Avetta/Browz – A Smart Move in the Supply Chain Risk Management Market (Part 1)

Following the announcement of the Avetta/Browz cloud-based supply chain risk management merger in February, our analysts compiled a three-part series looking in more depth at what this means for the firm and the market at large. In it our analysts said the two providers together will become “one of the clear leaders in perhaps the most ‘under the radar’ procurement solutions market.”

They tend to agree – we talked to Avetta about what this move means for them in the European marketplace.

In a fast-growing $14 billion global marketplace, the move brings the total number of enterprise-scale customers to 450, for whom Avetta vets 85,000 contractors and suppliers across 3500 work sites in over 100 countries. Already a global market player – although not so well known in the UK and Europe – Avetta provides supplier/contractor on-boarding, pre-qualification and auditing with its supply chain risk management software in a primarily supplier-funded business model. But – explains John Herr, CEO of the combined company – “the real value we bring is based on the network impact and scale economics focused on the supplier/contractor intelligence we provide to buyers and suppliers alike on a many-to-many basis – it is one of the few platforms that allow profiles to be configured for each supplier based on service(s), risk, and industry and that allows each individual customer to have a custom-tailored profile based on what their contractors do.”

Browz, founded in 2001, also focuses on the contractor qualification and policy compliance area, capturing the documentation and sign-offs required to assure customers that their business is working with safe, qualified, and socially responsible contractors and suppliers. The two are a good fit, bringing together customers, suppliers, contractors and workers into one big vetted network.

Herr stresses that he is keen for the SaaS solution to maintain its focus on five core areas:

  • Configurability
  • Coverage
  • Customer experience
  • Cost efficiency
  • Customer co-innovation

The UK represents the third-largest market for them after US and Canada, but NW Europe is the targeted, growth region. We spoke to John Herr and Richard Parke, SVP of Operations:

What does the merger mean for UK/Europe in terms of customers, services, employees?

“The driver for the merger was international growth, and we have doubled our employee count across Europe. We already have established offices in Germany, France, Benelux, Scandinavia, and across Europe, which lead in the risk-safety market for customers in Europe. Combining Avetta and Browz merges our strengths in the UK.

Our customers are multinationals and we must expand with them. For example, one of our largest customers is Mexican concrete giant, CEMEX, but they do a lot of work in the UK and Europe. Avetta is strong in aggregate materials, but more in the US and Europe, so strengthening our UK operations through the merger is how we adapt to better serve those customers.

We describe what we are doing as ‘network nodal density’ – bringing buyers and suppliers together. Buyers are often large and global; sellers are often small and local – by combining depth of category expertise with presence in a vertical, we can maximise connections. This merger helps that network tremendously in Europe, bringing depth of service, a wider sales team and expertise, and access to a greater network of suppliers for customers.”

Tomorrow in Part 2 we talk about the future direction for the firm.

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