The Forrester Wave eProcurement Solutions Q1 2011 1172

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Making Leaders Successul Every Day

Mh 7, 2011

The Feste Wve:ePemet Sts, Q1 2011 D Jes

f Sg & Ved Mgemet Pfesss
http://www.forrester.com/


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2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total EconomicImpact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective owners. Reproduction or sharing o thiscontent in any orm without prior written permission is strictly prohibited. To purchase reprints o this document, please email [email protected]. For additional reproduction and usage inormation, see Forresters Citation Policy located at www.orrester.com. Inormation is

based on best available resources. Opinions refect judgment at the time and are subject to change.

F Sg & Ved Mgemet Pfesss

ExEcuTiVE SuMMary

In Forresters 70-criteria evaluation o eProcurement solutions, we ound that Ariba and Basware led

the pack because o their superior user experience and wider supplier enablement capability. Oracle

E-Business Suite and SAP nudged ahead o the remaining products thanks to broad unctionality,

superior analytics or key perormance indicators (KPIs), and support or global enterprises. E-Plus

and SciQuest oered good general products with some excellent category-specic support. CapgeminiProcurement Services and Hubwoo rate highly as requisitioner UI and supplier enablement layers on

top o SAPs Supplier Relationship Management (SRM) platorm, while Lawson and Oracle PeopleSo

are smart choices or their enterprise resource planning (ERP) customers. Overall, there was little to

broadly dierentiate among the 11 products, which are all proven solutions with loyal customer bases

and talented product management teams. Procurement executives looking to choose an enterprisewide

solution should thereore drill into the detailed evaluation criteria, where clear dierentiation exists.

You can use the Forrester Wave tool to tailor the evaluation to meet your specic needs. By upgrading

the weight given to the criteria that are important to you, and downgrading the nice-to-haves, you can

create a customized ranking to drive and justiy your decision.

TablE oF conT EnTSeProcremet Tools Covert Teoretical

Sorci Savis Ito Real Savis

Forrester Eamied EterpriseClass Vedors

Prodcts Ad Strate

Ariba Ad Basware Lead, Followed B Oracle

Ad SAP Jst Aead O Te Pac

Vedor Profles

Spplemetal Material

noTES & rESourcES

Feste dted ePemet pdt

evts 2010 d tevewed 11

ved mpes: a, bswe, cpgem

Pemet Seves, e-Ps, Hw, lws,

oe E-bsess Ste, oe PepeSft,

Pefet cmmee, SaP, d SQest. We s

tevewed t est tw mted efeee

stmes pe ved.

Related Researc Docmetsbes Gve ePemet Sftwe Hgh Mks

bt Wt bette KPi reptg

ap 23, 2010

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Mh 24, 2010

Mh 7, 2011

The Feste Wve: ePemet Sts,Q1 2011Pe-T-P Spests a ad bswe St led, bt The ErP Stes Hvecsed The Gp

b Dca Joes

wth chste Fes rss d r Stt

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6

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9

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2011, Feste reseh, i. repdt PhtedMh 7, 2011

The Feste Wve: ePemet Sts, Q1 2011


2

EPROCuREMEnT TOOLS COnVERT ThEORETICAL SOuRCIng SAVIngS InTO REAL SAVIngS

Manual procure-to-pay (P2P) processes, whether they use paper requisitions or ree-text records in

a workow system, are inefcient and ineective. Not only do they waste employees time creating,

approving, and processing transactions, they ail to channel spend to the right items rom the right

suppliers. Even worse, busy sta will ignore the ofcial process and order the stu they need by

phone or Internet. eProcurement products can reduce this so-called maverick spend waste by:

Guiding people to buy rom the companys approved suppliers at pre-negotiated prices.Many employees avor convenience over price, at least in a business context, so they oen

choose the local supplier who can deliver quickly, even i it charges a premium price. Te

company can also lose discounts and rebates rom the ofcial supplier i it ails to achieve

orecast volumes due to spend going elsewhere.

