Procurement is painful, so Pivot wants to simplify it
In today’s fast-paced business world, procurement can often be a painful process, especially for young companies that are rapidly growing and in need of a streamlined solution. This is where Pivot comes in. As a new French startup, Pivot aims to simplify spend management for these companies, offering a comprehensive procurement system that eliminates the need for outdated legacy systems. With a team of experienced co-founders and a focus on integration with existing tech stacks, Pivot provides a user-friendly interface that allows for efficient approval workflows and seamless communication across departments. By addressing common pain points in procurement, Pivot seeks to revolutionize the way companies manage their financial flows and ultimately save valuable time and resources.
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Overview of Procurement Challenges
Introduction
Procurement can be a painful process for many businesses, with various pain points and challenges that can hinder efficiency and productivity. However, French startup Pivot aims to simplify procurement and provide a solution to these common challenges. With experienced co-founders and a focus on streamlining financial flows and workflows, Pivot is poised to revolutionize the procurement industry. In this comprehensive article, we will explore the pain points in procurement, the importance of simplifying procurement, and how Pivot addresses these challenges.
Pain points in procurement
Procurement involves various stages, from listing requirements to issuing tenders, integrating products, and managing financial flows. Throughout this process, businesses often face several pain points that can slow down operations and increase costs. These pain points include complex purchase order workflows, time wastage in approvals, and limitations of legacy business spend management systems. It is essential to address these challenges in order to streamline procurement processes and improve overall productivity.
Importance of simplifying procurement
Simplifying procurement can have a significant impact on a business’s operations and bottom line. By reducing complexity and automating workflows, companies can save time and resources, allowing employees to focus on more strategic tasks. Furthermore, streamlining procurement processes can increase efficiency, improve compliance with regulations, and enhance the overall procurement experience. Pivot recognizes the importance of simplifying procurement and aims to provide a solution that can revolutionize the industry.
Introducing Pivot
Overview of Pivot
Pivot is a French startup that aims to overhaul spend management solutions and simplify procurement processes. Unlike legacy business spend management systems, Pivot focuses on young, fast-growing companies that need a modern procurement solution. By offering a user-friendly platform and addressing pain points in procurement, Pivot aims to be the first and last procurement system that businesses need. With a team of experienced co-founders and a commitment to simplifying procurement, Pivot has the potential to disrupt the industry.
Target audience and value proposition
Pivot targets young companies that are experiencing rapid growth and need a streamlined procurement solution. These companies often face challenges in managing financial flows, filling out purchase orders, and obtaining approvals efficiently. Pivot offers a value proposition that addresses these pain points, providing a user-friendly platform that simplifies workflows and integrates with existing tech stacks. By choosing Pivot, businesses can improve procurement efficiency, reduce time wastage, and enhance their overall procurement experience.
Experienced co-founders
At the helm of Pivot are three experienced co-founders who bring their expertise and knowledge to the table. Romain Libeau, one of the first employees at Swile and former Chief Product Officer for the French unicorn, has extensive experience in operations and internal tools. Marc-Antoine Lacroix, former Chief Technology Officer and Chief Product Officer at Qonto, brings his expertise in technology and product development. Estelle Giuly, a workflow engineer for several enterprise companies, adds her experience in designing efficient workflows. With such a strong team, Pivot is well-equipped to tackle the challenges in procurement and provide innovative solutions.
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The Role of Financial Flows
Understanding the importance of managing financial flows
Managing financial flows is a crucial aspect of procurement. It involves tracking and managing the flow of funds within a company, ensuring that the right amount of money is allocated to procurement activities. Efficient management of financial flows is essential for maintaining cash flow, optimizing budget allocation, and ensuring compliance with financial regulations. By understanding the importance of managing financial flows, businesses can improve procurement efficiency and overall financial management.
Challenges in managing financial flows
Managing financial flows in procurement can be a complex task. Businesses often face challenges such as inefficient budget allocation, long approval processes, and difficulties in tracking expenses. These challenges can lead to delays in procurement activities, increased costs, and decreased financial transparency. It is crucial for businesses to address these challenges and implement solutions that can streamline financial flows, reduce bottlenecks, and improve overall financial management.
How Pivot addresses these challenges
Pivot offers a solution that addresses the challenges in managing financial flows. By providing a user-friendly platform, Pivot simplifies budget allocation, approval processes, and expense tracking. The platform integrates with existing tech stacks, retrieving budgets from systems like Pigment and Anaplan, and communicates with communication tools like Slack, Microsoft Teams, and Jira. Additionally, Pivot seamlessly integrates with ERP software, ensuring that vendors, cost centers, and compliance rules are propagated once a purchase order is validated. By streamlining financial flows, Pivot enables businesses to manage their finances more efficiently and effectively.
