{"id":19520,"date":"2021-09-01T13:20:15","date_gmt":"2021-09-01T13:20:15","guid":{"rendered":"https:\/\/merlinsourcing.com\/?p=19520"},"modified":"2024-10-09T09:33:22","modified_gmt":"2024-10-09T09:33:22","slug":"top-10-strategic-sourcing-solutions-for-mid-market-businesses-alternatives-to-sap-ariba","status":"publish","type":"post","link":"https:\/\/merlinsourcing.com\/de\/blog\/top-10-strategic-sourcing-solutions-for-mid-market-businesses-alternatives-to-sap-ariba\/","title":{"rendered":"Top 10 Strategic Sourcing Solutions for Mid-Market Businesses \u2013 Alternatives to SAP Ariba"},"content":{"rendered":"
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The role of procurement department in organizations\u00a0has been\u00a0growing\u00a0significantly\u00a0over the past few years from being transactional to a more strategic function. Organizations today\u00a0understand\u00a0the potential areas where procurement can make an impact and bring value to the table. However, to become a strategic driver\u00a0of\u00a0business initiatives,\u00a0procurement needs the right technological capabilities that would allow them to harness their optimum potential\u00a0and provide\u00a0answers to\u00a0questions like:\u00a0\u201cWhat am I buying?\u201d, \u201cFrom whom am I buying?\u201d, \u201cHow much am I spending?\u201d, and so on.\u00a0That\u2019s why organizations need to\u00a0switch from ERP procurement modules<\/a>\u00a0and tactical purchasing automation solutions to Strategic procurement solutions.\u00a0Strategische Beschaffung<\/a>\u00a0empowers businesses to find answers to these questions and develop optimal strategies for procuring goods and services \u2013 be it direct or indirect. So, what are the best strategic sourcing solutions for small to mid-sized businesses today?\u00a0\u00a0<\/p>\n\n

When you think of an end-to-end procurement solution, the only name that comes\u00a0to your mind is probably SAP Ariba.\u00a0 But\u00a0how affordable is the solution to mid-market\u00a0and growing\u00a0companies looking for a strategic sourcing solution\u00a0is a question here.\u00a0Today,\u00a0the mid-market is full of emerging industry players and rapidly growing start-ups that need procurement technology and processes to help scale and manage their growth.\u00a0So, in this blog, we bring to you a list of alternatives to SAP Ariba which\u00a0are\u00a0worth considering and allows organizations to leverage strategic sourcing at a more affordable cost.\u00a0<\/p>\n\n

Essentially,\u00a0mid-market\u00a0companies are at a significant disadvantage when compared to larger corporations, when it comes to sourcing and procurement function with challenges across\u00a0two main areas \u2013 Resources and Technology.\u00a0\u00a0They might not have the luxury of hiring top notch\u00a0talent with skills for strategic sourcing and category management and most technology solutions might not align with their business size and budget. For them the\u00a0chosen technology has to provide the answers to their procurement needs while being affordable and scalable.\u00a0<\/p>\n\n

Thankfully, there are a number of vendors in the Strategic Sourcing Solutions marketspace, apart from big players like\u00a0SAP Ariba<\/a>\u00a0and Jaggaer, offering full suites complete with\u00a0spend analysis<\/a>, e-sourcing,\u00a0contract life cycle management<\/a>, supplier\u00a0management and P2P functionality.\u00a0However, the depth of functionality across the modules varies\u00a0considerably\u00a0across these providers.\u00a0Choosing the right solution would mean identifying your specific needs and evaluating\u00a0your options\u00a0to identify the one that\u00a0offers the best fit\u00a0for\u00a0the specific functionalities that you need the most.\u00a0\u00a0<\/p>\n\n

Here is a list of Strategic Sourcing Solutions that is worth considering if you are looking for a procurement solution for your mid-sized business and a solution that fits your budget.\u00a0These solutions\u00a0have\u00a0been picked based on user review in sites like\u00a0Capterra<\/a>,\u00a0G2 Crowd<\/a>,\u00a0Gartner Peer\u00a0Insights<\/a>, etc and analyst reports like\u00a0Gartner Magic Quadrant for Strategic Sourcing Solutions<\/a>,\u00a0Gartner Critical Capabilities Report for Strategic Sourcing Solutions<\/a>,\u00a0Spend Matters Solution Map<\/a>, etc.\u00a0You can refer the\u00a0above review\u00a0sites for more user reviews.<\/p>\n\n

