Avetta: A Risk Management Solution Difficult to Put in a Box — Year-End Tech Review

MRO as a service michaeljung/Adobe Stock

This post is part of our 2016 Year-End Procurement Tech Review, in which we offer procurement practitioners a bird’s-eye view of some key vendors and their solutions in select categories. This is the last week of this series, and today we’re highlighting a company in the supplier risk management field.

Avetta, which recently rebranded from its original name, PICS Auditing, has grown considerably since its founding over a decade ago. But while now the company can enable organizations to tackle broader supplier management and risk management initiatives, at its core it still solves a problem that many companies in industries relying heavily on contractors have: proper contractor vetting, credentialing and enablement.

Key Facts

  • Founded: 2003
  • Headquartered in Irvine, California, with offices in eight countries (Australia, Brazil, Canada, Singapore, South Africa, United Arab Emirates, United Kingdom and the United States)
  • Senior team well-versed in contractor verification and management issues
  • Steady year-over-year growth for over a decade (34% CAGR)
  • Serves customers in utilities, construction, transportation, oil and gas, and facilities management, where workers have to be individually vetted
  • Both “razor” and “razor blade” revenue model where the system is mostly supplier funded
  • Provides referral and reseller partnership options

Background & Overview

Despite its low profile in the procurement world, Avetta is better known in certain markets, especially industries that rely heavily on field work and contractors. Its traction in these market segments may not capture the attention of more generic procurement technology providers, but the SaaS applications vendor has seen year-over-year growth in the 30% range over the last 15 years.

Avetta combines elements of supplier onboarding, supplier management, contractor management, supply risk management and third-party data aggregation in a unique solution purpose built to support industry use cases. Avetta now has more than 300 clients (most of them larger Global 2000 firms) that collectively use more than 50,000 suppliers in 100 countries in a network graph with more than 250,000 active connections at any one time.

The solution allows a company to vet and certify both providers and individual employees, as well as specify exactly what contractors are certified to do, what clearances they have, what sites they can work on and even tag what supervision is necessary. While there is competition in the market for what we might term “fractal supplier management” requirements, Avetta is one of the more established solution providers in the market. It also brings deep industry-specific expertise built on many years of listening to customer requirements.

Competitors include:

Commentary & Summary

Avetta is a difficult provider to put into a box or to directly compare with most other procurement and supplier management solution providers. Combining a comprehensive solution that is purpose-built to support both supplier and contractor-level information gathering, compliance and risk management in targeted industries with a supplier network model, Avetta stands out from alternatives in the market that deliver either broader-based supplier management or individual contractor, safety and compliance management capabilities.

For a more comprehensive analysis and guide for procurement organizations looking to understand whether they should consider adding the provider to their shortlists for consideration, please head over to the Spend Matters Almanac.

Share on Procurious

Voices (4)

  1. Bob:

    Why I must pay for my company to be vetted by a client is beyond me. My company has been vetted by manufacturers far and wide and never, not once, in over seventeen years of existence, have we ever been asked to pay for the privilege. This is an abomination.

  2. Hygienic Floors Sales:

    I really question the value of AVETTA / PICS. It is a vetting process to get in the door for major energy firms. But, procurement in the Canadian oilsands, for example, know nothing about it, nor do they use it for invitations to bid / supply for work. The information flow is one-way into AVETTA, but AVETTA is not part of the business process within the vendors.

    Vendors that have SAP will use SAP to find suppliers. I don’t believe that SAP vendors for these companies had a first step of pre-qualifying using AVETTA PICS.

    I would appreciate the thoughts of others…

    COR(R) is what is used in Alberta. AVETTA / PICS was a pain to get, and offers no value in my opinion.

  3. Fred:

    They are by far, the worst, most incompetent company I have ever dealt with. Ever. I can’t believe they are still in business. They amaze me with all of the errors and issues.
    I have had issues with them for years, and they continue to amaze me at how incompetent they are. I have had Avetta managers call to apologize, and nothing ever improves.
    They want payment via Paypal or Visa. Most businesses don’t run like that. I could write a book at all of the insanity, and incompetence, lack of attention to detail, and employee turnover. I am a contractor who has to use their system because clients signed up, but I feel sorry for the employees, as they are fighting a losing battle trying to keep clients happy with such a broken system. And, they have doubled their fees, to an amount that is not justified, given the lack of quality and service. I work with many online safety databases, and I have never seen such a poorly run system. Beyond my comprehension.

  4. Gail:

    Was not at all happy with Avetta.

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.