Sourcing Content

SolutionMap: 59 procurement software companies ranked (Q4 2019 Update)

Spend Matters today released its Q4 2019 SolutionMap, ranking 59 procurement software companies across 12 solution categories, including E-Procurement, Sourcing, Spend Analytics, Supplier Relationship Management, Contract Lifecycle Management and Contingent Workforce & Services. Click on this article to see which new providers joined the rankings this quarter — and to see how to access the rankings for free!

Q4 2019 Sourcing: Provider Scoring Summary

This SolutionMap analyzes a select group of sourcing providers. It is part of our Q4 2019 SolutionMap report series, also featuring spend analytics, contract management, supplier relationship management and risk (SRM), e-procurement and invoice-to-pay providers. SolutionMap also features procure-to-pay and strategic procurement technology suites.

Q4 2019 Source-to-Pay (S2P): Provider Scoring Summary

This SolutionMap analyzes a select group of source-to-pay solution providers. It is part of our Q4 2019 SolutionMap report series, also featuring spend analytics, sourcing, supplier management, contract management, e-procurement and invoice-to-pay providers. Our Q4 release also features SolutionMaps for Strategic Procurement Technology suites.

Q4 2019 SolutionMap Release Notes: Sourcing, Spend & Procurement Analytics, Supplier Relationship Management & Risk, Contract Lifecycle Management and Strategic Procurement Technology Suites

This Spend Matters SolutionMap Insider research note provides insight into the Q4 2019 SolutionMap release for Sourcing, Spend and Procurement Analytics, Supplier Relationship Management & Risk, Contract Lifecycle Management, and Strategic Procurement Technologies Suite SolutionMap areas, reviewing the process we follow and highlighting what has changed since the last release.

Within the individual areas covered in this brief, the following providers have been added to the Q4 2019 release:

— Promena is a new participant in the Sourcing SolutionMap category.
— Spendata is a new participant in the Spend & Procurement Analytics SolutionMap category.
— Vendorful is a new participant in the Sourcing and Supplier Relationship Management (SRM) & Risk SolutionMap categories.

Wax Digital has added a new category to its existing participation this quarter: Contract Lifecycle Management (CLM).

In addition, 31 new or refreshed customer references (and 51 individual map references) were added in the Strategic Procurement Technology areas for Q4 2019.

*Get a first look at the Q4 SolutionMap comparative quadrant graphics here.

The Q4 2019 SolutionMap marks the first time Jaggaer solutions have been evaluated against Q2 2019 RFI requirements by the Spend Matters analyst team, and are able to again appear in this quarter’s editions of the Provider Scoring Summaries.

(SolutionMap Insider members: access the Q4 Provider Scoring Summary reports right here.)

Customer reviews for Bonfire are in the new SolutionMap Customer Insights report

This week’s SolutionMap Customer Insights report focuses on customer reviews for Bonfire, a cloud-based provider of sourcing whose offering is known for its ease of use.

The applicable SolutionMap category for this report is in Sourcing. SolutionMap Insider members can read about Bonfire in our latest report.

In each Customer Insights report, we provide a one-page summary of details from the SolutionMap peer review process. It includes ratings on how well the vendor meets its customers' expectations, three key differentiators for the vendor and a list of quotes from customers about the vendor’s greatest strengths.

Synertrade: What Makes It Great (Sourcing SolutionMap Analysis)

Direct materials sourcing is the elephant in the procurement technology suite room. While many source-to-pay solutions offer strong functionality in support of sourcing processes, only a handful truly support all of the requirements to enable the complexities of direct materials sourcing (e.g., sourcing optimization, bill of materials-based sourcing, commodity management).

Among this select group, Synertrade is capable of delivering a comprehensive, fully integrated and rapidly deployable source-to-pay suite that also provides organizations the ability to rapidly configure heavy internationalization and systems integration requirements. This is particularly visible in its sourcing module, where it scores above the benchmark for two-thirds of requirements evaluated, including dozens of cases where it posts some of the highest scores of any provider in the Sourcing SolutionMap.

But where does Synertrade stand out most and help “set the bar” in sourcing, and why should this matter for procurement and finance organizations? Let’s delve into the SolutionMap benchmark to find out where Synertrade is great.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

Workday and Scout RFP: Customer Recommendations [PRO]

This Spend Matters PRO research brief provides analysis in support of Workday and Scout RFP customers following last week’s news that Workday is acquiring the sourcing provider. Previous coverage of the transaction with content aimed at CEOs, strategy / corporate development leaders and investors can be found on Spend Matters Nexus (see Part 1, Part 2, Part 3 and Part 4).

Nexus coverage provides an overview of the transaction, an introduction to Scout RFP, Scout RFP strengths / weaknesses, competitive analysis and recommendations (for ERP providers, suite providers and best-of-breed providers, separately) and potential Workday and Scout RFP integration touchpoints.

