Michael Pleuger is the CEO and co-founder of akirolabs, a leading procuretech startup. Drawing on more than 25 years of experience in procurement and after a long career at Vodafone and as a senior partner at KPMG and Roland Berger, he decided to start akirolabs with Detlef Schultz, Founder and Ex-CEO of the Vodafone Procurement Company, and two of his former colleagues – Christoph Flöthman and Tim Ergenzinger.
Michael, what is akirolabs?
akirolabs is a category strategy management solution that aims to support procurement’s transformation from being a purely tactical function to an orchestrator of value. It relies on introducing AI and a much more advanced and proven procurement methodology to traditional category management strategies, specifically by augmenting teams instead of automating processes. akirolabs is simple to use and empowers procurement teams to create, execute, and monitor Intelligent category strategies for higher value, higher purpose, and efficiency.
What issue does your solution solve?
akirolabs resolves the significant challenge of transforming the procurement function from being predominantly cost-focused to a key strategic partner within businesses. This shift is increasingly important in today’s business context, where the role of procurement is expanding to encompass value creation, extending beyond the traditional scope of cost reduction.
However, current procurement teams often lack the necessary tools and capabilities to fully embrace a strategic role. They are hindered by traditional procurement methods that are outdated and overly reliant on power supply dynamics, which can create a false impression of being strategic.
akirolabs addresses this shortfall by offering a robust, industry-proven framework for strategic procurement. Our solution equips procurement teams with the foresight and tools needed to develop, execute, and monitor intelligent and truly strategic category strategies.
Who is your solution aimed at? What does your perfect client look like?
Our solution is meticulously tailored to meet the strategic needs of procurement teams and our typical customers are procurement executives, such as Chief Procurement Officers, Heads of Procurement, Heads of Procurement Centres of Excellence, and Procurement Directors.
Although akirolabs can deliver higher value to any organisation, it is optimally suited for businesses ranging from mid-sized market players to large enterprises, with annual revenues surpassing the $500 million mark. Our clients come from a broad spectrum of industries, and our global footprint extends across five continents, reflecting our capacity to adapt to the unique contexts and requirements of organisations worldwide.
What is the biggest challenge akirolabs faces?
The challenge akirolabs faces is overcoming the prevalent mindset in many companies that prioritises operational and tactical solutions for efficiency and cost savings over strategic procurement, particularly in category management. Despite ample evidence demonstrating the greater value of a strategic approach to procurement, many organizations remain focused on immediate monetary benefits, often neglecting the broader business value that a sophisticated strategic procurement method can unlock.
A common question we encounter is scepticism about our ability to transcend traditional category management practices. Our response is that our goal is not to aim higher in the conventional sense, but rather to adopt a more effective approach to achieving similar objectives. Instead of relying on outdated and ineffective power dynamics, we align business strategy through strategic scenario modelling. This approach counters the traditional methods that give the illusion of tapping into strategic value but fail to do so in reality. Our challenge, therefore, lies in changing these perceptions and demonstrating the effectiveness of our advanced approach to strategic procurement.
What is your USP (unique selling point)?
As akirolabs, our unique selling point (USP) is our groundbreaking approach to strategic procurement, seamlessly integrating it with your overarching business strategy. We recognize that the landscape of procurement has dramatically evolved, yet many traditional methodologies have remained stagnant since the 1980s. Our approach is not just about leveraging supply-demand power dynamics to secure the best prices; it’s about understanding and meeting the specific needs of your business.
For example, in a traditional procurement setting, the focus might be on obtaining materials at the lowest cost. However, at akirolabs, we understand that your business might require materials that are not just cost-effective but also align with other strategic objectives such as speed, sustainability, or quality. We leverage advanced data analytics to ensure that your procurement strategy is not only about cost-saving but also about sourcing materials that align with your diverse business goals, whether that’s operational efficiency, launching a new product swiftly, or embracing sustainable practices.
Furthermore, we are poised to transform the strategic procurement software market. While others may claim to automate strategy development, we believe in the power of human intelligence augmented by AI. We understand that strategy cannot be fully automated due to the nuanced interpretation required at every step. Misinterpretation risks in automated systems can lead to strategies that are either approximately right or precisely wrong. Our approach uses AI to enhance human decision-making, providing your procurement teams with insightful, data-driven support while keeping them at the helm of strategic decision-making.
In choosing akirolabs, you’re opting for an innovative, data-driven approach that goes beyond traditional cost-saving measures. You’re choosing a partner who understands the nuances of modern business needs and is committed to aligning your procurement strategies with your broader business objectives. Our focus on human intelligence augmented by AI ensures that your procurement strategy is both dynamic and effective, tailored to the unique requirements of your business.