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Updated! CORONAVIRUS RESPONSE: Sourcing and Commodity Management — Help with direct materials sourcing and automated supplier discovery

Updated April 23: This post about the Sourcing and Commodity Management category has been updated with profiles of additional solutions for direct material sourcing — Ivalua, SAP Ariba, Synertrade — as well as solutions that help with automated supplier discovery — SAP Ariba and Tealbook. The updated passages are italicized, and the new profiles are toward the end.

In this installment of our “Coronavirus Response” series, Spend Matters will explore sourcing and commodity management, with a focus on direct materials. With the COVID-19 crisis impacting logistics and existing supply bases, in China (even though China seems to be recovering), the rest of Asia and Europe (thus far), there will be numerous emerging needs for companies across manufacturing. This PRO brief will focus on solution providers that we’ll profile in this category: Allocation Network, Coupa, Jaggaer, Ivalua, SAP and Synertrade — which help with direct sourcing. You can also use solutions for automated supplier discovery from SAP Ariba and Tealbook, although other COVID-19 related resource sites for supplier discovery have also popped up from scoutbee, Thomas, and various sector-specific resources (e.g., D&B, govshop, and others in the federal government).

The mission of this series is to examine categories of relevant solutions and example providers that professionals in procurement, finance and supply chain organizations should investigate to reduce, and even mitigate, coronavirus supply risk. And even if the solutions are only addressing a subset of the issues, the ability to respond intelligently in the short term can also help set organizations up for the future when sanity returns to the world.

Today’s brief focuses on the second of the seven solution categories that we’re covering:

1. Supply risk management solutions that include supply chain risk, CSR risk, supplier financial risk, etc. (Read this category’s PRO analysis and solution recommendations here.)
2. Sourcing and commodity management, including advanced sourcing, direct sourcing, automated supplier discovery, and commodity management to help dynamically plan and source.
3. Advanced procurement analytics to enable direct procurement and/or to perform “spend planning” when demand drops out or spikes. (Its profile for this series is here.)
4. Procure to Pay (P2P) that emphasizes working capital, dynamic discounting, payment control and related finance priorities to help inject cash into the P2P process — especially for many cash-starved suppliers. (This category is discussed in-depth here.)
5. Fraud, P2P and vendor management safeguards when new suppliers need to be set up quickly, and also when lowlife fraudsters try to use the pandemic as a way to steal money and IP. (Its profile for this series is here.)
6. Providers with deep contract analytics that can analyze a contract portfolio for affected contracts from suppliers (and customers) for not just force majeure clauses, but other related clauses that tie to the multiple risks popping up at once in the pandemic. (Read in-depth detail on this category here.)
7. Contingent Workforce and Services solutions that are able to, at a minimum, help rapidly ramp up on-demand workers to deal with massive resource shortfalls. We are looking at four categories of solutions: for sourcing remote/online work; solutions for sourcing and managing mobile-first contract workers anywhere you need them; solutions to “direct source” and manage contract workers; and solutions for data management and analytics.

Owing to the magnitude of the crisis, Spend Matters recently made the series introduction available for free to all readers. PRO subscribers can see our follow-up pieces that profile the other categories and their solutions in that market. We will include a lot of information on each category PRO brief that readers can see without hitting a paywall, but since we also draw heavily from our existing deep-dive analysis of the providers from our SolutionMap database, some information will be available only to our PRO subscribers.

For sourcing and commodity management, the emerging needs for companies across manufacturing will include rapidly identifying new sources of supply, conducting complex sourcing events for materials, parts and components (which may be tied to broader bills of material), qualifying suppliers based on targeted requirements (e.g., for a specific line), and managing and tracking suppliers based on custom scorecarding.

After the pause button is lifted on production — in cases where one is put into place — these needs will become especially acute during the recovery phase in specific regions (which may be different from the recovery phase in other geographies).

Each category-specific PRO piece in this series has three sections:

1. Problems and Use Cases. We’ll highlight the problems in force (which will vary through different phases of the crisis) and the various scenarios where solutions can provide deeper insights, intelligence and scalable workflows.
2. Solution Rationale and Value. We’ll outline how various solutions can help solve the problems and the specific questions that they’ll help answer.
3. Example Providers. We’ll highlight the solution providers that can support the problems and deliver value.

Some providers are offering coronavirus-specific programs and “freemium” commercial offers, and we’ll note those whenever we update this piece. We’ll also start the series with providers that we already have deep knowledge on, but we’ve been seeking information from other vendors too.

