June 2018, IDC #US43994017

IDC MarketScape

IDC MarketScape: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications 2018Vendor Assessment

Mickey North Rizza Jordan Jewell Kevin Permenter Eric Newmark

IDC MARKETSCAPE FIGURE

FIGURE 1

IDC MarketScape Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications Vendor Assessment

Source: IDC, 2018

IDC ANALYZETHEFUTURE

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©2018 IDC #US43994017 2

Please see the Appendix for detailed methodology, market definition, and scoring criteria.

IDC OPINION

Digital Transformation Driving Change

Digital transformation (DX) is fundamentally changing procurement, allowing businesses to transform

their decision making, which is enhancing their business outcomes significantly as we enter an

increasingly digital economy. Digital transformation is an enterprisewide, board-level, and strategic

reality for companies wishing to remain relevant or enhance their leadership position in the digital

economy. Digitally transformed businesses have a repeatable set of practices and disciplines used to

leverage new business, 3rd Platform technology, innovation accelerators, and operating models to

disrupt businesses, customers, and markets in pursuit of business performance and growth. DX is

driving businesses to rethink their technology strategy, and that includes moving beyond their legacy

procurement systems. New sources of innovation and creativity to enhance experiences and financial

outcomes are paving the way for enterprises to move toward software-as-a-service (SaaS) and cloud-

enabled supplier relationship management (SRM) software.

SaaS and Cloud-Enabled Supplier Relationship Management Software

DX businesses, of all sizes, have turned their focus to SaaS and cloud-enabled software because they

need flexible, agile systems that are configurable, continuously updated, quick to implement, and

scalable.

SaaS and cloud-enabled supplier relationship management applications promote innovation within

your business, specifically when the right technology partner understands innovation strategies are

critical success factors in the DX economy. Innovation such as intelligent workflows, assistive user

interfaces, and IoT connections harness the ability of the workforce (both mobile and stationary) to

make more informed decisions quickly. SaaS and cloud-enabled supplier relationship management

software, when coupled with continuous innovation, quickly becomes a strategic asset for

procurement. In the DX economy, speed and scale are growing factors of survival, and when one of

your most sacred resources, your suppliers, are integrated with your supplier relationship management

system, the value will continually be front and center.

New Digital Tools Driving Supplier Relationship ManagementApplication Innovation

Companies in nearly every industry have recognized the impact that digital transformation has on their

industries. The development of new digital tools for procurement means supplier relationship

management applications have more process automation, powerful advanced analytics, and intelligent

workflows. DX is changing supplier relationship management solutions by:

Increasing adoption of automation: Most procurement professionals find themselves inundated with more work, such as more items to purchase or more suppliers to manage, but are

constrained by fewer people and smaller budgets. For procurement professionals working with limited resources, automation becomes incredibly important. Areas such as supplierinformation, supplier performance, supplier segmentation, supplier collaboration, and risk

management are more automated in the cloud. This cloud automation allows practitioners to shift their resource focus to more strategic road map discussions with suppliers. Enabling the

©2018 IDC #US43994017 3

business to do more with supplier relationship management technology means the technology

is enhancing the procurement and supplier experience while also improving time to value.

Utilizing the power of advanced analytics and intelligence: Procurement professionals are turning to advanced analytics and intelligence to assist in supplier monitoring, bringing forward

more insights faster while also suggesting the next-best action. These automated workflows continue to become more streamlined and utilize intelligence to bring more information to the

front end of the process, improving the business insights.

Connecting the blockchain: While there are blockchain initiatives happening in many industries (i.e., healthcare, retail, media, energy, and government), blockchain will likely have a

disruptive impact in procurement tracking the purchase history and supplier provenance and reducing audits and problematic suppliers. As blockchain builds momentum and regulatory agencies take notice, supplier relationship management applications may be updated

substantially.

IDC MARKETSCAPE VENDOR INCLUSION CRITERIA

Through its clients and contacts across most industries, IDC frequently has unique visibility into vendor

selection processes within many companies. The vendor inclusion list for this document began with

those SaaS and cloud-enabled supplier relationship management software applications that IDC was

familiar with having been evaluated for selection within recent enterprise deals. IDC then

supplemented with several additional supplier relationship management vendors that it believed also

provided qualifying systems. Vendors were then surveyed and further investigated to ensure that their

supplier relationship management systems qualified as SaaS or cloud enabled and were already

serving numerous enterprises. Ultimately, all solutions included in this document met these criteria.

After an initial evaluation of software vendors serving this market, which included each vendor's high-

level application capabilities and existing client base, IDC's Enterprise Applications team extended

formal invitations to 12 software vendors to participate in our study.

There were 12 participating SaaS and cloud-enabled supplier relationship management software

vendors at the onset of this research, 2 of which have now been acquired by JAGGAER, bringing the

total vendor count in this evaluation to 10:

BirchStreet Systems

Coupa

GEP

JAGGAER

Oracle

Proactis Holdings LLC

SAP Ariba

SourceDay

TAKE Supply Chain

Zycus

©2018 IDC #US43994017 4

ADVICE FOR TECHNOLOGY BUYERS

SaaS and cloud-enabled supplier relationship management systems are evolving with functionality

improvements occurring as often as daily. From the addition of the 3rd Platform with big data and

analytics, social, and mobile to the innovation accelerators of cognitive, 3D printing, robotics, IoT, and

advanced security, supplier relationship management systems continue to advance and improve at

warp speed. Speed is the critical factor as we enter into the DX economy, enabling businesses to

significantly improve in terms of market share, revenue, and profitable growth. It is recommended that

organizations understand the current capabilities of their technology choices, along with the strategic

direction and investment their supplier relationship management software provider is making now and

in the next three to five years. A guiding factor in our vendor research was current capabilities of the

3rd Platform and innovation accelerators, as well as the strategic and investment direction. It is critical

for buyers to look for a technology partner that can take them well into the future.

