Procure-to-pay company Zycus is stepping into the middle market.
The company announced Thursday it is launching a source-to-pay program for mid-market companies and small, high-growth firms looking to improve their procurement functions. The program is called Zycus Genesys.
The launch of Zycus Genesys signals the company's expansion into the mid-market as it looks to automate procurement operations for its business customers. The tool comes with Genesys Essentials and Genesys Advances, the company explained, to support spend management, compliance, operational cost management and scale for mid-market and high-growth companies.
"Mid-sized and small, high-growth companies are often faced with unique challenges when it comes to strategic procurement automation," said Zycus senior vice president Marc Sprecher in a statement. "Based on our experience working with [middle market companies], we have crafted Zycus Genesys to enable mid-market procurement teams to quickly and easily adopt best practices and achieve world-class performance."
The launch of its middle market service follows the publication of Zycus' latest Pulse of Procurement report in March. That analysis found that while companies' C-suites are understanding the strategic value of procurement — with more businesses planning to invest in the function — the procurement department still appears to struggle to meet cost savings goals.
According to the 2017 report, 38 percent of survey respondents said they have bigger budgets this year for procurement functions, with procurement labor budgets up as well. And, while procurement professionals are challenged when it comes to spend and compliance, more than two-thirds told Zycus they have some type of spend analysis tool in-place. Additionally, 67 percent added they have a contract management solution deployed, suggesting companies are increasingly investing in procurement technologies.
But, Zycus vice president of corporate development Richard Waugh warned in a recent interview with PYMNTS, satisfaction with many of these solutions is "relatively low."