Archlet

What it Does

Archlet is an e-sourcing provider that describes itself as a tool that enables optimization and scenario-based sourcing, key data-backed analytics and insights to drive quicker sourcing decisions. Archlet does not claim to be a complete sourcing tool — it augments existing sourcing applications and is integrated with two SAP solutions (SAP Ariba and S/4HANA). It also offers pre-built integrations with specialty-data providers Mintec and EcoVadis.

Archlet is a scalable and customizable application usable by an entire procurement organization. Users, typically procurement managers, can have varying roles/permissions within the platform and can collaborate internally on unique sourcing projects. The Archlet engine runs on Excel-based data uploads and/or data pulled from a customer’s existing ERP systems and sourcing suites.

From a modular standpoint, Archlet is intuitive via its sidebar with sequentially laid out sections organized by steps in the sourcing process. Once the user creates a project for a specific sourcing event, the workflow proceeds through bidding rounds, analytics and insights, and optimization and scenarios modules.

Why We Chose It

Archlet was chosen for the 2021 Future 5 because of its optimization focus. Throughout the procurement function, optimization has been a difficult task for providers to tackle. Usually, optimization is applied only to high value spend such as transportation, and it historically has been restricted only to power users with mathematics backgrounds. Archlet still provides power, but at a usable level.

Archlet’s ability to bring in extra data around the award process through its partnerships with Mintec and EcoVadis provides a growing level of capability, which is reflected in Archlet’s increasingly high-profile customer list. Through its strong partnerships (which the provider is continuing to build out) and its powerful but accessible optimization focus, Archlet is a strong 2021 Future 5 provider.

Any threats or challenges ahead?

Archlet is still in its infancy, but its customers have asked for more of an end-to-end solution. Naturally, the provider is expanding and regularly adding more functionalities to meet customer demands. Optimization is one piece (albeit an important and differentiating one) of a larger puzzle. By building out a broader sourcing tool, Archlet will enter a more crowded market where many other considerations around supplier management, contract management and more will be in play. In a way, Archlet is only inviting more competition by expanding, and its competitors will have stronger differentiators in areas that Archlet does not yet have experience in.

Moreover, Archlet does not yet have bill of materials manipulation or matching capabilities that would allow users to create scenarios automatically organized by specific materials within multiple bills of materials. While this might align with Archlet’s “less is more” dogma with respect to serving organizations that are less interested in complex scenario designs, other optimization solutions offer stronger bill of materials support that might appeal to more mature organizations.