Enabling proper approval o most purchases. Mavericks nd it easier to ask or orgiveness,not permission. Tey buy what they believe they need and then expect their manager to acceptthe ait accompli. eProcurement products enorce company governance policies by routing

transactions through customized approval workows.

Reducing invoice processing delays and errors. Many accounts payable (AP) departmentsdevote more than 25% o their time to error resolution invoices that dont reerence a

PO or have quantity and/or price discrepancies. One Forrester study ound that enterprises

that combine eProcurement with e-invoicing were twice more likely than average to achieve

excellent AP perormance.1

good eProcremet Soltios Mae Te Correct Process Easier Ta Te Roe Oe

eProcurement tools address these issues by encouraging people to buy rom preapproved suppliers

and item lists, known as catalogs. Tese ensure that the company gets the pre-negotiated price.

Implementing an eProcurement tool is insufcient unless people use it. Company sta who need

to buy indirect goods and services are busy people, and they dont have time to waste lling in long

requisition orms or waiting or a tortuous approval process. Tey want to order their stu, get it

quickly, and move on. Te key to getting high adoption is to make the ofcial process simple and

quick while putting obstacles in the way o alternatives. Project teams should ocus on:

Easy-to-use requisition creation. Requisitioners want to be able to nd what they want in an

internal catalog or on an approved supplier website and create a requisition with the minimumadditional data needing to be keyed in. Tey want a user interace that matches the best web-

shopping experiences.

Category-specic unctionality. Not everything we buy is as simple as ofce supplies. Peopleneed to be able to procure various categories, including congured items and complex services.


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2011, Feste reseh, i. repdt Phted Mh 7, 2011



3

Te eProcurement system should point them to the right suppliers, prompt or important

inormation, and support category-specic ordering, delivery, and invoice-matching processes.

Rapid approval. Overworked staers dont want to wait or urgently needed goods and services,so theyll bypass the system i purchasing doesnt issue the PO swily. Tis means that the

system must trigger managers to review and respond promptly to incoming requisitions, and

it must issue the PO without urther manual intervention. Bottom line: Every requisition must

become a PO within 48 hours, unless there is a genuine reason or it to be rejected, or people

wont use the system.

Penalties or noncompliance. It is insufcient to merely make the right way easier projectteams also have to make the wrong way harder. For example, delaying payment to suppliers who

ail to quote valid PO numbers on their invoices will encourage them to reject the mavericks

telephone orders. Forrester spoke with one company whose central nance department

levies penalty charges on business units (BU) or any invoices they have to process that arent

supported by properly approved purchases.

Te ERP Sites have Cat up, Bt Tere Is Still Room For Specialists To Scceed

Te ERP giants have enhanced their products greatly over the past ew years, so their unctionality

matches the specialists in most criteria and even exceeds it in others. Many enterprises with

relatively simple, consistent ERP landscapes will not look beyond their incumbent, deciding that

qualities such as brand, nancial strength, and ease o integration will outweigh any (alleged)

unctional deciencies. Alternatively, many procurement executives will also consider eProcurement

specialists who may deliver:

Faster supplier enablement and better supplier support. Te ERP suites P2P model assumesthat suppliers will ock to an enterprises supplier portal without needing much persuasion.

Tis approach wont work or all companies many nd that their suppliers resist pressure to

transact manually via multiple customers websites.2 Te eProcurement specialists provide tools,

expertise, processes, and resources to connect clients with their suppliers.

Wider user adoption, thanks to a superior user experience.Te ERP giants earlyattemptsat eProcurement lacked usability, so many o the specialists grew by providing better catalog

management and search ront ends to ERPs purchasing modules. However, although the best-

o-breeds still stay slightly ahead, the suites have largely closed the usability gap.

Category-specic expertise. Basic catalog search and shopping cart creation are commodityeatures, but most o the problems come rom the complex categories that generic products

cannot support very well. Most products let you tailor input orms and workows, but some

specialists have developed productized solutions or these difcult areas, and these may be the

most important dierentiator in your decision.


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4

FORRESTER ExAMInED EnTERPRISE-CLASS VEnDORS PRODuCTS AnD STRATEgy

o assess the state o the eProcurement market and see how the vendors stack up against each other,

Forrester evaluated the strengths and weaknesses o 11 top eProcurement vendors.