Comparison with Legacy Business Spend Management Systems
Introduction to legacy systems
Legacy business spend management systems have been widely used by businesses for managing their procurement processes. These systems, often provided by ERP vendors, are designed to handle various aspects of procurement, from purchase order creation to approval workflows and financial management. However, legacy systems have their limitations and issues that can hinder efficiency and productivity.
Limitations and issues with legacy systems
Legacy business spend management systems often suffer from complexity, lack of flexibility, and a steep learning curve. These systems can be difficult to navigate and require extensive training for employees to use effectively. Additionally, legacy systems may lack modern features and integrations, limiting their functionality and compatibility with other tools. The implementation and integration process of legacy systems can also be time-consuming and costly. These limitations and issues make legacy systems less suited for the needs of modern businesses.
Why Pivot is a better solution
Pivot offers a better solution to procurement challenges compared to legacy business spend management systems. With its user-friendly platform, Pivot simplifies procurement workflows and eliminates the complexities associated with legacy systems. The platform integrates seamlessly with existing tech stacks, ensuring compatibility with other tools and systems. Pivot’s approach to procurement is focused on streamlining processes, reducing time wastage, and optimizing efficiency. By choosing Pivot, businesses can leverage a more modern and flexible solution that meets their procurement needs effectively.
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Competitive Landscape in Procurement Solutions
Overview of other startups in the procurement space
Pivot operates in a competitive landscape within the procurement solutions market. Several other startups have also emerged in this space, aiming to improve procurement processes and provide innovative solutions. These startups offer various features and functionalities tailored to specific market segments and industries.
Success of American startups
In the U.S., startups like Zip and Levelpath have achieved significant success in the procurement solutions market. These startups have raised substantial funding and attracted a large customer base. The success of these American startups demonstrates the market opportunity and potential for growth in the procurement solutions space.
Regional features and opportunities for Pivot
While American startups have found success, Pivot recognizes the importance of regional features and opportunities in the European market. Compliance and payment ecosystems differ across regions, and Pivot aims to cater to these specific requirements. By offering European features and addressing regional challenges, Pivot can carve out a niche in the procurement solutions market. With its strong funding round and experienced team, Pivot is well-positioned to seize these opportunities and become a leading player in the European market.
Funding and Team Expansion
Details of funding round and investors
Pivot has already secured a $5.3 million pre-seed round (€5 million) from a range of investors. Visionaries, Emblem, Cocoa, Anamcara, and Financière Saint James are among the VC firms that have invested in Pivot. Notable entrepreneurs and investors such as Loïc Soubeyrand (founder of Swile), Steve Anavi (co-founder of Qonto), Hanno Renner (co-founder of Personio), Oliver Samwer (co-founder of Rocket Internet), Pierre Laprée, Alexis Hartmann, and Alexandre Berriche have also supported the startup. This strong funding round reflects the potential and belief in Pivot’s solution for simplifying procurement.
Product development timeline
Following the funding round in April, Pivot has been making rapid progress in product development. Over the summer, the company worked on developing its platform and launched it in September with its first client, Voodoo. With a focus on a gradual rollout, Pivot aims to ensure quality and effectiveness in its platform. By the end of the year, Pivot expects to have around ten customers, reinforcing the demand and interest in its procurement solution.
Expansion plans for the team
As Pivot continues to grow and expand its customer base, the startup also has plans to expand its team. With the success and progress achieved thus far, Pivot aims to bring in more talented individuals who can contribute to the company’s vision. By expanding its team, Pivot can continue to innovate and improve its platform, ensuring that it remains at the forefront of simplifying procurement for businesses.
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Streamlining Purchase Order Workflows
Challenges in filling out purchase orders
Filling out purchase orders can often be a challenging and time-consuming task for employees. Purchase order forms can have numerous fields, and employees may be unsure of what information to provide in each field. This can lead to errors, delays, and frustration for both employees and procurement teams. Streamlining purchase order workflows is essential to improve efficiency and ensure accurate and timely procurement.
Features of Pivot’s streamlined workflow tool
Pivot’s platform offers a streamlined workflow tool that simplifies the purchase order process. Administrators can easily set up workflows directly from Pivot’s user-friendly interface, without the need for coding skills. For example, when making a large purchase from a software vendor, the workflow tool can automatically trigger security reviews, IT reviews, legal reviews, and more. By automating these processes and reducing manual entry, Pivot’s streamlined workflow tool saves time, minimizes errors, and ensures a smoother purchase order experience.
Integration with existing tech stack
One of the key advantages of Pivot’s platform is its seamless integration with existing tech stacks. The platform retrieves the company’s org chart for the approval workflow from the HR system, ensuring that the right individuals are involved in the purchase order process. Pivot also integrates with budgeting systems like Pigment and Anaplan, retrieving budgets for accurate allocation. Communication tools such as Slack, Microsoft Teams, and Jira are also integrated, facilitating collaboration and communication during the purchase order process. Furthermore, Pivot integrates with ERP software like NetSuite and SAP, ensuring that vendor information, cost centers, and compliance rules are automatically propagated for efficient procurement. By integrating with existing tech stacks, Pivot eliminates silos, improves data accuracy, and enhances the overall purchase order workflow.
