JAGGAER: Present and Future
REV It Up: A Procurement Podcast Series with Procurious
In this blog series, powered by Procurious, Philip Ideson sits down with speakers from JAGGAER’s REV2018 conference to discuss the latest trends in procurement and what the future holds.
A conversation with JAGGAER CEO, Robert Bonavito
Growth at JAGGAER
Q: So Rob, what’s new at JAGGAER?
Well a lot’s going on with JAGGAER, as you’re probably aware. In December of 2017, we merged with BravoSolution. It did a tremendous amount to the JAGGAER organization. We doubled our global footprint, we doubled our customer accounts, we actually brought best-of-breed solutions together. Bravo was very strong in what we call upstream, and JAGGAER has historically been very strong on the downstream. So we’re very excited about what transpired in 2017, and very excited about as we move forward into 2018.
Q: Could you share a little bit of the facts and figures on the scope and scale of JAGGAER today?
Yes, you know today JAGGAER has nearly 1,900 customers. We facilitate over 320 billion dollars of annual spend through our platform across 3.7 million suppliers, and we have over three million users. We’ve really doubled the size of the company. We currently have almost 1,100 employees. We are by far the largest independent spend management solutions company in the world. And we’re very excited about the merger and we’re very excited about the opportunity and the prospects going forward.
Q: How will these acquisitions actually benefit JAGGAER customers, and also the market a little bit more broadly?
I think it benefits our customer base significantly from the standpoint that now we are able to be able to provide a best-of-breed world-class technology for our clients. The upstream capability and functionality of what Bravo brought to JAGGAER really expanded the opportunity for digital transformation, which I think is very significant.
At the Forefront of Technology
Q: How do you think technology is unlocking business value like speed, visibility, agility, and data and intelligence?
If you look historically at procurement or spend management, it was three bids and a buy. We’re really able to automate that entire process. And people are asking, “where is that going in the future?” Data analytics is a huge component of that. It’s really being able to become predictive in your analysis to really optimize your supply chain.
Q: What are some of the biggest mistakes that you see procurement teams making, when it comes to data and analytics, specifically?
I think if you look at industries across the board, they’re still in a reactive mode. When you look at big data, first of all, you have to be able to rationalize that data. You have to make sure that that data is giving you accurate information. Then the question is, “what do you do with that data?”
The opportunity lies in being able to move from reactive to a proactive environment, where you’re able to take this data and make decisions moving forward. JAGGAER is aggressively developing and we’ll continue to evolve with our customers. It really plays into that whole realm of digital transformation.
We’re seeing a major paradigm shift in terms of how CPOs are recognized in organizations. I think companies are seeing that there’s an opportunity to really optimize the supply chain further. It’s really an exciting time, because I will tell you the next three to five years in spend management is going to be very different than it is today.
The Future of Spend Management
Q: What capabilities are actually changing the game for spend management, and how can procurement professionals take advantage of them?
I think the lowest hanging fruit is just capturing 100% of your spend. If you look at many organizations, there’s still a lot of what we call rogue spend, where it’s not captured, it’s not monitored, it’s not optimized. It’s being bought, but not under contract.
Another new area that JAGGAER is pioneering is what we call project-based procurement, where you’re not only factoring in the contracts but you’re also tracking these projects from the original inception all the way through to finalization.
Q: What do you see that procurement leaders that you’re actually working with are doing to make themselves indispensable for their teams?
I think the biggest transition we’re seeing is that the CPOs are looking at being able to take advantage of the entire process. It’s that whole spend management solution that allows them to capture everything they’re doing. In the end, it’s all about driving value across your supply chain. The supply chain’s becoming a critical component of the overall success of companies both private and public.
Q: What are other CEOs saying to you about what they want from their procurement teams, or the role that they want procurement to play in their organization?
I think a lot of CEOs are very forthcoming in saying that the taking the supply chain to the next level will give them a competitive edge in terms of automating a lot of the processes, capturing the entire spend, and being able to more effectively manage off that. I think CEOs across the board recognize that as an opportunity and going forward you’re going to see much more emphasis placed in that area.
Robert Bonavito is the Chief Executive Officer of JAGGAER, where he develops the business vision and is working on expanding the company’s technology and global business footprint.