The Sharks Are Swimming Around Procurify Dallas Mavericks owner and notorious start-up investor Mark Cuban has placed his hands into the “shark tank” so to speak that is the treacherous waters of the procurement solution field.  This high-risk, high-reward field for software and cloud solution developers is right up Mr. Cuban’s alley, especially when it comes to start-up investing. Mr. Cuban’s target in this area is Procurify; a relatively new entry into procurement software industry that offers its customers a cloud-based purchasing management software system.

Mark CubanThe sweet spot for Procurify currently is companies with 50 to 1000 employees with 10% to 20% of those employees having user accounts.  However, if you are a smaller shop with a single procurement employee, the system works great for you as well.

Procurify is a role-based eProcurement system that comes with many pre-configured roles for a wide-variety of users.  Examples of roles that come pre-configured with Procurify include approver and buyer. Thus, specific buyers in your organization can be set up to approve, for instance, up to X amount of dollars.  If the threshold is exceeded, a higher-level of approval is required (approver, manager, director, etc). If you are unable to find the exact role-set you are looking for, the system offers the ability to customize your own roles on-demand.

Procurify logoOne of the slicker features Procurify offers is the ability to create bundle orders.  Say, for instance, you purchase the same setup when a new employee is hired.  You can go into the Procurify system, pull up the “new employee” bundle you previously created and instantly you have items you need to order already picked out.  Kurtis Warren, of Procurify’s business development team pointed out this capability, “works great especially for contractors working on new homes”, where the base specifications for particular models are often the same.

Another impressive feature of Procurify is the ease of adding new departments, budgets and approvers.  Within a couple clicks and by adding specific allotments for approvers, it can be completed with ease.

A critical upgrade to the Procurify system going forward is the ability to integrate with other ERP systems.  I think this could be a serious game-changer for the organization.  The ability to utilize a cloud-based and app-controlled system such as Procurify will save considerable money, time and resources for organization’s that are already overburdened with maintaining servers in-house.

In the Procurify business model, suppliers do not have to pay to add their catalog to the Procurify buyer / supplier portal.  Suppliers are able to login into their specific buyer’s portals to upload their catalogs.  Currently, Procurify does not offer Procurement PunchOut capabilities.

According to Warren, one area of Procurify that is currently being revamped for improvements is the reporting system.  At this time, the systems reporting abilities are somewhat basic, but this is an area where the scheduled improvements would make a notable difference.

Procurify is not ready for the Fortune 500 “yet” as a be-all, end-all eProcurement solution (although they do have several Fortune 500 clients utilizing their services), however they are taking small, but aggressive, steps, listening to the needs of their current customers and growing the product.  

Procurify is an attractive solution for small to mid-sized organizations that are behind the curve when it comes to integrating technology into the procurement department or for organizations that don’t need a full-blown eProcurement solution.

From my e-mails and conversations with the sales and marketing team, they are very hungry and are on their way to becoming a disruptive force in the cloud-based procurement services market. 

Besides Mr. Cuban, other investors in Procurify include Nexus Venture Partners and the Business Development Bank of Canada (BDC). Procurify is also approaching their Series A funding (preferred stock) in the 4th quarter of 2014.

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