Vroozi was founded in 2012 with a vision of building a modern P2P solution that could be used by all organizations and Procurement professionals regardless of where they were and what device they were using — as they were the first P2P platform with a mobile-first philosophy. The goal was to build a solution that was easy to use, automated to the extent possible, collaborative, and easy to adopt by all individuals in the organization that needed to make purchasing requests, do Procurement, give approvals, and make payments. The opposite of the highly manual, closed, and cumbersome first-generation systems that gave their users the City Boy Blues.
They’ve achieved their goal, and then some, with a solution that is enterprise grade but yet priced for the mid-market. Whereas most P2P solutions fall short of payments, they can do payments (with their direct integration into two leading payment platforms) — and they can do invoicing compliant with both post-audit and clearance countries. Whereas most Procurement solutions require you to switch to a sourcing suite for a simple RFQ, they can do RFQs too. Whereas most focus on either internal/hosted or punch-out catalogs, they do both, as well as mixed and templated service offerings — all through a single integrated search that can also take into account enhanced company and product attributes on hosted and mixed catalogs. Whereas most P2P solutions don’t tie to contracts, the Vroozi platform can maintain all appropriate contract metadata to track spending against contracts and budgets. Whereas most have only the minimal supplier details to send the PO and Payment, the Vroozi platform allows for extended data to be maintained to allow for in-depth recommendations during search, straight-through processing rules for invoices when there are minor exceptions, and meaningful reports and analytics. Speaking of analytics, whereas most P2P platforms have limited to non-existent reporting solutions, Vroozi has integrated a reporting package that’s on par with most mid-market Source-to-Contract and P2P suites which provides a decent starting point for many organizations to get a handle on their spending.
Going back to supplier data, Vroozi can integrate with your ERP/MRP/Supplier Master and keep the relevant supplier data current for you — enhancing what you already have. It’s an extensive P2P++ solution that can even negate the need for a sourcing platform in an organization where the majority of purchasing is tactical or of moderate value or less. (If an organization doesn’t have a lot of high spend or strategic categories that need sophisticated sourcing technology with auctions or optimization capability, they can usually do without a dedicated platform and use pay per event solutions like MarketDojo or consultancies with licences. In other words, the only other solution the organization may need is a CLM solution — which only enhances the value of the Vroozi solution.) Also, because it can be opened up to the entire organization, who can have view access into the status of their request and all associated documents at all times, it has intake out of the box. (And because it can connect with relevant enterprise ERP, Finance, and S2C systems, it can serve as the Procurement orchestration platform as well.)
e-Procurement
In the Vroozi platform, e-Procurement revolves around purchase requests that come from:
- catalog search
- non-catalog requests
- RFQs
which may or may not be accessed through their SmartChat NLP (Natural Language Processing) tool.
Integrated and Intelligent Catalog Search
In the Vroozi system, a user can do a search across all of their catalogs, whether they are hosted, punch-out, or mixed (as the user can replicate part of a punch-out catalog in the hosted environment to augment and enrich the data with relevant company and product attributes that can aid in not only the search but the ranking and recommendation). The system can support ordered recommendations based on (lowest) cost, contract/preferred status, diversity supplier, or a weighted combination of those and/or other factors.
Search brings up results in a consumer like (Amazon) interface where it’s one click to add to a cart, and one click in the cart to initiate a purchase request. If a user can’t find what they want internally, or prefers a third-party site, one click takes them to the punchout site, and one click in the punchout site (including Amazon [Business]) takes them back to the Vroozi portal to submit the purchase request.
Search can be filtered on all relevant dimensions (supplier, brand, product [sub] category, etc.), which, if the content is hosted, can also include a slew of company attributes and product attributes. Company attributes could include diversity, green certified, preferred contract, premier (off-contract) supplier, IT, MRO, Office Suppliers, and other relevant categories. Product dimensions can include preferred product (off-contract), free shipping, refurbished, warranty, etc.
