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

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 [PRO]

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 [PRO]

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.

LogicSource: Vendor Analysis — Background, Solution Overview, SWOT, Tech Selection Tips [PRO]

Oracle

The convergence of technology and services is a trend that’s hard to ignore in the procurement solutions market. Rare is the successful implementation story these days where a vendor deploys its software, trains the user and disappears until contract renewal. Rather, supporting services, including not only implementation and user training but also value-add activities like process outsourcing or digital transformation consulting, are becoming integral to creating satisfied customers. In fact, that’s why our highly technical SolutionMap evaluation includes both feature/function assessments of platform capabilities and requirements for services capabilities/customer feedback.

Perhaps ahead of this curve was LogicSource, a tech-enabled procurement business process outsourcing firm out of Norwalk, Connecticut, that offers services for sourcing and contract management alongside specialized tools for spend analytics, spend/savings tracking and P2P management.

Founded in 2009, LogicSource has its roots in the retail world, where the provider first focused on enabling direct and commercial print procurement. Today it has expanded its coverage to a slew of indirect spend categories, picking up BPO and tech-first clients like Rite Aid, GSK, The Hartford, Lululemon and Dish along the way.

This Spend Matters PRO Vendor Analysis offers an overview of LogicSource, including quick facts about the provider. The brief also includes an introduction to LogicSource’s OneMarket solutions for spend analysis, savings tracking and P2P; an overall SWOT analysis comparing it to other procurement services providers; and a selection checklist for companies that may consider the provider.

Let’s take a look at LogicSource.

Market Dojo: Vendor Analysis 2020 Update (Part 3) — Competitors and Analyst Summary [PRO]

While the procurement technology market has changed in some ways, sourcing suites still compete in a fragmented global marketplace with everyone from large ERPs and full source-to-pay suites to well-funded startups to bootstrapped ventures. They are all competing for a growing pie, consisting of Global 2000 organizations often going to market for a second or third time (or buying an alternative technology), as well as a growing number of middle market organizations adopting and digitizing strategic sourcing processes for the first time.

E-sourcing specialist Market Dojo is one of dozens of providers in this large market.

But when you consider how many of its peers represent pure-play sourcing providers versus broader source-to-pay (S2P) and procure-to-pay (P2P) suites, the market thins considerably — and does so even more if you narrow the list of e-sourcing providers to those with a strong middle-market track record and orientation.

This final installment of our updated multipart Spend Matters PRO Vendor Analysis series covering Market Dojo offers a competitive analysis and comparison with other vendors that companies may wish to shortlist that compete in the same markets. It also includes a user selection guide and summary evaluation and selection considerations.

Part 1 and Part 2 of this PRO research series provide a company and deep dive solution overview, product strengths and weaknesses, a SWOT analysis and tech selection tips, like a recommended fit analysis for what types of organizations should consider Market Dojo.

Now, let’s look at Market Dojo’s competitors.

Market Dojo: Vendor Analysis 2020 Update (Part 2) — Product Strengths & Weaknesses [PRO]

Since our 2016 analysis of Market Dojo, the e-sourcing provider has addressed a number of our identified weaknesses and added an entirely new module — Contract Dojo for contract management. Market Dojo also has continued to build on its strengths in its easy-to-use e-sourcing solution.

Founded in 2010, Market Dojo is a viable shortlist candidate in the e-sourcing market and one of the leading vendors centered on capability and delivery/cost models aimed at middle-market procurement organizations. This updated Spend Matters PRO Vendor Analysis explores Market Dojo’s strengths and weaknesses and offers a SWOT analysis, providing facts and expert insights to help procurement organizations decide if they should shortlist the vendor as a potential provider. Also see other tech selection/shortlist tips.

Part 1 of our analysis provided company background information and a detailed solution overview, as well as a summary recommended-fit suggestion for what types of organizations should consider Market Dojo. The last installment of this three-part series will offer a user selection guide, a look at Market Dojo’s competitors, and more evaluation and selection considerations.

Market Dojo has not only developed an e-sourcing suite but also done so in a bootstrapped manner. Market Dojo has grown from a provider of “pay-per-drink” auction events to a full sourcing suite with RFX, document and template management, supplier information management (SIM), basic contract management, innovation management and category management (analysis and strategy).

Let’s take a look at the strengths and weaknesses of Market Dojo’s solution.

