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Scanmarket: Vendor Analysis, 2020 Update (Part 3) — Competitors and Market Overview, Analyst Summary

The third and final installment of this updated Spend Matters PRO Vendor Analysis covering Scanmarket provides a SWOT analysis of the provider and looks at Scanmarket’s competitors in a competitive segmentation analysis and comparison.

The landscape for e-sourcing (RFX, auction, category management, sourcing optimization, etc.) is still highly fragmented. There is not a single market-share leader or “dual” leadership in this sector (as is the case with Coupa and SAP Ariba for the procure-to-pay category).

However, one trend in consolidation stands out: Providers focused on the “upstream” areas like sourcing but also supplier management, contract management and analytics have a strategy of either building or buying their way into the procure-to-pay sector — or merging their capabilities with other solution providers in this market.

Yet one nearly full upstream provider focused on this market remains independent: Scanmarket.

(We say “nearly full” because it remains dependent on a partner for spend classification, and it has some functional gaps in the supplier management and contract management areas.)

Of course Scanmarket faces competitors from different segments of providers with either more targeted or overlapping functional footprints. And a number of newer generation e-sourcing providers have set a course to build out their suites to more directly compete with Scanmarket, even if this is more on a regional basis currently.

This Part 3 installment also includes recommended shortlist candidates as alternative vendors to Scanmarket and offers provider selection guidance. Finally, it provides a summary analysis and recommendations for companies considering the vendor.

Part 1 provided an in-depth look at Scanmarket as a firm and its specific solutions, and Part 2 gave a detailed analysis of the solution’s strengths and weaknesses.

Let’s take a look at Scanmarket’s opportunities and threats as well as Scanmarket’s competitors in e-sourcing.

Scanmarket: Vendor Analysis, 2020 Update (Part 2) — Product Strengths and Weaknesses, Tech Selection Tips

This updated Spend Matters PRO Vendor Analysis explores Scanmarket’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether Scanmarket’s solution fits their needs and whether they should shortlist the vendor.

Scanmarket is one of the last remaining independent “upstream” procurement technology suite providers. While it brings particular capability and expertise in running both simple and complex RFX and auction processes (and formats), it also offers a range of adjacent capabilities in project management, supplier management and contract management.

On many levels, Scanmarket is one of the heirs to the specialized e-sourcing capability pioneered by firms like FreeMarkets and Procuri. And it also represents a targeted and cost-effective alternative to full-suite providers. In addition, Scanmarket offers deeper sourcing capability than procure-to-pay specialists in the market today.

Part 1 of our analysis provided a company background and solution overview, as well as a summary recommended fit suggestion for when organizations should consider Scanmarket in the procurement technology area.

The final installment in this series will offer a SWOT analysis, user selection guide, a look at Scanmarket’s competitors, and additional evaluation and selection considerations.

Let’s examine at Scanmarket’s strengths and weaknesses.

Scanmarket: Vendor Analysis, 2020 Update (Part 1) — Background & Solution Overview

In Spend Matters’ last PRO Vendor Analysis of Scanmarket, we noted that the market for source-to-contract suites (inclusive of spend analytics, e-sourcing, supplier management and contract management) was less crowded than before. Many providers with capabilities focused on this area expanded their product offering to transactional procurement, and the number of targeted suite providers focused solely on the source-to-contract (S2C) market declined.

But over the last three years, the competition here has started to increase again. Many of the new generation of e-sourcing providers have followed in the footsteps of their predecessors and added contract and supplier management capabilities to their offerings. And in some cases, vendors that started out in contract lifecycle management (CLM) or supply base management (SBM) are expanding into e-sourcing as well.

But given the demise of IBM Emptoris and Jaggaer’s acquisition of Bravo Solutions (although it technically added P2P before the acquisition), Scanmarket has emerged as the veteran vendor in the S2C space — and it is probably the vendor with the most traction and the largest customer base. Since our 2017 analysis, Scanmarket has focused primarily on improving its contract authoring and supplier management capabilities. And it is a solution provider that is more than standing its ground in a market where consolidation and the march to hybrid strategic and transactional suites is becoming the vendor norm.

This updated three-part PRO series provides facts and expert analysis to help buying organizations, suppliers and partners make informed decisions on Scanmarket’s source-to-contract capabilities. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Scanmarket in the procurement technology area. The rest of the research series will cover product strengths and weaknesses, a look at competitors, a company SWOT analysis and tech selection tips.

Let's take an updated look at Scanmarket.

Scanmarket

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 Scanmarket, a SolutionMap-ranked provider.

5 Easy Steps to Better Manage Your Suppliers

If you work for a large organization, you most likely have tens of thousands of suppliers, and any of them, to some extent, can pose a risk to your organization's operations, brand or customers. In addition, managing that many business partners is a difficult task that takes time, attention, organization and resources.

You and your suppliers are intimately linked, and what they do affects you, for better or worse. As a result, you need to be able to monitor, manage and collaborate with your entire supply base more broadly and effectively than ever before.