Non-Catalog Requests
Not all requests are for products found in a catalog. Some are for custom configurations of products where standard configurations are catalog, and some are for relatively standard service offerings that have contract pricing based on easily defined variables or configurations. The Vroozi application can support both of these through extended-catalog and non-catalog requests. If a buyer needs a new laptop with a custom configuration, the system will bring up an item with drop downs and/or special request fields where the user can select the precise configuration she needs. If a buyer needs to request janitorial services for the new, temporary office location, she can bring up the request, specify the required parameters that define the service level (square footage, type of cleaning [one-time or daily/weekly maintenance for a period of time, deep cleaning, etc.], hours it needs to be completed in), and the system will compute the number of people needed and the contract rate. Even complex requests can be completed and submitted quickly and with ease.
Bulk Upload Requests
Vroozi supports the creation of requisitions via extremely simple bulk upload. It can be as simple as a 2-column .CSV file containing Item Id, Quantity rows for basic products in the catalog. In addition, a full SOW (Statement of Work) requisition can also be created simply by specifying the core fields of: Supplier ID, Category ID, GL Account, Item Description, UOM (Unit of Measure), Price, Tax Code, Currency, Start Date, and End Date for each line on the SOW (Statement of Work). All of the appropriate information is automatically pulled in to create a complete requisition, which can be instantly used to generate a PO if the purchaser is buying from approved suppliers/blanket POs within their budget and auto-approval rules.
Next-Gen AI Powered Smart Chat
One of the main selling points of the intake and orchestration platforms getting all the buzz (and all the funding, some to the point where they are going to have to sell the solutions at ridiculous prices to reclaim the investor’s money) is their ability to not only make it super easy for organizational users to make Procurement requests in natural language through an AI chatbot, but an AI chatbot that will ask the right questions to get them to the exact product or service they need and let them put a request in with a single statement or confirmation (“create purchase request” or “yes”), and, in particular, text-based smart chat bots that can be served through an API to another enterprise platform the employees use daily.
Well, guess what? Vroozi has this too! No need for an overpriced “intake” or “orchestration” platform.
The Vroozi Smart Chat Bot is very well designed, and will ask as many questions as needed to get the user to the exact product or service they need. In the laptop scenario, the system will ask for the primary use (business, development, etc.), memory requirement, storage requirement, etc. In the services scenario, it will confirm the user wants janitorial services, confirm the vendor and contract, take the user through the questions, propose the requisition, and automatically create it with a confirmation.
RFQs
RFQ Functionality in Vroozi is very straight forward. The user simply has to give the request a name and due by date; define the products or services they want by description, part/service number, category, quantity, unit of measure, and delivery date; and select the suppliers from the directory (or create a new ad-hoc supplier; however, no PR or PO can be created without approvals and master data setup if awarded to an ad-hoc supplier). That’s it. Then it’s wait for either all the suppliers to respond or the due date to hit, evaluate, make an award, and (if no ad-hoc suppliers were selected that require approval), create the requisition. (Once the RFQ is created, the suppliers are notified by email, and it’s one-click from the e-mail to go to the bid screen, where they will be required to enter their one-time bid passcode to prevent compromised logins.) Awarding is just a matter of selecting the bid and clicking the award button.
Easy One Click Approvals
Once a purchase request has been created, it goes to the first approver for approval. It gets entered to their queue in the Vroozi application, where they can approve it instantly, and through e-mail, where they can one-click approve or reject it. The click takes them to either a screen that acknowledges their approval, or a screen that acknowledges their rejection where they can input a reason and whether or not the requester can resubmit with a modification. To make the rejection process super easy, the user can select a standard reason for dispute from a drop down and only needs to free-form enter a reason or further explanation in special situations that should not be the norm.
Invoice Management
Vroozi is not just an e-Procurement platform, it’s also an Invoice-to-Pay / Accounts Payable platform with full invoice management capability. The great thing about the Vroozi platform is that it supports super easy PO flip in the portal (as well as allowing vendors to submit invoices in multiple standard encodings), meaning all the data can come in complete, correct, and already matching. They also support PDF (by email) submission, and have the capability to process (relatively) “standard” PDF invoices and auto-extract all the key fields.