Supplier relationship management systems vary in their functionality and capabilities, with each

system offering specific features and functionalities to aid their specific customers. For this IDC

MarketScape on supplier relationship management applications, we addressed the capabilities of the

supplier relationship management offering that cuts across most procurement organizations'

requirements. These include supplier information, supplier performance, supplier segmentation,

supplier collaboration, supplier conformance, supplier certifications, supplier financials, and risk

management.

Several vendors outlined in this research study have more experience for indirect and direct materials,

some vendors with transactional focus on direct materials, while one vendor has deep domain

expertise in the hospitality world. The vendors vary widely in size, experience, levels of support, sales

model, and focus on the market. During this IDC MarketScape study for supplier relationship

management, one vendor, JAGGAER, purchased two vendors (Pool4Tool and BravoSolution) over a

one-year period.

Before making purchasing decisions on SaaS and cloud-enabled supplier relationship management

software, businesses should consider:

In terms of levels of experience successfully implementing SaaS and cloud-enabled supplier relationship management solutions, does the vendor have experience with my type of

products, services, and company size?

Is the vendor knowledgeable about procurement requirements as they affect my company?

Does the vendor understand the regulations that will impact my business? How are these

regulations reflected in my current product, and how will it change in the future?

What levels of support are available, and are they geographically available for my business?

What are my internal support resources and capabilities, and how will they relate to my vendor

selection?

Should I hire a third party to plan and assist with the implementation of the solution?

Is the vendor financially able to provide needed support? Can it support needed investment in

the development of future procurement software requirements?

Is the vendor committed to this market in the long term?

Is the return on investment (ROI) achievable? Does the vendor have a track record of meeting

the ROI requirements?

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Can the vendor or partners support my foreign operations?

Can the vendor integrate with my company's other IT systems and those of my partners?

Is the product available anywhere and anytime?

Is the product updated frequently enough for my business needs?

What innovation is the vendor considering? How and when will it impact my business?

What is the vendor's strategic investment outlook for the next three to five years? Why?

Will the vendor be a partner, helping my business grow now and in the long term?

This IDC MarketScape vendor assessment assists in answering these questions and others.

Some of the references that participated in this study noted that the SaaS and cloud-enabled supplier

relationship management software market has many more competitors, meaning vendors must

substantiate their differences, show value in the product and outcomes received, and be astute when

in the RFP process. IDC expects some consolidation and specialization by niche may occur as the

market continues to mature.

VENDOR SUMMARY PROFILES

This section briefly explains IDC's key observations resulting in a vendor's position in the IDC

MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix,

the description here provides a summary of each vendor's strengths and challenges.

BirchStreet Systems

After a thorough evaluation of BirchStreet Systems' offerings and strategy, IDC has positioned the

company in the Contenders category of this IDC MarketScape.

BirchStreet Systems is headquartered in Newport Beach, California, and is a provider of procure-to-

pay technology systems for the hospitality industry. BirchStreet provides global enterprises with SaaS-

based eprocurement, accounts payable (AP) automation, inventory control, recipe management,

spend compliance dashboards, and capital project and budget management modules as well as

invoice management, sourcing, contract management, and supplier management solutions, which

were added earlier in 2017.

BirchStreet has over $15 billion of client spend under management and 250,000 users, processes 10.6

million purchase orders, has 400,000 marketplace suppliers, and is available in 13 languages and 66

currencies.

Strengths

BirchStreet is the only supplier relationship management technology platform specifically targeted for

the hospitality vertical, with a focus on direct spend on food and beverage, capex, and furniture,

fixtures, and equipment (FF&E) as well as indirect spend. BirchStreet is also focused on decentralized

companies/verticals such as hotels, clubs, food service, airports, cruise lines, casinos, and

restaurants. This focus brings great value to clients in these industries as a purpose-built solution.

BirchStreet utilizes additional capabilities such as inventory control for food and beverage spend,

AccuBar beverage inventory management, recipe management, hospitality spend visibility and

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compliance, and capital projects and budgets modules that satisfy the unique needs of the hospitality,

gaming and entertainment, and resorts/clubs industries.

BirchStreet provides customers the ability to specify when a delivery was made to a location. Quality

audits and information and corrective actions can be added in as receiving notes, and any

documentation delivered can be scanned and attached to the system receiving it.

Challenges

BirchStreet is an exceptional solution for the hospitality industry but overall is lacking in some supplier

relationship management functionality that is major for other industries such as automated receipts,

supplier quality and delivery information, supplier collaboration, and supplier financials. BirchStreet

now has a partnership with GRMS for supplier risk and quality. In addition, IDC expects BirchStreet to

close the gap in supplier financials in the next year.

References noted the solution was exceptional for their industry-specific needs; however, the user

interface was a little too sparse and utilitarian and could use an update. References also noted they

would like more latitude with more robust configuration options.

