Virtual Procurement Services

Background

Founded in 2009 by Scott Robins, Virtual Procurement Services (VPS) is a Connecticut-based company specializing in cost recovery and reduction across various procurement categories. Leveraging its proprietary Virtual Vendor Index (VVI©), VPS has achieved over $825 million in savings and recovery for more than 500 clients.

Key Strategic Focus

VPS's strategic focus centers on optimizing procurement processes through predictive analytics and expert vendor management. The company operates three specialized divisions:

VPS Analytics: Concentrates on enterprise technology procurement.

FF&E Analytics: Focuses on furniture, fixtures, and equipment.

OS&E Analytics: Deals with operating supplies and equipment.

This structure allows VPS to deliver tailored solutions across diverse industries, including healthcare, gaming, finance, and hospitality.

Financials and Funding

As of October 2024, VPS reported annual revenues of approximately $1.8 million, with a team of around 11 employees. The company's gain-share pricing model ensures clients are charged only for tangible savings or recoveries achieved, aligning VPS's success directly with client outcomes.

Technological Platform and Innovation

At the core of VPS's offerings is the Virtual Vendor Index (VVI©), an AI-driven predictive analytics tool that processes publicly available data to calculate predictive pricing. This technology enables VPS to benchmark procurement spending, identify cost-saving opportunities, and recover overspent funds.

Leadership Team

Scott Robins: Founder & CEO.

Raymond Augustin: Chief Operating Officer.

John Torres: Executive Vice President, Service Delivery.

Fred Brown: Chief Technology Officer.

Jeff Tenen: Vice President, Service Delivery.

Erin Parsons: Vice President, Administrative Services.

Competitor Profile

Market Insights and Dynamics

The procurement software market is competitive, with numerous companies offering solutions to streamline procurement processes. Key players include SAP Ariba, Wax Digital, and Oracle Procurement, each providing comprehensive procurement solutions.

Competitor Analysis

SAP Ariba: Offers cloud-based procurement solutions, holding a significant market share.

Wax Digital: Provides purchase-to-pay automation, enhancing procurement efficiency.

Oracle Procurement: Delivers a suite of applications for supply management and cost reduction.

VPS differentiates itself by combining predictive analytics with vendor management expertise, focusing on cost recovery and reduction without altering client vendor relationships.

Strategic Collaborations and Partnerships

VPS's restructuring into three specialized divisions—VPS Analytics, FF&E Analytics, and OS&E Analytics—demonstrates its commitment to addressing diverse client needs across various procurement categories.

Operational Insights

VPS's gain-share pricing model ensures clients pay only for achieved savings or recoveries, aligning the company's success with client outcomes. This approach, combined with the VVI© tool, enables VPS to deliver substantial cost reductions while maintaining or improving vendor relationships.

Strategic Opportunities and Future Directions

VPS aims to expand its client base across industries such as financial services, gaming, healthcare, senior living, and hospitality. By continually enhancing its predictive analytics capabilities and refining procurement processes, VPS is well-positioned to drive further cost savings and recovery for its clients.