2016 P2P for Indirect Spend Report

2016 P2P for Indirect Spend Report Streamlining and Controlling Company Spend with Purchase-to-Pay (P2P) Automation Featuring insights on...»» Current Market Trends in Organizations Indirect Spend Processes»» The Benefits of P2P Automation for Managing Indirect Spend»» Features and Functionalities of P2P Software»» A Few Leading P2P Software Providers Underwritten in part by

Contents Introduction 3 Purchase-to-Pay Concerns in Indirect Spend 4 P2P Software Features and Benefits 11 Adoption Road Map 14 Ariett 16 Corcentric 19 Determine 22 GEP 25 SynerTrade 28 Xeeva 31 About PayStream Advisors 34 2

Introduction In indirect Purchase-to-Pay (P2P), organizations must manage complex procurement, accounting, supplier, and payment data across a wide range of processes, departments, and users. When purchasing indirect goods and services, most organizations deal with a larger supplier base, a different range of products, and higher invoice volumes with lower invoice amounts than in direct spend. Indirect purchasing is usually more at risk of maverick or fraudulent spend than direct goods purchasing, as indirect purchases are more often made outside of sourced contracts, and tend to be placed by employees across many different roles and departments. Procurement and AP managers must keep careful watch over indirect purchasing activity in order to ensure all spend is in compliance with budgets and company policies. Controlled and streamlined indirect spend management is very important for a company s success, as failure to maintain complete control of P2P processes leads to high processing costs, late payments, supplier dissatisfaction, and non-compliant or fraudulent spend. One of the greatest factors affecting control in indirect P2P is manual-based procedures. Fortunately, P2P automation tools are tailored specifically to the requirements of indirect spend management. These solutions provide organizations with flexibility, visibility, and control throughout the P2P process. This report explores trends in indirect P2P among today s organizations. It also highlights the features and benefits of advanced P2P automation tools, including eprocurement, einvoicing, supplier information management, and epayables solutions. 3

Purchase-to-Pay Concerns in Indirect Spend In order to identify indirect P2P trends among North American organizations, PayStream Advisors surveyed over 200 back-office employees across several industries and market segments. Research shows the majority of organizations are operating P2P processes with manual-based methods. For example, when asked if their companies were using an eprocurement solution, most organizations reported that they were not, see Figure 1. The trend continues in other P2P solutions: only 41 percent of organizations are using invoice workflow automation, 22 percent are using einvoicing, and most businesses (63 percent) are using checks for over 50 percent of their payments. Figure 1 ORGANIZATIONS RESPONSES REGARDING EPROCUREMENT USAGE Most Organizations Do Not Automate Procurement Does your organization utilize an eprocurement solution? 34% Yes No 66% 4

Under manual procurement, AP, supplier management, and payments, organizations do not have a controlled environment in which they can manage and collaborate on purchasing activity and transaction information. These P2P departments are typically dealing with high volumes of paper (POs, invoices, checks, etc.), and they have limited access to real-time information that is vital for strategic purchasing decisions. These departments are also using inefficient, manualbased methods to route P2P documents between employees and departments, often leading to misplaced or overlooked invoices and late payments. In all, research shows that organizations under manual P2P have little ability to control processes or securely manage data, and experience high processing costs. When asked where they would like to see the greatest improvement in their procurement processes, most organizations listed cost control and supplier negotiations, visibility into spend, and AP and procurement synchronization as their top goals, see Figure 2. Figure 2 ORGANIZATIONS TOP PROCUREMENT IMPROVEMENT GOALS Most Organizations Want More Control, Visibility, and Synchronization in Indirect Goods Purchasing Cost control and supplier negotiations Spend visibility 20% 30% In what area would you like to see the greatest improvement to your procurement process? Integration of AP within the procurement process 15% Contract compliance 14% Data accuracy 13% Off-contract spend reduction 8% 5

When organizations were asked which factors would motivate them to consider an invoice automation solution, most reported they want to improve cost control and visibility, see Figure 3. TOP FACTORS DRIVING INVOICE AUTOMATION ADOPTION Reduction in labor / processing costs 18% Figure 3 Most Organizations Want to Improve Processing Costs, Invoice Control, and Cycle Times What are the top three factors driving your organization to consider electronic invoicing and/ or an invoice workflow solution? Fewer lost or missing invoices Quicker approval cycles Better visibility across the transaction lifecycle Reduction in exceptions / discrepancies Increased on-time payments Increased ability to capture discounts 15% 14% 11% 10% 10% 10% Fewer supplier inquiries 6% Improved vendor satisfaction 5% Purchase-to-Pay for indirect spend comes with a unique set of challenges, issues, and requirements, and some industries are affected by these challenges in different ways. For example, in the education industry, organizations top motivations for automating procurement are to streamline requisition and procurement processes, create shorter cycle times, and increase visibility across procurement. PayStream believes this is due to the education industry s decentralized indirect purchasing and payment processes; most organizations procurement occurs across many departments and locations. 6