Te Forrester Wave helps yo Decide Wic Vedor Will Maimize eProcremet Adoptio

From researching many eProcurement implementations, both successul and disappointing, we

have identied that resistance, rom sta and suppliers, is the major obstacle. Tereore, we have

developed a comprehensive set o evaluation criteria that ocus primarily on eatures that will help

eProcurement project leaders maximize adoption and use o their chosen product. We evaluated

vendors against 70 criteria, which we grouped into three high-level buckets:

Current oering. We placed most emphasis on user experience eatures such as requisitioncreation and approval, along with the vendors capabilities to integrate suppliers into the P2P

process. We looked closely at potential dierentiators such as category-specic unctionality,KPI analytics, and support or central procurement departments servicing global businesses.

We also tested buyer and system admin eatures and technology criteria such as the ease o

integration with related applications.

Strategy. It is important to pick a vendor with the strategy and nancial resources to continuedeveloping and enhancing its product over the long term. Small companies may be unable to

realize their bold aspirations, whereas large ones may divert resources elsewhere to higher-

priority product categories. Tereore, our evaluation o vendors strategies considers their ocus

on eProcurement and their ability to be successul in the market, in addition to vision and

nancial strength.

Market presence. We assessed vendors signicance in the overall market by evaluatingrecurring revenue (maintenance and soware-as-a-service subscriptions), new revenue

(perpetual license sales and subscription growth), and employees (either ull-time assigned to

eProcurement or an appropriate proportion o shared resources). Tis rating drives the size o

the bubble in the main chart but does not aect our overall ranking.

Forrester Evalated Te 11 Larest Vedors Wit EterpriseClass Soltios

Forrester included 11 vendors in the assessment: Ariba, Basware, Capgemini Procurement Services,

e-Plus, Hubwoo, Lawson, Oracle E-Business Suite, Oracle PeopleSo, Perect Commerce, SAP, and

SciQuest. Each o these vendors has (see Figure 1):

A comprehensive solution suitable or enterprise customers . . .Tis test excludeseProcurement solutions ocused on specic categories such as travel (e.g., Concur, Rearden

Commerce) or contingent labor (e.g., Beeline, IQNavigator).


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. . . including a signicant amount o its own productized intellectual property (IP). Weincluded Hubwoo and Capgemini who incorporate SAPs SRM product but layer their own IP

on top to provide an improved user interace or requisitioners. We excluded marketplaces and

supplier networks that did not satisy this criterion.

More than $15 million in revenue per year rom eProcurement products and services.Te Forrester Wave is a comprehensive evaluation, so we are unable to evaluate every vendor

operating in the category we are studying. A vendor that alls below this size threshold may be

a good choice or companies in its target market niche, whether characterized by size, vertical,

region, or budget, but the vendor is unlikely to have the breadth and depth o capability that

enterprises will need.

Fire 1 Evted Veds: Pdt ifmt ad Seet cte

Source: Forrester Research, Inc.

Vendor

Ariba

Basware

Capgemini Procurement Services

e-Plus

Hubwoo

Lawson

Oracle E-Business Suite

Oracle PeopleSoft

Perfect Commerce

SAP

SciQuest

Product evaluated

Ariba Procurement

Basware Purchase Management

IBX eProcurement

Procure +

eBuy 4

S3 Supply Chain Management Suite

Oracle iProcurement

PeopleSoft eProcurement

PerfectProcure

Supplier Relationship Management

SelectSite

Product version

evaluated

10s1

5.1.3

6

4.3

9.0.1

12.1.3

9.1

7.0

10.3

Product

release date

June 2009

October 2009

October 2010

September 2009

October 2009

May 2008

September 2010

November 2009

April 2010

April 2009

November 2010

Vendor selection criteria

Does the vendor have a comprehensive solution suitable for enterprise customers?

Do the solution include a signicant amount of the vendors own productized intellectual property?

Does the vendor make more than $15 million in revenue per year from eProcurement products andservices?


