2021, Latest news in French Procurement Market
2021 will see the beginning of exciting changes in the purchasing information systems market, with a waltz of acquisitions and job changes, the intensification of digital transformation, and the arrival of artificial intelligence.
Moving from a demand to a supply side market
The brutal transformation of the purchasing IS market from a market of sustained demand 20 years ago, fueled by the creation and professionalization of Purchasing Departments, to a supply-side market of generated by the regulatory constraints of invoicing and vigilance, the digital transformation at company level and the arrival of new technologies and vertical solutions to address some complex spend, is condemning the historical editors of purchasing IS to reinvent themselves or to disappear.
Supplier Management: a market of specialists?
Let’s start with Supplier Management solutions. This market promised to S2P Platforms seems likely to escape them to the benefit of specialists. This is evidenced by the growth of the Canadian AI-powered Tealbook since its creation, led by French-speaking Stephany Lapierre. Its $14.4M A-raising and recent partnerships, by the choice of two of our French major pharmaceutical companies to manage their supplier risks with Aravo and Hicx and the growth of fnrech startups like Axiscope, Orga Software and CoBuy should draw your attention to the particular dynamics of this market.
Detailed review of Software Companies in France
- Ariba finally seems to be benefiting from its acquisition by SAP, despite its appalling policy of a Supplier pay-network that is so difficult to use;
- Solid leader Basware continues to innovate in its specialty, eInvoicing and suppliers networks without, surprisingly, convincing on S2C and eProcurement flows;
- Corcentric, after its purchase of Determine and releases 100 millions dollars to buy the Vendorin payment network reinforcing its procurement, finance and payment offer which, under the leadership of Gérard Dahan and Xavier Pierre-Bez, will have to find its target in Europe;
- Coupa with its numerous acquisitions extends its S2P offer with the cash management of the German company Bellin and pays 1.5 billion dollars for the startup Supply Chain Llamasoft. From technology integration to people integration and demanding investors, there are many challenges for the pack leader;
- Dematerialization giant Esker makes a stunning entry into Gartner’s P2P Magic Quadrant, forcing you to invite it to RFP’s ;
- Ivalua continues in Europe on the basis of excellent growth, offering EMEA CEO Franck Lheureux the envied position of Chief Revenue Officer. There is no doubt that this exceptional manager will find the keys to growth in the USA despite the return of the mythical founder, David, to France. There is no doubt that their policy of development on a single mono-tenant technological platform and investment in verticals such as Manufacturing or Services Procurement will support their ambitions with an IPO in sight;
- Jaggaer and its UTO, unidentified technological object, resulting from the marriage of SCIQuest, Combinet, Pool4Tool and Bravo Solutions proposed under the elegant marketing name Jaggaer One still struggles to convince despite renewed leadership and the wind of innovation instilled by the Francophile VP Product Management Amenallah Reghimi; In France the departure of Patrick Lorin, Head of Professional Services will left a hole.
- The rapid growth of the Little big connection network led by Julien Clouet as well as that of Malt testifies to the dynamism of the vertical market for the purchase of services, which should delight Opase and Oalia;
- Oxalys with the arrival of Cédric Guillouet and the recent €3M fundraising campaign should see its wings sprout;
- The continued success of Per Angusta’s adventure will delight purchasing enthusiasts. The fundraising and the arrival of Maurice Hamoir in France, Jason Treida in the USA and my friend the Quebecker Vincent Arsenault are guarantees of a cloudless future;
- The English company Proactis (Perfect Commerce), seems to have chosen a commercial policy focused on ETI with one of its acquisitions, eSize, and keeping its other solutions according to the demand of its customers. Martial Girardin, its historical figure, managed the transition by handing over the keys to Olivier Jung with an active commercial conquest;
- SynerTrade, the lack of strategic vision since the announcement in 2018 of the decision to sell the company by Econocom’s CEO is sanctioned by the departure of Eberhard Aust, the charismatic founder, and the departure in France of the much appreciated Managing Director Anne Tessier-Chênebeau. Uncertainty reigns;
- The young Silex AI’s powered blossoms under the leadership of Nicolas Bridey and Quentin Fournela; Zycus despite the confidence of some customers in France still does not decide to really invest in France and the departure of the polyglot Patrick Van Osta will leave a hole at the head of Europe.
Buyers, this dynamic market forces you to be excellent empirical sceptics.
The plethoric and heterogeneous offer makes it necessary to follow good purchasing practices: fit in with the COMEX strategy, analyze your needs, then study the supplier market and take the time to choose your partner(s).
Lectori salutem, Patrick Chabannes
“The mind likes what confirms its knowledge better than what contradicts it.” Gaston Bachelard.