Let’s jump into how sourcing and commodity management can help.

Through April 2020, a special PRO Expert Survival Pack is available to procurement practitioners only* at up to 50% off — Learn more

Q&A with new Jaggaer CEO (Part 2): Merging its history and making a mark on the future

“Jaggaer has a wealth of information,” said new Jaggaer CEO Jim Bureau. “Over the past 25 years, we’ve gathered more and more data to build intelligence upon, and it’s incumbent upon us to be able to tap into that information in a meaningful way so that we securely provide appropriate instructions to our customers to enable them to be proactive with it.”

In a two-part Q&A with Spend Matters Founder Jason Busch, Bureau outlined the suite provider’s plans after three big changes this year: all of its solutions are now on a single platform called Jaggaer One, it got a new owner over the summer and the change in leadership a few weeks ago that elevated Bureau.

Today, Bureau discusses Jaggaer’s partner network and looks further into the company’s future to discuss what its products will look like and what the company hopes to accomplish.

Q&A with new Jaggaer CEO: ‘Our vision and passion … it’s around the customer experience’

The global suite provider Jaggaer has been undergoing a lot of changes this year — converging its solutions on a single platform called Jaggaer One, getting a new owner this summer and seeing a change in leadership a few weeks ago.

To learn more about these changes, Spend Matters Founder Jason Busch talked with Jaggaer’s new CEO, Jim Bureau, who has been with the company a little over two years and most recently was executive vice president.

Jaggaer Deal: 5 Enterprise Value Creation Takeaways Learned From Shaping a Procurement Workhorse (Not Just a Unicorn)

Last week, Jaggaer announced that Cinven, a European-based private equity firm, had acquired a majority stake in the provider. Various sources, including Bloomberg, place the enterprise value of the transaction, including debt, at $1.5 billion. But as in all private company valuations, it is important to exercise caution in reported numbers and even more so “unofficial” numbers, given the various minority ownership interests, debt, covenants and other considerations associated with such a transaction.

Regardless, we suspect that Accel-KKR, which previously held a majority stake and retains an ownership interest in Jaggaer — as well as Italmobiliare, the original owner of BravoSolution, and a near 10% owner in Jaggaer prior to Cinven’s investment — post transaction, materially increased the enterprise value of the combined SciQuest, BravoSolution and Pool4Tool assets that it brought together under the Jaggaer umbrella. This Spend Matters PRO and Nexus research brief quickly analyzes the state of Jaggaer post-Cinven investment and provides five takeaways for investors, CEOs, corporate development professionals and others curious about the synergies that Accel-KKR created.

Jaggaer’s customer reviews are in the new SolutionMap Customer Insights report

This week’s vendor spotlight in the SolutionMap Customer Insights report focuses on customer reviews of the three product lines that make up Jaggaer ONE, the solution provider’s new unified platform.

SolutionMap Insider members can click here to read customer reviews for Jaggaer Advantage, Jaggaer Direct and Jaggaer Indirect.

(Please note: For SolutionMap, each of the three product lines has been reviewed and scored on a standalone basis by both their customer users and the Spend Matters analyst team, respectively. Analysts have not yet holistically evaluated the three products as part of Jaggaer ONE's unified platform.)

In each Customer Insights report, we provide a one-page summary of qualitative — and select rating and quantitative — insights from the SolutionMap peer review process. The Customer Insights summary includes ratings on how well the vendor meets user expectations, three key differentiators for the vendor and a list of quotes about the vendor’s greatest strengths.

Jaggaer

As part of the SolutionMap RFI process, Spend Matters continuously solicits customer references to determine a procurement technology provider’s placement on the ranking graphics. This is a Spend Matters curated summary of verified customer feedback for Jaggaer, a SolutionMap-ranked provider.

Jaggaer Indirect: What Makes It Great (E-Procurement SolutionMap Analysis)

Jaggaer Indirect (Jaggaer) occupies a unique position in the procurement software market. Not only is it the only independent source-to-pay suite vendor with proven use cases for all solution areas, it also has a track record of competing across multiple, highly specialized market segments with targeted offerings. Jaggaer’s deep vertical expertise and specialized capability extends to the life sciences, higher education research, manufacturing and public sectors, but the provider also brings non-industry-specific capabilities that allow it to compete more broadly.

