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InstaSupply keeps all your invoicing ducks in a row

B2B Start-up Finance

*Posted Sep 7, 2016 by John Biggs (@johnbiggs) in TechCrunch

A new company called InstaSupply is aiming to revolutionise procurement processes for businesses.

Procurement is all about paper. Order sheets fly from one end of the city to the other and most procurement is still done in carbon copy. InstaSupply is trying to pull all of those logistics off of the page and onto the computer.

 Founded by Lee Pruitt and Tim Huegdon, formerly of W.W. Grainger and Amazon respectively, the company has raised $1.5 million in seed capital in London. They have 2,700 users with 2,600 transactions per month so far. The system is cloud based which means that procurers and sellers can connect with each other in their own warehouses, and in a way reminiscent of a social network.

 Interestingly the company is looking at the blockchain to register “proof of activity” for invoice payments, purchase orders, and the like.

“We found enterprise software was not only clunky but dull and impersonal too. Our core customer base are multi-site businesses with no/small procurement department in place, and have typically raised private equity, searching for ways to scale without adding extra staff,” said Pruitt. “We wanted to use technology to make life at work easier and enable companies to grow and thrive, not waste time and serious money on redundant manual processes.”

While the system isn’t as sexy as, say, drones dropping VR glasses over the Playa it’s important to remember that the most interesting problems are the stickiest. Logistics hasn’t changed much since the 1900s – it’s gotten faster and more streamlined, sure, and you can track a widget from factory to front door with ease. However, when it comes to the back and forth of buying a dozen crates of oranges every week, nobody has quite figured things out.

“Orders placed with suppliers are over the phone, via email, or a multitude of various supplier websites that result in the bulk of invoices received mostly in paper format to a detached finance department,” he said. “Our platform puts more eyes on the job to match orders with invoices. It’s all about working smarter.”

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