Spend Matters is delighted to announce the 2022 roster for our “Future 5” list. For the 4th year in a row, our analysts have highlighted five start-ups that excited them the most. These Future 5 vendors are on track to qualify for next year’s “50 Procurement Providers to Watch” list. This year, the five companies that have proven themselves as potential future trend setters are Carbmee, Focal Point, OpenEnvoy, ProcureWise and Relish.
To warrant such attention, these vendors must have a product that is ideally 2-to-5 years old, is used by more than five customers and displays an innovative application of technology. Moreover, these vendors must have less than $10 million in revenue and our analysts must find them both sustainable and growing with a clear momentum. In this series of articles, we explain what these vendors offer, why they are likely to become future members of our “50 Procurement Providers to Watch” and “50 Procurement Providers to Know” lists and what challenges they may face.
Today, we introduce another Future 5 start-up for 2022: OpenEnvoy
What it Does
OpenEnvoy is an AP automation solution that specializes in processing invoices in certain complex industries — such as freight and manufacturing — in addition to more basic invoices. Its main strength is its ability to process high-volume, variable-cost invoices.
OpenEnvoy digitizes and reconciles invoice processing in order to prevent the spend wastage that comes from using AP standard operating procedures. The company’s founders created the product after witnessing a lack of innovation in AP automation during the 25 years they worked in the field. OpenEnvoy was created to combat inefficient invoice processing their previous organizations fell victim to. The provider streamlines approvals through matching, auditing and detecting discrepancies and contractual compliance violations. The platform also offers spend visibility through reports and insights that are updated in real-time, allowing for efficient spend management.
Why We Chose It
We named OpenEnvoy a Future 5 winner for 2022 because its industry specialization is a solution to a gap in the market for vendors that can process invoices specific to certain complex industries. The vertical of freight and transportation has not made its mark previously in AP automation. Because of OpenEnvoy’s focus on handling complex invoices that take into account minuscule inconsistencies, such as shipping line costs and fuel surcharges, the provider sets itself apart from other solutions in the market and has a promising outlook in the coming years. Moreover, while OpenEnvoy has strengths in high-volume, variable-cost invoices, it can process all types of invoices and documents.
OpenEnvoy’s robust auditing capabilities include the ability to ensure data accuracy and provide spend visibility. OpenEnvoy data model combined with human QA ensures 100% accurate data. The level of depth to audits for industries such as freight and manufacturing is extensive and includes real-time audits and the ability to match documents using 2/3/4/n-way matching. All approvals and transactions can be tracked, mapped and viewed as part of audit trails by AP teams.
OpenEnvoy’s current customer base, as a new and small vendor, is impressive and a testament to its ability to market its product as unparalleled to solutions that existed previously. The provider is looking to expand its expense reporting capabilities in the short-term, which would position them well for companies looking to replace their AP automation solutions.
Any threats or challenges ahead?
OpenEnvoy is still an up-and-coming company and has yet to establish itself as a main player in the AP automation market. Due to its emphasis on large, complex industries, its main competitors are larger providers with highly advanced invoice and PO management capabilities. Many of these vendors have key strengths that organizations are looking for when selecting an AP automation solution, such as a payments solution, that OpenEnvoy currently lacks.
AP automation is a highly saturated market with many vendors and similar offerings. While OpenEnvoy’s solution displays a unique differentiation from competitors, if competitors realize the need in the market for industry-specific invoice processing capabilities they may start to target those industries as well. Well-established AP automation vendors are highly experienced and quick to adapt to changes and new needs in the market.
Look out for more coverage of the Spend Matters Future 5 next week when we introduce Carbmee.
If you’d like to get under our analysts’ radar, procurement tech providers can create a free listing in the Spend Matters Almanac, the most comprehensive technology and service directory of procurement and supply chain solution providers.