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ARIBA AnD BASWARE LEAD, FOLLOWED By ORACLE AnD SAP JuST AhEAD OF ThE PACk

Te evaluation uncovered a market in which (see Figure 2):

Ariba, Basware, Oracle E-Business Suite (EBS), and SAPprovide the leading overallsolutions. Ariba has the most complete range o unctionality and the best user experience.

Basware scored particularly well or its broad category support and its supplier enablement and

integration capability. Oracle EBS and SAP have very good solutions that are a logical choice or

customers o their ERP suites, provided you are happy with a sel-service portal approach and

with increasing your dependence on a powerul supplier. Tey have both built on their strong

technology oundations and business intelligence tool sets to develop superior reporting and

procurement KPI analytics.

Capgemini Procurement Services and Hubwoo oer strong solutions based on SAPs

platorm. Both companies oer hosted versions o SAPs SRM product with their own catalogmanagement ront ends to deliver improved user experiences.

E-Plus, Perect Commerce, and SciQuest oer competitive options.All o these productsscored consistently with best-in-class capabilities in some areas. E-Plus and SciQuest have some

exceptional category-specic capabilities e-Plus or I and SciQuest or laboratory equipment

and supplies.3 Perect Commerce has developed and/or acquired an extensive portolio that it

sells as a standalone platorm or as an alternative ront end to SAP SRM oundations.

Oracle PeopleSof and Lawson are the logical choice or their ERP customers. Both scoredwell in their own right, so or most o their customers the integration and standardization

advantages will outweigh minor unctionality weaknesses. Te major weakness or both products,as or EBS and SAP, is the over-reliance on a portal approach to connect with suppliers.


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Fire 2 Feste Wve: ePemet Sts, Q1 11


Go online to download

the Forrester Wave tool

for more detailed product

evaluations, feature

comparisons, and

customizable rankings.

RiskyBets Contenders Leaders

StrongPerformers

StrategyWeak Strong

Current

oering

Weak

Strong

Market presence

Ariba

Basware

CapgeminiProcurement Services

e-Plus

Hubwoo

Lawson

Oracle E-BusinessSuite

Oracle PeopleSoft

Perfect Commerce

SAP

SciQuest


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Fire 2 Feste Wve: ePemet Sts, Q1 11 (ct.)