Consider BirchStreet Systems When

Consider BirchStreet Systems when you are in the hospitality industry with multiple locations and/or

have direct spend on food and beverage and indirect spend.

Coupa

After a thorough evaluation of Coupa's offerings and strategy, IDC has positioned the company in the

Leaders category of this IDC MarketScape.

Coupa is an 11-year-old company headquartered in San Mateo, California, with 750+ customers

managing $745+ billion in spend. Coupa offers an intelligent business spend management platform

that is tightly unified and delivers a broad range of capabilities. The core of the Coupa platform is made

up of procurement, invoicing, and expense management modules that form a transactional engine,

capturing an organization's spend. The platform also offers supporting modules, including sourcing,

analytics, contract management, supplier and risk management, inventory management, and ERP

storefront, that help companies further manage their spend. Coupa also has an Open Business

Network, where suppliers of all sizes can easily interact with buyers electronically, improving operating

efficiencies and reducing costs. More than 4 million unique suppliers have done business globally

through Coupa's network.

Coupa's model is Start Anywhere, Go Everywhere, and procurement is a unified platform — with unified

business processes throughout procurement, sourcing, contracts, embedded spend analytics,

inventory, and storefronts.

In 2016, Coupa became a public company traded on Nasdaq.

Strengths

Coupa references have noted the following areas of measurable business value:

High return on investment

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A unified cloud platform that extends to ERP and is business configurable without IT or

consulting expertise

Rapid adoption rates as learning is once within the system and includes 100% mobility

The solution incorporates unique technology and insights across customers using the Coupa platform

to decrease the efforts required to enable suppliers. The Coupa platform has digitized the supplier

enablement and discovery process such that community intelligence uses AI and machine learning to

create an initial match against the supplier list and then searches across the community for new

suppliers.

The Coupa solution may be configured to meet the needs of businesses from small and medium-sized

businesses to multinational large global enterprises. Several references noted the ease of

configuration and adoption was a key selection criterion.

Coupa's supplier information management (SIM) module makes it easy to request, approve, and

maintain supplier information while keeping it all in sync with your ERP. SIM helps all types of

employees better manage supplier information. SIM streamlines requesting, approving, and

maintaining supplier information such as financial information, quality or insurance certifications, and

contact information. In addition, SIM leverages other Coupa applications to collect supplier information

during the normal business flows of the applications (e.g., if supplier data is expiring, then the supplier can

update it when the invoice is created).

The Coupa platform provides a framework for supplier performance measurement including order

acknowledgements, late deliveries, over-invoicing, questionnaire routed to requesters rating the

supplier's performance, and other analytics.

Coupa Risk Aware monitors hundreds of data sources to reduce supply chain risk and exposes the

risk score throughout the Coupa platform for real-time visibility and in-flight transaction control. The

application integrates with customers' own sources of governance, risk, and compliance (GRC) data

and enables customers to calibrate the data sources to create their own unique supplier health score.

In addition, during the supplier discovery process, incorporating Risk Aware improves the selection

process of finding the right supplier.

Challenges

Coupa's greatest challenge is brand awareness within procurement and IT professionals, who may

simply default to ERP instead of evaluating market leaders. While Coupa has come a long way from

private to a public company in 2016, it struggles with market brand awareness and knowledge of the

Coupa products. More marketing will bring customers to the forefront.

Coupa continues to build out more global capabilities by country and localized language support

(currently supporting over 20 languages). This will be a welcome addition, helping increase market

share globally.

Coupa's supplier relationship management product road map includes additional supplier and

corrective action planning and summaries.

References noted the platform appears very smart, but they would like to see more intelligence baked

into the product. With the launch of Coupa Community Intelligence for supplier risk, commodity, and

supplier insights and the acquisition of Riskopy last year for a risk data aggregation engine and Deep

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Relevance for AI fraud detection, we expect this to continue to change in 2018, especially in terms of

supplier relationship management functionality.

Consider Coupa When

Consider Coupa when you are a business of any size needing a holistic and extremely encompassing

unified procurement platform that is available anywhere and anytime and includes supplier relationship

management capabilities.

GEP

After a thorough evaluation of GEP's offerings and strategy, IDC has positioned the company in the

Leaders category of this IDC MarketScape.

GEP was founded in 1999 and is headquartered in Clark, New Jersey, with over 200 customers.

SMART by GEP is a unified source-to-pay (S2P) platform native to cloud and mobile technologies.

SMART by GEP is a single software platform, built directly on the cloud, which delivers on all of the

functional requirements of sourcing and procurement professionals, category managers, professional

buyers, and occasional requestors. By unifying source-to-contract processes with procure-to-pay

workflows, SMART by GEP eliminates the biggest barriers to procurement success and savings

delivery, namely the disconnect between the strategic procurement activity and the day-to-day

purchasing activity. SMART by GEP provides automation of the source-to-pay process, providing

automated contract creation from supplier proposal and catalog or order creation from contract

execution. The entire platform is built to deliver complete, end-to-end visibility through intuitive

dashboards and powerful analytics reporting and is designed to integrate with key legacy systems.

Strengths

SMART by GEP in its entirety is the ultimate SRM system because it does not separate supplier

information and performance intelligence from the activity, contractual status, and commercial

relationship of the supplier. SMART by GEP does not exist as standalone modules for SRM, SIM, and

SPM, as these are core to the success of the end-to-end procurement process and thus core to the

unified platform.