In the e-procurement market, Jaggaer differentiates itself in a number of functional areas. As the Spend Matters Q2 2018 E-Procurement SolutionMap illustrates, Jaggaer delivers above-the-benchmark functional capability across over 50 individual e-procurement requirements. Its SolutionMap performance provides compelling evidence that the provider is a must-shortlist candidate for all e-procurement buying scenarios.

“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.

Jaggaer Indirect vs. Sievo: Spend Analysis Head-to-Head Technology Evaluation and Comparison

The bar for spend analysis software has risen considerably in recent years. Thanks to higher expectations for overall function enablement, enhanced reporting, artificial intelligence-based classification capabilities, and even predictive and prescriptive capabilities, a spend analysis tool designed even a few years ago may not stand the test of time as well as it might have in the past.

This makes the comparison between Jaggaer Indirect and Sievo all the more interesting. The good news for procurement organizations considering both solutions is that they perform at or above the Q2 2018 Spend Analytics SolutionMap overall — and individually help set the benchmark standard for certain areas. But how do they stack up against each other in a head-to-head bout?

Join us in this unfiltered SolutionMap results analysis from our Q2 2018 dataset, along with the commentary of the Spend Matters analyst team. These “Head-to-Head” columns share the insights of each quarterly SolutionMap report for SolutionMap Insider Subscribers, providing unique comparative cuts of SolutionMap benchmark data along with the trademark quips that Spend Matters was better known for in its early years. So buckle your seat belt, prepare for some real data and expect a few sparks to fly as we pit Jaggaer Indirect against each other in the Spend analysis evaluation ring.

Not yet an Insider member? Here’s a preview: In most spend analytics categories — which include data layer, process support, technology and services — Sievo comes out on top (sometimes convincingly so). But in at least one area, Jaggaer delivers superior performance. And as you peel the onion between the two on a subcategory basis, the use cases for when one is likely a better fit than the other becomes clearer.

Jaggaer Indirect vs. Coupa: E-Procurement Head-to-Head Technology Evaluation and Comparison (Q2 2018 Preview)

Following the Jaggaer name change, some folks may have forgotten about the tech provider’s deep roots in the e-procurement sector. And no, we’re not talking about some evil clown-esque 6-foot walking beaker — sorry, Questie, SciQuest’s former somewhat loveable mascot, was just creepy — who had some superpowers over laboratory P2P enablement alone. We’re talking about the depths of catalog management, supplier enablement and other elements of e-procurement that made the original SciQuest stand out from the original e-procurement pack, albeit with a focus on specific market segments at the time.

But how well does Jaggaer’s e-procurement capability differentiate itself in 2018 on an overall functional basis? We’re excited to feature Jaggaer’s e-procurement module (for the first time) in the Spend Matters Q2 2018 E-Procurement SolutionMap, publishing in the coming weeks. Today, we offer a preview of the Q2 2018 dataset (also see the Q1 2018 E-Procurement SolutionMap) and pit Jaggaer Indirect head-to-head against Coupa. These recurring columns share insights from each quarterly SolutionMap report for SolutionMap Insider Subscribers, providing unique comparative cuts of SolutionMap benchmark data, along with the trademark quips that have defined Spend Matters analysis since its inception.

So prepare for some real data and expect at least a modicum of salty opinion as we pit Jaggaer and Coupa head-to-head in the Spend Matters evaluation ring. Here’s a preview: In certain e-procurement capabilities — which span catalog management, shopping/requisitioning, ordering, receiving, supplier network, configurability, technology (overall), general services and a summary e-procurement average — Coupa convincingly dances on Questie’s grave.

But in others, the victor is not as cut and dried, and certain use cases illustrate when Jaggaer can be particularly attractive, especially when coupled to the vendor’s integrated suite value proposition in areas such as supplier information management (SIM) and contract management. Moreover, Jaggaer Indirect is one of the higher performing providers overall in the Q2 2018 E-Procurement SolutionMap and bests the majority of other SolutionMap participants in many of the functional areas in which Coupa comes out on top in a direct comparison.

The Q2 2018 E-Procurement SolutionMap benchmark is now based on an underlying dataset featuring 21 separate providers, including all of the “biggies” procurement organizations can expect to consider in a typical selection process. Whether you’re in the market for a new e-procurement product or want to know if you made the right decision for your organization, our SolutionMap analysis and benchmark data can tell you the answer. Curious to learn more? Don’t hesitate to get in touch.