1. Basware<\/strong><\/a>\u00a0<\/h3>\n\n

Basware, founded with a focus on finance and accounts payable (AP) automation, has now expanded into a complete procurement suite\u00a0offering source to pay solutions.\u00a0Basware suite\u00a0is a suite best suited for managing indirect spend but can also support services and direct spend.\u00a0It offers solutions for Strategic Sourcing, Supplier Relationship Management, Contract Management, Requisition approval and Management, Purchase Order Management, Invoice Receipt and Processing and Payment Management.\u00a0<\/p>\n\n

Basware\u2019s solution is delivered as a multitenant cloud solution. Basware\u2019s strength however is its P2P solutions with strong accounts payable invoice automation. This makes it highly attractive to customers that require a high level of invoice automation and regulatory compliance on a global scale.\u00a0<\/p>\n\n

The direct procurement features for Basware are not very strong, and if you are seeking advanced functionality for direct materials procurement, Basware might not be the right solution.\u00a0<\/p>\n\n

2. Coupa<\/strong><\/a>\u00a0<\/h3>\n\n

Coupa, with its origins in the P2P space, has\u00a0recently expanded into strategic sourcing application suites through some acquisitions and native development in the past few years.\u00a0Coupa\u2019s solutions include Strategic Sourcing, Supplier Management, Spend Analysis, Contract Management, eProcurement, Invoice Automation and Payments. Coupa\u2019s solutions are best suited for indirect spend management and services procurement. They have only focussed partially on direct material procurement till date.\u00a0\u00a0<\/p>\n\n

However, with their recent acquisition of\u00a0LLamasoft\u00a0solutions, they now offer Supply Chain Management solutions as well.\u00a0This possibly\u00a0indicates\u00a0that Coupa is trying to expand capabilities for direct spend management in the future and trying to fill white spaces.\u00a0<\/p>\n\n

3. Medius<\/strong><\/a>\u00a0<\/h3>\n\n

Medius started off as a provider of invoice automation software and it acquired Wax Digital\u2019s integrated procurement solution. Thus,\u00a0from sourcing and contracting with suppliers to placing orders, as well as matching, processing and paying invoices, the\u00a0acquisition of Wax\u00a0Digital\u00a0transforms Medius from a market-leading accounts payable-focused solution into a comprehensive suite with full source-to-pay (S2P) capabilities.\u202f\u00a0<\/p>\n\n

However, the core strength of Medius is still Procure to Pay. The Strategic sourcing solution offer most of the features to create and run sourcing events and select suppliers but lacks depth and configurability to\u00a0fine-tune them. As per Gartner reports, it also scores below average for direct materials and services.\u00a0<\/p>\n\n

4. MeRLIN<\/strong><\/a>\u00a0<\/h3>\n\n

MeRLIN\u00a0is an\u00a0integrated sourcing solution to manage direct & indirect procurement needs with its features for\u00a0Lieferantenbeziehungsmanagement<\/a>,\u00a0Kategorie Management<\/a>, eSourcing (RFx and\u00a0eAuctions), Contract Management, Requisition Management, eProcurement and Planning augmented by Advanced Analytics.\u00a0\u00a0<\/p>\n\n

MeRLIN\u00a0is a solution designed\u00a0to meet the\u00a0strategic\u00a0sourcing\u00a0needs\u00a0of\u00a0mid\u00a0to large\u00a0size\u00a0enterprises\u00a0and enable\u00a0them to\u00a0effectively\u00a0fill the white spaces\u00a0in direct\u00a0sourcing and\u00a0procurement in ERPs and other\u00a0procurement\u00a0solutions.\u00a0\u00a0<\/p>\n\n

MeRLIN\u00a0has very strong features for direct material procurement like\u00a0engineering\u00a0collaboration using PLM and CAD integrations, configurable response templates to gather details like part cost breakdown, volume discounts, etc to make the best sourcing decisions and establish strategic relationships with suppliers.\u00a0\u00a0<\/p>\n\n