Suppliers exist in SMART by GEP as a profile, as a set of documentation, and as a participant in the

various processes and events. Supplier performance can be determined, evaluated, and reported as a

result of direct data analysis from the procure-to-pay activity. Supplier monitoring dashboards can

reveal, in real time, supplier compliance with contract terms, and through qualitative scorecards and

action plans, supplier managers can mitigate and improve supplier relationships.

Supplier profiles and data sets can be maintained by the supplier itself and/or the supplier manager.

Configurations determine the degree of self-management each supplier has. SMART by GEP includes

certificate and document management functions as well as standard supplier profile, contact, financial,

risk, and diversity data.

The suppliers maintained in the "supplier database" are the same suppliers that are associated with

sourcing events, contracts, and catalog/orders, ensuring that the complete visibility of all activity, the

removal of supplier duplication, and the positioning of SMART by GEP are the single source of truth for

vendor master data across the enterprise. GEP is in development of machine learning and intelligent

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workflows within the SMART by GEP system. All references we spoke to were keen on GEP, adding

more digital assistants and intelligent workflows.

References noted that the product does what it should, making the user experience one of

completeness.

Challenges

When an organization conducts a selection process based on a "dollar per feature" analysis of

separate software functions in a more traditional software selection mode, SMART by GEP will not

necessarily rate highest.

Incumbent ERP providers are GEP's biggest challenge. GEP needs to continue to articulate the

differences between itself and others in the market to gain more market share. We expect

differentiators to play a critical role in GEP's future.

GEP sells mainly to large organizations globally, specifically not targeting global organizations of all

sizes, and also has no partners selling its solutions for the company. Changing the target and adding

in partners will bring more clients to the company.

Consider GEP When

Consider GEP when you are a large global organization with complex procurement processes

requiring a simple and flexible toolset that simplifies the business processes for supplier relationship

management.

JAGGAER

After a thorough evaluation of JAGGAER's offerings and strategy, IDC has positioned the company in

the Leaders category of this IDC MarketScape.

JAGGAER was formerly known as SciQuest. The company rebranded under the name JAGGAER in

February 2017. JAGGAER is headquartered in Morrisville, North Carolina, with over 1,850 customers

connected to a network of 3.7 million suppliers in 70 countries, including the acquisitions of Pool4Tool

(product name now called JAGGAER Direct) and BravoSolution (product name now called JAGGAER

Advantage). The company is more than 22 years old. JAGGAER's comprehensive and complete

spend solutions suite enables commerce between any businesses, anywhere.

JAGGAER holds 38 patents and a solution centered on manufacturing, commercial (including

retail/CPG, transportation/distribution, and pharmaceutical industries), higher education, healthcare, or

public sector companies that collectively form a network with billions of dollars in annual spend.

JAGGAER is SaaS based with source-to-pay solutions covering the entire spectrum of needs, from

sourcing and spend analysis through to contract management and accounts payable. JAGGAER also

has P2P, sourcing, supplier management, contract management, spend analytics, advanced sourcing

optimization, supplier management, and inventory control.

Strengths

JAGGAER has three products as of early 2018: JAGGAER, JAGGAER Advantage, and JAGGAER

Direct. The three product strengths within supplier relationship management are:

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JAGGAER's Supplier Management automates supplier management from discovery and information gathering through registration, qualification, and selection to risk and performance

management. The JAGGAER Supplier Network is the hub where buyers and suppliers connect. The network boasts a widespread supplier base that can support any industry or commodity, accessed through a single venue for customer-supplier interaction, vendor

discovery, supplier profile maintenance, and supplier catalog management.

JAGGAER Advantage improves strategic decision making by accessing supplier lifetime value

at every stage of the strategic procurement process. Supplier onboarding streamlines the assessment process to ensure registered suppliers meet requirements; supplier qualification does capability assessments for business principles, category, process, and technology;

segmentation and risk management segments the supply base by category, risk, and performance management to track supplier performance over time; development and innovation occur through improvement and action plans; and JAGGAER Advantage's Supplier

Management provides end-to-end visibility and comprehensive access and transparency to

accurate and timely supplier events throughout the procurement process.

JAGGAER Direct has a "ratings pure" solution to evaluate a supplier's performance by assessing soft criteria and hard data, including the integration with other JAGGAER Direct modules. Buyers and suppliers also collaborate via the system. As soon as a supplier has

been onboarded, access is granted to the supplier portal where all activities related to the

supplier and the customer (open POs, RFQs, Action Points, etc.) are assessed in real time.

Challenges

JAGGAER's name is not yet as well-known as others within the procurement market. While the

company has been on a buying spree to acquire companies, it must now show it can integrate different

products and manage and sell them to new clients worldwide. We expect this issue to resolve itself

within the next 12 months.

JAGGAER Advantage references described the user interface as clunky and not intuitive. References

could not verify supplier audit planning was implemented yet, though it is planned for 2018.

The supplier relationship management software products are completely different toolsets within the

three JAGGAER products, currently relating to each solution only. While the user experience begins

with a single sign on for all tools, they do not yet share a central database. However, they will share a

central database in the future, as JAGGAER moves toward a standard supplier management solution

that captures the best features of all existing solutions.

Consider JAGGAER When

Consider JAGGAER when you are a manufacturing, commercial, higher education, healthcare, or

public sector organization with a global presence, requiring supplier relationship management

functionality.

