Response, a forward-thinking procurement platform, has successfully secured $4 million in seed funding to revolutionize the way businesses manage indirect spend. The funding round was supported by prominent investors, including Y Combinator, Twenty Two Ventures, and angel investors from renowned companies such as Flexport, Anduril, Ramp, and Scale AI. With a total of $4.3 million raised so far, Response is on a mission to empower businesses with proactive spend insights and automate their ordering processes to help them save time and money.

Tackling the Hidden Challenge of Indirect Spend

Indirect spend refers to everyday business expenses like office supplies, packaging, and maintenance products, which often go unmanaged and quietly erode company profits. It typically represents 10-15% of a business’s total revenue but is often handled inefficiently through manual processes, including spreadsheets and corporate cards. This lack of structure results in poor visibility into spending, fragmented purchases, and a waste of valuable time and resources.

The Response Platform: A Game Changer for Procurement

Response’s platform stands out by offering real-time visibility into indirect spend and direct ordering from over 100 industrial vendors, eliminating the need for outdated procurement methods. The platform integrates seamlessly with top vendors, allowing businesses to track every purchase with SKU-level detail and maintain full control over spending. Furthermore, Response’s easy-to-use interface ensures that employees can place orders like online shopping while adhering to company spending limits and approved product lists.

Features Designed for Efficiency and Savings

What sets Response apart is its combination of powerful procurement features that drive operational efficiency. Administrators can set detailed controls, such as product and spending limits by department, location, or employee role, ensuring that teams can only purchase what is necessary within the allocated budget. In addition, the platform offers multi-vendor checkout, enabling businesses to consolidate orders from a wide range of suppliers without the hassle of clunky "punchouts" and with seamless purchase order management.

Impressive Results and Customer Satisfaction

Response’s approach has already delivered impressive results for its customers, with some companies reporting up to 91.6% faster ordering processes, eliminating delays and unnecessary time spent on procurement. Customers have also realized savings of up to 13.2%, significantly reducing waste and overspending. The platform’s ability to minimize rogue spending—defined as off-the-books purchases—has been particularly beneficial, with some businesses reporting less than 1% of unauthorized transactions.

Customer Testimonials Highlight the Platform's Impact

Several companies, including eCommerce aggregator Aterian (NASDAQ: ATER) and logistics leader Warehouse Specialists Inc. (WSI), have praised Response for its ability to streamline procurement processes and provide greater visibility and control over indirect spend. Sterling Westfall, Head of Operations at Nimbl Fulfillment, shared his experience, stating that Response has transformed their procurement process by saving time and improving operational efficiency. His team now enjoys better visibility, allowing for smarter decision-making and better financial control.

Looking Ahead: A Vision for the Future of Procurement

As Response continues to grow, its vision remains clear: to create the world’s first digital procurement officer. By focusing on indirect spend, Response aims to provide businesses with comprehensive tools to automate ordering and continuously monitor spending for new savings opportunities. The company is committed to addressing a crucial gap in procurement technology by developing more sophisticated workflows that simplify and streamline the purchasing process.

Response’s successful seed funding round marks a significant step forward in the company’s mission to revolutionize how businesses manage indirect spend. With an innovative platform designed to provide real-time insights, streamline procurement, and reduce costs, Response is poised to make a lasting impact on companies looking to optimize their procurement processes. As the company continues to expand its capabilities, the future of indirect spend management looks brighter than ever.