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11 Great Procurement Tools for Manufacturing Companies

Digital procurement tools for manufacturing companies are finally flourishing.

While procurement technology for indirect spend continues to flourish, we’re now also seeing a new wave of great tech platforms for direct spend and component parts. These apps are capitalising on the need for better technology to support manufacturing businesses.

As supply chain technology improves for transportation, inventory management and warehousing, the procurement tools for manufacturing businesses now need to step up. And stepping up, they indeed are.

What we are seeing is a divergence of specialist, best-of-breed technology focusing on procurement for manufacturing companies. This goes way beyond traditional source-to-pay and e-auction platforms. This exciting trend persuaded us that it’s about time we featured an article on these procurement tools specifically.

We look at 11 companies from both sides of the Atlantic, featuring rapidly growing scale-ups as well as rising stars.

 

11 Great Procurement Tools for Manufacturing Companies

 

How did we arrive at this list?

Well, a manufacturing business will have different requirements for their digital procurement tools. Service-based or tech businesses have different challenges that their tech solves. These are predominantly focused on indirect spend and transactional efficiency.

For this list, we looked at procurement software that focuses on either direct materials or purchased parts. These can either be for the direct production process, or for assisting with Maintenance, Repairs and Overhaul (MRO) of machinery & equipment in a production facility.

Manufacturing companies also require their technology to support inventory and planning requirements too. While this is not strictly procurement, it affects the strategies of how direct materials are procured, shipped and scheduled.

If you want to search the whole range of procurement tech companies out there beyond just these, then check our our free software directory. You can search and filter in detail on any of our 20 primary categories of procuretech.

If you’re a consultancy, an investor, or a solution provider and need to do deeper analysis of the market, we also offer subscriptions to our back end database, with all data points searchable.

Right, so now, here’s the list!

 

1. Kavida AI

image of Kavida logo

 

Kavida.ai is a forward-thinking startup that aims to be one of the best-in-class procurement tools for manufacturing companies. The company focuses on streamlining the complexities of procurement operations with state-of-the-art software, ensuring seamless and efficient workflows for global procurement teams.

The company was conceptualised and founded by Anam Rahman and Sumit Sinha as a response to the significant disruptions in global supply chains triggered by the COVID-19 pandemic. Their vision was to create a robust platform that could withstand future challenges and improve procurement processes on a global scale.

Kavida.ai is headquartered in the UK but has a broad operational footprint. This international presence helps Kavida.ai maintain a close connection with its diverse client base and understand various market dynamics.

Their flagship product is their AI-driven “Agent PO”, which leverages advanced algorithms to manage and orchestrate the post-PO management tasks from PO acknowledgement through to delivery of goods. This unique feature helps procurement teams to operate more proactively. It ensures they know in real time, with push notifications in one platform, all about the latest status of delivery times, any quantity discrepancies and logistical challenges.

The startup offers a comprehensive suite of functionalities in addition, which all form part of Kavida.ai’s all-encompassing PO management platform. By automating routine tasks  designed to empower procurement managers.

 

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2. SourceDay

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SourceDay, founded in 2013, is dedicated to reshaping how businesses manage procurement for manufacturing. The founders started the company with the vision of tackling the prevalent challenges within these processes through innovative technological solutions.

Situated in Austin, Texas, USA, SourceDay benefits from being in a city celebrated for its strong tech industry and entrepreneurial culture.

The company specialises in procurement software that streamlines purchase order management and supplier collaboration. SourceDay’s solutions are crafted to integrate effortlessly with existing ERP systems, facilitating improved communications and operational workflows between businesses and their suppliers.

SourceDay’s unique selling point lies in its revolutionary approach to automating supply chain communications. This focus helps in eliminating manual errors and ensuring the timely delivery of materials. It provides businesses with real-time updates and analytics that dramatically reduce procurement costs and enhance supply chain efficiency.

In recent years, SourceDay has expanded its client base across North America in numerous top industries, and has been consistently recognised for its innovative contributions to procurement technology.