Oracle

After a thorough evaluation of Oracle's offerings and strategy, IDC has positioned the company in the

Leaders category of this IDC MarketScape.

Oracle is a software, hardware, and services provider with headquarters in Redwood Shores,

California. Founded in 1977, the company has more than 136,000 employees globally. Oracle reports

more than 420,000 customers and deployments in more than 145 countries.

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Oracle's Procurement Cloud is designed to streamline the source-to-settle process through automation

and social collaboration to help organizations modernize the procurement process and control costs.

Oracle Self-Service Procurement Cloud, Oracle Purchasing Cloud, Oracle Financials Cloud

(Payables), Oracle Automated Invoice Processing Cloud, Oracle WebCenter Forms Recognition

Cloud, and Oracle Supplier Portal Cloud are all necessary aspects of the full procurement suite.

Strengths

Oracle's approach to supplier relationship management is suite based, providing customers the option

to deploy various components according to business needs. The applications leverage a shared

supplier model and provide the tools to manage a complete supplier life cycle, from initial onboarding,

including self-service registration, duplication checking, and data quality services, to inactivation/end of

life. Supplier Qualification Management Cloud allows customers to extend the core information tracked

about suppliers to include details around any area of interest, including classifications and

certifications and performance and risk-related information.

Oracle Procurement Cloud leverages a common supplier model that can maintain an extensive set of

profile information. In addition, many seeded user-definable fields are available. Beyond that SQM

Cloud provides unlimited ability to organize, gather, and evaluate information about specific areas of

interest concerning suppliers (and individual supplier sites).

Challenges

References noted that Oracle Procurement Cloud is great to use; however, references believe there

need to be more standardized reports that are readily available for end users.

References noted challenges with the Oracle sales teams. Multiple sales calls were done by many

representatives to sell the same products to different organizations within the company.

Corrective action tracking and reporting are currently tracked only in sourcing. More enhancements to

bring it closer to supplier quality is on the road map and expected within the next year.

Consider Oracle When

Consider Oracle when your organization already uses PeopleSoft, JD Edwards, Oracle Fusion, or

Oracle On-Premises. Oracle Procurement Cloud has a supplier life-cycle viewpoint and is a great

addition to the current Oracle product set.

Proactis

After a thorough evaluation of Proactis' offerings and strategy, IDC has positioned the company in the

Major Players category of this IDC MarketScape.

Proactis Holdings LLC is based in Wetherby, United Kingdom, and has additional offices in the United

Kingdom, North America, mainland Europe, and APAC. Proactis has more than 1,000 enterprise

clients spread across 90 countries worldwide. Proactis is a multicompany, multicurrency, multilingual,

and multitax solution. The Proactis Spend Control Platform helps organizations control and manage all

aspects of their corporate expenditure. The solution encompasses procure-to-pay sourcing, supplier

management, contract management, supplier portals, invoicing, and AP automation.

Proactis purchased Perfect Commerce in July 2017. This IDC MarketScape provides a review of only

Proactis' portion of products.

©2018 IDC #US43994017 12

Strengths

Proactis SRM helps procurement departments build and maintain a strong supplier base by

automating and streamlining the entire supplier life cycle, from supplier recruitment through to

qualification, onboarding, and performance appraisal. Inherent within the tool is comprehensive and

automated workflow functionality allowing for multiple stakeholders to be involved in supplier

assessment and risk management processes, which may be undertaken upon initial supplier

engagement as well as throughout the life cycle of that supplier. This continual assessment and KPI

monitoring provide organizations with business-critical information regarding each supplier, which may

be presented as traffic light displays against supplier or contract records or may be presented to users

as visual dashboards for accurate current analysis, or issued via email as schedulable reports.

Automatic alerts and notifications regarding a supplier's life cycle and key document expiry dates (such

as compliance certificates or ethical working practices documentation) are issued to appropriate users

as well as suppliers to ensure supplier records remain continually up to date, accurate, and compliant.

Proactis SRM streamlines the maintenance of supplier information by allowing suppliers complete self-

service via the Proactis Supplier Network to maintain their own organization information. Buying

organizations may request as much information from suppliers as required via configurable supplier

questionnaires, which capture not only supplier data and supplier qualitative responses but also

supplier documentation (e.g., compliance and policy documents essential to an organization's risk

management activities).

Challenges

Proactis has only minimal 3rd Platform technology. Both mobile applications and analytics are major

themes, but integration with Microsoft Office 365 and Skype is not available as of yet.

References noted reporting capabilities were lacking and need to be improved, which we expect within

the next year as the company updates the product.

Real-time on-time delivery and quality tracking are not yet available.

Consider Proactis When

Consider Proactis when you are a business focused on improving your supplier relationship

management experience with a strong grasp of your worldwide spend.

SAP Ariba

After a thorough evaluation of SAP Ariba's offerings and strategy, IDC has positioned the company in

the Leaders category of this IDC MarketScape.

SAP Ariba is headquartered in Palo Alto, California, and is focused on how companies connect to get

business done. SAP Ariba represents the buy and sell sides of the enterprise with products such as

the Ariba Network, where buyers and suppliers from more than 3 million companies and 190 countries

discover new opportunities, collaborate on transactions, and grow their relationships. In addition,

buyers can manage the entire purchasing process while controlling spend, finding new savings

sources, and building a healthy supply chain with supplier management, strategic sourcing, procure to

pay, contracts, and financial supply chain. In addition, suppliers can connect with profitable customers

and efficiently scale their existing relationships — simplifying sales cycles and improving cash control

along the way by interacting with these products and the Ariba Network. The results for both the buyer

©2018 IDC #US43994017 13

and the supplier is a dynamic, digital marketplace, where over $1 trillion in commerce is transacted

each year.