CURRENT OFFERING

Goods purchasing

Category support

Settlement

Reporting

Process congurationSupplier connectivity

and enablement

Technology

Globalization

STRATEGY

Product strategy

Corporate strategy

Financial resources

to pursue strategy

MARKET PRESENCE

Installed base

Market share of new deals

Employees

Ariba

4.20

4.38

3.74

5.00

3.50

3.704.82

4.42

4.19

4.05

4.45

4.00

2.50

3.25

3.00

2.00

5.00

Forresters

Weighting

50%

20%

15%

3%

12%

12%22%

8%

8%

50%

60%

25%

15%

0%

35%

35%

30%

Basware

4.03

4.28

3.49

4.65

3.50

4.403.81

4.43

4.58

3.85

4.00

4.00

3.00

2.20

1.00

1.00

5.00

CapgeminiProcurem

ent

Services

3.70

3.97

2.86

4.35

4.00

3.203.70

3.83

4.49

3.33

3.50

2.50

4.00

1.95

2.00

1.00

3.00

e-Plus

3.43

4.09

2.90

4.00

3.00

3.403.45

3.74

2.89

3.17

2.95

3.50

3.50

1.65

2.00

1.00

2.00

Hubwoo

3.59

3.79

3.44

4.35

3.00

3.303.52

3.83

4.40

2.76

2.85

3.00

2.00

1.60

1.00

1.00

3.00

Lawson

2.99

3.74

2.65

3.70

3.00

3.302.08

3.15

3.40

3.32

3.45

3.50

2.50

3.30

3.00

3.00

4.00

OracleE-BusinessSui

te

3.63

4.27

2.95

4.35

5.00

3.902.44

3.98

3.48

3.45

3.45

2.50

5.00

5.00

5.00

5.00

5.00

OraclePeopleSoft

3.52

4.15

2.86

4.35

4.50

3.902.53

3.84

3.30

3.15

2.95

2.50

5.00

3.60

3.00

3.00

5.00

PerfectCommerce

3.65

4.09

2.79

4.35

3.00

3.703.67

4.29

4.09

2.96

2.85

3.50

2.50

1.30

1.00

1.00

2.00

SAP

3.76

3.90

3.65

3.70

4.00

4.003.18

4.00

4.30

3.42

3.65

2.50

4.00

5.00

5.00

5.00

5.00

SciQuest

3.57

3.88

3.09

3.70

3.50

3.603.57

3.55

3.70

3.44

3.15

5.00

2.00

1.90

1.00

1.00

4.00

All scores are based on a scale of 0 (weak) to 5 (strong).

use Te Forrester Wave To Develop A Cstomized Evalatio Tool

Forresters evaluation o the eProcurement market is intended to be merely the oundation o

a procurement managers own selection processes. We encourage clients to view the detailed

product evaluations and adapt the criteria weightings to t their individual needs through the

Forrester Wave Excel-based vendor comparison tool. For example, you may place a higher or lower

importance than we did on:

Global capabilities. Buyers wanting one enterprisewide platorm across many business unitsshould increase the importance assigned to multilanguage and multicurrency support and

exible integration capabilities, whereas US-only companies may discount this area completely.


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Compatibility with the existing ERP estate. Weve evaluated general integration capability.Buyers with single-instance ERP systems should increase this criterions score and weight or

their incumbent vendors eProcurement product.

Support or key categories. What are the biggest causes o rogue buying and invoice discrepancies?For which categories do you have custom-developed or overly manual solutions? Tese should be

added to the Forrester Wave tool as specic requirements, so you can test the vendors ability to

solve those problems, either by standard unctionality or simple additional conguration.

VEnDOR PROFILES

Leaders

Ariba has the most complete range o unctionality and the largest supplier network.It candeliver the best user experience, provided project managers apply the eort to take advantageo its conguration capabilities. Ariba has the unctionality and expertise to solve many

dierent category-specic problems which should be one o buyers key decision criteria.

Forrester also likes Aribas commitment to interoperability and to providing additional services

to suppliers to justiy its network charges. Te recent acquisition o Quadrem reinorces its

leadership position. Some clouds on the horizon include increased eorts by Oracle and SAP to

expel Ariba rom their ERP customer bases and customers discontent about last years supplier

network price hikes.

Basware provides a leading P2P solution. Its main strength is its ocus on the complete processand on invoice automation even or non-PO purchases. Forrester also likes Baswares open

network strategy because that enables customers to connect more quickly with their supplier

base. Instead o trying to persuade vendors to use yet another sel-service portal, Basware

will let them simply add the new customer to their existing eCommerce solutions. Baswares

weakness is relatively low penetration in the US although it has some big-name US clients,

hal its revenue still comes rom its Scandinavian home region.

Oracle EBS is a leading solution, particularly or customers o its ERP product. It is a goodand rapidly improving solution and has the best procurement-specic reporting and KPI

analytics. It is true that eProcurement isnt high on Oracles priority list, but Oracles R&D spend

is so huge that this may not matter Forrester estimates that Oracles ePurchasing development

team is larger than that o any o the so-called specialists. And Oracle uses it itsel, so that ensuresadequate ocus on usability.4 Like the other ERP suites, Oracle lacks a coherent supplier network

strategy, but it is at least moving in the right direction with its partnership with ranscepta.5

SAP is the astest-improving solution in this Forrester Wave. Even SAPs partners criticizedprevious versions usability, but SRM 7.0 has caught up to most o its competitors and looks likely

to surpass them in some areas, such as in-process analytics. Te main weakness is its over-


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reliance on customers creating their own supplier portals or manual sel-service transacting, but

they can also engage supplier networks and enablement service providers to address that gap.6

Stro Perormers

Capgemini Procurement Services IBX product is a strong choice or SAP shops. Capgeminiacquired IBX to be the platorm or its procurement business process optimization practice, but

it continues to sell it as a standalone solution, even accelerating development and adding sales

resources. IBX was strong in Scandinavia and Germany, and Capgemini may be able to expand

it into a truly global, or at least pan-European, solution. A weakness is that supplier connection

is primarily via its manual sel-service portal ewer than 5% o suppliers transact with it

electronically.