Key Data:

  • Founder / CEO: Tom Kieley
  • Date Founded: 2013
  • Visit SourceDay profile in our Software Finder

 

3. Creactives

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Creactives, established in 2000, started life as a procurement consultancy business focusing on optimisation of MRO procurement. Headquartered in Verona, Italy, their software platform enhances data accuracy and operational efficiency, focusing on creating significant value for businesses.

The company specialises in AI-powered solutions aimed at improving the quality of material master data. Creactives offers advanced software tools for Spend Analysis and Vendor Master Data Management, which assist enterprises in reducing costs and enhancing the efficiency of their procurement processes.

A key differentiator for Creactives is its use of proprietary AI and Machine Learning algorithms to address specific challenges related to data quality and classification. Their special focus is on material master data accuracy for spare parts and MRO. Their technology enables the automatic correction and enrichment of data, ensuring higher accuracy and minimising operational risks.

Recently, Creactives has gained global recognition. The company has formed partnerships with several multinational corporations, markedly enhancing their procurement efficiencies and data management capabilities.

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4. Jiga

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Jiga is a pioneering platform in the custom manufacturing industry. The platform has revolutionised the way businesses source high-quality parts directly from thoroughly vetted manufacturers. This innovative approach ensures a swift, economical, and transparent procurement process.

Operating globally with teams spread across Israel, the US, Europe, and Asia, Jiga specialises in a variety of manufacturing services including CNC machining, 3D printing, sheet metal fabrication, and injection moulding. The platform’s standout feature is its seamless integration. It covers quotes, tracking, production, and supply chain management, which considerably enhances efficiency for its users.

Recognised for its ability to significantly reduce production lead times and improve supply chain visibility, Jiga has earned the trust of top-tier global companies. Their goal is to make the manufacturing process as frictionless as possible. Jiga is becoming a key player in driving forward the custom manufacturing sector, setting new standards for quality and speed in production.

Key Data:

  • Founder / CEO: Adar Hay
  • Date Founded: 2020
  • Visit Jiga profile in our Software Finder

 

5. Part Analytics

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Part Analytics, founded in 2019, is a pioneering startup based in Milwaukee, Wisconsin, USA.

It specialises in leveraging artificial intelligence and data analytics to transform component procurement and supply chain management.

The company’s standout feature is its AI-powered platform that integrates effortlessly with in-situ ERP and procurement systems in a customer’s tech stack. This integration provides real-time market intelligence and predictive analytics. Benefits include more informed decision-making and significant cost efficiencies. By focusing on electronic component sourcing and strategic supply chain management, Part Analytics has carved out a unique niche.

The platform’s ability to reduce costs, mitigate risks, and enhance strategic sourcing operations sets it apart from competitors.

Part Analytics has notably advanced its technology through innovative features to increase transparency and efficiency in supply chain operations.

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6. Xometry

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Xometry, founded in 2013 and headquartered in Maryland, USA, is one of the well-established procurement tools for manufacturing industry.

This innovative platform offers an on-demand marketplace that leverages AI-driven technology. It seamlessly connects customers with a broad spectrum of manufacturing solutions, including CNC machining, 3D printing, injection moulding, and sheet metal fabrication.

Catering to diverse industries such as aerospace and automotive, Xometry’s platform is designed to simplify the procurement process. Enterprises are matched with subcontract manufacturers that align with their budget, production schedule, and material requirements. A distinctive feature of Xometry is its use of proprietary AI, to provide immediate and efficient manufacturing connections.

Recently, Xometry has achieved notable expansion, growing its network to over 5,000 manufacturing partners globally. This all enhances its ability to deliver scalable and efficient solutions.

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7. Zumen

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Zumen, established in 2019 by Viswa Kuppuswami and Mohan Kumar, is a pioneering startup headquartered in Santa Clara, California, USA.

The company specialises in providing end-to-end procurement software solutions that streamline both direct and indirect procurement processes for businesses. This includes everything from supplier management to spend analysis, enhancing transparency and operational efficiency across procurement cycles.

A standout feature of Zumen is its integrated platform, which combines supplier management, procurement operations, and financial analysis into a single, user-friendly interface. This integration allows for improved decision-making and significantly simplifies procurement complexity for companies.

Recently, Zumen has expanded its global presence, successfully integrating numerous multinational corporations into its platform. This growth demonstrates Zumen’s capacity to cater to a broad range of procurement needs.

