Who We Are
Having worked for several years in companies in different industries, I noticed a clear pattern in the most common challenges faced by procurement organizations.
The lack of transparency, especially in indirect procurement, is a persistent challenge for many companies. The lack of quality data hampers the work of many people working in procurement organizations.
Indirect procurement is usually decentralized throughout the organization. Managing workflows and processes in such an environment is difficult.
I felt the inability to influence these common issues from within the company. Nor could I find sufficient solutions on the market to solve them.
This is how ProcureNode Oy was born. These are the challenges we focus on and bring relief to our customers.
Jarno Salomäki - Founder & CEO
Our journey started with an idea, dream and a repaired laptop.
The business idea has been maturing for several years. Its content has evolved over time and each working experience has left its mark on it.
Eventually, the idea had been refined enough and the time was right to start a business. Many SMEs have realised the importance of indirect procurement for their business. Indirect procurement is characterised by under-resourcing and a decentralised organisational structure. Therefore, application-based business development is a prerequisite for the smooth management of indirect procurement.
The idea evolved further into a concept and the first diagrams and presentations were created in early 2021. The presentation of the idea to potential customers and partners started.
Flowcharts and more detailed descriptions of the different functionalities started to build around the concept. The product vision started to take shape and different functionalities were created.
We implemented the first customer project and analyzed the procurement function of an SME. In the analysis, we applied the knowledge we had already accumulated in the field and at the same time developed the analysis method further. The result was a service product.
The go-to-market strategy
Our service product was a procurement analysis. The aim of the analysis is to identify the current state of the procurement process and the adverse effects that slow down its development.
The analysis methodology is based on the theory of constraints management paradigm and the Lean philosophy. According to these philosophies, the systems to be managed are constrained by at least one, but not more than a few constraints.
Understanding the interactions, side effects and root causes of complex systems allows better control of the system.
Constraints can be internal or external in nature. A recurring barrier in indirect procurement is a lack of resources and the right tools
Building a service product and a standardized approach made our operations much more efficient. The advantage of a service product is that it can be sold immediately. It gives us faster time to market and allows us to start the performance-feedback-learning cycle even before we build the application. Without any investment.
The scalability of a standard service product is better than a customised service product. With this same approach, we can implement a few customer projects simultaneously with just the resources we have today.
Our application under development will improve the scalability of our service piece by piece. So we have built the MVP as a service product. The resulting model is a hybrid, where part of the activity is performed by the application, but the service remains an integral part of the whole.
In the future, the role of the application in service delivery will increase and, as a result, the scalability of the company will also improve.