshot uses facts and expert analysis from Wescale’s participation in the 2018 SolutionMap to help procurement organizations make informed decisions about the broader umbrella of capabilities this provider offers. An update will be published this summer, based on Wescale’s latest 2019 capabilities.

Part 1 of our analysis provides a company background and detailed solution overview, as well as suggestions for when organizations should consider the Wescale platform. The remainder of this multipart research brief covers product strengths and weaknesses, competitor and SWOT analyses, user selection guides, and insider evaluation and selection considerations.

Fairmarkit: Vendor Introduction, Analysis and SWOT (Part 2) — Summary and Competitive Analysis [PRO]

The question of how to manage tail spend is as much a philosophical question as a technical one. There are issues around the thresholds that define tail spend, challenges around rogue spend that creates the long tail and the ultimate decision about who should be responsible for taming the tail.

But for most procurement organizations, the tail spend discussion is left unexplored.

Instead, the status quo way of managing tail spend often reigns. It’s rarely effective, so you’re left with the problems: wasted time by procurement and non-procurement staff, long lists of unknown or untrusted vendors, no clean data or visibility into savings left on the table.

Challenging this status quo is what Fairmarkit, a provider of tail spend management software out of Boston, seeks to do with its RFQ and analytics solutions. But where does Fairmarkit fit compared with other sourcing and tail spend management providers in the procurement technology market, and what are its relative strengths and weaknesses compared with direct and indirect competitors?

This Spend Matters PRO Vendor Introduction offers a candid take on Fairmarkit and its capabilities. Part 1 of this brief provided an overview of Fairmarkit’s offering and a detailed solution tour. Part 2 includes a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a competitive breakdown of other providers that a procurement organization might consider while evaluating Fairmarkit.

Fairmarkit: Vendor Introduction, Analysis and SWOT (Part 1) — Background and Solution Overview [PRO]

Tail spend is a growing area of concern for procurement. Given the granular, dispersed and opaque nature of such spend, many organizations find the task of taming the tail daunting.

Purpose-built tools have long existed that adequately address strategic sourcing activities (e-sourcing) and route internal users to pre-approved catalog items (e-procurement), yet technology to support the 20% of spend that is not actively managed by procurement has comparatively lagged.

Instead, the answer for most procurement groups has been to either attack tail spend with a patchwork of variably effective methods (p-cards, marketplaces) or outsource the problem entirely, like to a BPO firm.

Yet neither of these methods is particularly attractive. With the patchwork approach, issues around risk and control are poorly addressed, and while routing purchases under a low threshold (e.g., $500) into a marketplace can satisfy the typical spot buy, this hardly represent a strategy around optimizing tail spend.

BPOs offer expertise and a “set-it-and-forget-it” mentality, but organizations often find that the process efficiencies that they had hoped to gain don’t materialize as promised.

Finding a third way between the patchwork and complete outsourcing is at the heart of how Fairmarkit, an upstart vendor out of Boston, is trying to solve the tail spend management problem.

By using machine learning to analyze purchasing patterns and vendor fit, Fairmarkit automates the RFQ process for variable purchases that fall in the roughly $500 to $250,000 range. In the process, it wants to challenge the status quo for how businesses think about tail spend, enabling procurement groups to automate bidding and analysis on low-value purchases so they can assign team members solely to strategic events. And Fairmarkit already has had success doing so, claiming an average of 6% to 12% cost savings with clients as varied as the Massachusetts Bay Transportation Authority (MBTA), Univision and Yeti.

This Spend Matters PRO Vendor Introduction offers a candid take on Fairmarkit and its capabilities. It includes an overview of Fairmarkit’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.