Strengths

The SAP Ariba Supplier Management portfolio of solutions features high-fidelity vendor data model in

the cloud that carries bidirectional synchronization between Ariba and SAP ERP systems. It delivers

near-real-time updates for supplier creation, changes, and inactivation between systems. In the SAP

Ariba Supplier Risk solution, automated data models can calculate risk scores based on company-

specific context and external events.

The SAP Ariba Supplier Risk solution utilizes third-party data aggregation to dynamically update

information based on worldwide regulations. The SAP Ariba Supplier Risk solution also uses machine

learning to optimize workflows that bring great insight from the data aggregated, reducing risk

exposure for businesses.

The SAP Ariba Supplier Management portfolio of solutions track ongoing supplier performance and

risks through aggregation of internal and external data, proprietary data and risk modeling, and

integration with ERP systems and other procurement processes.

A comprehensive supplier 360-degree view from the SAP Supplier Management portfolio of solutions

combines supplier information, qualification, segmentation, and performance data, as well as supplier

risk intelligence.

Challenges

References noted there are still a few integration issues with SAP and SAP Ariba, specifically with the

master data. SAP Ariba has rolled out significant native integrations in recent months to address this

issue. Bidirectional integration into SAP ERP and SAP S/4HANA including more than 100 integration

processes and over 5,000 fields integrated to the SAP Core is now offered. In addition, SAP Ariba is

now integrated with non-SAP ERP products.

References noted search and navigation can be improved as it is not always easy to move around the

application efficiently.

SAP Ariba is starting to weave machine learning through the entire solution set. The Supplier

relationship management functionality of performance and information management will be enhanced

greatly with machine learning.

Consider SAP Ariba When

Consider SAP Ariba when you are an SAP client or an organization that needs a full procurement

platform that includes operational integrations bringing real value to supplier relationship management.

SourceDay

After a thorough evaluation of SourceDay's offerings and strategy, IDC has positioned the company in

the Contenders category of this IDC MarketScape.

Founded in 2013, SourceDay is headquartered in Austin, Texas, and has 50 United States–based

clients. SourceDay is a software-as-a-service procurement solution focused on purchase order

management to solve the most common challenges in manufacturing and distribution for direct spend.

©2018 IDC #US43994017 14

Developed by a team of manufacturing professionals, SourceDay helps integrate a company's ERP

system with the work that keeps the company's operations moving. SourceDay automates purchase

order management processes by seamlessly integrating with ERP systems. SourceDay extends ERP

purchasing capabilities by centralizing and managing the PO life cycle for buyers and suppliers to

eliminate manual processes while improving supplier performance. SourceDay targets manufacturing

and distribution companies that use ERP systems to manage direct spend.

As a result, SourceDay eliminates manual processes and keeps buyers and suppliers communicating

in real time, bringing greater visibility into the PO life cycle while reducing risk, costs, and delays.

SourceDay automates complex steps with a PO management software that is simple, fast, and

affordable to implement.

Strengths

SourceDay provides both procurement teams and their suppliers instant information related to supplier

performance. SourceDay measures on time delivery, price variance, quality, and responsiveness.

Suppliers can be measured at a point in time, or over a period of time, to identify trends.

Through SourceDay's supplier scorecard, supplier performance is measured for on-time delivery, price

variance, quality, and responsiveness. The supplier scorecard helps companies see which suppliers

are at risk, performing poorly, and so forth. Supplier collaboration is at the core of SourceDay. Two-

way communication between buyers and suppliers is standard functionality and is what the solution

uses to score suppliers.

Using SourceDay and ERP receipt data, a supplier scorecard for each supplier using on-time delivery,

price variance, quality, and responsiveness, data is created. Suppliers have access to view their

scorecards in real time and over any date range. For users not using their ERP-provided quality

system, SourceDay has an incoming supplier-provided material quality module.

References love the product as it simplifies their workload and brings more information to them so that

employees don't spend their time searching for information.

Challenges

SourceDay has minimal support for supplier information management including global invoice and

compliance.

References noted the size of the organization makes it tough to have a dedicated project manager and

implementation team. As SourceDay grows, we expect this to change.

SourceDay is specifically focused on the PO process for direct materials. While it does have supplier

performance and some supplier relationship capabilities for direct materials based on the ERP

systems it integrates with, it does not support indirect material SRM aspects.

Consider SourceDay When

Consider SourceDay when you are a manufacturing or distribution company using an on-premises

ERP with many complex manual procurement processes.

©2018 IDC #US43994017 15

TAKE Supply Chain

After a thorough evaluation of TAKE Supply Chain's offerings and strategy, IDC has positioned the

company in the Contenders category of this IDC MarketScape.

