Ariba Supplier Network Alternatives: Basware (Background — Part 1)

This post is part of a fall 2010 series looking at Ariba Supplier Network alternatives. We will cover each Ariba supplier network alternative in a series of three-part posts starting with each provider’s basic background in the area. Following this initial installment, we will then examine their solution approach and Ariba/third party systems integration. And finally, we will provide our own summary and analysis of the provider’s overall capabilities.

Through its connectivity services offering, Basware provides a neutral platform that enables both suppliers and buying organizations to send and receive electronic invoices, exchange catalog messages and transfer purchase transactions in a secured environment. This offering is similar to what others might describe as a “supplier” network built to allow for interoperability, transparency and efficiency between transacting buyers and suppliers. Even though Basware’s connectivity services represented less than 10% of the provider’s revenue in 2009, the offering is experiencing double-digit growth. In 2009, Basware transferred 11.5 million e-invoices via its network offering and expects in 2010 to transfer “around 16.5 million e-invoices and PO transactions.”

From a customer perspective, Basware has 1,600 buy-side customers currently using its P2P solutions and services. These buyers work with approximately 4.5 million suppliers, of which Basware maintains detailed information/records on 1.35 million. Of this group of suppliers, approximately 160,000 are “active in e-invoicing and/or purchase order messaging on monthly basis.” In addition, approximately 15,000 suppliers are directly connected to Basware and another 145,000 suppliers access the network through network operating partners (which we’ll address below)…