“Three months after taking over as CEO, Welch set a vision for each business unit that they had to be #1 or #2 in their markets; if not, they had to fix, sell, or close the unit. This later became his one of the most famous strategies.” (Source: CEIBS)
I use The following process to determine if I want to advise, work with, or mentor a particular ProcureTech solution provider. What may surprise you is one of the last things I consider is the technology platform.
A Little Background
When Kelly Barner recently contacted me suggesting I connect with Rod Sherkin, I had to admit that although his company, ProPurchaser, has existed since 2001, I had never really heard of them. They certainly weren’t on any of the Solution Maps I have seen.
In preparation for that first call, I did a little—okay, more than a little—research on the man and the company, including assessing ProPurchaser’s identified market competitors. In short, and as I have often stated in this blog, the critical element for success is the people behind the logos.
Through this lens, I want you to view the following initial comparison and then ask yourself why I chose ProPurchaser—and, more specifically, Rod Sherkin — as one of my potential Suite 6 providers. (NOTE: The “Green Giant ” can story and The Four Cornerstones for Leveraging Cost Transparency model resonated most with me. I also want you to look closely at the backgrounds of the Founders and Executives behind each company and the evolution of their respective enterprises, and ask yourself, can I work with this individual.)
ProPurchaser
**ProPurchaser** operates in the procurement intelligence and cost management sector, providing tools and data to assist supply chain professionals in negotiations.
ProPurchaser Founder and CEO: Rod Sherkin – https://www.linkedin.com/in/rod-sherkin-6b64661/
**Rod Sherkin** is the founder and president of **ProPurchaser.com**, a platform that has been a trusted resource for procurement professionals since 2001. Before establishing ProPurchaser, Sherkin held senior supply chain executive roles at companies such as Pillsbury and Ball Packaging, where he honed his negotiation skills with suppliers over a 15-year period.
Under Sherkin’s leadership, ProPurchaser tracks commodity cost drivers affecting suppliers’ production costs, providing members with timely alerts to support informed negotiations. This approach enables procurement professionals to negotiate lower prices when suppliers’ costs decrease and to counter unsupportable price increases when costs rise.
Sherkin has also shared his expertise through lectures and seminars, including a notable presentation at Bryant University that has been viewed by over 15,000 procurement professionals. This lecture focuses on best practices in preparing for supplier negotiations, emphasizing the importance of cost transparency and strategic negotiation techniques. For a more in-depth understanding of Rod Sherkin’s insights on supply chain management and procurement, you can watch his interview on Supply Chain Now.
COMPETITORS
1. **Dairy.com**: Offers technology services and intelligence platforms tailored to the dairy industry, focusing on supply chain optimization.
CEO: Scott Sexton – https://www.linkedin.com/in/scott-sexton-12634023/
In June 2021, Dairy.com acquired Ever.Ag, a leading provider of crop insurance, commodity brokerage, technology, and other services for the dairy, grain, and livestock sectors. This acquisition combined the expertise of both companies to offer customers an extensive portfolio of AgTech software, risk management resources, services, and market intelligence offerings.
Subsequently, in February 2022, Dairy.com, Ever.Ag, and EFC Systems merged to form a unified entity under the Ever.Ag brand. This consolidation aimed to empower agriculture, food, and beverage supply chains by integrating supply chain, agronomy, and risk management solutions across dairy, livestock, crops, and agribusiness sectors.
As a result, Ever.Ag now operates as a comprehensive AgTech company, leveraging the combined strengths and resources of Dairy.com, Ever.Ag, and EFC Systems to support and enhance the agricultural supply chain from farm to table.
2. **Unison Marketplace**: Formerly known as FedBid, this platform optimizes procurement processes for government buyers, enhancing sourcing efficiency.
Director: Jennifer Chaddic – https://www.linkedin.com/in/jenniferchaddic/
INC2inc was a business-to-business (B2B) online marketplace established in March 2000, designed to streamline the procurement process for the food and beverage manufacturing industry. It facilitated real-time transactions between manufacturers and suppliers of packaging materials, ingredients, and other direct materials. The platform aimed to eliminate inefficiencies, reduce costs, and enhance communication through a suite of collaborative commerce tools.