TAKE Supply Chain is a 23-year-old company located in Austin, Texas, with over 200 clients. TAKE

Supply Chain's product, OneSCM, is a central supply chain platform for real-time collaboration with

internal and external business processes to make the procure-to-pay and order-to-cash processes

more efficient. Buyers and suppliers work together throughout the process to acknowledge orders, ship

materials, create invoices, and issue accurate, timely payments. Using a fully integrated approach,

OneSCM provides manufacturers and distributors reliable, low-cost sharing of information and 100%

compliant labels on all outbound shipments to customers. OneSCM provides a scalable, robust, and

customizable environment that lets you develop solutions built around business needs rather than

technical limitations.

Strengths

OneSCM provides supplier performance based on data within OneSCM. Its business intelligence

dashboards use several metrics, including predictive analytics, to report supplier performance

including time to acknowledge a PO and shipping performance that includes on-time delivery and

quality.

Supplier Management functionality that allows users to maintain supplier records is provided. Supplier

records can be imported or synchronized from an ERP system to allow ease of onboarding. Workflows

can be configured for each transaction between individual suppliers to support even greater flexibility

in customization in their Supply Chain Orchestration solution. Supplier Management also supports

Supplier Certifications, Contracts, and Compliance.

A previous challenge for TAKE Supply Chain was to provide support for corrective action and reporting

and supplier conformance and nonconformance. TAKE Supply Chain has implemented through its

Engineering Quality Module support for corrective action, supplier conformance, and supplier

nonconformance. As noted in the Challenges section, TAKE still needs to address supplier financials.

Challenges

TAKE Supply Chain is not noted as an indirect sourcing product but rather a direct spend and supply

chain product. It is not easy to compete in an IDC MarketScape for supplier relationship management.

TAKE Supply Chain does not currently support supplier financials.

Consider Take Supply Chain When

Consider TAKE Supply Chain when you are a manufacturing or distribution company that needs a

collaborative buyer/seller platform to solve complex procurement issues for direct and supply chain

spend.

Zycus

After a thorough evaluation of Zycus' offerings and strategy, IDC has positioned the company in the

Major Players category of this IDC MarketScape.

Zycus is a 19-year-old company located in Princeton, New Jersey, with over 300+ implementations

across global companies including the Fortune 500. Zycus provides a suite of procurement products:

©2018 IDC #US43994017 16

Spend Analysis, eSourcing, Contract Management, Supplier Management, Financial Savings

Management, and Procure-to-Pay. All of Zycus' solutions can work as standalone modules as well as

provide seamless integration between each other as they all have been built in-house, with the same

code base.

Strengths

The Zycus Supplier Information Management Solution provides a comprehensive platform for

automating the capturing and managing of supplier-related information. The solution is very

configurable and is a common integration point to other vendor masters and data warehouses. In

addition, the solution suite includes a single portal for your suppliers, called Zycus Supplier Network

(ZSN). This enables new suppliers to register ("onboard") and complete mandatory and optional data

fields and attach required documents. Depending on the supplier's location and field of business, the

forms, data fields, and document requirements will change. The solution automatically performs

checks on some data fields as well as contacts suppliers when a document is due for an update. The

objective here is to move to Supplier Self-Management and manage by exception versus babysitting

and hand-holding.

The Zycus Supplier Performance Management solution helps track and grade supplier performance.

The solution allows you to manage single or multiple scorecards with combinations of KPIs. The

solution supports direct feeds, manual entries, surveys to suppliers and internal stakeholders, and

batch uploads to populate the KPIs.

Challenges

One of Zycus' challenges continues to be selling to organizations that do not want to move beyond

their incumbent ERP solution. Sales pitches are made to procurement and the CFO and then quickly

dismissed by IT. Zycus must learn to sell to all three areas of the business and message accordingly.

Zycus did not provide us with references for this IDC MarketScape. Multiple requests were made and

went unanswered. We consider this a major challenge.

Consider Zycus When

Consider Zycus when you are a global company needing a comprehensive procurement solution. Be

certain that you speak to references to validate the information as IDC's evaluation did not include

customer interviews.

APPENDIX

Reading an IDC MarketScape Graph

For the purposes of this analysis, IDC divided potential key measures for success into two primary

categories: capabilities and strategies.

Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how well

aligned the vendor is to customer needs. The capabilities category focuses on the capabilities of the

company and product today, here and now. Under this category, IDC analysts will look at how well a

vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market.

©2018 IDC #US43994017 17

Positioning on the x-axis, or strategies axis, indicates how well the vendor's future strategy aligns with

what customers will require in three to five years. The strategies category focuses on high-level

decisions and underlying assumptions about offerings, customer segments, and business and go-to-

market plans for the next three to five years.

The size of the individual vendor markers in the IDC MarketScape represents the market share of each

individual vendor within the specific market segment being assessed.

IDC MarketScape Methodology

IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC

judgment about the market and specific vendors. IDC analysts tailor the range of standard

characteristics by which vendors are measured through structured discussions, surveys, and

interviews with market leaders, participants, and end users. Market weightings are based on user

interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base individual

vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and

interviews with the vendors, publicly available information and end-user experiences in an effort to

provide an accurate and consistent assessment of each vendor's characteristics, behavior, and

capability.

Market Definition

This IDC MarketScape evaluation focuses on SaaS and cloud-enabled supplier relationship

management (SRM) applications and functionality. IDC defines SRM as functionality that includes

supplier information, supplier performance, supplier segmentation, supplier collaboration, supplier

conformance, supplier certifications, supplier financials, and risk management. SRM is an area that

cuts across the procurement organization's function and may tie into other areas such as supply chain,

manufacturing, marketing, and facilities management.