Today on Spend Matters PRO, we turn our attention to those which will be most impacted by the announcement: Scout RFP and Workday customers. We encourage Spend Matters PRO practitioner clients who are using or considering Scout RFP or Workday for procurement to contact us for more information on how the acquisition could affect them.

Allocation: What Makes It Great (Sourcing SolutionMap Analysis)

Direct materials procurement technology has always been a bit of a blind spot for North American manufacturers. Many such businesses are already using indirect materials-centric and services-centric applications (e.g., procure-to-pay, vendor management systems), but few also have specialized direct materials-centric procurement tools as a part of their solution belt. A host of factors, however, is starting to change this, to include recent trade volatility, digital transformation of manufacturing alongside business in general, and increasingly complex supply chains that demand a more advanced approach to sourcing and supplier management.

Well-poised to address these drivers is Allocation, a German solution provider that, based on its performance for the past year in our Sourcing SolutionMap vendor rankings, offers one of the broadest and deepest platforms for direct supplier management and direct material sourcing on the market today. With a strong customer base in discrete manufacturing, Allocation can walk into just about any automotive, aerospace, CPG or other manufacturing-based procurement organization and talk the talk, backing up its knowledge with a set of specialized capabilities.

But where does Allocation stand out most and help “set the bar” in sourcing, and why should this matter for procurement and finance organizations? Let’s delve into the SolutionMap benchmark to find out where Allocation is great.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

Workday scouts its 14th acquisition: Scout RFP (Deal Summary, Company Background and Coverage Highlights)

Workday’s plan to buy Scout RFP makes this its 14th acquisition, according to crunchbase. Spend Matters has been covering Scout RFP and has some quick takes on this deal.  Material sourced from: First Take Analysis: Workday’s Acquisition of Scout RFP (Part 1: Scout Background, Strengths/Weaknesses, Deal Rationale) and Workday to acquire Scout RFP for $540 million in cash

Direct procurement seeks an upgrade over spreadsheets, risky manual processes

Toyota supply chain

Over the last year or so, Spend Matters has written several articles and research briefs about direct procurement and the technology that’s needed to support it, so a closer look and some recent insights from manufacturers seems valuable to see why this technology needs wider adoption and to understand its benefits.

The overall view indicates that business leaders are avoiding digital transformation in this area — even though managing the part/material lifecycle, from direct materials procurement through supplier quality and end of life, is vital to discrete manufacturers, contract manufacturing companies, product assemblers or any company dependent upon direct materials.

If they did deploy technology that’s fit for direct materials, business could expect to see a lowering of process costs by up to 80%, more effective sourcing events, reduced cycle time to part qualification, less supplier and part risk, complete visibility across functions (like design, engineering, sourcing, quality, logistics), and the assurance that processes and best practices are always followed.

What’s more, not leveraging the proper tool exposes the business to more risks, as companies continue to run operations with a patchwork of spreadsheets, emails, calls and people’s memory to track thousands of supplier details.

Online Platform RigUp Raises $300 Million: Maybe Not Just Another Unicorn? [PRO]

Online marketplaces for connecting workers and businesses have been around since the early-to-mid 2000s. But it has only been in the past eight years that larger organizations have begun to take notice of them (more, perhaps, as curiosities than as full-fledged, digitally enabled suppliers of workers and services). The reality is that few, if any, of the top 5,000 private employers in the world have established compliant, online marketplace sourcing channels that would account for more than 1 or 2% of their contingent workforce spend. Whether or not this is changing in any significant way is open to debate.

However, something does seem to be happening, if not on the large-enterprise demand-side, then on the supply-side, where, over the past year or so, significant capital has been flowing into some business-focused (versus consumer-focused) online marketplaces. That includes Austin-based RigUp, which recently announced a $300 million series D round. With a $60 million Series C round in January 2019 and four earlier financing rounds since its launch in 2014, RigUp’s financing now totals $423.8 million. According to the Wall Street Journal, the most recent “financing brings the valuation of the startup aimed at energy contractors to $1.9 billion.”

Unlike its white collar, online freelancer, global marketplace cousins, Upwork and Fiverr (which completed their IPOs in October 2018 and June 2019, respectively), RigUp has been focused on mostly blue collar workers deployed on the ground in the U.S. energy sector. At of the close of trading on Oct. 25, Upwork (which is more or less the same size as RigUp in terms of gross services volume) had a market value of $1.64 billion.

In this Spend Matters PRO brief, we will take a look at RigUp, and we'll examine where it fits into the broader landscape of digital platforms for work and services platforms. We will also discuss reasons why RigUp might be a different type of animal and how that might affect the thinking of procurement practitioners pondering the viability of online work/services platforms as sourcing options.