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8. Supplios

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Supplios, established in Copenhagen, Denmark in 2021, seeks to revolutionise the landscape as one of the comprehensive procurement tools for manufacturing. This innovative startup is dedicated to modernising the interactions between manufacturing companies and their suppliers, enhancing procurement process efficiency for direct spend.

The Supplios platform is designed to automate procurement tasks, manage supplier relationships, and optimise purchasing workflows, ensuring that operations are both efficient and cost-effective.

What sets Supplios apart is its user-centric design, which emphasises simplicity and ease of use, making it accessible to businesses of various sizes. Its seamless integration with existing enterprise systems and the capability to provide real-time data analytics enable clients to make well-informed purchasing decisions, enhancing overall business performance.

Since launch, Supplios has experienced rapid growth, expanding its across various industries throughout Europe. The company’s focus on continuous improvement and dedication to customer satisfaction have positioned it as a significant player in the procurement technology market, underscored by its quick expansion and the robustness of its solutions.

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9. Tacto

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Founded in 2020 and headquartered in Munich, Germany, Tacto is a trailblazing digital procurement platform designed to streamline project procurement processes for manufacturing businesses of all sizes.

Tacto’s suite includes several powerful modules like Supplier Management, which enhances supplier relationships and ensures compliance, and Contract Lifecycle Management, that simplifies managing contracts from initiation to termination, improving control and visibility.

Another standout feature is the Spend Analysis module, powered by artificial intelligence, which delivers in-depth insights into spending patterns, helping companies identify significant cost-saving opportunities. Tacto also offers robust automation tools that streamline routine tasks such as order processing and invoice management, thereby increasing operational efficiency.

With its intuitive design and comprehensive functionalities, Tacto not only speeds up procurement activities but also allows teams to focus on strategic, value-adding tasks. Tacto closed their Series A funding round in December 2023, further mapping their high growth expansion.

Key Data:

  • Founder / CEO: André Petry
  • Date Founded: 2020
  • Visit Tacto profile in our Software Finder

 

10. Ravacan

image of Ravacan logo

Ravacan was established in 2019 and is based in San Francisco, USA. An innovative software platform, it aims to revolutionise the way companies manage their direct materials and components sourcing. The platform is designed to provide visibility and control across the entire sourcing lifecycle. It can be a valuable tool for manufacturers and their suppliers alike.

The core functionalities of Ravacan include centralised data management, real-time analytics, and collaborative tools that foster better communication between stakeholders. These features help users to track and manage their inventory and procurement processes efficiently. Ravacan seeks to help companies to reduce costs and mitigating risks associated with supply chain volatility.

One of the standout aspects of Ravacan is its capability to offer detailed insights into market trends and supplier performance. This enables businesses to make informed decisions quickly, adapting to market changes with agility. Additionally, the platform’s automation capabilities streamline complex sourcing tasks. Examples of these are cost modelling and scenario planning, which free up teams to focus on strategic decision-making and innovation.

Ravacan’s approach to procurement management not only enhances operational efficiencies but also supports sustainable sourcing practices. This makes it an indispensable tool for businesses aiming to optimise their procurement strategies, while still adhering to compliance and environmental standards.

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11. Sparetech

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Sparetech was founded in 2018 by former Porsche engineers Martin Weber and Dr. Lukas Biedermann. They are swiftly redefining the landscape of industrial spare parts management from their HQ in Stuttgart, Germany.

This innovative SaaS platform streamlines the entire spare parts management process. Manufacturing companies can now significantly cut inventory costs and reduce CO2 emissions in their spare parts supply chain.

A standout feature of Sparetech is its ‘Golden Layer’—a robust database that integrates data from thousands of original equipment manufacturers and suppliers worldwide. This enables unprecedented transparency and efficiency. Seen as a game changer in the industry, their unique system ensures that manufacturing companies can manage spare parts more effectively, with verified data at their fingertips.

In a recent landmark achievement, Sparetech secured €10M in Series A funding in 2023, led by Insight Partners, to propel its international expansion. This funding is set to support Sparetech as it continues to innovate and expand its reach globally.

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