Spend Matters Future 5 2024 – Introducing True ValueHub

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 True ValueHub

From our recent analyst-written Vendor Analysis:

Here’s why True ValueHub matters:

• To the market — True ValueHub offers deep parts analysis (price/cost-focused) for direct materials using AI and deep supplier insights.
• To potential buyers — True ValueHub can save category managers and buyers significant time and money by identifying new opportunities based on a deep analysis of costs and drivers.

We asked True ValueHub’s CFO and COO Sophia Banar:

How did True ValueHub come into being?

“Unlike many ProcureTech companies, True ValueHub was founded and is run by procurement and supply chain industry practitioners. The idea for True ValueHub was born out of the pain points our Founder, Gautam Pasari, experienced first-hand over the years working for various manufacturing companies while leading their strategic sourcing, category management and digital transformation functions.

“Driving year-over-year sustainable procurement cost savings is among the top targets for most manufacturing companies. The traditional ways of driving cost savings with multiple RFQs, e-auctions, sourcing from low-cost countries are no longer very effective. What delivers consistent sustainable results is buyers’ visibility into the key cost drivers for the parts and assemblies, the best-fit manufacturing process, material and best region to source from.

“Understanding the true cost of manufacturing parts and components around the globe, optimal manufacturing process, total landed cost from various regions is a complex task requiring highly specialized skills. Most manufacturing companies today still have manual Excel-based processes and teams that are using inadequate manual tools and software, and are only costing less than 5% of the total direct material portfolio. Doing this manually takes a significant amount of effort and time, but still yields inadequate results.

“Now, with advancement in artificial intelligence, we can automate and scale the process with the greatest degree of accuracy, allowing manufacturing companies to do more with fewer resources. Our solution typically identifies 30%+ cost savings opportunities within months of starting on the platform.”

What is True ValueHub’s greatest strength?

“The greatest strength of our AI-native solution is its ability to provide true cost of manufacturing direct materials across the globe by leveraging the latest in AI. With just a few clicks buyers can get visibility into supplier costs of manufacturing parts in a specific region, the optimal manufacturing process, the total landed cost and a detailed breakdown of the Scope 3 carbon for their direct material portfolio.

“They can invite the suppliers and internal stakeholders to collaborate on the identified opportunities in real time. For manufacturing companies with a high mix of direct materials parts portfolio, the solution can identify duplicate parts, supplier competitive index and opportunities for SKU and supplier consolidation for sourcing efficiency.

“TrueValueHub is CAD-agnostic, can read 30+ different CAD formats, as well as PDFs and JPEGs, and parse through large volumes of data within minutes to provide a detailed and accurate total landed cost breakdown for most mechanical, electronics and electro-mechanical parts and assemblies. The solution is self-learning and calibrates to the customer’s supply chain needs.”

What is the road ahead for True ValueHub? 

“We are working toward becoming the go-to solution for all direct material sourcing, a platform for transparent and frictionless collaboration between buyers and the suppliers, a co-pilot enabling single-click cognitive sourcing for identification and execution of cost saving opportunities. The solution monitors and identifies actionable cost saving opportunities and risk mitigation actions as underlying macroeconomic conditions change across the globe, impacting the key cost drivers for the purchased parts portfolio, and recommends better-fit suppliers and regions to meet current and future needs of customers’ supply chains.”

What does it mean to be named a Future 5?

“Spend Matters is one of the most respected analyst teams in the ProcureTech space. Getting recognition from one of the most respected voices in the procurement industry is a validation of our achievement so far, our vision, and a need for a disruptive solution for direct material procurement ecosystem. We are humbled.”

Many thanks to True ValueHub 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.

And read about why our analysts chose them here.

On October 31, the Spend Matters Analyst Team recorded a webinar that covered the methodology behind our analysts’ decisions on all the lists this year.