From A to Z of Spend Matters Future 5 2021 – Pactum overview
As markets change, grow and mature, supply and demand change. Companies must continue to adapt, just like the tools they use to support them. The procurement technology market is also evolving rapidly to meet changing needs, talent maturity, compliance, regulation, risk, faster time to market and more. It’s not easy for purchasing managers to keep a watchful eye on new technologies and adaptive capabilities entering an already crowded space. But Spend Matters does.
Our procurement technology analysts scour the market every year to find these new solution providers who can fill a very specialized and niche role in meeting today’s procurement needs. After weeks of in-depth debates and reviews based on their in-depth knowledge of the procurement technology market that they scrutinize, analyze, and compare every day, they bring down dozens of startups to find five of them. they find exciting, rapidly increasing presence in the market, are here for the long haul, and that every CPO should have on their radar.
These startups invariably take existing technologies much further to solve problems they can’t, or introduce a new category of automation that tackles new challenges in interesting ways. We believe that these companies deserve greater visibility, especially in a market that is consolidating and increasingly diluting the choices of buyers.
So we’re excited to present our Future 5s to you as we capture their voices. In no order of preference other than alphabetical order, they are:
pact is an AI-powered system that helps global businesses autonomously deliver personalized, large-scale business negotiations. The system adds value and saves time for the Pactum client and their trading partner by aligning their values to determine win-win deals through an easy-to-use chat interface that implements the best trading strategies.
Learn more about what Pactum does and our reasons for selecting it here.
We spoke to Martin Rand, CEO and Co-Founder of Pactum, to find out more about …
How Pactum was born
“I served as Product Manager at Skype and Sales Manager for Europe for The Climate Corporation (owned by Monsanto) where I gained first-hand experience in successfully leading complex negotiations with culturally and geographically diverse teams Before co-founding Pactum, I also co-founded and served as CEO of another start-up, VitalFields, an online farm management system that was acquired by Monsanto.
It was while he was negotiating international deals for Monsanto that I realized how complicated even the most common trade deal-making process can be. Often times people treat trading as a zero sum game in which someone has to lose. This causes other problems. For example, about 80% of companies’ trade deals are for high volume and low value, known as end expenses. There are so many suppliers in this category that it becomes difficult for the company to control them, let alone manage these transactions effectively and efficiently. As a result, millions of dollars of value are left on the table and many vendors go unmanaged.
“In 2019, Kaspar Korjus and Kristjan Korjus contacted me, a friend and former colleague, to give me advice on a potential start-up. After hearing them, I made it my mission to persuade them to unite their forces and start something.This is how Pactum was born: built on the belief that the best deals are the best for both parties without harming each other – something called Pareto optimality.
Kaspar Korjus came to the table with extensive experience in solving complex negotiations, as Managing Director of e-Residency, one of the most ambitious government technology projects in Europe. In this role he had convinced the police, the foreign ministry, the prime minister, the president and all ministries to invest government money to open up the sensitive electronic infrastructure of Estonia to all foreigners in the world so that they can create businesses in the European Union without ever having to surrender. Kristjan Korjus back then was building artificial brains for delivery robots at Starship. His doctoral thesis was on Deep Learning Agents Aligning Their Values and He led a team that replicated DeepMind’s original work that made waves in the science media, and his team members went to work for it. r OpenAI by Elon Musk and for DeepMind.
“Of the three of us co-founders, we had the strongest team to automate negotiations, so we set out to raise funds and turn our idea into reality: stand-alone negotiations.”
What is Pactum’s greatest strength?
“As I said, the majority of business investment is spent on dealing with a small portion of their suppliers. In fact, around 80% of business suppliers are unmanaged, leaving money on the table ( about $ 240 million for an average Fortune 500 company.) Managing these expenses, especially when dealing with large vendors, is time consuming and labor intensive, so much so that many business professionals Procurement finds that optimizing these expenses is not worth it, and as a result, a high volume of non-core suppliers are unmanaged, leaving millions of people stuck in ineffective negotiations.
“Pactum’s solution is designed to fit easily into a business strategy and technology stack, allowing them to stay at the forefront of innovation while accelerating their time to value. In practice, it’s about help purchasing professionals automate and streamline repetitive processes and manual tasks to increase efficiency, improve accuracy and create value. Pactum’s AI automates contract negotiations between companies and their suppliers and suppliers. solutions She can complete complex negotiations with just a few clicks and reach an agreement for both parties in just 15 minutes.
“This intelligent automation allows companies to engage suppliers simultaneously and at scale, freeing up their teams to focus on strategic work.”
What’s next for Pactum?
“Pactum currently enables companies like Walmart, one of the world’s ten largest banks, an electricity maker Fortune 200, a leading logistics brand and other leaders in the retail industry, consumer goods, logistics, industry, financial services and automobiles to create between $ 2 million and $ 11 million in new value for $ 100 million in final spending. Some of these companies are recording already profitability gains of up to 6.5% thanks to each agreement with suppliers that Pactum negotiates on their behalf.
“Our stand-alone negotiations are based on advanced mathematical models and cognitive science and designed to reach optimal agreements for both parties in minutes, offering the possibility of achieving savings of 2% to 11% in this category of spending.
“We believe there will come a day when Pactum’s stand-alone negotiations will get you a better deal. Pactum is creating software that helps businesses thrive by automating large-scale contract negotiation. start of the journey. The technology can be deployed in other use cases, such as employment contracts, licensing or rental contracts. It also offers the potential to help people reach agreements on challenges major, especially where global cooperation is required. “
What does it mean to be a Future 5?
“For Pactum, it is an honor to be a Future 5. We are honored and proud to be considered best in class by the professional purchasing community as a whole, knowing how tough the competition is in the industry. This space.Purchasing transformation happens quickly and is a part At Pactum, we pride ourselves on putting our customers and their suppliers at the center of everything we do, and being a part of 2021 Spend Matters Future 5 is truly a great testament to innovation and the work ethic of the entire team. “
Many thanks to Pactum for sharing their story with us. We hope that Future 5 broadens our readers’ perceptions of what is possible with technology to help you position your organization to meet the challenges of the future.
The Future 5 list is a real complement to our 50 suppliers to watch and 50 suppliers to know lists, which highlight the most established tech companies you should be watching or getting to know. Many outstanding start-ups in procurement technology are quickly moving from an early stage to market competitors, making it to the “To Watch” list.
The full Future 5 and 50/50 lists can be found in Spend Matters Almanac, our free supplier directory, where Pactum can be found in the contract lifecycle management (CLM) Category.
If you haven’t already, please register your own organization if you want to start pitching your solution to technology analysts.
You can also find our existing Pactum coverage here in our more detailed subscription PRO analysis:
Pactum: Supplier Analysis – Solution Brief for Long Tail Negotiation, Roadmap, Customer Feedback, Pactum Competitors, Analysts Analysis