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ESG vendor profiles of Coupa, GEP, Ivalua, Jaggaer, SAP Ariba: How S2P suite solutions address sustainability efforts

08/04/2021 By

As a whole, source-to-pay suite solutions serve as a common “hub” for all procurement-related activity.

These S2P suites are particularly important with respect to the success of ESG policies via the solutions’ extensive capabilities for supplier profiles, supplier networks, KPI tracking/benchmarking, sourcing optimization, bill of materials management and API frameworks for third-party data integrations, among other capabilities.

ESG requirements can overlap each of the aforementioned components. In practice, S2P suites address sustainability much like other kinds of risks. Supplier profiles can be extended to track data such as sustainability scores, and third-party ratings can be integrated into performance tracking, but often this is done as a service, requiring the customer to configure profiles, KPIs and third-party data sources to their unique ESG requirements.

S2P suites’ ESG challenges extend from their positioning as process hubs. First, S2P suites are rarely the collector of primary data on ESG areas. Instead, they integrate with third-parties that reactively monitor relevant risks. The challenge is that the suites themselves do not control the data. Second, the scope of S2P suites encompasses internal stakeholders and tier 1 suppliers. Suites rarely, if ever, enable multi-tier visibility, and even the scenarios that do include tier 2 or tier 3 suppliers only occur by invitation from tier 1 suppliers. Because understanding a full ESG performance picture requires a deep visibility of the supply chain, the suite gap in this area makes organizations reliant on other specialists to solve this challenge.

To help subscribers understand the relative strengths and weaknesses of S2P suites in addressing sustainability and ESG requirements, this Spend Matters PRO article looks at five major providers — Coupa, GEP, Ivalua, Jaggaer and SAP Ariba — and assesses each for ESG data sources and integrations; extent of current coverage; and specific ability to address ESG areas (e.g., human rights, modern slavery). 

Read our whole ESG series here.

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ESG (Environmental, Social and Governance)