By: Sakthi Prasad -- Content Manager
30 January, 2018
In Collaboration with Ddivya Kumar, Senior Analyst
The rising demand for the automation of procurement processes will drive the growth of eProcurement software in the coming years.
We ran a poll among users of Beroe LiVE, a community of thousands of Procurement decision makers, to find the most important factor for choosing an S2P supplier.
A majority of them have cited integration capability with other/existing modules as the most important factor, while innovation and automation were two other major factors cited by poll respondents.
However, there is a challenge when it comes to Automation and Integration with other systems. A majority of the implementation fails due to lack of supplier interest. Suppliers either face a problem of extra back-end work or involvement of extra fee in the process.
While service providers take care of launching standard solutions, instances of interoperability problems with other systems cannot be ruled out.
Hence, finding the right mix of solutions for the entire S2P solution is a challenging task for sourcing teams.
Innovation, however, presents an opportunity. The Source-to-Pay market witnessed a continuous growth over the last year. Many service providers are coming up with new plans and bundled services in order to have an efficient business outcome.
Social Collaboration -- The Source-to-Pay market is heavily impacted by SMAC (Social, Mobility, Analytics and Cloud). Service providers are bringing in social collaboration by creating a single channel of engagement and information-sharing between buyers and suppliers.
Self Service -- In order to free up Procurement’s time, certain service providers are offering digital signature feature in their Source-to-Pay suites.
Integrated Analytics -- The market is witnessing integration between the various S2P modules.
An ePurchasing suite typically consists of eight different products and there is no single solution that is available in the market that offers the best of all eight categories.
In the best case scenario, there could be three to five high-quality, interrelated products from one vendor. However, it is highly unlikely for all eight products in a suite from a single vendor that will cater to the needs of a procurement organization.
Hence, buyers usually have a mixed portfolio of ePurchasing products from two to four different vendors.
While some buyers prefer a suite, many of them want best-of-breed. ePurchasing market consists of eight different products. Hence, it is better for all important stakeholders in the organization to deliberate among themselves before choosing a service provider(s).
For example, the Chief Financial Officer (CFO) will have a voice in choosing Accounts Payable (AP) eInvoicing and spend analysis; the general counsel in CLM; the CIO in IT-specific purchases; and B2B sales team in CLM and Accounts Receivable (AR) eInvoicing.
As a result, specialist vendors with strongly differentiated products are in high demand in the market. It is better for the teams to sit together and discuss before making the move to choose a vendor or suite of services.
Below is the snapshot of Top 10 eProcurement software providers along with their capabilities, deployment model, client industry concentration and geographic coverage.
(Click to zoom image)
*Suppliers are ranked based on their Procurement software revenue, cost, product capabilities, client base , user reviews and geographic presence.
Join us on Aug 20 for a Live Workshop on E-Auction By Jacob Gorm Larsen, Head of Digital Procurement at Maersk Group