Sourcing Technology Evaluation and Head-to-Head Comparison: Coupa vs. Jaggaer Advantage (Q2 2018 Preview)

With the acquisition of Trade Extensions, Coupa catapulted into the ranks of the sourcing elite almost overnight. Similarly, in acquiring BravoSolution, Jaggaer gained the prize for provider that balances depth and breadth across its sourcing capabilities most effectively. But how do the two providers stack up to each other in a head-to-head bout?

Join us in this unfiltered head-to-head SolutionMap results analysis from our Q2 2018 dataset, a preview of our not-yet-published SolutionMap, along with commentary from Spend Matters Founder Jason Busch. These recurring Head-to-Head columns share insights from each quarterly SolutionMap report for SolutionMap Insider Subscribers, providing unique comparative cuts of SolutionMap benchmark data, along with the trademark quips that have defined Spend Matters analysis since its inception.

If you need to know how these two top-ranked sourcing providers compare to each other, look no further. Here’s a preview, for those who have not yet subscribed to this new Spend Matters service: In certain sourcing capability requirements — including opportunity analysis, project management, supplier portal, spend analysis (lite), RFX, auctions, optimization, contract management (lite), post-event execution, technology, configurability, services and the summary sourcing average — Jaggaer Advantage puts a chokehold on its foe deep into the battle. But in at least one area, Coupa sneaks in a stealthy nunchuck blow in the first round. And at the final bell after multiple battles, we can declare a winner here — but only by the slimmest of margins.

The Q2 2018 Sourcing SolutionMap benchmark is now based on an underlying dataset featuring 16 separate providers, including nearly all of the must-shortlist sourcing technology providers procurement organizations can expect to consider in a typical selection process (as well as those they should consider but might overlook). Whether you’re in the market for a new sourcing product, want to augment current solutions with specialized capabilities or just want to know if you made the right decision for your organization, our SolutionMap analysis and benchmark data can tell you the answer. Curious to learn more? Don’t hesitate to get in touch.

Sourcing Head-to-Head Technology Evaluation and Comparison: Coupa and Jaggaer (BravoSolution)

When it comes to functional capability, BravoSolution (now Jaggaer) and Coupa are the two providers to beat.

Jaggaer’s sourcing strengths should come as no surprise to those familiar with its history. Coupa’s rapid e-sourcing ascent, however, will surprise many. It went from laggard to leader in the sourcing technology sector when the ink dried on its agreement to acquire Trade Extensions. Regardless, both providers excel on a functional basis and lead in many of the buying personas for our Q4 2017 SolutionMap.

But are they the right fit for your organization?

Join us as we put on the gloves and pit Coupa and Jaggaer “head-to-head” in the Spend Matters evaluation ring. We’ll start by providing a technology summary comparative rating of each provider and then explore business requirements and scenarios, calling out the winner in each match up. If you’re considering either vendor or other sourcing competitors, look no further for an evaluation and comparison you can’t get anywhere else. This is the first in a series of “head-to-head” evaluations based on our SolutionMap data, and more matchups will follow as additional providers step into the ring and seats to these SolutionMap subscriber-specific events become available (in addition to our usual vendor deep dives on Spend Matters PRO, of course). Stay tuned!

Merging Jaggaer and Pool4Tool: Strategy Analysis and Questions Customers Should Ask

Jaggaer announced Monday it would merge with Pool4Tool. The combination raises a number of questions, primarily from a strategy perspective, beyond just providing expanded distribution to a niche provider and the validation of a new technology segment (manufacturing-centric procurement solutions) in North America. Rather, it raises the broader notion of whether a mutual fund-type holding company structure — regardless of capitalization structure — can help the fortunes of each “member” (and customers) beyond a certain point.

There's no question the two firms are better together than apart. Both “members” can immediately cross-sell and gain certain scale advantages. They can do this because of customer goodwill and the ability to get in the door and deliver. No doubt the professionalism that a private equity-held software firm brings, along with professional services know-how and reach to drive sales and implementations, will be key contributors to initial momentum as well. Jaggaer brings these two areas to Pool4Tool — and then some. But this only goes so far.

Longer term, real technology integration models, including a supplier network and platform-as-a-service (PaaS) strategy, need to be spelled out. While our colleague Tom Finn appreciated Jaggaer and Pool4Tool’s honesty around the topic of integration, strategically, to maximize customer (and likely shareholder) value, our esteemed colleague may not be right. Which brings us to the strategic technology questions Jaggaer and Pool4Tool should be asking as well as those which customers and prospective should zero in on as well.