In December 2000, INC2inc merged with Dairy.com, an independent, neutral internet exchange serving the dairy industry. This merger led to the formation of a parent company named Momentx, which sought to leverage the complementary strengths of both entities to accelerate the development of their e-market solutions. As operating units of Momentx, INC2inc continued to build out its replenishment functionality, streamlining the procurement process for ingredients and packaging, while enhancing their existing solutions.
The combined efforts of INC2inc and Dairy.com under Momentx aimed to provide comprehensive internet tools to help the dairy, food, and beverage industries create more efficient business practices. These included the development of platforms for dairy commodity exchange, supply chain management tools, and industry-focused content.
3. **Cloudia**: Provides digital procurement solutions, including e-sourcing and contract management, aimed at streamlining procurement operations.
CEO (Former): Are Saarinen – https://www.linkedin.com/in/are-saarinen/
As of June 2021, **Are Saarinen** served as the CEO of Cloudia, a Finnish e-procurement platform. Under his leadership, Cloudia was acquired by Mercell Holding ASA, a Norwegian e-procurement company, in June 2021.
Following the acquisition, Cloudia became a subsidiary of Mercell. However, specific details regarding any changes in the CEO position post-acquisition are not readily available. For the most current information on Cloudia’s leadership, it is advisable to consult the company’s official website or recent press releases.
4. **PayEm**: A SaaS-based expense management solution for corporate organizations, facilitating procurement and financial operations.
Co-founder and CEO: Itamar Jobani – https://www.linkedin.com/in/itamar-jobani-549331a3/
**Itamar Jobani** is the Co-founder and Chief Executive Officer (CEO) of **PayEm**, a global spend and procurement management platform. Founded in 2019 by Jobani and **Omer Rimoch**, who serves as the Chief Technology Officer (CTO), PayEm is headquartered in Tel Aviv, with additional offices in San Francisco. The company employs approximately 90 people.
Under Jobani’s leadership, PayEm has developed a platform that offers smart procurement solutions, accounts payable (AP) automation, expense reimbursement, and smart credit cards. In January 2023, the company announced that it had raised $20 million in equity funding and secured $200 million in credit financing to further its growth and development.
In May 2023, Jobani discussed the economic downturn’s impact on the market, noting that while there was a correction, demand for PayEm’s solutions was rising as companies sought to reduce costs and improve efficiency.
5. **Zip**: Provides cloud-based purchase approval management software, streamlining procurement workflows.
Co-founder and CEO: Rujul Zaparde – https://www.linkedin.com/in/rujulz/
**Rujul Zaparde** is the co-founder and Chief Executive Officer (CEO) of **Zip**, an AI-powered intake and procurement orchestration platform established in 2020. Under his leadership, Zip has achieved significant milestones, including:
– **Client Savings**: Helping companies save over $4.4 billion in procurement spend.
– **Client Portfolio**: Serving prominent organizations such as OpenAI, Discover, and Sephora.
Prior to founding Zip, Zaparde co-founded **FlightCar**, a car-sharing company that was later acquired by Mercedes-Benz in 2016.
In October 2024, Zip announced a $190 million Series D funding round, elevating the company’s valuation to $2.2 billion. This investment is intended to enhance research and development, expand AI solutions, and support global growth, particularly in the EMEA region.
Under Zaparde’s guidance, Zip continues to innovate in the procurement sector, aiming to streamline business spending and procurement processes through advanced AI-driven solutions.
6. **BirchStreet Systems**: Offers cloud-based procure-to-pay management solutions for businesses, enhancing procurement processes.
CEO: John Fay – https://www.linkedin.com/in/john-fay-ceo/
**John Fay** serves as the Chief Executive Officer (CEO) of **BirchStreet Systems**, a leading provider of procure-to-pay software solutions for the hospitality sector. He assumed this role in January 2023, succeeding Brendan Reidy, who continues to support the company as Executive Chairman.
With over 30 years of experience, Fay has a distinguished track record in transforming and growing global technology and information services companies. His previous leadership roles include:
– **TrueCommerce**: CEO of a supply chain platform for the retail industry.
– **INTTRA**: CEO of the world’s largest ocean logistics e-commerce platform.
