Research Summary
The report discusses the partnership between Sequoia and Tacto, a supplier-management solution provider. Tacto, founded by André Petry, Nico Bentenrieder, and Johannes Groll, aims to serve mid-sized industrial companies that lack efficient procurement solutions. The company’s platform streamlines the procurement process, tracks suppliers’ regulatory certifications, and simplifies compliance with Germany’s new Supply Chain Due Diligence Act.
Key Takeaways
Addressing the Gap in Supplier Relationship Management
- Need for SRM: The report highlights the lack of efficient supplier relationship management (SRM) systems for mid-sized businesses. While large companies have access to some supplier relationship tools, 90% of mid-sized businesses lack a proper procurement solution, often resorting to manual tracking.
- Tacto’s Solution: Tacto’s platform is designed to serve these mid-sized industrial companies, streamlining every aspect of the procurement process, from quote management to supplier certification tracking.
Streamlining Compliance and Regulatory Certifications
- Compliance Simplification: Tacto’s platform simplifies compliance with Germany’s new Supply Chain Due Diligence Act, which requires stricter supplier reporting for businesses with at least 1,000 full-time employees.
- Regulatory Certifications: The platform also assists in tracking suppliers’ regulatory certifications, reducing the administrative burden on businesses.
Customer Satisfaction and Retention
- Customer Feedback: Customers have praised Tacto for its ability to streamline the procurement process and simplify compliance. The platform’s ease of integration and use have also been highlighted.
- Customer Retention: Tacto has managed to retain all its customers while expanding across various industries, indicating high customer satisfaction.
Team Expertise and Dedication
- Team Credentials: The Tacto team, led by André Petry, Nico Bentenrieder, and Johannes Groll, has been praised for their credentials, dedication, and ability to attract talent. Their understanding of customer problems and quick problem-solving abilities have been highlighted.
Sequoia’s Partnership with Tacto
- Investment Conviction: Sequoia’s partnership with Tacto stems from their belief in the team’s capabilities and the product’s potential. Despite Tacto receiving attention from multiple firms, Sequoia was chosen to lead their Series A funding round.
Actionable Insights
- Explore Tacto’s Platform: Businesses, especially mid-sized ones, should explore Tacto’s platform to streamline their procurement process and simplify compliance with regulatory requirements.
- Consider the Importance of SRM: Companies should consider the importance of efficient supplier relationship management systems in reducing administrative burdens and improving operational efficiency.
- Monitor Regulatory Changes: Businesses should stay updated with regulatory changes, such as Germany’s new Supply Chain Due Diligence Act, and consider solutions like Tacto that can simplify compliance.