E-Plus oers a cost-eective alternative or medium-sized businesses.Te company is also

an I reseller and provider o asset management services, so it unsurprisingly has exceptionalsupport or I categories such as searching by parameters, sourcing rom inventory, asset

management, and integration with I service management products. E-Plus sells primarily

below enterprise level, although it is a good option or autonomous divisions that can choose

their own product without central intererence. Indeed, the criteria or which it scored less well,

including supplier enablement and support or global enterprises, may be relatively unimportant

to many prospective buyers.

Hubwoo has a good product based on SAPs SRM platorm. Its solution combines its ownrequisitioning ront end with a hosted SRM environment. It has some particular strengths, such

as its support or complex eld services a major requirement o oil and gas enterprises and

utilities. However, SAPs rapid enhancement o SRM reduces the need or Hubwoos add-onoptions. In addition to its product and hosting revenue, many SAP customers employ Hubwoo

to provide supplier enrollment and support it is the last remaining independent SAP SRM

supplier enablement partner since the acquisitions o IBX and Quadrem.

Oracle PeopleSof is a logical choice or customers o its ERP product. It is a good productin its own right, scoring consistently well with some best-in-class eatures such as support

or unstructured collaboration with suppliers via its portal. It benets rom Oracles scale

and technology platorm, and there is as yet no evidence that the advent o Fusion Apps will

reduce the continuing investment in the PeopleSo product line in general and the purchasing

applications in particular. Te next release is likely to include a UI makeover along with manyother customer-requested enhancements. Supplier enablement is a weakness, just the same as its

sibling, Oracle EBS.

Perect Commerce provides a good alternative to enterprises ERP incumbent.It hasassembled a strong portolio o products and services by acquisition, including the core IP o

eCommerce pioneer Commerce One. Many o that products early adopters still use Perect


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Commerce as a ront end to their SAP SRM back ends. Its a valid option or chie purchasing

ofcers (CPOs) who dont want to increase their dependence on their ERP supplier. However,

like Hubwoo, it aces increasing competition rom SRM without having a deensible vertical or

regional niche.

Lawsons eProcurement solutions are the natural choice or its ERP customers.While lackingsome specialist eatures, the product scored well across most criteria. Te weak area is supplier

enablement Lawson does not have a supplier network or provide enrollment services, not

even via partnerships, so customers will have to take responsibility or that task.

SciQuest is exceptionally strong in its target verticals. It has unique strengths in laboratoryequipment and supplies, so CPOs in verticals such as lie sciences and education, who will have

signicant purchases in those categories, should denitely include SciQuest on their shortlists.

Such companies use SciQuest either as their general tool or as a category-specic solution in

conjunction with another platorm. However, SciQuest aces tough competition in its target

vertical rom SAP, which seeks to expand its ootprint, supported by those internal I unctions

that avor standardization over business needs, so it remains to be seen whether or not it will be

able to deend its niche.

Compaies Tat Didt Flfll All O Or Iclsio Criteria Ma Be good nice Soltios

Tere are many eProcurement products on the market in addition to the 11 with the highest revenue

that we evaluated in this Forrester Wave (see Figure 3). Procurement managers may do well to

include a tier two vendor on their shortlist i its niche aligns with their requirements. For instance, a

country-specic solution will be ne or a company with ew overseas employees or suppliers.


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Fire 3 ePemet Veds nt ided i Ths Feste Wve

Source: Forrester Research, Inc.59067

Vendor OverviewMarqueecustomers e

Procurement

Supplier

network

EIPP

eSourcing

b-pack Paris, France

www.b-pack.com

Supports the complete purchase-to-paycycle via a configurable workflow platform.Has 80 midsize French customers, includingsome divisions of large enterprises, and hasrecently opened a US office.

