- Startups in the supply chain procurement space are quickly becoming a driving force in modern business and are revolutionizing the way goods are sourced, managed, and delivered.
- These same startups are proving to be a major benefit for businesses of all sizes, providing cost-effective, automated solutions that make it easier to manage the entire supply chain.
- We’ve created a market map containing some of the hottest startups and legacy providers in the space. Check it out below!
Here’s the quick and dirty overview in case you need to refresh your knowledge on the topic. While “procurement” is a broad term, we specifically dove into direct procurement which is the process of purchasing materials used for the manufacturing or production of products. The entire process is broken down into three key parts: sourcing, purchasing, and payments.
Startups in the supply chain procurement space are quickly becoming a driving force in modern business and are revolutionizing the way goods are sourced, managed, and delivered. These startups are offering a broad range of services helping with supplier management and financing to PO managment and raw materials sourcing. Their integrated software solutions provide real-time visibility into the entire supply chain, allowing companies to gain insight into current happenings taking place at upstream suppliers. Furthermore, they enable companies to quickly and easily source suppliers, compare prices, and manage orders in a timely manner, reducing waste and increasing profits while delivering a better customer experience.
The advantages that supply chain procurement startups provide are vast and varied. For instance, a nice chunk of startups are helping reduce costs and improve efficiency by providing access to a global network of suppliers. By leveraging their network, companies can quickly source and compare suppliers, ensuring that they are getting the best possible deal. Furthermore, startups are helping to streamline the entire supply chain process, from purchase orders to delivery, by providing automated tracking, real-time notifications, and other features that enable companies to better manage their operations. These same startups are providing customer-centric features such as personalization, digital payments, and customer service that make it easier for companies to build relationships and provide a better experience.
Overall, these procurement-focused startups are proving to be a major benefit for businesses of all sizes, providing cost-effective, automated solutions that make it easier to manage the entire supply chain. Their services are helping reduce costs, increase efficiency and profitability, and improve customer satisfaction. With their innovative technology and creative solutions, they are revolutionizing the way goods are sourced, managed and delivered, and will continue to do so in the future.
We thought it would be helpful to throw a little market map together to provide some insight into the players in the space broken down into a few categories. We do note that a number of startups could technically fall into a few different categories so we focused on the main service offering. Acquired companies still operating under the former name have been included as well. The categories are as follows:
- Supplier Management: This category is exactly what it sounds like—maintaining a solid supplier relationship through things like benchmarking performance or improving communcation. By having an effective supplier management system, companies can guarantee they are getting the best possible goods and services. These solutions ultimately provide an efficient and cost-effective way to manage the entire supplier lifecycle. Key categories include: compliance, benchmarking, quality control, operating management systems, and process workflows
- Contract and PO Management: Plain and simple, this category is about verifying contracts and purchase orders are compliant with regulations, negotiated in the most cost-effective manner, and paid on time through digitization and AI. Furthermore, companies must also keep track of their contracts and purchase orders to ensure that they are up-to-date and accurate in case of an audit. Examples include: RFPs, contract negotiation, payment, and purchase order management
- Material Marketplaces: A new way to source materials is emerging—the use of marketplaces to identify and purchase a broad range of materials, from construction materials to minerals and steel, food, chemicals, and apparel. They enable companies to quickly and easily source raw materials and commodities, compare prices, and manage orders in a timely manner, reducing wastage and increasing the bottom line by cutting out distributors at times
- Risk Management: A rather broad category but one that is extremely important as visibility continues to trend as a major necessity. Companies in the space provide tools and services that help companies mitigate real-time risks associated with their supply chain operations, such as disruptions, delayed shipments, and inventory shortages. They do this by providing predictive analytics, data-driven insights, and automation capabilities that enable companies to better anticipate and respond to supply chain disruptions. Examples include: ESG, traceability, quality control, and sub-tier supplier visibility
- Vertical-Focus: While the majority of the startups in the space are providing solutions tailored for a broad range of industries, there are some that focus specifically on supply chain verticals such as electronics, produce, and industrial materials. Companies are poised to provide better services and insights due to their unique and deep understanding of the sector
- Supply Chain Finance: This category encompasses every aspect of procurement finance from spend management to supplier financing. A lot of companies in the space serve both direct and indirect procurement initiatives but for a good reason: the market is big and the problem is important. Companies need insight into their direct spend management to ensure they’re working with the right suppliers at the right price
Know of any early-stage companies operating in the space? Think we missed a company that should be included? If you answered yes to at least one of those questions then let us know! Ping us at one of our emails directly or at firstname.lastname@example.org.
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