SciQuest Combines with CombineNet to Master Complex Sourcing

SciQuest, the largest public provider of spend management software, doesn’t seem to be running out of steam. It recently announced the acquisition of CombineNet, a Pittsburgh-based provider of cloud-based software for companies to manage advanced complex sourcing events.

The news is significant for the following two reasons:

  1. It is another proof point of SciQuest’s strategy to expand its business in the commercial market by broadening its footprint for spend management, given its earlier acquisitions of Upside Software and Spend Radar. CombineNet had had relationships with these companies well before they were acquired by SciQuest.

  2. It is a strong complement to SciQuest’s existing e-sourcing offerings and positions the vendor to help organizations more efficiently acquire all of their goods and services—whether straightforward or complex and strategic—with one software company.

SciQuest continues to expand into the commercial sector, knowing full well that typical e-sourcing suites, request for something (RFX), and e-auction offerings are not able to capture 100 percent of spend at maximum optimization for commercial and other sophisticated users. A traditional tool, like SciQuest’s existing Sourcing Director software, is a natural first step in strategic sourcing, but many enterprise sourcing events are simply too complex for current e-sourcing tools to effectively manage.

CombineNet addresses this problem by allowing users to create highly customizable events and run what-if scenarios that balance a number of factors including supplier cost, value, risk, and innovation with internal business rules and preferences. This requires the collection, normalization, and optimization of both price and non-price variables from suppliers, which may include aspects such as supplier certification/credentials, service levels, capacity, contract terms, creative proposals, and incentive pricing deals. Customers can use the technology to acquire both direct and indirect resources within critical spend categories. So basically, the CombineNet solution is for organizations that want to take their strategic sourcing to the next level (see TEC’s article for more info).

The CombineNet product will be a separate SciQuest solution. The vendor will continue to offer its existing aforementioned Sourcing Director product, and the CombineNet solution will now be called Advanced Sourcing Optimizer. Additional details about each product are available on SciQuest’s solutions pages. Details on the acquisition are on SciQuest’s Web site.
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