A similar trend is seen in the healthcare industry, which tends to have widespread, diverse, and non-po-based purchasing paired with complex approval workflows. The industry s challenges revolve around controlling costs and increasing visibility into spend, and organizations reasons for automating include streamlining requisition to procurement, and increasing security and data accuracy. This last item is especially important to healthcare, as these organizations are constantly subject to changing federal regulations on how they must process medical records, POs, and supplier payments. In the manufacturing industry on the other hand, organizations operations and supply chains depend heavily on direct goods, and companies are less concerned with streamlining indirect spend processes. The industry s challenges revolve less around streamlining AP and procurement and more on controlling costs, negotiating with suppliers, and reducing maverick spend. In addition, PayStream s benchmarking research has found that manufacturing organizations tend to have shorter requisition and invoice approval times than organizations in healthcare and education, even though the manufacturing industry has a lower rate of eprocurement and invoice automation adoption. This is most likely because manufacturing organizations departments and locations are typically not as spread out as in education and healthcare. 7

Other indirect P2P challenges that arise across all industries include:»» Supplier Management Indirect P2P often involves more suppliers than indirect goods purchasing, and organizations vendor databases are often very complex. P2P departments must not only maintain accurate and up-to-date supplier information, but also must monitor suppliers legal validity and compliance especially when working with overseas companies. A lack of automation in P2P processes prohibits companies from properly managing supplier information or from properly communicating with suppliers during a P2P lifecycle. In turn, these issues put a major strain on supplier relationships, see Figure 4. Figure 4 Poor Data Management Can Weaken Organizations Supplier Relationships CHALLENGES TO ORGANIZATIONS SUPPLIER RELATIONSHIPS Poor supplier dispute / query response times What is the pain that causes the most damage to your organization s supplier relationships? 36% 31% Late payments Problems arising from poor supplier data management 33%»» Competitive Pricing, Contract Compliance, and Budgeting Organizations foster strategic relationships with their suppliers by establishing competitive pricing and mutually beneficial business contracts. Manual-based processes often make it much more difficult for managers to ensure that contracts remain up to date with their organizations budgeting needs and with fair market prices, and that all purchases are compliant with contract agreements, preferred vendor lists, and budgets. 8

»» Process Synchronization This involves maintaining data and document synchronization across all P2P departments especially the information between the original purchase and the final payment. This requires communication between Procurement and AP departments, matching requisitions and POs against receipts and invoices, and gaining all correct approvals before payment. Streamlining processes between AP and procurement keeps a company from overspending or paying an incorrect invoice, and it also improves cycle times and future auditing. Unfortunately, survey results reveal that most organizations do not have a fully integrated P2P process, see Figure 5. Figure 5 Most Organizations P2P Processes Are Not In Sync ORGANIZATIONS P2P PROCESS INTEGRATION Common leadership, but separate functions with some shared functions 33% How would you describe the process flow between procurement, AP, and payments? They are completely separate Completely integrated 19% 31% Shared leadership and metrics, but emerging integration 17% 9

»» Payment Control and Efficiency AP professionals must balance payment speed with payment control and security, especially when it comes to maintaining legal compliance. Manual P2P processes lead to lengthy approval times and late payments, which cause organizations to miss early payment discounts, see Figure 6. Paying supplier invoices with manual methods, such as with checks, also limits the payments data security. Leading causes of missed early payment discounts Figure 6 Lengthy Approval Cycles, Manual Procedures, and Invoice Errors Are the Leading Causes of Missed Discounts What are the top three problems that lead to late payments and missed discounts at your organization? solution? Lengthy approval cycles Manual routing of invoices Missing information on invoices Lost invoices Large number of exceptions 43% 46% 57% 55% 62% Decentralized invoice receipt 38%»» Auditing Compliance is largely dependent upon the proper recording of all P2P activity, including transaction information from requisition to reconciliation and payment. When it comes to auditing, manual- and paper-based processes can make it difficult to keep track of all B2B documents and financial records, and can put a company at risk for steep legal fines. 10

P2P Software Features and Benefits PayStream attributes the low adoption rate of P2P software to a lack of awareness of the benefits of P2P automation. These benefits include improvements in both process efficiency and cost savings, more control over spend, faster cycle times, and healthier supplier relationships. P2P automation involves requisitioning, purchasing, receiving, paying for, and accounting for goods and services, see Figure 7. Figure 7 The Purchase-to-Pay Platform SPEND MANAGEMENT PROCUREMENT P2P SUPPLIER MANAGEMENT ORDER MANAGEMENT EPAYMENTS ACCOUNTS PAYABLE»» eprocurement and Order Management Procurement technology s main features include requisition creation and workflow, in-house and punch-out catalogs featuring product information from thousands of suppliers, PO creation, and an order management interface that allows for full visibility into all order activity. These solutions often support PO flip to invoice and integration with AP as well. 11

