Alex and Stan are the Co-Founders and CEO’s of Levelpath. During this conversation, they discussed building a delightful product roadmap, expanding their core AI platform, future-proofing customers’ businesses, and the value of celebrating achievements as a team with Old-Fashioned cocktails!

Levelpath are a trailblazer in AI-driven procurement solutions, dedicated to transforming the procurement journey into a seamless and delightful experience for all.

 

1. What is Levelpath’s mission?

Alex

Our mission is simple; to make procurement delightful.

It is a mission that creates a level of emotion around it. What does it mean? For Levelpath, we are thinking about the business stakeholder, the actual business owners, through the procurement team, all the business units, and then down to the supplier level. Our primary goal is to make procurement a delightful experience and as a natural extension, we are also focused on building a supplier system of record. This system of record, our platform, forms the foundational approach and works behind the scenes to support our objectives. In the simplest terms, it is all about transforming procurement into a delightful process.

When conceiving of solving this business challenge, we started from a clean sheet of paper and looked at procurement end to end. One of the most important things for Stan and me was to have one unified data model around the supplier. This approach allowed us to examine the entire procurement process with fresh eyes, considering all aspects from start to finish. By prioritising a supplier data model, we aimed to create a more integrated system that would serve as the foundation for Levelpath’s solutions. If you look at legacy systems, they are built with multiple data models, which means there are multiple versions of the supplier and multiple software components that come together in different modules. Of course, when you go to do reporting or even just use these platforms, it makes it difficult.

On top of that one data model around the supplier, we have Hyperbridge, which is Levelpath’s proprietary AI technology, our reasoning engine. Hyperbridge includes things like Large Language Models (LLMs), search, etc., and this reasoning engine sits on top of the data model which drives the workflow engine. This helps to make procurement workflows way more efficient and simpler for everybody to get the job done.

Lastly, we design all Levelpath’s applications with versatility in mind, from desktop to beautiful native iPhone and Android apps. This approach ensures business users can work from anywhere, at any time. Whether a user needs to pull up agreements, look for suppliers, or handle any other procurement task, they can do it all on mobile just as easily as they can from their desktop. Levelpath’s goal is to make procurement accessible, efficient, and delightful regardless of where you are or what device you are using.

 

2. What have the been the most significant milestones in Levelpath’s journey so far?

Stan

This isn’t the first time Alex and I have built a company; we’ve done this a few times before. This time, we are moving fast and are much more focused.

At the end of the day, our number one value is the customer, and the biggest milestone must be getting customers live.

 

When we left Workday, Alex and I took some time to reflect, which lead to us to looking at building from a clean sheet of paper - this was milestone number one for us. We wrote down what we wanted to achieve, and six months later, we began developing the product with the first few design customers. Since then, we’ve continued to bring on new clients. Currently, we have 24 design customers in the program, and their success is our most significant milestone. If we can create a repeatable process where customers consistently use and love the product, the business will naturally grow and evolve.

One of the things Alex and I talked about from day one was to avoid the conventional path of targeting startups or major tech companies just because we are in San Francisco. Instead, we focused on identifying individuals who were curious and eager to grow with us. As a result, we have tech companies, insurance firms, financial institutions, manufacturers, healthcare organisations, and others; truly a nice variety of customers. This diversity allows Levelpath to consider various industry use cases for our product. While indirect procurement has many similarities across industries, we are also mindful to ensure we are not overlooking any opportunities. We are excited by that broad design, as we have intentionally gone very broad.

Alex

When it comes to our design partners, there are two key aspects. First, we have a roadmap that we communicate to our design partners on a regular basis. We do this at a regular cadence. We do this weekly, informing them about what we are developing. This allows them to plan and anticipate which features will be available for implementation.

On the flip side, we receive feedback from design partners about their needs, which gives Levelpath a valuable perspective on what to build and what to include in the roadmap. It is a true partnership. We leverage real world insights to drive our roadmap so that we can create a product that truly meets the needs of our users.

 

3. What do you look for in the perfect customer?

Stan

We refer to this group as our design customers, but it is going to be every customer as time goes on. As an early adopter, you want customer partners who are willing to engage in the conversation, share their point of view, and bring forward well-earned insights. These are customers who are open-minded, forward-thinking, and eager to embark on a journey of transformation. They have a natural curiosity about what the latest software achieves, and they’re ready to embrace both the software and the changes it brings to their organisation.