Aon, Danone

Coupa San Mateo, CA

www.coupa.com

A rapidly growing pure SaaS vendor thatwasnt quite large enough to make our

evaluation shortlist. Coupa has a singlesolution for managing all indirect purchasesand employee expenses, focusing on ease ofsetup and use. For instance, it can capturedetails of proposed purchases from supplierswebsites and route them for approvalwithout needing a punch-out integration.

Salesforce.com,Taleo, Reebok,

Rent-A-Center

Esize Weesp, nearAmsterdam,Netherlands

www.esize.nl/?lid=2

Supports the whole purchasing process fromsourcing to payment, focusing on the publicsector with some local private sector clientstoo.

Dutch Financeand Defenseministries,Ahold, Telfort

Ivalua Paris, France

www.ivalua.com

Offers a complete ePurchasing solution via22 integrated modules. Has grown steadily,selling to several large French companies,

and is now seeking to expand in the UK andUS. Built on Microsoft technology, IvaluaBuyer is flexible and scalable. For instance,some customers use it just for suppliermaster data management, while othersemploy the full suite.

Credit Agricole,BouyguesConstruction,

Faurecia

Ketera San Jose, CA

www.ketera.com

Provides an easy-to-use eProcurementsolution as part of a full ePurchasing suite.It has an extensive supplier network withmore than 50,000 members. ReardenCommerce, a large travel managementplatform vendor, acquired Ketera inDecember 2010.

Con-way,Kennametal,Servicemaster

Products and

solutions


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Fire 3 ePemet Veds nt ided i Ths Feste Wve (ct.)

Source: Forrester Research, Inc.59067

VendorMarqueecustomers e

Procurement

Supplier

network

EIPP

eSourcing

ParamountTechnologies

Walled Lake,MI

www.paramounttechnologies.com

Sells Employee Workforce Automation,which covers the related processes ofprocurement, travel and expensemanagement, time sheets, and otherproject management tasks. Focused onmidmarket customers, with integration toMicrosoft Dynamics GP, Sage, and SAP

Business One, among others.

No enterpriseslisted, since thisis not its targetmarket

Proactis Wetherby, UK

www.proactis.com

Sells spend control solutions to midsize tolarge organizations, primarily in UK but withan office in the US. It has over 350 successfulimplementations. The solution includessupport for the purchase-to-pay processwith reporting and analytics to help buyersidentify savings opportunities.

Apcoa, CBRichard Ellis,University ofBirmingham

PurchasingNet Red Bank, NJ

www.purchasingnet.com

Provides eProcurement, e-payables, andfinancial management services and solu-tions to mid- and large-sized organizations.A 25-year- old company, it has more than1,400 customers particularly in financialservices, professional services, and retail.

US Bank,Watson Wyatt,HBO, Sara Lee

Verian Charlotte, NCwww.verian.com

Aims its purchase-to-pay automation suiteat medium to large US companies. Verianstarted in healthcare but now sells acrossindustries. The suite includes invoiceprocessing, employee reimbursement,s andasset management.

CaterpillarDealership,Macys

WaxDigital Cheshire, UK

www.waxdigital.com

Sells its configurable, modular source-to-payplatform to large UK businesses. It has anumber of customers in retail and manufac-turing plus some in the public sector.WaxDigital has eSourcing and CLM inaddition to eProcurement. Also supportsmidsize companies via a reseller partner.

ABF, CenterParcs, DSGRetail

Products and

solutions

Overview


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14

SuPPLEMEnTAL MATERIAL

Olie Resorce

Te online version o Figure 2 is an Excel-based vendor comparison tool that provides detailedproduct evaluations and customizable rankings.

Data Sorces used I Tis Forrester Wave

Forrester used a combination o our data sources to assess the strengths and weaknesses o each

solution:

Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluationcriteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where

necessary to gather details o vendor qualications.

Product demos. We asked vendors to conduct demonstrations o their products unctionality.We used ndings rom these product demos to validate details o each vendors product

capabilities.

Strategy briengs. We asked senior executives responsible or product management to explaintheir marketing and development strategies and quizzed them on their plans or their product

and their ability to succeed in this competitive market.