»» Accounts Payable AP automation involves paperless invoice processing through electronic invoicing and/or the scanning of paper invoices and data capture, invoice matching and exception management, approval workflow, and integration with electronic payments tools. Most P2P solutions are capable of integration with AP software, facilitating seamless movement from requisition to payment. Many AP solutions also come with working capital tools, including Dynamic Discounting and Supply Chain Financing (SCF) offerings to improve DPO, increase revenue, and promote faster supplier payments.»» Electronic Payments Many solutions either offer in-house payment capabilities or directly integrate with leading payment solution providers. Leading epayments strategies include ACH, wire, and commercial card payments. Commercial cards come in a variety of types, including corporate cards, traditional purchasing cards, ghost cards, and Virtual Account (VA) programs.»» Supplier Management Most solutions offer some level of supplier management either through self-service supplier platforms or simply via a searchable supplier directory. Other features include supplier data management, supplier risk assessment, and supplier analytics and reporting tools for insights and auditing.»» Spend Management Reporting and analytics tools allow purchasing, AP, and legal departments to pinpoint inefficient spend activity and identify areas for improvement. Features include out-of-the-box and/or ad-hoc reporting, interactive reporting dashboards with drill-down capabilities, integration with other analytics tools, and industry benchmarking for data analysis. Besides process automation, P2P automation also brings many benefits that impact the efficient management of indirect spend. These include:»» Control P2P solutions offer built-in purchasing controls that can be customized to each organization s unique business policies. A company can designate different requirements, restrictions, and workflows for spend according to its characteristics, such as spend category, user, and PO or invoice amount. The solutions facilitate complete, real-time visibility into all spend activity, and many offer budgeting components that promote consistent budgeting 12

compliance for both general and project-based purchasing. Many solutions also provide support for non-po spend to ensure that these items are under the same level of control. This support can include special rules and workflows for non-po invoices, as well as straight-through processing and automatic payment options for certain recurring invoices, such as utility bills. Today s P2P solutions also improve control through back-end analytics, audit trails, and financial process support that automates accruals and postings.»» Configurability P2P solutions allow customization of more than just internal controls a company can customize the solution to fit with any business process or requirement, including approval workflows, industry-specific requirements, and IT specifications. In addition, P2P solutions can adapt to any ERP system, and are usually offered either in holistic, end-to-end suites or through modular, standalone units. This allows organizations to easily integrate solutions with existing systems piece by piece, moving towards automation at a pace that suits their budgets.»» Collaboration Today s solutions allow procurement and AP managers to maintain consistent communication with both their staff and the company s stakeholders through real-time collaboration tools. Users can discuss spend activities at any time during the P2P process through email and chat boxes, and they can collaborate on P2P documents via authoring tools and comments. Mobile technology further promotes this collaboration by allowing strategic P2P professionals to stay in communication on the go by using the software s mobile application. 13

Adoption Road Map A P2P solution allows businesses to control company spend, improve processes, and potentially save millions each year. When selecting a P2P solution, organizations should: Build a selection checklist. Not every solution works with every organization, as company size, industry, and unique business processes and requirements can greatly affect a solution s suitability. Companies should develop a selection checklist in order to choose a provider that complements their own internal strategies and business needs, including the organization s business process flows, unique industry requirements, IT needs, and financial parameters. Look at a variety of providers. There are many different types of P2P providers; some offer more generic solutions that can easily plug into any business type, while others have more experience in a few specific industries, such as healthcare or professional services. In addition, many solutions are built differently according to the market segment the provider caters to; there are solutions with features and pricing options designed for small, medium, and large organizations. A buying organization should evaluate the solution against both of these distinctions. Look at the numbers. It is important to look beyond the initial ticket price of a P2P system, especially when it comes to buying a holistic, end-to-end suite. Organizations should consider the total cost of ownership for the solution, which includes implementation and integration costs, change management costs, ease of use, and scalability. They should compare these costs against the potential savings they will gain by reducing maverick spend and processing times, and speeding up the payment cycle. To help calculate the total cost of ownership (TCO), PayStream has created an easy-to-use TCO calculator. This tool is free to use, and can help an organization decide which solution is the most cost-effective for its needs. It can be accessed at www.paystreamadvisors.com Gain internal buy-in and enthusiasm. For an automation overhaul to be successful, the entire organization must be in agreement about the value, need, and primary use of the software. Although procurement, AR, and AP professionals must be on board as they will have the most 14

contact with the software it is vital that senior management also be optimistic and enthusiastic about the new system. Gaining corporate buy-in is the surest way of creating a successful automation initiative. Those proposing the implementation of new software should present a detailed plan for implementation, highlighting the long-term benefits of the solution in both hard and soft costs. In all, Purchase-to-Pay solutions bring spend into one unified, transparent system, and allow organizations to improve control over their spend, financial health, and competitive advantage. The following profiles summarize the offerings of a few leading Purchase-to-Pay software providers. 15