Market Dojo: Vendor Analysis 2020 Update (Part 1) — Background and Solution Overview [PRO]

The e-sourcing market is going through a shift. Most of the traditional e-sourcing vendors targeting large enterprises have either built out their offerings to full source-to-pay (S2P) suites or been acquired by P2P vendors that also offer full S2P. But there still are a number of sourcing specialists remaining out there, and more are entering the market often focusing on ease-of-use or trying to use AI as a differentiator. These vendors are typically targeting the mid market or lower enterprise market and often have a more regional presence and focus, typically as a result of more modest resources and funds to spend on sales and marketing.

One of the more established sourcing specialists is UK-based Market Dojo.

This Spend Matters PRO Vendor Analysis is an update of our 2016 look at Market Dojo, when we concluded that its solution was a shortlist candidate to fill the sourcing needs of middle market procurement organizations that require a simple, but solid, platform to transform their sourcing efforts and bring it into modern times.

Since then, Market Dojo has been busy improving its platform and addressing weaknesses we saw. The focus has been on adding advanced lot capabilities (like allowing more advanced bidding and pricing structures), improving supplier information management (SIM) and adding Contract Dojo, a simple but functional contract repository.

Beyond this, one of the biggest investment areas for Market Dojo has been in what it calls “customer love,” most noticeable in the addition of a customer success team (although it's currently only one person) and strengthening of support capabilities.

In addition to providing RFX, auction, SIM and contract management capability, Market Dojo also offers an innovative category management application that can help an organization analyze its categories, prioritize opportunities and identify the sourcing strategy that is most likely to be effective. This is a unique application that is not even present in the suites of many larger providers, at least not as pre-configured as in Market Dojo’s case.

This three-part Spend Matters PRO series will provide company background, a detailed solution overview and SWOT analysis of Market Dojo, as well as a summary recommended fit suggestion for what types of organizations should consider the provider. The series also provides insight into detailed product strengths and weaknesses, offers a user selection guide, suggests competitive alternatives, and offers summary evaluation and selection considerations.

The Contingent Workforce and Services (CW/S) Insider’s Hot List: August 2020 [PRO]

Welcome to the August 2020 edition of Spend Matters Insider’s Hot List, a monthly look at the contingent workforce and services (CW/S) space.

Starting with this issue, due to the discontinuation of our Spend Matters Plus+ subscription, the Hot List will now be available to PRO subscribers only.

For those new to the Hot List, each edition covers the prior month’s important or interesting technology and innovation developments in the CW/S space. In the last Hot List, we covered key events and developments that took place in June.

In July, even though we were experiencing the compound effects of the coronavirus surges throughout the U.S. and the uncertain economic recovery (V-shaped or otherwise), the innovation and new developments in the CW/S space did not stop. With the bane of COVID-19, new solutions and combinations are starting to appear and will no doubt continue to do so because the economy requires many adaptations and innovations to reach some kind of new steady state in — probably the best-case scenario — 2022. Necessity did prove to be the mother of invention.

Though still a slower summer month, July did witness some key developments in the space, including a surprise from SAP Fieldglass. So let’s take a stroll.

Making Sense of Supply Risk Management Solutions (Part 4) — Supplier Financial Risk Monitoring Services [PRO]

In previous installments of this Spend Matters PRO series, we outlined the overall segments of the supply risk management market and then began diving into the supply chain risk management segment and the overall supplier risk management area with a focus on risk management within a supplier management context that sits within the broader area source-to-pay (S2P).

For most procurement leaders though, supplier risk management can be a daunting problem to tackle if looked at truly holistically and strategically — especially when those leaders are not always measured on supply risk. In fact, in a research study that we did a few years ago with over 200 procurement professionals, we found that 53% of them weren’t even measured explicitly on reducing supply risk.

That said, no CPO wants to be caught out if a critical supplier goes bankrupt, and this is why a higher percentage of firms will perform a subset of supplier risk — supplier financial risk monitoring for critical suppliers. In fact, CAPS Research came out with a metric in April citing that 72% of surveyed firms (which tend to be large enterprises) are currently using third-party tools to monitor the financial health of their suppliers. The knowledge of which suppliers are struggling also helps illuminate other supplier performance areas that are likely being impacted: innovation, risk reduction, etc. It’s not just a supplier “death watch.”