Strategies and Capabilities Criteria

Tables 1 and 2 provide key strategy and capability measures for the success of SaaS and cloud-

enabled SRM solutions.

TABLE 1

Key Strategy Measures for Success: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications

Strategies Criteria Scoring Element Weight (%)

Growth — customer satisfaction

strategy

15.0

Account management strategy

Customer references provided

Marketing message strategy

Overall value delivered strategy

©2018 IDC #US43994017 18

TABLE 1

Key Strategy Measures for Success: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications

Strategies Criteria Scoring Element Weight (%)

Technical support strategy

User interface strategy

Functionality or offering strategy 64.0

Automation

Breadth of functionality

Contract management

Customization

Data integration

Data model

Deployment model flexibility

Deployment platforms

Functional flexibility

Functionality options

Global capabilities

Hierarchical architecture

Integration

Intelligence

Localizations

Security

Specific integrations

Spend analysis

Supplier information management

Supplier performance management

Supplier relationship management

Taxes

©2018 IDC #US43994017 19

TABLE 1

Key Strategy Measures for Success: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications

Strategies Criteria Scoring Element Weight (%)

Usability/user experience

Workflows

Range of services strategy 9.0

3rd Platform

Geography

Number of customers

Partner capabilities

Partner training

User group

Delivery — SaaS strategy 9.5

Contract flexibility strategy

Deployment/mobility strategy

Elasticity of pricing strategy

Integration/portability strategy

Multitenancy strategy

Revenue strategy

Scalability/reach strategy

Security strategy

Uptime/reliability strategy

Innovation — total cost of ownership

(TCO) strategy

Total cost of ownership strategy 2.5

Total 100.0

Source: IDC, 2018

Elm

©2018 IDC #US43994017 20

TABLE 2

Key Capability Measures for Success: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications

Capabilities Criteria Scoring Element Weight (%)

Customer satisfaction 16.5

Account management capabilities

Customer references provided

Marketing message capabilities

Overall value delivered capabilities

Technical support capabilities

User interface capabilities

Functionality or offering 62.5

Automation

Breadth of functionality

Contract management

Customization

Data integration

Data model

Data synchronization frequency

Deployment model flexibility

Deployment platforms

Functional flexibility

Functionality options

Global capabilities

Hierarchical architecture

Integration

Intelligence

Localizations

Security

Specific integrations

Spend analysis

Supplier information management

©2018 IDC #US43994017 21

TABLE 2

Key Capability Measures for Success: Worldwide SaaS and Cloud-Enabled Supplier Relationship Management Applications

Capabilities Criteria Scoring Element Weight (%)

Supplier performance management

Supplier relationship management

Taxes

Usability/user experience

Workflows

Range of services 8.5

3rd Platform

Geography

Number of customers

Partner capabilities

Partner training

User group

SaaS capabilities 9.5

Contract flexibility capabilities

Deployment/mobility capabilities

Elasticity of pricing capabilities

Integration/portability capabilities

Multitenancy capabilities

Revenue capabilities

Scalability/reach capabilities

Security capabilities

Uptime/reliability capabilities

Total cost of ownership (TCO)

capabilities

Total cost of ownership capabilities 3.0

Total 100.0

Source: IDC, 2018

©2018 IDC #US43994017 22

LEARN MORE

Related Research

IDC MarketScape: Worldwide SaaS and Cloud-Enabled Sourcing Applications 2018 Vendor Assessment (IDC #US42223817, March 2018)

IDC MarketScape: Worldwide SaaS and Cloud-Enabled Procure-to-Pay Applications 2018 Vendor Assessment (IDC #US43263818, March 2018)

IDC MarketScape: Worldwide SaaS and Cloud-Enabled Procurement Applications 2018 Vendor Assessment (IDC #US42219917, January 2018)

IDC FutureScape: Worldwide Intelligent ERP 2018 Predictions (IDC #US43155917, October

2017)

IDC FutureScape: Worldwide Supply Chain 2018 Predictions (IDC #US43146317, October

2017)

Market Analysis Perspective: Worldwide Procurement Applications, 2017 (IDC #US43035915,

September 2017)

Worldwide Procurement Software Market Shares, 2016: Year of Additions (IDC

#US42842117, July 2017)

Worldwide Procurement Software Forecast, 2017–2021 (IDC #US42842217, July 2017)

IDC FutureScape: Worldwide Intelligent ERP 2017 Predictions (IDC #US41870215, November

2016)

Synopsis

This IDC study provides an assessment of the leading SaaS and cloud-enabled SRM software

solutions and discusses what criteria are most important for companies to consider when selecting

technology.

"Technologies such as advanced analytics, artificial intelligence, increasingly large data sets,

collaborative work streams, and risk analysis are all having a profound impact on SaaS and cloud-

enabled SRM applications. The SRM products continue to evolve with innovation embedded in the

applications, enabling procurement organizations to rely more on the technology, increasing their own

focus to the supplier relationships themselves," said Mickey North Rizza, program vice president of

IDC's Enterprise Applications and Digital Commerce.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory

services, and events for the information technology, telecommunications and consumer technology

markets. IDC helps IT professionals, business executives, and the investment community make fact-

based decisions on technology purchases and business strategy. More than 1,100 IDC analysts

provide global, regional, and local expertise on technology and industry opportunities and trends in

over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients

achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology

media, research, and events company.

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