Ariett Ariett released its first.net web-based procurement product in 2003. Today, Ariett provides a unified cloud solution for Purchase-to-Pay and expense management, with common workflow and user management for handling all indirect spend. Ariett primarily serves mid-market and mid-enterprise customers with 200-20,000 employees. Founded 1990 Headquarters Pembroke, MA Number of Customers 2,200 Companies Target Verticals Business Services, Software/Technology, Notfor-Profit, Healthcare, Education Partners / Resellers Microsoft Reselling Partners, Intacct Reselling Partners, Microsoft Azure, Intacct ISV Partner Awards / Recognitions Microsoft Gold Development Partner (2010-2016); Microsoft Azure Application Case Study (2014); Certified as Microsoft Platform Ready; a leading software provider in PayStream Advisors 2015 Travel and Expense Management report Solution Overview Built on the Microsoft Azure Cloud platform, the Ariett P2P suite includes the benefits of Microsoft s cloud security and the Azure Active Directory. The platform also gains the benefits of the Microsoft Global Foundation Services (GFS), a program that offers worldwide data centers for storing and backing up data, as well as extensive annual audits. Ariett Purchase and Expense offers a responsive web design (RWD) application that integrates with a number of ERP and accounting systems. Purchase-to-Pay With a single fully-integrated platform, Ariett supports decentralized purchasing at the department level, as well as centralized procurement for managers allowing them to establish preferred vendors and track vendor contracts, and manage catalog items. Procurement features include requisitioning with approval workflow, access to CXML punch-out catalogs, hosted catalog management, and purchase order creation and delivery. 16

Ariett provides budget and contract tracking capabilities throughout the purchasing lifecycle, as well as tracking for vendor performance and internal project management. Features include capturing audit trails of approvals, collaborating on decisions, and tracking expirations. In addition, the platform s RWD mobile application allows employees to quickly collaborate on spending requests and contracts from any phone, tablet, or laptop. Ariett supports a 2- and 3-way receiving match among purchase orders, receipts, and invoices all while following standard accounting practices and capturing a complete audit trail. From the Receiving screen in Ariett, the employee can view packing slips and shipping notifications (received through the Ariett Document Capture and Automation Service), and automatically select items for reconciliation. Ariett s Document Automation Service allows suppliers to easily send all invoices to an Ariett customer electronically. After invoices are matched, they are routed for approval based on customer business rules. Ariett offers sophisticated settlement features, with the ability to set GL currency conversion, taxes, and transactions in a multi-entity environment. Ariett s platform search capabilities allow users to find data among spending trends, transactions, vendors, invoices, and documents. Reporting is bundled with over 200 standard reports from SQL Server Reporting Services (SSRS), and each customer receives a dedicated reporting repository. Ariett s out-of-the-box reports are designed to help customers analyze business spend, evaluate contract and vendor performance, and prepare for month-end closing. Customers can also build their own custom reports. Ariett automates the import of the Vendor Masterfile information from customers accounting systems into Ariett. When using Ariett Contract, vendor compliance information can be required and captured during vendor contract approval. Ariett s 2016 release schedule includes the rollout of a Vendor Management Self-Service Portal, as well as ACH and Virtual Credit Card payment processing. Implementation and Pricing Ariett Implementations typically entail between 40 and 150 hours of services provided over a 3 to 12 week period of time. This time frame depends on customer size, organizational complexity, policies, and reporting metrics. After implementation, Ariett provides a Customer 17

Community and Help site for support, inquiry, and add-on service requests, as well as a wealth of product information and videos. Customers can use this site to submit support tickets, review product release notes, and gain useful product tips. 18