– **Instinet**: Senior executive at a global financial technology trading platform.
Earlier in his career, Fay held finance executive positions in the eCommerce divisions of Morgan Stanley Dean Witter and Goldman Sachs. He earned an MBA from New York University’s Stern School of Business and a BS in Accounting from Mount St. Mary’s College.
Under Fay’s leadership, BirchStreet Systems aims to advance its market position through organic growth, product innovation, enhanced customer support, and a focused acquisition strategy. The company continues to empower hospitality and food and beverage enterprises with comprehensive procure-to-pay business solutions, connecting over 15,500 enterprises in more than 130 countries with a network of over 450,000 suppliers. These companies offer various procurement and supply chain management solutions, each with unique features and industry focuses, competing with ProPurchaser in delivering value to procurement professionals.
FINAL QUESTION
Ask yourself this one question: Which Founder and Executive would I want to work with and why? In the end, “business and business success is personal.”
30
DID YOU KNOW . . .
How long does the average ProcureTech salesperson stay employed with a single solution provider?
While specific data on the average tenure of sales professionals within ProcureTech solution providers is not readily available, insights from the broader B2B technology sales sector can offer some perspective:
- High Turnover Rates: Sales positions experience a turnover rate of approximately 35%, significantly higher than the 13% average across all industries.
- Short Tenure in Tech Companies: At major technology firms, the average sales tenure is about 1.8 years.
- Rapid Transitions: The average tenure for a Vice President of Sales is around 19 months, indicating frequent transitions in sales leadership roles.
These figures suggest that sales professionals in the technology sector, including those in ProcureTech, often have relatively short tenures with individual solution providers. Factors contributing to this trend may include high-performance pressures, competitive recruitment practices, and abundant opportunities within the industry.
What is the average tenure of a ProcureTech CEO?
Specific data on the average tenure of CEOs within ProcureTech solution providers is not readily available. However, examining broader industry trends offers some context:
- Technology Sector: CEOs in the technology industry have an average tenure of approximately 6.1 years, which is shorter compared to other sectors. Korn Ferry
- S&P 500 Companies: As of 2022, the median tenure for CEOs in S&P 500 companies was 4.8 years, with an average tenure of 7.2 years. Harvard Law Corporate Governance Blog
(Source: ChatGPT)
How long has Rod Sherkin been at the head of ProPurchaser? What impact will this have on your success using the ProPurchaser platform?
Procurement Insights
Choosing Rod Sherkin
Posted on December 6, 2024
0
“Three months after taking over as CEO, Welch set a vision for each business unit that they had to be #1 or #2 in their markets; if not, they had to fix, sell, or close the unit. This later became his one of the most famous strategies.” (Source: CEIBS)
I use The following process to determine if I want to advise, work with, or mentor a particular ProcureTech solution provider. What may surprise you is one of the last things I consider is the technology platform.
A Little Background
When Kelly Barner recently contacted me suggesting I connect with Rod Sherkin, I had to admit that although his company, ProPurchaser, has existed since 2001, I had never really heard of them. They certainly weren’t on any of the Solution Maps I have seen.
In preparation for that first call, I did a little—okay, more than a little—research on the man and the company, including assessing ProPurchaser’s identified market competitors. In short, and as I have often stated in this blog, the critical element for success is the people behind the logos.
Through this lens, I want you to view the following initial comparison and then ask yourself why I chose ProPurchaser—and, more specifically, Rod Sherkin — as one of my potential Suite 6 providers. (NOTE: The “Green Giant ” can story and The Four Cornerstones for Leveraging Cost Transparency model resonated most with me. I also want you to look closely at the backgrounds of the Founders and Executives behind each company and the evolution of their respective enterprises, and ask yourself, can I work with this individual.)
ProPurchaser
**ProPurchaser** operates in the procurement intelligence and cost management sector, providing tools and data to assist supply chain professionals in negotiations.
ProPurchaser Founder and CEO: Rod Sherkin – https://www.linkedin.com/in/rod-sherkin-6b64661/
**Rod Sherkin** is the founder and president of **ProPurchaser.com**, a platform that has been a trusted resource for procurement professionals since 2001. Before establishing ProPurchaser, Sherkin held senior supply chain executive roles at companies such as Pillsbury and Ball Packaging, where he honed his negotiation skills with suppliers over a 15-year period.
