Spend analysis software is an advanced analytical tool that helps companies to identify, gather, cleanse, categorize, and analyze expenditure data with the aim of reducing procurement cost, improving efficiency and continuously updating an organization’s data to ensure that all contract terms and compliance requirements are being adhered to. Spend analysis software can also be leveraged in other business areas such as inventory management, budgeting and planning, and product and process development.
The vendors have been placed in four categories, based on their performance in each criterion under spend analysis software quadrant: “vanguards,” “innovators,” “emerging,” and “dynamic.” The top 25 players have been evaluated in this section of the report. The analysis has been carried out based on specific parameters related to Spend analysis software, and the scores have been assigned accordingly.
Vendors who fall into this MicroQuadrant receive high scores for most of the evaluation criterion. The vendors in this section have a strong and established product portfolio, and a very strong market presence. They provide mature and reputable Spend analysis software that cater to a wide range of verticals, globally. They also have strong business strategies.
Innovators grouped in this category have demonstrated substantial product innovations as compared to their competitors. They have very focused product portfolios. However, they do not have very strong growth strategies for their overall businesses.
These are established vendors with very strong business strategies. However, they score low in their product portfolios. They generally focus on a specific type of technology related to the Spend analysis software. The vendors included in this section of the MicroQuadrant have a good customer base and are providers of software and services catering to other technologies as well.
These are vendors with niche product offerings and are just beginning to gain recognition in the market. They do not have very strong business strategies as compared to other established vendors. They might be new entrants in the market and could require some more time before gaining significant traction. There have been significant transformations in the functioning of businesses with the expansive penetration of IT infrastructure among organizations. The extensive IT environment of an organization not only enhances flexibility in business functionalities, but also adds to its overall productivity. This results in an increased amount of data, thus forcing industry players to analyze its aspects and gather insights into driving their business growth. In the areas of strategic sourcing and procurement, spend and procurement analytics solutions help to improve processes and operational efficiency. Moreover, these solutions help to perform financial analysis, contract management, and risk and compliance management. Based on vertical, the spend and procurement analytics market is segmented into BFSI, telecommunications and IT, retail and eCommerce, healthcare and life sciences, government and defense, manufacturing, energy and utilities, and others. MANUFACTURING The manufacturing sector includes facilities required for manufacturing heavy construction equipment, farm equipment, rail cars and engines, airplanes and airplane parts, shipbuilding, turbines and generators, lawn and garden equipment, compressors, pumps, conveyors, military equipment, household and commercial appliances, mining equipment, oil and gas field equipment, and transformers among others. Spend and procurement analytics solutions play a crucial role in improving operational efficiency and financial performance as sourcing accounts for almost up to 75% of the overall cost in a typical manufacturing organization. Spend and procurement analytics also provides inputs for planning, budgeting, and product strategies with global spend visibility across enterprises and assists in making informed business decisions. Additionally, spend analytics is proving beneficial for organizations in supplier performance management, working capital performance, parts standardization, and sourcing strategy development, among others. Industry players are striving to offer sophisticated spend and procurement analytics solutions to meet customer demand. RETAIL AND ECOMMERCE The retail industry is undergoing significant transformation with the rapid economic and income growth in the emerging nations. Big data has emerged as a pivotal element in building business development strategies. The industry is facing various challenges, such as long-term uptrend in commodity and raw material prices, changing supply chain architecture, and cost-trend dynamics. In such a scenario, the role of retail sourcing and procurement departments becomes crucial for boosting brand equity and operating margin, driving differentiation, and harvesting insights from big data as much as possible. Spend analytics helps to design and develop cost-competitive global business strategies for enhancing business productivity, lowering costs, and optimizing transportation and logistics networks.
The telecommunications and IT sector has witnessed rapid growth in the past decade and is undergoing significant transformation. With its large size, the industry exhibits complex contracts, inter-dependency of services, disparate spends, and minimal resources and time. This has resulted in the slower adoption of sophisticated spend management solutions and supplier contract renewables. Strategic sourcing and spend analytics solutions empower organizations to analyze telecom spends and prepare comprehensive reports detailing the current state of a supplier, carrier service, equipment, contract terms, and utilization rates. These reports allow organizations to perform gap analysis between technology adoption and market objectives, which in turn, helps to understand spending trends and make informed decisions. Apart from industry vendors who offer spend and procurement analytics solutions to telecommunications and IT organizations, various managed services providers such as Source One also offer spend and procurement analytics solutions.
Spend Analytics Software Quadrant
Find the best Spend Analytics Software solution for your business, using ratings and reviews from buyers, analysts, vendors and industry experts
- Breadth and Depth of Product Offering
- Products/solutions offer in spend & procurement analytics space
- Product variants or licenses (such as enterprise, professional)
- Which of the following services do you offer for spend & procurement analytics
- Maanged Services
- Support and maintenance services - Professional service
- Consulting services - Professional service
- Any other professional services -Professional service
- Amongst the listed software, which of the following does your product provide
- Real-time analysis
- Financial Analysis
- Sourcing Analysis
- Compliance Management
- Spend Analysis
- Others(Please Specify)- the listed software
- Breadth of Applications Served
- Which type of business functions does your product support
- Others (Please Specify)- business functions
- Which type of analytics does your product provide
- Predictive Analytics
- Prescriptive Analytics
- Descriptive Analytics
- What are the applications your product provides in the spend analytics & procurement market
- Risk Management
- Governance & Compliance Management
- Supplier Sourcing & Performance Management
- Financial Management
- Demand and Supply Forecasting
- Others(Please Specify)- the spend analytics & procurement market
- Which of the following is the most preferred mode of delivery at client locations
- Subscription / Licensing
- Full Time Equivalent
- Per User Basis
- Which of the following end-user(s) does your spend analytics & procurement product caters to
- Retail & Ecommerce
- Healthcare and Life Sciences
- IT and Telecommunication
- Governmnet and Defense
- Others (Please Specify)- end-user(s)
- Energy & Utilities
- Which of the following deployment model do you provide
- How do you deliver your solutions to your customers
- Through Partners / Third-Party Vendors / MSSPs
- The minimum hardware and/or OS configuration required for deploying/running your solution/product.
- IS your product scalable,If yes, please mention a few details.
- Support + Service
- Levels of support (such as silver, gold, and platinum)
- The customer redressal mechanism/program in case of customer complaints/grievances.
- Which of the following type(s) of support service your company offers
- Technical Support
- Customer Support
- Sales Support
- Others, please specify- support service
- Which of the following pre-sales support activities do you provide
- Software Requirement Specification (SRS)
- Product Demos
- Others (Please specify)- pre-sales support
- Which of the following is the most preferred medium of delivery of support services
- Remote Support
- On-Site Support