Corcentric Corcentric provides cloud-based financial process automation that enables global organizations to manage and protect their financial assets. Corcentric s Purchase-to-Pay solutions help Accounts Payable and Procurement departments reduce business costs, streamline processes, and provide the visibility needed to make critical business decisions. The software allows companies to manage 100 percent of their invoices electronically, creating a conduit between procurement, accounts payable, accounts receivable, and suppliers. Corcentric has customers ranging in size from Fortune 200 down to small independently-owned businesses. Founded 1998 Headquarters McLean, Virginia Other Locations Cherry Hill, NJ; Fairfield, NJ; Downers Grove, IL; Coral Springs, FL Number of Employees 225 Target Verticals Any vertical Partners / Resellers Microsoft Reselling Partners, Intacct Reselling Partners, Microsoft Azure, Intacct ISV Partner Awards / Recognitions SSAE16 Type II SOC 1 certified; PCI Compliant Solution Overview Corcentric s solutions are built on a multi-tenant Software-as-a-Service (SaaS) platform that requires no software or hardware to buy, install, or maintain. The system can integrate with any ERP or financial system, and it seamlessly transmits data to and from a client s financial system through proprietary ERP Business Connectors. The COR360 solution offers mobile approval functionality through any smartphone or tablet. The solution also provides multi-lingual and multi-currency capability. 19 Purchase-to-Pay The Corcentric purchasing system supports requisition creation, workflow approval, and electronic PO creation. The order management solution enables users to send advanced shipment notices, track purchase orders and shipping status, and manage discrepancies. It also provides dispute resolution support, and reporting and analysis of historical trends.

Corcentric s purchasing system is integrated directly with the company s AP solution, COR360, for full invoice-match automation. The AP solution offers complete end-to-end automation, including invoice receipt, scan and capture, electronic invoicing, and workflow approval. COR360 automates 2- and 3-way matching and the matching process for blanket purchase orders, and enables straight-through processing when document matches fall within predefined rules and tolerances. Invoices that fail the matching process enter COR360 s automated exception handling workflow, which can route the exception to the appropriate user for proper resolution. The Corcentric Supplier Network provides a self-service supplier portal solution for checking payment status, dispute resolution, and electronic invoicing. Corcentric also provides clients with supplier onboarding services and supplier information management tools. There are no fees for suppliers to connect to the Corcentric Supplier Network to send electronic invoices or to use the COR360 supplier portal. The Corcentric epayment solution allows customers to outsource their entire payment process to Corcentric. Payments can be made by check, ACH, wire, or payment card. Corcentric works with suppliers to transition payments from checks to electronic payments via ACH, wire, or payment card. Corcentric also offers Indirect Spend Management Programs and a group purchasing capability that allows Corcentric to negotiate up-front discounts with various indirect spend suppliers. The COR360 solution includes robust reporting and analysis tools, available through drill-down, graphical dashboard reporting on key performance indicators; standard reports like accrual, user metrics, and system administration; and an ad-hoc reporting feature. The adhoc reporting tools allow any user to create custom reports for further invoice analysis, with no report writing experience required. All COR360 reports can be exported to CSV file formats for Excel. Corcentric also offers an audit history report that tracks and maintains all actions for each invoice processed. Additionally, COR360 provides a reporting feature called Audit RE-view, a feature that creates online audit folders that clients can make available to external auditors to streamline the audit process. 20

Implementation and Pricing The average COR360 implementation time is between 6 and 12 weeks, depending on system complexity and client availability to meet and gather requirements for system configuration. Corcentric provides a 24/7 hotline to all clients for post-implementation support. There is a one-time configuration fee, as well as recurring fees based on the number of invoices processed through COR360. There are no per-user fees, as COR360 allows for unlimited users, approvers, reviewers, and suppliers at no additional cost. 21

Determine Determine is a global provider of P2P solutions with over 15 years experience, working with organizations of all sizes and industries. Determine offers a suite of Source-to-Settle applications on the Determine Cloud Platform that helps companies significantly reduce their costs by optimizing, streamlining, and automating, their complex procurement processes. Determine s solutions allow rapid and configurable alignment to all client process needs, and Determine s global experience enables it to easily adapt it to the specific industry and regional requirements of its customers. Founded 1998 Headquarters San Mateo, CA (US) Other Locations Atlanta (US), Aix-en-Provence (FR), Indianapolis (US), London (UK) Number of Customers ~150 Number of Employees 295 Target Verticals Agriculture, Business Services, Education, Entertainment & Media, Financial Services, Manufacturing, Oil & Gas, Retail, Telecom, and others Partners / Resellers Cap Gemini, Ernst & Young, Hackett, Protiviti Awards / Recognitions Gartner Magic Quadrant ( Visionary, 2015); Spend Matters Almanac 50 to Know (2015, 2016); Supply & Demand Chain Executive Pros to Know (2014, 2015) Solution Overview The Determine Cloud Platform is structured around the Determine Core, a technical foundation that provides a baseline for managing key areas such as meta-data, master data, and business processes. Using this framework, the Determine Cloud Platform connects seamlessly with all popular ERP and financial systems through its built-in Enterprise Application Integration (EAI) module. This enables any combination of cloud or on-premise applications with no thirdparty software or extra coding needed. Determine s platform features a search engine, universal approval workflow, responsive design, notifications and alerts, and system administration support. The 22

