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Summary

• 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!

• 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
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We lumped Supplier Discovery into Supplier Management because there is typically heavy overlap. Discovery is all about creating an efficient and cost-effective way to manage the entire discovery process, from initial sourcing to final vetting; or in other words, allowing companies to quickly and easily identify potential suppliers, review their credentials, and compare prices. Supplier discovery is growing increasingly important as companies look towards supplier diversification, especially in the wake of reshoring and nearshoring
• 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

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