Latvian startup Sorsera has attracted €1.27 million, with over €950,000 funded by the European Union, to develop artificial intelligence solutions for the supply chain and procurement sectors.
Georgs Vardanjans, co-founder of Sorsera, comments, "Recent geopolitical shifts have fundamentally changed how suppliers and customers interact. Buyers have needs for enhanced security and sustainability. Suppliers must now work harder to meet client demands both in tendering stage and when fulfilling contracts."
Challenges such as decentralized data, language barriers, and heavy documentation continue to impede supplier growth. "To navigate these procurement challenges, companies allocate considerable resources, hire specialists, and outsource tasks, which increase the costs of products and services," explains Georgs.
The initiative focuses on crafting AI-based digital products that simplify procurement engagement for organizations and enhance collaborations with both existing and new partners. Georgs adds, "Artificial intelligence holds immense promise in procurement and supply chain management, especially in data analysis, interpretation, and documentation for both suppliers and clients."
The project's goal is to alleviate the burden of procurement management and bureaucracy from businesses, allowing them to concentrate more on delivering goods and services. "We aim to delegate these resource-intensive tasks to artificial intelligence, developing trustworthy tools for the complex arenas of public and private procurement," Georgs states.
Public procurement in the EU represents 14% of the GDP of its member states, with around two million suppliers participating. Local companies win over 95% of these procurements, illustrating the hyper-local nature of this sector.
Sorsera is currently developing a range of digital tools based on EU public procurement data. Their platform provides services such as procurement monitoring, market analysis, project management, and facilities for information requests and price surveys, catering to a diverse supplier base.
Used by both public and private entities, Sorsera's tools have garnered recognition, marking the company as one of the top three most promising startups at the TechChill 2024 conference, a significant achievement among 388 contenders from 57 nations.