Source-to-Pay software is the cornerstone of every procurement tech stack. That’s why it’s so important to get it right. One of my bugbears is that many procurement leaders think that feature-rich software is inherently a good thing. It’s not. Because they opt for over-complex software that’s too bloated for the needs of their organisation. This… Read More »How To Use Our Source-to-Pay Software Venn Diagram The post How To Use Our Source-to-Pay Software Venn Diagram appeared first on Procurement Software.
Source-to-Pay software is the cornerstone of every procurement tech stack. That’s why it’s so important to get it right.
One of my bugbears is that many procurement leaders think that feature-rich software is inherently a good thing.
It’s not.
Because they opt for over-complex software that’s too bloated for the needs of their organisation.
This results in failed implementations, low user adoption, and an expensive bill for implementation consulting because the software requires a lot of intricate configuration.
The truth is that the SME and Mid-Market space for S2P software is a rich ecosystem. It’s substantially different to the large, legacy procurement suites which serve the enterprise market.
You can find lots of suitable software out there for the level of complexity you need. Many solutions also focus specifically on certain geographies or industry sectors.
So, if there are a lot of nuances to your process, or your country-specific accounting and invoicing requirements, there’s probably a software that covers it.
We therefore decided to publish this post to help guide you towards the right software for the size, complexity, and maturity of your organisation.
What Are These Procurement Venn Diagrams?
Our Venn Diagram Tech Maps offer a concise, one-page overview of the various procurement technology companies within a specific Primary Category of procurement tech. These maps are designed as a starting point for your research journey, not as a final endorsement or validation of any particular solution.
They serve to help you quickly visualise and understand who the players are in this space, and which end of the market they serve.
The information compiled on our Tech Maps is based on years of market research and industry knowledge, meaning it’s reliable and crafted by real experts.
This is not AI-generated content. It’s built through hands-on research.
As you will see, many of these Source-to-Pay software solutions straddle either SME and Mid-Market, or Mid-Market and Enterprise. This reflects the flexibility in the solution being able to provide a software solution that suits both markets.
What criteria did we use to include solutions in a Tech Map?
To appear on any of our TechMaps, a provider must meet the following essential criteria:
- Standalone SaaS: The solution must be a standalone Software as a Service (SaaS) product. We don’t list solutions which are bundled with consultancy or training services. A software solution must be stand-alone as a product.
- Beyond MVP: The software must have surpassed the minimum viable product stage and have active paying customers.
- Procurement-Focused: The solution must directly serve the procurement space. Tools primarily aimed at other business functions, such as HR or finance, are generally excluded. The exception is if they have significant crossover, such as contract management or fraud detection tools.
Here’s our Venn Diagram for Procure-to-Pay and Source-to-Pay software.
If you’d like a full-size, print quality PDF, click here to download it for FREE from our Store.
Source-to-Pay software for SMEs: What do we look for?
If a P2P or S2P solution is targeting the SME market, we’re essentially expecting it to offer the following:
- Fast implementation
- Great UI/UX because you don’t have time to train users
- Affordable pricing, ideally either per user or per module
- Low complexity and fewer customisation options
- Easy integration with common accounting platforms used by SMEs
- Cost of less than $25k / year.
Source-to-Pay software for Mid-Market: What do we look for?
If a P2P or S2P solution is targeting the Mid-Market, we’re essentially expecting it to offer the following:
- Fast implementation (if your organisation is less complex)
- Modern UI/UX – because your organisation won’t have a Centre of Excellence to train users
- Pricing that straddles SME and Enterprise markets
- Less complexity than enterprise, but more features and functionality than SME software
- Integration with common finance systems and ERPs used by Mid-Market organisations
- Cost should typically be around $50k / year, but this will depend on users, configuration, and ERP integrations necessary.
Source-to-Pay software for Enterprise: What do we look for?
If a P2P or S2P solution is targeting the Enterprise segment, we’re looking at software that is:
- Feature rich, offering features beyond what SMEs and Mid-Market organisations would need
- Able to integrate with large ERP systems such as SAP, Oracle, and MS Dynamics
- Highly configurable depending on specific customer demands
- Designed with the needs of large corporate organisations in mind
- Cost will likely be over $100k / year
- Integration with your ERP system(s) will play a significant role in how costly and complex the implementation will be.
Are you looking for Procure-to-Pay software or Source-to-Pay software for an SME or the lower end of the mid-market (companies below $250m in revenue)?
We’ve actually done some recent client projects which undertook detailed competitor analysis on this end of the market.
While we can’t offer this “off-the-shelf” because everyone’s scope will be different, we’ve definitely done the lion’s share of what you will need. This means we can deliver this analysis quickly and competitively.
Learn more about how we can help you reduce the time and cost you need to spend getting to a decision on the software fit for your organisation.
Book an intro call and I’d love to go through your requirements.
We don’t implementations. This means we’re not incentivised to offer complex, clunky software that requires a lot of consulting hours to configure.
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