MeRLIN\u00a0also offers advanced analytics out-of-the-box\u00a0for\u00a0suppliers, spend, savings, etc as well specific analytics for direct procurement like PPV analytics, BOM analytics, BOM waterfall chart, etc.\u00a0\u00a0<\/p>\n\n

MeRLIN\u00a0does not offer invoicing\u00a0automation and payment features\u00a0at this point\u00a0and\u00a0Supplier Risk Management features are\u00a0limited.\u00a0Contract Lifecycle Management module is\u00a0a bit\u00a0limited.\u00a0However,\u00a0Contract Repository, Milestone Management,\u00a0Authoring and\u00a0Digital Signatures are available in\u00a0the product.\u00a0<\/p>\n\n

5. Promena<\/strong><\/a>\u00a0<\/h3>\n\n

Promena,\u00a0is a SaaS-based procurement software\u00a0offering\u00a0Supplier Base Management, eSourcing, eProcurement and Spend Analysis.\u00a0The solution offers an intuitive platform with all the basic features to run and execute sourcing events\u00a0– Request\u00a0for\u00a0Proposal (RFP),\u00a0Request\u00a0for\u00a0Information (RFI),\u00a0Request\u00a0for\u00a0Quotation (RFQ), and\u00a0eAuctions.\u00a0\u00a0<\/p>\n\n

However, the analytics solutions\u00a0from\u00a0Promena\u00a0are not very strong\u00a0and lack of custom dashboards. This\u00a0is one of the major drawbacks of the solution as per customer reviews.\u00a0It also lacks features for direct spend management.\u00a0But it is a good option for small to medium sized businesses looking for some basic sourcing and spend management capabilities to handle their indirect procurement.\u00a0<\/p>\n\n

6. QAD Allocation<\/strong><\/a>\u00a0<\/strong>\u00a0<\/h3>\n\n

Allocation is a best of breed Strategic Sourcing\u00a0and Supplier Management\u00a0solution. It was recently acquired by QAD and rebranded as QAD Allocation, formerly called as ASTRAS. The focus of the solution is mainly on direct procurement and intends to help manufacturers with\u00a0their\u00a0complex direct procurement projects.\u00a0<\/p>\n\n

They provide solutions for Supplier Management, eSourcing,\u00a0eAuctions\u00a0and Direct Procurement Collaboration.\u00a0The solution however does not have\u00a0spend\u00a0analytics module and payment features.\u00a0<\/p>\n\n

7. Scanmarket<\/strong><\/a>\u00a0<\/h3>\n\n

Scanmarket\u00a0is a Source-to-Contract solution. It offers solutions for eSourcing -RFx,\u00a0eAuction, Supply Base Management, Spend Analytics, Sourcing Project Management and Contract Management.\u00a0Scanmarket\u2019s\u00a0top rated feature is\u00a0its\u00a0Auction Management module with support for multiple types of auctions and ease of use.\u00a0\u00a0<\/p>\n\n

Scanmarket\u00a0is yet another Strategic Sourcing Solution\u00a0that\u00a0does not offer a native P2P solution.\u00a0It does not offer any feature for eProcurement.\u00a0Scanmarket\u00a0is best suited for mid-market companies who need an easy-to-use solution with strong eSourcing capabilities.\u00a0However,\u00a0Scanmarket’s\u00a0modules for Contract Lifecycle Management and Supply Base Management are less mature.\u00a0\u00a0Features\u00a0in areas of\u00a0supplier\u00a0performance management,\u00a0supplier\u00a0risk management, contract authoring and negotiation, or post-signature\u00a0contract management\u00a0are\u00a0very basic and limited.\u00a0\u00a0<\/p>\n\n

8. Synertrade<\/strong><\/a>\u00a0<\/h3>\n\n

SynerTrade\u00a0is an independently operated subsidiary of\u00a0Econocom, offering strategic sourcing capabilities as part of its Accelerate Source-to-Pay suite.\u00a0It is capable of supporting both direct and indirect spend categories.\u00a0<\/p>\n\n