solution is also offered on mobile devices. As an official Amazon technology partner, Determine leverages the full capabilities of Amazon Web Services (AWS) to guarantee global high availability and security. Purchase-to-Pay As part of the unified Source-to-Settle suite, Determine s P2P solution is easy-to-use and affordable. The highly configurable set of spend management applications is purpose-built for global organizations seeking greater visibility into and control of their corporate spend, including recurring spend (lease, security services) and maverick spend (non-po invoices). The Invoice and AP automation components of Determine s platform automate the accounting process from invoice receipt and invoice matching to routing and approval. The platform includes support for einvoicing and expense report management. Determine partners with Lexmark (Readsoft) for managing invoicing and OCR data capture, and WEX for managing virtual card payments. In addition to Purchase-to-Pay, Determine offers fully integrated solutions for strategic sourcing, contract management, and finance processes (e.g., budgeting, financial tracking, and cost allocation). Determine s budgeting and project management solution can be fully integrated into clients complex procurement processes, giving managers and executives real-time control over purchasing across many departments and locations. Determine s self-service supplier portal enables suppliers to engage with their customers through integrated S2S capabilities on the Determine Business Network. These capabilities include certification management, catalog management, RFX management, and quotation management. Suppliers can use the portal to manage POs and communicate about order status, as well as to flip POs to invoices to begin the reconciliation and payment process. The platform s reporting and analytics module gives users access to use existing KPIs and Dashboards, as well as allowing them to develop custom reports using a report builder. 23

Implementation and Pricing A typical Determine P2P process implementation takes between 4 and 6 months to complete, while ongoing deployments to different business units (e.g., global deployments) may require more time. After implementation, application support includes phone- and email-based error resolution, technical troubleshooting, and password resets for up to two designated admin users. Designated users also have access to online reference materials, training materials, and customer webinar trainings. Standard support is available on English weekdays from 8:00 a.m. to 8:00 p.m. EST (excluding holidays). Determine s pricing structure is based on the complexity of the client s organization (number of countries or companies), the solution modules being implemented, and the number of named users in the application. This pricing can be presented either a la carte or bundled. 24

GEP GEP is a procurement technology developer with over 15 years of experience in deploying Purchase-to-Pay and Source-to-Settle solutions. With its P2P/S2S platform, SMART by GEP, GEP has made it possible for all tasks in the purchasing and payables processes to be carried out in one system and from any device. The unified platform is designed to automate and accelerate the management of a strategic indirect spend program, with automation for spend management, procurement, sourcing, contract management, order management, supplier self-service, and invoice processing. Founded 1999 Headquarters Clark, New Jersey Other Locations London, Prague, Mumbai, Shanghai Number of Customers 1400 Number of Employees 180 Target Verticals All verticals Awards / Recognitions Top supplier, 2015 EPIC Procurement Excellence Awards; HfS Blueprint, Winner s Circle; Supply & Demand Chain Executive Magazine, Top 100; Everest Group s PEAK Matrix for Procurement, Star Performer Solution Overview SMART by GEP is a highly secure, cloud-based procurement platform hosted on the Microsoft Azure Cloud. All of GEP s development, data handling, and operational facilities and systems are certified to SSAE16 standards. GEP uses a web-based methodology to integrate with its customers third-party systems. The solution is mobile-enabled and works on any browser and platform. Purchase-to-Pay SMART by GEP s procurement offering covers requisitioning, PO management, receiving, and reconciliation. The solution features many types of purchasing catalogs, including punch-out, supplierhosted, managed, and internal (buyer-side managed). The solution 25

also includes multi-variable and multi-stage requisition approval workflows with failover, delegation, and escalation controls. Purchase requisitions are flipped into orders upon approval, and the POs can then be processed through additional workflows, if necessary. POs are submitted directly to the suppliers through the SMART by GEP portal. SMART by GEP s accounts payable functionality allows users to handle all P2P documents in one place. SMART by GEP natively accepts invoices originating from suppliers through the SMART by GEP portal. SMART by GEP also integrates with supplier systems for the purpose of order and invoice transmission using EDI and/or cxml standards. After invoice submission, GEP s platform and Invoice Reconciliation solution conduct field-level matching based on business rules, automatic re-routing of incorrect invoices back to suppliers, and PO flip on validated invoices. Due to SMART by GEP s comprehensive platform, the matching function can handle requisition, order, delivery note, receipt, and invoice matches. The platform also provides compliance tools to match invoices to contracted prices or prices bid at the sourcing stage. GEP s Invoice Reconciliation features allow for the routing, revision, matching, and management of invoices that fail automatic matching. SMART by GEP includes access to the GEP Nexus supplier network for customers that wish to have access to a global supplier base. To address suppliers that are not yet registered for the GEP Nexus network, GEP offers a managed, supplier onboarding service tailored to each customer s need. With SMART by GEP, suppliers have access to the platform s entire P2P offerings, as well as a robust set of supplier self-service and B2B collaboration tools. This includes profile management, certificate management, procurement catalog information management, and the ability to handle order-to-invoice processes. SMART by GEP is built upon a data warehouse model for reporting and dashboards, providing the end user with access to all data across the procurement landscape. Its reporting services include dashboards and drag-and-drop, ad-hoc reporting functionality that allow users to create reports based on any parameter captured within the system. Users can create custom reports, which can then be added to the dashboard, viewed in graphical format, exported in multiple file formats, and scheduled at a desired frequency. The SMART by GEP platform supports customization of dashboard views per individual users requirements. 26

