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Ravacan is a new provider carving a niche in the growing direct materials space

direct materials sourcing

To understand why the technology market for direct materials is seeing a rise in young solution providers like Ravacan, it’s important to understand the space and how it compares to the indirect procurement market.

Thanks to several developments over the last decade, indirect procurement organizations have seen a “rising tide” effect in the number of choices and increasing capability of today’s solution providers.

As first-generation indirect procurement solutions moved to the cloud and second-generation entrants gained notoriety, interest in the procurement sector grew — which lead to new funding for startups, providers crossing international borders and incumbents pushing the envelope of what they could do using automation, like RPA, and early attempts at AI, like auto-classification of spend data.

Direct procurement technology, though, is a different story.

While there are choices today for various direct procurement solutions, the pool is much smaller, and the options are less consistently mature (or developing) than their agile indirect peers.

But to the list of standalone providers targeting a niche in the direct material procurement space, we can now add Ravacan.