Once the invoice is in the queue for processing, the matches are applied, and if they succeed, it goes straight for approvals, and if the invoice is against a blanket PO or contract and in budget, it can be auto-approved and go straight to posting, which can get the Vendor paid fast (and gives the Vendor a reason to use the system). If they fail, then the invoice is stopped for processing. If everything matches and there are blanket POs or contracts and budgets are met, it can be auto-processed and goes straight to the posting queue. If not, it goes out for approval. Once the invoices is stopped for match failures or is deemed to need manual approvals, it stays in the processing queue until it has received any necessary non-AP approvals (which might be required if all invoices above a threshold value or for certain categories must get sign-off even if there is an approved PO) and there is a goods receipt to match against the invoice with the PO for a 3-way match or an AP manager completes exception processing and pushes it to to the processing queue. Once corrected and/or approved, the invoice goes straight to posting. And, of course, the supplier, if they use the portal, sees the current invoice state at all times.
The great thing about the platform is the power that is contained in approval chain creation and management, which can be setup in the same manner as purchase order approval chains if desired. Once an invoice is in the processing queue, if there is a 3-way match, it is automatically processed, and if it matches exactly or within tolerances, it goes straight to posting without any touch. If there is only a 2-way match, and if there are exception rules (for example, services, recurring charges, etc.) that allow 2-way processing, then if there is an exact match or a match within tolerances, it will also go to straight to posting without any human touch.
In other words, in Vroozi, only exception invoices need to be processed, and a single click can reject and flip them back to the supplier (preferably with a reason) or accept them when the variation is acceptable, agreed to, or approved by the buyer (such as a higher price for substitute items when an order was made without the necessary notice). Furthermore, to ensure that exception processing is efficient, the end user organization can define multiple types of exception handlers to ensure that the invoice is routed to the right group when there is an exception. For example, if it’s just a tax issue or an unexpected shipping and/or handling charge, then it can likely be resolved by AP and should go to an AP clerk. But if it’s a unit price issue that doesn’t match the contract, which the supplier is refusing to back down on, it might need to go to Procurement for an exception approval or to Legal who may need to call the supplier and explain what will happen next if the unit price isn’t fixed.
In addition, there are built-in options for auto-processing / auto-return for overcharges. The system can automatically reject the invoice, automatically modify the invoice based on agreed to amounts and then notify the supplier of the changes upon approval, or leave the invoice as is and automatically create a credit memo (and notify the supplier on approval that the credit was applied against this invoice or will be applied against a future invoice at payment time).
Shipping Notices & Good Receipts
The Vroozi platform is capable of accepting and processing shipping notices in the same manner that it receives invoices, and these can even be used in a 4-way match if desired by the system. Shipping Notices and Goods receipts are incredibly easy to create in the Vroozi system. Just like a user can one-click flip a PO to invoice, they can one-click flip a PO to a shipping invoice where all they have to do is verify the line-item quantities. Similarly, a user can one-click “flip” a goods receipt from a PO, shipping notice, or invoice as easy as a supplier can flip a PO into an invoice. All the user has to do is enter the quantity received for each line item and the goods receipt is complete and can be used in the 3-way match for straight through processing. Note that if the organization has turned on the appropriate matching, the users will have to receive goods before the associated invoices can be processed.
3-Way Match and Straight Through Processing
The power of an I2P solution is one that can automate invoice processing touch free and free up valuable Procurement and Accounts Payable time to focus on the exceptions and the issues, and not tactical processing which prevents issues from being resolved, and sometimes even from being detected when an invoice has too many line items for detailed processing and all the AP clerk can do is a rough check on the total amount versus the total expected amount. Also, as it is capable of automatically processing every invoice that comes in, it can identify obvious and potential duplicates, invoices that don’t match a PO, and invoices that are potentially fraudulent and reject them or “quarantine” them for manual review.
Credit Memos
Credit Memos are automatically created during invoice exception handling when the buyer decides that the organization is going to pay the PO price (which usually happens when the organization has a contract or valid commitment that has not yet expired from a previous quote), overrides the invoice price to the PO price, and then approves the invoice, which is queued for payment at the adjusted amount captured in the (automatically generated) credit memo that is sent to the supplier. The supplier gets the credit memo in their portal, as well as a status change that informs them that the buyer adjusted invoice has been approved for payment.
Come back tomorrow where we will continue our discussion of the Vroozi P2P++ offering, including Payments, the Supplier Directory, Analytics, Platform Administration, and the Supplier Portal.
