Spend Matters Future 5 2024 — Introducing ivoflow

Spend Matters honors a vast array of procurement solution providers each year by selecting them for our ‘50 to Know,’ ‘50 to Watch,’ ‘Future 5’ and ‘Hall of Fame’ celebration lists. Discover everything you need to know about these accolades here, including who is on them.

For the Future 5, Spend Matters analysts scour the market to find new specialist solution providers that can answer a burning need of procurement practitioners today. Following months of debate based on extensive knowledge of the many procurement technologies they have demoed, analyzed and benchmarked, they arrive at a list of five young providers that they believe are innovative and exciting, have a rapidly rising presence in the market, can grow sustainably and which every CPO should have on their radar. Read our announcement post here.

These start-ups are taking technology further than most to address problems not previously solved, or are introducing a new category of automation that tackles new challenges in interesting ways. We believe these companies deserve greater visibility, especially in a market which is increasingly consolidating and diluting buyer choices.

Get to know all the procurement tech providers that made our lists this year.

We are delighted to introduce you to our Future 5 as we capture their voices.

Today please get to know ivoflow

From our recent analyst-written Vendor Analysis:

Here’s why ivoflow matters:

• To the market — ivoflow focuses solely on direct spend analytics (i.e., manufacturing and direct materials), a rarity in the procurement spend analytics technology market.
• To potential buyers — ivoflow offers a focus on actionable insights and cost savings initiatives rather than just static spend analysis.

We asked Nicolas Neubauer, Co-Founder and Managing Director of ivoflow, the following:

How did ivoflow come into being?

“My co-founder, Daniel Demuth, and I met about ten years ago while working in strategic procurement at our previous employer, a $40B Global Automotive Tier 1. We were frustrated by the complex requirements of procurement and the lack of a helpful digital solution. It was about time for a software solution that automatically identifies cost saving potentials — the key KPI — to procurement organizations. So we decided to take matters into our own hands and founded ivoflow. Together with a team of software developers and in a lively exchange with other purchasing experts, we created the first prototype of the software within a few months. Now, several years later, with plenty of well-known customers on board, we aim to be more than ‘just’ a spend cube by enabling companies identify and implement savings by merging internal data with external market intelligence data.”

What are Ivoflow’s greatest strengths?

“Our software uncovers savings potential in seconds, relieving procurement teams from the manual effort typically required for data collection and preparation. It’s unrealistic for buyers to have all relevant information ‘on their radar’ and analyze it comprehensively. Using ivoflow allows procurement managers to not only refocus on their core competencies, such as formulating strategies, but also to transform procurement into a driver of business success.

“While many of our market competitors focus on dashboards and data visualization, we go the extra mile to answer the ‘so what?’ We integrate internal data from ERP, SRM and BI solutions and enrich it with external market intelligence data and indices to provide actionable recommendations for buyers. At the heart of our software is the cost-saving toolbox; from dual sourcing and currency clawbacks to benchmarks and bid comparisons, our tool equips buyers with various methods to achieve savings proactively or retroactively.

“Another strength is our responsiveness to market demands, most recently in sustainability reporting. Through the integration of external data, our software provides direct access to all relevant ESG and compliance data from suppliers. This enables companies to monitor key metrics vital to their sustainability strategies.

“Lastly, our professional background is what sets us apart. Especially in the beginning, it was a significant advantage. Without our industry knowledge and credibility, we would have faced a much tougher challenge. The companies we engage with appreciate that we not only understand the technical aspects but also have hands-on experience in procurement. We see this reflected in every customer meeting when we showcase how we developed a software solution from procurement for procurement.”

What is the road ahead for ivoflow?

“Despite tense markets, we are very positive about the future. Not least because of our current order situation, with which we are very satisfied. Our team keeps on growing, and we have many new ideas in the pipeline. Now it is important to retain customers in the long term and keep them happy, to build up a good team of employees and experts and to observe and address market trends. After all, we always listen to our customers’ challenges and ensure that we incorporate the relevant solutions and functions into the core product — while still being able to scale.”

What does it mean to be named a Future 5?

“For us, it is a real achievement and milestone to be recognized as one of the Future 5 in our very first participation in the SolutionMap. We place great value on awards that are based on a strict and thorough selection process. We can proudly communicate this recognition to our customers and partners, as they highlight our quality and serve as the best proof that we can establish ourselves as a future-oriented and innovative ProcureTech company in the international arena, successfully competing against our strong industry peers.”

Read the analysis behind why our analysts chose ivoflow here.

Many thanks to ivoflow for sharing its story with us. We hope the Future 5 broadens our readers’ perception of the art of the possible to help you position your organization for the challenges ahead.

To learn more about the methodology behind our analysts’ decisions on all the lists this year, join our webinar on October 31, hosted by the Spend Matters team.