The top capabilities of Source-to-Contract solutions

The vendors considered

Corcentric Platform
SAP Ariba

Exploring the actual market state of the top 4 modules

1. Analytics

The ability to provide a single view into all historic, current and planned supplier spending in order to improve that spending through better sourcing, compliance and demand management.

On average, buyers should expect a source-to-contract vendor to include out-of-the-box report builders (drag-and-drop models), reporting dashboards and descriptive reports of all S2C metrics. Top performers have deeper analytics capabilities, such as market intelligence through community-sourced data and AI/ML-enabled actionable analytics that support the identification of opportunities.

We have seen top performers with actionable analytics for benchmarks, process KPIs and user KPIs. They also use predictive and prescriptive analysis to guide users during their S2C activities, thus achieving a greater contribution from all stakeholders and generating greater value for the business.

2. Contract Lifecycle Management

The ability to automate the authoring, negotiation, execution, implementation, monitoring and renewal of B2B contracts (with an emphasis on supplier contracts).

Contract Lifecycle Management (CLM) functions as the final concrete step (i.e., not including regular/ongoing supplier management) of the source-to-contract process. With CLM, organizations increase the speed and quality of the contract drafting, negotiating and ongoing repository-based management processes.

Within S2C, CLM is especially useful when it is fully integrated, e.g., a sourcing event can automatically generate the creation of a new contract within the platform. Top solutions for CLM will go beyond cross-functional/module collaboration and offer deep configurability (templates, searches, etc.), guided authoring, suggested clauses, clause-level risk scores and more.

3. Sourcing

The ability to support content and services for managing sourcing strategies (including category strategy), execution (e.g., RFx management and e-auctions) and portfolio/performance management.

Average source-to-contract vendors enable customers to manage moderately complex sourcing events that partially leverage the other modules of the suite (SxM and CLM). Top performers can better cross-fertilize processes bringing more data into the sourcing process to enhance key steps, such as supplier invitations and bid analysis/evaluation, by providing users with a bigger picture and the means to perform more complex scenarios. They also have more capabilities to bring outside-in intelligence, enhancing strategizing and execution.

We have seen leading performers leveraging AI to automate the sourcing process and augment sourcing professionals with recommendations on when to launch events and what to do when managing an event.

4. SxM

The ability to not only orchestrate user experiences between suppliers and employees across S2P but also augment sourcing/contracting and P2P solutions with capabilities to optimize supplier-related information, performance, relationship, quality, risk and compliance management.

The average source-to-contract provider supports customers in managing the complete supplier lifecycle and feeds other modules and systems with supplier-related information. The differences between average and leading providers reside in the breadth and depth of managed and verified information and configuration capabilities (data model, workflows, etc.).

We have seen how leading providers help customers tackle data quality issues by leveraging various capabilities (network, community, AI/ML, etc.) and ensuring that every supplier interaction managed in the suite is the occasion to review/update data. These leading solutions also foster a di-directional collaboration.

What does a Source-to-Contract solution do?

Source-to-contract solution suites automate ‘upstream’ (non-transactional) procurement processes, including spend/supply analytics, sourcing (sourcing strategy and e-sourcing execution), buy-side contract management and supplier management.

Why buy a Source-to-Contract solution

Source-to-Contract suites automate non-transactional procurement processes that create the majority of procurement value: spend/supply analytics, sourcing, contracting and ongoing supplier management. They are layered on top of ERP/P2P systems so that a singular strategic technology platform helps maximize commercial value before deploying the execution to P2P execution systems.

How ‘Market State’ is derived from the SolutionMap dataset

These ‘Top 4’ modules stem from the Spend Matters TechMatch workbench, derived from 274 requirements scored in the S2C Spring 2024 SolutionMap solution benchmark.

The Top 4 modules are the highest-weighted sum of critical capabilities that are central to the displayed solution market benchmark. They have been developed by Spend Matters team of analysts and refined by procurement users in tech selection projects using our market-proven SolutionMap benchmarking dataset and associated TechMatch decision-making tool.

Spend Matters® SolutionMap Procurement Technology Intelligence

Spend Matters built a better way to help companies, and their consultants, advance procurement practices via technology. SolutionMap compares technologies on two main factors: technical capability (gathered via a rigorous RFI process) and validated customer ratings. Data is refreshed every six months. Participation for vendors is completely non-commercial.

Spend Matters® SolutionMap Intelligence Process Overview

Spend Matters SolMap Process

Featured vendors undergo a rigorous, RFI-based assessment process including functionality counter-scoring, supporting materials review, tech demos, and submission of independent customer references. Expert analysts deeply vet solutions capabilities prior to ranking inclusion. Only relevant industry players who meet the criteria determined by Spend Matters are invited, in order to create a complete view and optimal intelligence for its members.