Before you get started, ask yourself these questions:

Best-of-Breed Solutions with Simple Integration Give Businesses More Choice

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Businesses deserve to have the procurement technology that best suits their needs, and with the rise of the cloud and easier integration of best-of-breed solutions, businesses of all sizes can choose from an array of offerings to solve specific problems.

This increased choice stems from the trend toward more open computer networks and APIs, the application programming interface. What the API does is let companies bring data, workflows and in some cases third-party functionalities to their existing backbone system or ERP to create their own version of an end-to-end suite.

As companies mature in their digital transformation from manual processes to automation, they’re in a better position to consider the buffet of solution options that will help them become more strategic.

Scanmarket: What Makes It Great (Sourcing SolutionMap Analysis)

The e-sourcing software market refuses to succumb to consolidation, providing significant choice to procurement organizations of all stripes, sizes, industries and operating geographies. Among these vendors, one of the most experienced in building technology to support both basic and complex RFX, negotiation and auctioning processes is Scanmarket. The closely held company today counts more than 300 global customers and delivers a broad set of capabilities, including integrated spend analytics, supplier management and contract management.

For customers, Scanmarket is a reasonably priced, best kept procurement secret that does not compromise on the e-sourcing fundamentals. But how does the provider stack up in this highly competitive technology market? On the surface, Scanmarket is one of the top performers in the Q3 2018 Sourcing SolutionMap for the Nimble buying persona, as well as a recommended fit across all five Sourcing SolutionMap buying personas. To understand where Scanmarket stands out — and why this matters for sourcing and category teams — let’s dive into the more than 100 fields that comprise the Sourcing benchmark and explore what makes Scanmarket 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.

Scanmarket: Vendor Analysis (Part 3) — Commentary and Summary Analysis

Today’s landscape for e-sourcing (RFX, auction, category management, sourcing optimization, etc.) is highly fragmented. There is not a single market-share leader or “dual” leadership in this sector (as is the case with Coupa and Ariba for procure-to-pay). However, there has been one trend when it comes to consolidation, and that is providers focused on the “upstream” areas inclusive not only of sourcing, but also supplier management, contract management and analytics, either building or buying their way into the procure-to-pay sector — or merging their capabilities with other solution providers in this market.

Yet one nearly full “upstream” provider focused on this market remains independent: Scanmarket. (We say “nearly full” because it remains dependent on a partner for spend classification, and it has some functional gaps in the supplier management and contract management areas.) Of course Scanmarket faces competition from different segments of providers with either more targeted or overlapping functional footprints. But its commitment and focus on strategic sourcing technology and adjacent capabilities at a global scale remains singular today, at least as independent vendors go.

This third and final installment of this Spend Matters Vendor Snapshot covering Scanmarket provides an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also includes recommended shortlist candidates as alternative vendors to Scanmarket and offers provider selection guidance. Finally, it provides summary analysis and recommendations for companies considering the vendor. Part 1 provided an in-depth look at Scanmarket as a firm and its specific solutions, and Part 2 gave a detailed analysis of solution strengths and weaknesses and a review of the product’s user experience.

Scanmarket: Vendor Analysis (Part 2) — Product Strengths and Weaknesses

Scanmarket is one of the last remaining independent “upstream” procurement technology suite providers. While it brings particular capability and expertise in running both simple and complex RFX and auction processes (and formats), it also offers a range of adjacent capabilities in project management, supplier management and contract management. On many levels, Scanmarket is one of the heirs apparent to the specialized e-sourcing capability pioneered by firms like FreeMarkets and Procuri — and it also represents a targeted and cost-effective alternative to full-suite providers (as well as deeper sourcing capability than procure-to-pay specialists in the market today).

This Spend Matters PRO Vendor Snapshot explores Scanmarket’s product strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should shortlist the vendor. It also offers a critique (pros/cons) of the user interface. Part 1 of our analysis provided a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Scanmarket in the procurement technology area. The final installment in this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

Scanmarket: Vendor Analysis (Part 1) — Background & Solution Overview

The sourcing and supplier management suite market (inclusive of spend analytics, e-sourcing, supplier management and contract management) was a crowded sector for many years. But as more providers with capabilities focused on this area have expanded their product offering to transactional procurement and as vendors in the procure-to-pay (P2P) sector expanded through acquisition into sourcing and supplier management, the number of targeted suite providers focused solely on what we describe as the “source-to-contract” market has declined. Yet Scanmarket is one of those that remain (and it is the vendor with the most traction and the largest customer base). And it is a solution provider that is more than standing its ground in a market where consolidation and the march to both strategic and transactional suites is becoming the norm.

This Spend Matters PRO Vendor Snapshot provides facts and expert analysis to help buying organizations, suppliers and partners make informed decisions on Scanmarket’s source-to-contract capabilities. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Scanmarket in the procurement technology area. The rest of this multi-part research brief will cover product strengths and weaknesses, competitor and SWOT analysis, user selection guides, insider evaluation and selection considerations.