Under Sherkin’s leadership, ProPurchaser tracks commodity cost drivers affecting suppliers’ production costs, providing members with timely alerts to support informed negotiations. This approach enables procurement professionals to negotiate lower prices when suppliers’ costs decrease and to counter unsupportable price increases when costs rise.
Sherkin has also shared his expertise through lectures and seminars, including a notable presentation at Bryant University that has been viewed by over 15,000 procurement professionals. This lecture focuses on best practices in preparing for supplier negotiations, emphasizing the importance of cost transparency and strategic negotiation techniques. For a more in-depth understanding of Rod Sherkin’s insights on supply chain management and procurement, you can watch his interview on Supply Chain Now.
COMPETITORS
1. **Dairy.com**: Offers technology services and intelligence platforms tailored to the dairy industry, focusing on supply chain optimization.
CEO: Scott Sexton – https://www.linkedin.com/in/scott-sexton-12634023/
In June 2021, Dairy.com acquired Ever.Ag, a leading provider of crop insurance, commodity brokerage, technology, and other services for the dairy, grain, and livestock sectors. This acquisition combined the expertise of both companies to offer customers an extensive portfolio of AgTech software, risk management resources, services, and market intelligence offerings.
Subsequently, in February 2022, Dairy.com, Ever.Ag, and EFC Systems merged to form a unified entity under the Ever.Ag brand. This consolidation aimed to empower agriculture, food, and beverage supply chains by integrating supply chain, agronomy, and risk management solutions across dairy, livestock, crops, and agribusiness sectors.
As a result, Ever.Ag now operates as a comprehensive AgTech company, leveraging the combined strengths and resources of Dairy.com, Ever.Ag, and EFC Systems to support and enhance the agricultural supply chain from farm to table.
2. **Unison Marketplace**: Formerly known as FedBid, this platform optimizes procurement processes for government buyers, enhancing sourcing efficiency.
Director: Jennifer Chaddic – https://www.linkedin.com/in/jenniferchaddic/
INC2inc was a business-to-business (B2B) online marketplace established in March 2000, designed to streamline the procurement process for the food and beverage manufacturing industry. It facilitated real-time transactions between manufacturers and suppliers of packaging materials, ingredients, and other direct materials. The platform aimed to eliminate inefficiencies, reduce costs, and enhance communication through a suite of collaborative commerce tools.
In December 2000, INC2inc merged with Dairy.com, an independent, neutral internet exchange serving the dairy industry. This merger led to the formation of a parent company named Momentx, which sought to leverage the complementary strengths of both entities to accelerate the development of their e-market solutions. As operating units of Momentx, INC2inc continued to build out its replenishment functionality, streamlining the procurement process for ingredients and packaging, while enhancing their existing solutions.
The combined efforts of INC2inc and Dairy.com under Momentx aimed to provide comprehensive internet tools to help the dairy, food, and beverage industries create more efficient business practices. These included the development of platforms for dairy commodity exchange, supply chain management tools, and industry-focused content.
3. **Cloudia**: Provides digital procurement solutions, including e-sourcing and contract management, aimed at streamlining procurement operations.
CEO (Former): Are Saarinen – https://www.linkedin.com/in/are-saarinen/
As of June 2021, **Are Saarinen** served as the CEO of Cloudia, a Finnish e-procurement platform. Under his leadership, Cloudia was acquired by Mercell Holding ASA, a Norwegian e-procurement company, in June 2021.
Following the acquisition, Cloudia became a subsidiary of Mercell. However, specific details regarding any changes in the CEO position post-acquisition are not readily available. For the most current information on Cloudia’s leadership, it is advisable to consult the company’s official website or recent press releases.
4. **PayEm**: A SaaS-based expense management solution for corporate organizations, facilitating procurement and financial operations.
Co-founder and CEO: Itamar Jobani – https://www.linkedin.com/in/itamar-jobani-549331a3/
**Itamar Jobani** is the Co-founder and Chief Executive Officer (CEO) of **PayEm**, a global spend and procurement management platform. Founded in 2019 by Jobani and **Omer Rimoch**, who serves as the Chief Technology Officer (CTO), PayEm is headquartered in Tel Aviv, with additional offices in San Francisco. The company employs approximately 90 people.