Customer reerence calls. o validate product and vendor qualications, Forrester alsoconducted reerence calls with at least two o each vendors current customers.

Te Forrester Wave Metodolo

We conduct primary research to develop a list o vendors that meet our criteria to be evaluated

in this market. From that initial pool o vendors, we then narrow our nal list. We choose these

vendors based on: 1) product t; 2) customer success; and 3) Forrester client demand. We eliminate

vendors that have limited customer reerences and products that dont t the scope o our evaluation.

Aer examining past research, user need assessments, and vendor and expert interviews, we develop

the initial evaluation criteria. o evaluate the vendors and their products against our set o criteria, we

gather details o product qualications through a combination o lab evaluations, questionnaires,

demos, and/or discussions with client reerences. We send evaluations to the vendors or their review,

and we adjust the evaluations to provide the most accurate view o vendor oerings and strategies.

We set deault weightings to reect our analysis o the needs o large user companies and/or

other scenarios as outlined in the Forrester Wave document and then score the vendors based

on a clearly dened scale. Tese deault weightings are intended only as a starting point, and we

encourage readers to adapt the weightings to t their individual needs through the Excel-based


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15

tool. Te nal scores generate the graphical depiction o the market based on current oering,

strategy, and market presence. Forrester intends to update vendor evaluations regularly as product

capabilities and vendor strategies evolve.

EnDnOTES

1 In a study or a specic client, Forrester surveyed 100 nance and AP managers on their procure-to-pay

perormance. We ound that 30% o respondents that used eProcurement and eInvoicing achieved excellent

perormance o 50,000 invoices per AP clerk per year, whereas only 15% o all respondents were able to

reach this level.

2 Enterprises use supplier networks to trade electronically with their suppliers, but they nd that

insufcient cooperation between rivals limits potential progress. CPOs and their ePurchasing program

managers struggle to get ull adoption because suppliers are reluctant to use all the multiple networks

and single-buyer portals that their various customers speciy. Network interoperability is technologicallystraightorward, but real barriers exist, such as the lack o a commercial model and large vendors

reluctance to help smaller competitors. Once consolidation starts, the natural imperative o scale in the

technology business will transorm the market into one in which a ew large, successul, interoperating

networks enable buyers to reach all their suppliers, however small or physically remote. CPOs can support

and encourage this process by ditching their buyer-centric approach, providing suppliers with choices, and

insisting their network providers interoperate with their peers. See the July 30, 2009, Enterprises Should

Push Supplier Networks o Deliver Interoperability report.

3 So you can choose e-Plus i you want to buy computer mice, and you can go to SciQuest i you want live

mice or scientic experiments.

4 Especially, presumably, i you want to raise requisitions or purchases o other technology companies.

5 Oracle announced its partnership with ranscepta in March 2010: Oracle has partnered with ranscepta

to oer a new service that recruits and connects all o your suppliers to send invoices electronically.

With ranscepta in place, invoices rom suppliers can be transmitted via Oracle Supplier Network and

ow directly into your Oracle Accounts Payable systems. Source: Oracle Partners with ranscepta or

eInvoicing, Oracle Information InDepth Newsletters Procurement Edition, March 2010 (http://www.

oracle.com/newsletters/inormation-indepth/procurement/mar-10/invoicing.html).

6 SAP oers a component called SUS or Supplier Sel-Services that enables automated transacting with

suppliers. Customers I departments can use this to integrate with selected suppliers systems or engage an

SAP partner to do this. In addition, o the companies in this Forrester Wave, Ariba, Capgemini, Hubwoo,

and Perect Commerce all have many customers using their supplier networks with SRM back ends. B2B

vendors including Crossgate, GXS, and IBM Sterling also connect SRM users with their larger suppliers.
http://www.forrester.com/go?docid=54939&src=59067pdfhttp://www.forrester.com/go?docid=54939&src=59067pdfhttp://www.forrester.com/go?docid=54939&src=59067pdfhttp://www.forrester.com/go?docid=54939&src=59067pdf


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