Implementation and Pricing Implementation of SMART by GEP solutions includes configuration to the client s business processes and robust customer support to drive end-user adoption. Post-implementation, GEP provides phone and web-based support. GEP s global customer support staff is based out of three regions (US, Europe, and APAC) and is available 24/5. SMART by GEP is an annual subscription-based service priced on a function-by-function basis, largely according to the number of users of each function for each year of the contract. The different factors considered for pricing include number and type of users, interface languages, contract and template configuration requirement, and support services. 27

SynerTrade For over 15 years, SynerTrade has been developing and implementing office management software for global businesses. The company s Source-to-Settle and Purchase-to-Pay application suite, SynerTrade Accelerate, includes purchasing and supply chain solutions for sourcing, contract management, procurement, supplier management, and spend analysis. SynerTrade s solutions combine extensive purchasing controls with advanced business analytics tools to give global companies power over their indirect spend. Founded 2000 Headquarters Luxembourg Other Locations Paris, Munich, Milan, Amsterdam Number of Customers 200 Number of Employees 500+ Partners / Resellers Accenture, Ayming, Deloitte, PWC Solution Overview SynerTrade provides its Accelerate solution suite on SynerConnect, a configurable interface that can integrate with multiple external legacy and ERP systems. Accelerate comes with SynerMobile, a dedicated app available for ios and Android devices. The solution is also supported on mobile browsers via responsive web design. Native Accelerate security principles include HTTPS protocol and encryption capabilities. SynerTrade provides a dedicated storage center to prevent data center disasters. The company also performs recurrent security audits involving pen tests and OWASP rules. Purchase-to-Pay SynerTrade s procurement solutions, Accelerate Catalogue Management and Order Track and Trace, bring control and visibility into a company s indirect procurement processes. Catalogue Management gives users access to internal Amazon-like shopping interfaces by importing catalogues from suppliers or connecting to vendors punch-out catalogues. The Order Track and Trace solution allows procurement professionals to collect, process, and approve purchase requisitions, and to create and track purchase orders in 28

close collaboration with internal requesters and vendors. SynerTrade s procurement features are integrated with its spend control features, allowing managers to monitor contract compliance, follow budget consumption, analyze payments, and monitor global spending all in real time. SynerTrade offers a supplier portal, where suppliers can communicate with buyers throughout the procurement process, negotiate contracts, and update vendor catalogs. Buying organizations can use automated questionnaires and workflows to onboard and qualify new suppliers. Other features include supplier quality management and certificate management. SynerTrade has embedded the leading business intelligence technology, QlikSense, throughout Accelerate s P2P solutions in order to allow clients to analyze every aspect of the procurement activity. The solution s reporting and analytics programs are available in several different programs. Accelerate Management Information System provides a transparent view of all the data and information managed with the procurement solution (statistics about usage, statistics about users, etc.), while Accelerate Performance Manager allows users to analyze the savings generated through automation. Accelerate Purchasing Control helps users evaluate the financial performance of the Procurement department and measure its impact on the company s overall numbers. Accelerate Spend Analysis allows users to collect, consolidate, analyze, and share all spend-related data with an organization s key strategists and decision makers. SynerTrade also offers the Accelerate Supplier Portfolio Strategy and Supplier Scorecard, which provides a holistic look into all supplier information from one interface. Implementation and Pricing Depending on the maturity and business process structure of an organization, implementation of SynerTrade s core model ranges from 3 to 8 months. Synertrade has two implementation processes. One is based on the Excellence Platform, which is a pre-configured, ready-touse system with standard templates and reports. This system can be made available in less than 3 weeks. The second is based on a more traditional methodology consisting of a phased process that includes kickoff and general design, specification workshops, configuration, testing, training, and rollout. 29

Synertrade offers three levels of customer support: Silver, Gold, and Platinum. Each level gives clients access to different services, such as multiple support languages, a dedicated support team, 24/7 access to support, unlimited support tickets, and other services. Support is made available for both clients and suppliers. 30