These tools (which are really more data services than tools) are the ones that we’ll now delve into. And the timing couldn’t be more critical given what’s happening with the COVID-19 pandemic and the impact that it’s having on so many suppliers right now — especially smaller / private suppliers that don’t have strong capital reserves to weather the prolonged crisis that looks to be hanging around for at least another 12 months.

The market for supplier financial risk monitoring is especially challenging because it’s complex, poorly regulated and not well understood — and this leads procurement leaders to make suboptimal choices (improper scoping, generic sourcing strategies, using “safe”-but-expensive incumbents, etc.) — leaving them underprotected and/or overpaying (sometimes over six figures annually!).

We’ll spend the rest of this installment time helping readers understand this market a little better and how to approach it more deliberately and effectively. We’ll also analyze some of the pros and cons of using various providers’ strategies and specific providers such as Bureau Van Dijk, CreditRiskMonitor, Cortera, Dun & Bradstreet, Equifax, Experian, FICO, RapidRatings and others.

Part Analytics: A New Vendor in Direct Materials Analytics [PRO]

Analytics is hot! According to the 2019 Deloitte Global CPO Survey, analytics is the technology that CPOs believe will have the most impact on their businesses over the next two years. And there is no shortage of vendors wanting their piece of the pie. New analytics vendors are emerging both in the traditional spend analysis space but also in more specialized areas.

One such specialist vendor is Part Analytics.

It focuses on analyzing bills of materials (BOMs) to help identify savings opportunities and drive compliance. The two founders, Jithendra Palasagaram and Jesil Pujara, have more than 25 years of experience in procurement and engineering at organizations such as GE Healthcare and Schneider Electric.

They founded Part Analytics with the intention of digitizing manual Excel-based processes and enabling data-driven analytics of, at least initially, electronics BOMs to help identify savings opportunities and risks. This was partially fueled by their experience of the disconnect between OEMs and EMSs (electronics manufacturing services) where the OEMs often have limited insight into specific component costs that then go into larger assemblies. 

Corcentric Payments — Introduction and Solution Overview [PRO]

Being in the source-to-pay (S2P) space with a competitive “last mile” payment offering these days is increasingly being viewed as a must-have.

There appears to be little doubt that B2B payments functionality is playing catchup when it comes to automation, compared to other key areas in the enterprise.

Most businesses, regardless of size, will look to their relationship banker for business payable and disbursement services. And why not? The banks have the regulations, legacy infrastructure, capital, KYC and AML compliance, and the correspondent network to handle payments. That’s what they do besides take deposits and make loans. But many financial institutions lack a proven, committed ability to integrate with ERP and S2P platforms, have limited supplier enablement capabilities, lack real-time dashboard reporting and cloud technology, and are poor at onboarding.

This is where source-to-pay vendors, with the right partner or set of partners, can put a competitive solution together that can compete on banks’ ability to offer higher rebates, lower transaction pricing and relationship.

No one said displacing the status quo would be easy.

Banks, given their credit relationships with clients, do offer a tough competitor, but the need to bring more efficiency and automation into B2B payments is becoming increasingly clear.

Today, we'll look at how Corcentric has added payments to its toolkit to help S2P customers that are looking for a payment solution that extends their AP automation capabilities. From a procurement and AP lens, Spend Matters has covered Corcentric and its recent acquisitions of Determine (see analysis here) and Netsend as well (see post here).

This Spend Matters PRO post will look at Corcentric Payments’ solution, how it works and the technology it uses.

An Executive’s Guide to Direct Sourcing of Contract Work/Services (Part 3) — What To Pay Attention To [PRO]

supplier network

Direct sourcing of contract work/services is an emerging, alternative way of tapping into pools of contract workers and service providers that are not available through established sourcing channels provided by procurement. Senior executives may be hearing more about this phenomenon, or their organizations may already be embarking on an initiative. As such, a clear understanding of today’s direct sourcing of contract work/services may be needed. This three-part series is intended to help executives to get a leg up.

Part 1 of the series discussed how direct sourcing today is different from the past and what it is now. Part 2 reviewed the landscape of direct sourcing solution providers and looked at some of the purpose-built technology solutions available today. This final Part 3 offers executives suggestions on what to pay attention to if they or a part of their organization begins moving in this direction.