Coupa Announces Annual Industry Benchmark Report
Spend Optimization Leader Reports Aggregate Data from its Cloud Platform For Companies to Assess Their Procurement Performance
SAN MATEO, Calif. – April 30, 2013 – Coupa Software, the leading provider of cloud-based spend optimization solutions for finance, today announced The Coupa Benchmark report, the first in a series of annual reports that provides key performance indicators (KPIs) to further drive spend optimization. Coupa is the only company in the industry that has the ability to provide this actual aggregated benchmark data because the company’s technology is based on a true cloud platform.
The Coupa Benchmark reports on spending across large (more than $1.5 billion), medium-sized ($250 million – $1.5 billion) and small (less than $250 million) company categories. The data was extrapolated from customer usage metrics on the Coupa cloud platform, which has more than tens of thousands of global users and 650,000 suppliers. The data provided is based on an aggregate total, and no individual companies are identified.
The Coupa Benchmark allows companies to compare their procurement performance against companies of the same size across six different KPIs. The KPIs fall under the categories of requisitions, orders and invoices, and customers can evaluate their own performance and find areas to increase operational efficiencies and savings.
Examples of KPIs tracked and how they lead to additional savings are:
- Visible Purchase Order (PO) Spend-on-Contract: The visible PO spend-on-contract percentage indicates what percentage of a company’s addressable spend on a PO is tied to vendor contracts. Getting more spend under contract means that organizations will benefit from reduced, negotiated pricing.
- Requisition-to-Order Cycle Time: The requisition-to-order cycle time is the length of time it takes between a requisition being submitted and an order being issued. The approval cycle time should facilitate and match the pace of your business, and faster approval times ultimately help businesses remain competitive.
- Invoice-OK-to-Pay Hours: The invoice-OK-to-pay hours refers to the length of time it takes to approve an incoming invoice for payment. The invoice-OK-to-pay metric is important for finance executives as this impacts their ability to accurately manage working capital, accruals and general financial health.
“As a member of the procurement community, Coupa is releasing its annual benchmark study so that businesses of any size can make strategic decisions and take action to improve their overall bottom lines,” said Pierre Mitchell, chief research officer at industry analyst firm, Azul Partners and Spend Matters. “Companies are often in the dark as to where and how they can improve. The Coupa Benchmark helps them define those key areas to focus on and provides insight into how their peers are doing as well.”
“The goal of any procurement organization is to drive savings and increase operational efficiencies,” said Ravi Thakur, vice president, customer success at Coupa. “Coupa customers benefit from having this type of benchmarking data every day. We feel it’s important to share the wealth of information that we have with the greater community to help businesses of all sizes see how they compare with their peers in their ongoing quest to reduce costs and improve the bottom line.”
About Coupa Software
Founded in 2006, Coupa Software is the leading provider of cloud-based spend optimization software. More than 300 customers in 40 countriesuse the Coupa suite of cloud applications to amplify their spend power and reduce spending costs up to 11 percent. Only Coupa provides a true suite of cloud applications for finance, including procurement, expense management and accounts payable that enables customers to launch the solution immediately and quickly realize significant savings. Learn more at: https://www.coupa.comor call 650.931.3200. Read more at our company blog, Making Cents, or follow @Coupa on Twitter.