SAN MATEO, Calif., Sept. 4, 2019 /PRNewswire/ -- Coupa Software
(NASDAQ:COUP), a leader in Business Spend Management (BSM), today
announced the findings of the Q3 Coupa Business Spend Index (BSI),
which revealed that globally, businesses appear to be growing more
cautious about the economy through at least the end of 2019. By
analyzing billions of dollars of business spend transactions in the
Coupa BSM Platform, the Coupa BSI reflects businesses' confidence
in the economy, serving as an early warning system for economic
health.
Today, businesses often rely on economic reports containing data
that is based on past behavior or human confidence in future
performance. The Coupa BSI is an early indicator based on actual
business behavior, which can be a realistic predictor of future
economic growth.
"Companies are always looking to economic indicators that they
can trust to make smart decisions about their business," said
Rob Bernshteyn, chairman and chief
executive officer at Coupa. "At Coupa, we believe that the
wisdom from our BSM community is a powerful tool to help companies
of all sizes spend smarter together. The Coupa BSI analyzes
hundreds of global companies and their real-time spend behavior,
showcasing implications on the growth prospects of the global
economy."
What to Expect Over the Coming Months:
- Businesses Overall: In the aggregate, business
optimism heading into the second half of 2019 is weaker than it was
in the early part of this year. According to the Q3 Coupa BSI, all
industries, with the exception of manufacturing and technology, are
less optimistic about economic growth through 2019.
- Financial Services: Sentiment in Financial Services
appears to be weakening, indicating more caution over the next six
months. Geopolitical issues such as Brexit and trade conflicts have
contributed to uncertainty in the sector.
- Health and Life Sciences: Sentiment in Health and
Life Sciences appears to be above trend, but weakening, likely
driven by uncertain government policy.
- High Tech: Any risk to the global supply chain is
likely to depress growth. Somewhat surprisingly, sentiment in High
Tech was slightly up.
- Manufacturing: Sentiment in Manufacturing seems to
be increasing although slightly below trend as manufacturers look
to domestic options due to global trade tensions.
- Retail: Sentiment in Retail over the last few
quarters has been high, which correlated with consumer spending
reported in the Q2 GDP release. Looking forward, retailers'
confidence in economic growth appears to be slowing from where it
has been.
"Having an early warning system that allows line managers to
make smarter spending decisions is invaluable," said
Rone Luczynski, area vice president
of supply chain/procurement for Service Corporation
International. "Being able to leverage the power of community
data from hundreds of businesses is a great example of crowdsourced
data benefiting enterprises. Coupa is delivering something truly
unique to its customers and beyond."
The Power of the Coupa BSI
Business investment is an
indicator used today by the Federal Reserve when making decisions
about raising or lowering discount rates. As mentioned by Chair of
the Federal Reserve Jerome Powell during his speech on July 31, 2019, "Looking through this [trade
policy tension] our business contacts tell us that the ongoing
uncertainty is making some companies more cautious about their
capital spending."
At the heart of the Coupa BSM Platform is Coupa Community
Intelligence, an AI-powered engine that objectively analyzes the
transactional spend data flowing through the Coupa BSM Platform and
prescribes instant insights that help companies mitigate risk,
remain compliant, identify smarter spending opportunities, and
improve process efficiencies across all their business spend.
To view the Q3 2019 Coupa BSI in its entirety,
visit www.spendindex.com.
The Coupa BSI Methodology
The Coupa BSI is an early
indicator for economic health based on current business spending
decisions of hundreds of businesses. It analyzes transactions from
the Coupa BSM Platform, which has cumulatively processed more than
$1.3 trillion of business spending,
to measure confidence around economic health at an aggregate level,
as well as an industry level within Financial Services, Health and
Life Sciences, High Tech, Manufacturing, and Retail. The index is
based on three key spend factors: (1) average spend per person, (2)
average time to approve spend decisions, and (3) average rate of
spend approval/rejection. The Coupa BSI is normalized to a baseline
value of 100, which represents the composite value of the three
components in the reference period (July
2016).
Hundreds of companies around the world use the Coupa BSM
Platform to gain the visibility and control they need to spend
smarter, simpler, and safer. The Coupa BSM Platform offers a
comprehensive and open approach that enables businesses to manage
all their spend, including procurement, invoicing, expenses,
payments, and more, in one place. To learn more,
click here.
About Coupa Software
Coupa Software is a leading
provider of BSM solutions. We offer a comprehensive, cloud-based
BSM platform that has connected hundreds of organizations with more
than five million suppliers globally. Our platform provides greater
visibility into and control over how companies spend money. Using
our platform, businesses are able to achieve real, measurable value
and savings that drive their profitability. Learn more
at https://www.coupa.com/. Read more on the Coupa blog or
follow @Coupa on Twitter.
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SOURCE Coupa Software