Simplifying Approvals and Workflows
Common issues in approval processes
Approval processes can often be complex and time-consuming, leading to delays in procurement and frustration for employees. Common issues in approval processes include a lack of transparency, slow response times, and difficulties in tracking approvals. These issues can result in bottlenecks, increased costs, and decreased efficiency in the procurement process. Simplifying approvals is crucial to improve procurement efficiency and enhance the overall approval experience.
Pivot’s approach to simplifying approvals
Pivot takes a comprehensive approach to simplifying approvals in the procurement process. By providing a user-friendly interface and streamlined workflows, Pivot makes it easy for employees to understand and complete approval tasks. The platform offers transparency, allowing employees to track the progress of approvals and identify any bottlenecks. Pivot’s approach focuses on reducing manual entry, automating processes, and enhancing collaboration, resulting in faster response times and improved efficiency in approvals.
Integration with communication tools and ERP software
To further simplify approvals, Pivot integrates with popular communication tools such as Slack, Microsoft Teams, and Jira. This integration enables seamless communication and collaboration among approvers and other stakeholders during the approval process. Additionally, Pivot integrates with ERP software like NetSuite and SAP, ensuring that approvals are seamlessly tied to financial information and compliance rules. By integrating with communication tools and ERP software, Pivot facilitates efficient and effective approvals, reducing time wastage and improving overall productivity.
Addressing Time Wastage in Approvals
Understanding the impact of time wastage in approvals
Time wastage in approvals can have a significant impact on a business’s operations and overall efficiency. Lengthy approval processes can result in delayed procurement, missed opportunities, and increased costs. Employees may spend excessive time waiting for approvals, leading to reduced productivity and frustration. Addressing time wastage in approvals is crucial to optimize procurement processes and enhance workflow efficiency.
Benefits of adding a spend management layer
One of the key ways to address time wastage in approvals is by adding a spend management layer to the procurement process. A spend management layer acts as a centralized hub for managing approvals, ensuring that all necessary stakeholders are involved and decisions are made efficiently. By implementing a spend management layer like Pivot, businesses can streamline approvals, reduce time wastage, and improve overall workflow efficiency. Approvals can be easily tracked, bottlenecks identified, and response times accelerated, enabling faster and more efficient procurement.
Smart features to enhance workflow efficiency
Pivot incorporates smart features that enhance workflow efficiency and address time wastage in approvals. The platform automates processes, eliminating manual entry and reducing the time required for approvals. Pivot’s integration with communication tools promotes real-time collaboration and facilitates quick decision-making among approvers. Additionally, the seamless integration with ERP software ensures that valuable time is not wasted on reconciling approvals with financial information. By leveraging these smart features, businesses can streamline their approvals and enhance workflow efficiency, saving time and resources.
Current Market Review and Opportunities
Trends in spending management
The spending management landscape is continually evolving, driven by technological advancements and shifts in business priorities. Businesses are increasingly looking for innovative solutions that simplify procurement, enhance efficiency, and improve compliance. This demand for modern spending management solutions presents a significant opportunity for industry disruptors like Pivot. By leveraging trends such as automation, integration, and user-friendly interfaces, Pivot can capitalize on the market’s need for streamlined spending management.
Opportunities for Pivot in the current market
Pivot operates in a market ripe with opportunities. The pain points and challenges in procurement, as well as the limitations of legacy business spend management systems, provide a demand for more efficient and user-friendly solutions. Pivot’s focus on young, fast-growing companies aligns with a growing market segment that needs a modern procurement system. By capitalizing on these opportunities and offering a comprehensive solution, Pivot can establish itself as a leader in the procurement solutions market.
Future growth prospects
With its strong funding round, experienced team, and innovative platform, Pivot has promising growth prospects. As more businesses recognize the benefits of simplifying procurement and streamlining spending management, the demand for solutions like Pivot is expected to increase. Pivot’s expansion plans for its team and its commitment to continuous product development indicate a strong trajectory for future growth. By consistently addressing the pain points in procurement and staying ahead of market trends, Pivot can position itself for long-term success and become a dominant player in the industry.
In conclusion, Pivot’s focus on simplifying procurement and addressing pain points in the industry makes it a compelling solution for businesses. With its user-friendly platform, integration capabilities, and commitment to streamlining financial flows and workflows, Pivot has the potential to revolutionize the procurement industry. By offering a comprehensive solution and capitalizing on market opportunities, Pivot is well-positioned for growth. As businesses continue to seek more efficient and user-friendly spending management solutions, Pivot’s innovative platform has the potential to become the go-to procurement system for companies in need of a modern and streamlined solution.
Source: https://techcrunch.com/2023/10/01/procurement-is-painful-so-pivot-wants-to-simplify-it/