Under Jobani’s leadership, PayEm has developed a platform that offers smart procurement solutions, accounts payable (AP) automation, expense reimbursement, and smart credit cards. In January 2023, the company announced that it had raised $20 million in equity funding and secured $200 million in credit financing to further its growth and development.
In May 2023, Jobani discussed the economic downturn’s impact on the market, noting that while there was a correction, demand for PayEm’s solutions was rising as companies sought to reduce costs and improve efficiency.
5. **Zip**: Provides cloud-based purchase approval management software, streamlining procurement workflows.
Co-founder and CEO: Rujul Zaparde – https://www.linkedin.com/in/rujulz/
**Rujul Zaparde** is the co-founder and Chief Executive Officer (CEO) of **Zip**, an AI-powered intake and procurement orchestration platform established in 2020. Under his leadership, Zip has achieved significant milestones, including:
– **Client Savings**: Helping companies save over $4.4 billion in procurement spend.
– **Client Portfolio**: Serving prominent organizations such as OpenAI, Discover, and Sephora.
Prior to founding Zip, Zaparde co-founded **FlightCar**, a car-sharing company that was later acquired by Mercedes-Benz in 2016.
In October 2024, Zip announced a $190 million Series D funding round, elevating the company’s valuation to $2.2 billion. This investment is intended to enhance research and development, expand AI solutions, and support global growth, particularly in the EMEA region.
Under Zaparde’s guidance, Zip continues to innovate in the procurement sector, aiming to streamline business spending and procurement processes through advanced AI-driven solutions.
6. **BirchStreet Systems**: Offers cloud-based procure-to-pay management solutions for businesses, enhancing procurement processes.
CEO: John Fay – https://www.linkedin.com/in/john-fay-ceo/
**John Fay** serves as the Chief Executive Officer (CEO) of **BirchStreet Systems**, a leading provider of procure-to-pay software solutions for the hospitality sector. He assumed this role in January 2023, succeeding Brendan Reidy, who continues to support the company as Executive Chairman.
With over 30 years of experience, Fay has a distinguished track record in transforming and growing global technology and information services companies. His previous leadership roles include:
– **TrueCommerce**: CEO of a supply chain platform for the retail industry.
– **INTTRA**: CEO of the world’s largest ocean logistics e-commerce platform.
– **Instinet**: Senior executive at a global financial technology trading platform.
Earlier in his career, Fay held finance executive positions in the eCommerce divisions of Morgan Stanley Dean Witter and Goldman Sachs. He earned an MBA from New York University’s Stern School of Business and a BS in Accounting from Mount St. Mary’s College.
Under Fay’s leadership, BirchStreet Systems aims to advance its market position through organic growth, product innovation, enhanced customer support, and a focused acquisition strategy. The company continues to empower hospitality and food and beverage enterprises with comprehensive procure-to-pay business solutions, connecting over 15,500 enterprises in more than 130 countries with a network of over 450,000 suppliers. These companies offer various procurement and supply chain management solutions, each with unique features and industry focuses, competing with ProPurchaser in delivering value to procurement professionals.
FINAL QUESTION
Ask yourself this one question: Which Founder and Executive would I want to work with and why? In the end, “business and business success is personal.”
30
DID YOU KNOW . . .
How long does the average ProcureTech salesperson stay employed with a single solution provider?
While specific data on the average tenure of sales professionals within ProcureTech solution providers is not readily available, insights from the broader B2B technology sales sector can offer some perspective:
These figures suggest that sales professionals in the technology sector, including those in ProcureTech, often have relatively short tenures with individual solution providers. Factors contributing to this trend may include high-performance pressures, competitive recruitment practices, and abundant opportunities within the industry.
What is the average tenure of a ProcureTech CEO?
Specific data on the average tenure of CEOs within ProcureTech solution providers is not readily available. However, examining broader industry trends offers some context:
(Source: ChatGPT)
How long has Rod Sherkin been at the head of ProPurchaser? What impact will this have on your success using the ProPurchaser platform?
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