Xeeva Xeeva provides cloud procurement and financial solutions for indirect spend. The company s technology addresses the entire indirect procurement value chain, from sourcing to procurement to payment. Xeeva s offerings also include several value-added solutions, including spend analysis, category management, and strategic sourcing. Xeeva provides P2P solutions for some of the world s largest global brands across a range of industries. Founded 2007 Headquarters Detroit, MI Other Locations San Francisco, New Delhi, Amsterdam, Sao Paulo Number of Customers 350 Number of Employees 35 Target Verticals Automotive, Industrials, Aerospace, Services, Manufacturing, CPG, Life Sciences, Energy and Utilities Partners / Resellers Xerox; Genioo; EDS Technologies; Netlink, Inc Awards / Recognitions Ernst & Young Entrepreneur of the Year; Lear Automotive Supplier of the Year; Beechcraft Supplier of the Year Solution Overview Xeeva is a cloud-based Source-to-Settle system that automates strategic sourcing, supplier management, requisitioning, purchase order creation, receiving, and einvoicing with 3-way match. The modules can be implemented individually or as part of a full Source-to- Settle suite. The suite integrates with multiple ERPs and legacy systems through web services, flat files via a secure FTP, or EDI. Security features include secure login, password templates, and automatic password expiration. The network and solution are SSAE16 compliant and HTTP secure, and all communication is encrypted with SSL endpoint security for external traffic. Xeeva provides native mobile applications on ios and Android operating systems for phones and tablets. Xeeva s solutions are designed to align global operations, supporting major currencies and major languages including English, Spanish, Chinese, German, 31

French, Portuguese, and Russian. The solution also provides einvoicing functionality for requirements in challenging countries, such as Mexico and Brazil. Purchase-to-Pay Xeeva s eprocurement solution is based on an intelligent catalog approach, with catalogs tailored by location or business unit to reflect context-specific pricing and available services and materials. Catalogs can be hosted or punch-out catalogs, Local (specific to a particular location), or Global (shared across locations). Users can combine standard catalog items, RFQ items, or off-catalog requests in the same shopping cart, all of which are routed through the appropriate approval workflow. Once approved, purchase orders are automatically generated and submitted to suppliers via the vendor/supplier portal as an online document, as a PDF, or via EDI. The solution tracks transactions from the shopping cart to the approved invoice, supporting order acknowledgements, advanced shipping notices, and goods receipts, and providing stakeholders with full order visibility along the way. After shipment and the posting of a goods receipt, suppliers or AP staff (acting as proxy) can initiate an invoice. The Xeeva system prepopulates invoices and sends them through 2- or 3-way matching and approval workflows. Suppliers or AP can create, track, and manage non-po invoices and debit/credit memos in a similar manner. The AP Invoice dashboard summarizes the state of all current and pending invoices. The system gathers approved invoices in an OK-to-Pay queue, and the appropriate signals are sent to the ERP/payment system or a third-party epayment provider according to the client s desired frequency. The Xeeva supplier portal allows suppliers to manage their profile, receive and collaborate with their customers on purchase orders and RFQs, and create and upload invoices. Xeeva also provides robust vendor management capabilities that include user authorization, permissions management, and supplier analysis tools. Xeeva provides dashboards (Value Charts) and reporting features for all P2P processes. These reports and analytics summarize the current status of shopping carts, POs, and invoices as appropriate for the user s role (requestor, buyer, etc.). Customers can use the audit trail from transactions to support SOX compliance. Configurable reporting 32

capabilities enable the creation of detailed reports, which can be presented online or exported. Xeeva also provides benchmarking insights to help clients identify improvement opportunities and process comparisons based on prevailing category and market trends and pricing data points. Implementation and Pricing Xeeva s typical implementation time ranges between 30 and 90 days for companies with a small footprint; for larger global organizations, a longer-phase approach is recommended either by region or business unit, or both. Implementation time generally depends upon aspects of scope such as number of sites, locations, number of users, and state of clients existing data. After implementation, customers have three levels of support choices. Clients also experience a hyper-care period after implementation along with a functional support desk the Results Desk with access to practitioners that can help drive adoption and maximize system benefits. Xeeva s solution pricing consists of an annual subscription fee for the technology and one-time costs for implementation and training. For customers interested in value-added services such as strategic sourcing or category management, these additional services are typically charged on a time and material basis, or are transaction-fee based. 33

About PayStream Advisors PayStream Advisors is a technology research and consulting firm that improves the way companies plan, evaluate, and select emerging technologies to achieve their business objectives. PayStream Advisors assists clients in sorting through the growing complexities of IT applications related to business process automation with the goal of making objective, analytical, and actionable recommendations. Wherever business process automation technology is an issue, PayStream Advisors is there to help. For more information, call (704) 523-7357 or visit us on the web at www.paystreamadvisors.com 34