According to the Gartner\u2019s critical capabilities report for Strategic Sourcing Solutions,\u00a0SynerTrade\u00a0is very strong in Supplier Management (supplier information management, supplier performance management, supplier relationship management and risk management), Contract Creation and Direct Sourcing and Collaboration. However, as per the same report it scores quite low for capabilities for advanced sourcing optimization for large scale sourcing events including thousands of line items and ease of usability.\u00a0<\/p>\n\n

9. Vendorful<\/strong><\/a>\u00a0<\/h3>\n\n

Vendorful\u00a0is a vendor management and eSourcing tool ideal for small to medium sized businesses looking for a procurement solution to manage their eSourcing needs. It has features for RFP\/RFI\/RFQ, Reverse Auctions, Sourcing Project Management,\u00a0Spend Analytics,\u00a0Supplier Information Management, Supplier Scorecards and Performance Management and Contract Administration and Lifecycle Management.\u00a0<\/p>\n\n

Vendorful\u00a0is mostly used by\u00a0mid-market\u00a0organizations\u00a0in\u00a0industries,\u00a0such as\u00a0retail, financial services, and higher education.\u00a0The tool doesn\u2019t offer features required for direct spend management.\u00a0<\/p>\n\n

10. Vortal<\/strong><\/a>\u00a0<\/h3>\n\n

Vortal is a cloud-based collaborative marketplace comprising of a supplier network and discovery technology, along with full eSourcing capability. While initially based in Portugal, VORTAL\u00a0is expanding globally\u00a0<\/p>\n\n

Their focus is mainly on Indirect spend management and public sector space within EU. However, nowadays Vortal is expanding its presence to the\u00a0private\u00a0sector space\u00a0as well. Vortal\u2019s solutions include Category Management, eSourcing,\u00a0eAuction,\u00a0eCatalogues, Supplier Relationship\u00a0Management,\u00a0Spend Analytics,\u00a0Contract Management\u00a0and\u00a0eInvoice.\u00a0<\/p>\n\n

According to the Gartner\u2019s critical capabilities report for Strategic Sourcing Solution, VORTAL received high scores for eSourcing, Contract Management and Supplier Information Management. However, according to the same report, its capabilities\u00a0for\u00a0spend analysis, direct sourcing and collaboration, supplier relationship and risk management are received low scores.\u00a0<\/p>\n\n

How Should Mid-Market Companies Choose the Best Sourcing Solution?<\/strong>\u00a0<\/h3>\n\n

Automation of\u00a0Strategic Sourcing can be felt across a company \u2013 process efficiencies, better spend visibility, better supplier relationships and reduced operational costs are some of the major benefits to name a few. Automation of demand consolidation, requisitions, RFx management and Catalogues embedded with analytics helps you reduce procurement costs through effective planning, budgeting and procurement decisions. The choice of a procurement solution depends on business requirements,\u00a0allocated\u00a0budget, and so on. As we have seen here, each of the vendors listed here have their own strengths and weaknesses.\u00a0Say, if you are a manufacturer and\u00a0most of\u00a0your\u00a0spend falls under\u00a0direct spend<\/a>, solutions like\u00a0MeRLIN, QAD Allocation and\u00a0Synertrade\u00a0would be the best fit for you.\u00a0\u00a0<\/p>\n\n

Apart from the business needs, there are a few more important things worth considering while choosing a procurement solution vendor\u00a0– Integration\u00a0with other software, ease of use, configurability, implementation time and ROI. The bottom-line is procurement technologies for mid-market companies should be able to adapt to their business needs quickly\u00a0while offering\u00a0a\u00a0scalable procurement\u00a0solution\u00a0with\u00a0functionality\u00a0that can aid faster and more profitable growth.\u00a0<\/p>\n\n

Still confused on choosing your\u00a0procurement solution?\u00a0Contact us<\/a>\u00a0to know how a\u00a0Strategic\u00a0Sourcing Solution can help your business.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Discover alternative strategic sourcing solutions for mid-market businesses and make tailored selections based on specific needs, budget and scalability.<\/p>","protected":false},"author":7,"featured_media":19521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-19520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategic-sourcing","entry"],"yoast_head":"\nTop 10 Strategic Sourcing Solutions for Mid-Market Businesses<\/title>\n<meta name=\"description\" content=\"List of Strategic Sourcing Solutions that is worth considering if you are looking for a procurement solution for your mid-sized business and a solution that fits your budget.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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