There was noteworthy acquisition news in the procurement software applications area last week with the announcement that BravoSolution had acquired privately-held procure-to-pay applications provider Puridiom. This transaction is further evidence to the growing importance of broader-based suites of applications as well customer attractiveness to purchasing technology that can manage broader procurement lifecycle needs that extend the touch points involved in supporting strategic, tactical and day-to-day operational procurement process needs.
Terms of this acquisition were not disclosed. The joint release does indicate that the acquisition is effective as of August 1, 2016 and that the integration of staff and technology resources has begun. The Puridiom technology will over the coming months be embedded into the BravoAdvantage technology platform. The founder of Puridiom, Jesus Ramos will also become a senior vise-president of procurement solutions for BravoSolution.
According to BravoSolution CEO Jim Wetekamp, the acquisition accelerates that provider’s plan to become a source-to-plan market leader with extended tactical and operational procure-to-pay capabilities. Bravo was searching for an augmentable technology provider with deep procurement domain experience, an agile software application offering both Cloud and behind-the-firewall deployment options along with proven external applications integration capability. Puridiom, founded over 30 years ago, has been supporting tactical procurement processes for private and public-sector organizations.
Supply Chain Matters had the opportunity to speak directly with CEO Wetekamp regarding this acquisition. Our focus was the perspective of the broader supply chain management business process umbrella, not solely procurement itself. From the customer lens, Wetekamp articulated Bravo’s mission in enabling strategic procurement, fulfilling an increasingly important role in today’s organizations. He acknowledged that increasingly, customers are viewing procurement technology as not so much a central point of control but rather an integration of multiple touch points across other broader supply chain business process management needs such as product lifecycle management (PLM), materials and supply chain planning, logistics and transportation, customer services and other areas. The reality is that engineers, transportation and service professionals are already directly involved in sourcing decisions and require an integrated platform for the sharing of specifications, item-masters, product catalog, contract management and compliance information.
From a broader market perspective, there is a need for abilities to support indirect as well as direct material procurement processes across a more integrated suite that includes a unified data model, as well as the ability to support different or unique industry specific needs. The acquisition of Puridiom affords the opportunity to now include integrated P2P process and decision-making support in a unified BravoAdvantage data model.
Wetekamp indicated that the decision to fully integrate Puridiom as opposed to continuance as an independent brand offering was to accelerate the integration process into the BravoAdvantage framework in respect to unified data modeling, common look and feel, average application response times as well as a common inbox for suppliers. He indicated that there is no significant overlapping functionality with Puridiom which will aide in the overall integration.
Regarding the overall Puridium timetable, the CEO indicates that phase one of the planned integration, expected for Q1-2017, will feature a harmonized user experience, Cloud and behind the firewall deployment options as well as inclusion in the overall BravoAdvantage analytics framework. Phase two which includes full integration of all master data is currently planned for Q1-2018, a year later.
One of our Supply Chain Matters takeaways from this acquisition announcement is that BravoAdvantage has the opportunity to be an alternative for broader procurement lifecycle management support option among today’s mid-market ERP customers who require broader procurement touch point or deeper vertical industry support needs. As an example, Bravo’s existing transportation services procurement tendering and procurement support capabilities are impressive and can assist mid-market and other firms in distribution sensitive manufacturing or services needs.
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