It is crucial to have an open dialogue about what is working and what is not, but not every organisation has the time for that. Some prefer a more established product that’s been around for six or seven years, and that’s perfectly fine. However, our design customers are different—they’re willing to dive into the details and collaborate closely with us.

One consistent piece of feedback we receive from our customers is their appreciation for our commitment to continuous improvement and attentive customer service. They frequently tell us that we do not simply take their money and deliver a product only to walk away. Instead, we genuinely listen to their needs and incorporate their feedback. Customers frequently describe their experience with us as personal and positive, feeling that we care about their input and are responsive to their needs. And we do deeply care as this is a core value of ours and always has been. This ongoing dialogue and commitment to improvement are fundamental to who we are.

 

4. What are the foundations of growing a great team?

Stan

Here’s a refined version of that excerpt while keeping the original meaning and tone: When you think about what makes a great team, one word stands out: trust. We realized this while building Scout. Trust is what allows you to jump into a conversation, have a clear discussion, and then know that everyone understands what they need to do afterward. Among our 50 team members, many have worked with us on multiple ventures, whether it was at Scout or even in our earlier companies. For us, once you establish trust, you can really move fast.

 

5. How do you incorporate GenAI / advanced technologies, and what will be your next major digital innovation?

Alex

I think the key thing for us is Hyperbridge, the reasoning engine that is a core part of our platform. What that means is that AI is part of every single one of our workflows and is baked into the application. As our customers use the platform, they automatically see things happen a lot faster, they see automatic summaries. They are seeing the generation of RFPs; they are seeing supplier enrichment. The Hyperbridge reasoning engines are a core part of everything that we do and not just something that is bolted on to an existing software solution.

The truly exciting aspect of Levelpath’s product lies in its ability to grow and evolve with use. As the product matures and accumulates more data points, it becomes increasingly sophisticated in analysing information across various applications. For instance, when you need to evaluate a supplier, Levelpath can seamlessly query all relevant data, whether it is contract sourcing, compliance issues, or any open requests associated with that supplier. It can efficiently summarise and analyse all this information in a single comprehensive overview. This highlights the advantage of having an integrated suite of products. Instead of piecemeal insights, Levelpath provides a holistic view, assembling the pieces of the procurement puzzle into a coherent whole. As we continue to develop, this comprehensive perspective will only become more powerful, leveraging the full potential of AI.

Many companies today strive to implement AI, yet often struggle because their data is fragmented across multiple silos, lacking the necessary contextual integration. While having a data lake is a step forward, it falls short without contextual information to provide meaningful insights. Levelpath, however, integrates context across every application, enabling advanced cross-referencing and analysis.
 

Hyperbridge is a DNA layer built in from day one that allows Levepath to scale up all the apps that we are going to be developing, today and in the future.

 

6. What’s the vision for Levelpath? What does great look like in three to five years’ time?

Stan

Our focus is on expanding our core platform and enhancing our company's procurement applications. From the very beginning, we intentionally designed Levelpath to be broad in scope which marks a departure from our experience at Scout, where our reach was more limited with a team of 50 people.

Initially, we concentrated on developing the product’s architecture, including the data model and platform layer. This foundational work was crucial, and it required our full attention. Now, we are beginning to launch the first wave of apps, and we plan to deepen our efforts across these applications. As we move forward, you will see a significant expansion of our product offerings.

For us, this has been a building phase, executed in a very controlled and thoughtful manner.

We want to do things thoughtfully and build a company we can scale.

We want to build a company that can scale, and we know that will take a decade. This is the mentality Alex and I share. A major part of our focus is on understanding what the future will look like for our customers, not just now, but 5 or 10 years down the line.

 

Alex

The key thing we want to do for them is to future-proof their business.

 

All our design programme customers share a North Star: moving away from the unbundled, disjointed processes of the past that hindered coordination and visibility. This traditional approach has significant implications for risk management and business agility. We are focused on building a true supplier system of record for these customers, enabling them to achieve their varied goals, be it cost reduction, risk mitigation, sustainability policies, or a combination thereof.

The central question is: how do our customers leverage their suppliers to meet these objectives? Levelpath is a key part of that answer. By providing a centralised, comprehensive supplier system, we are enabling our customers to improve visibility, ease coordination, and align supplier relationships with their overarching business goals. Our platform offers the tools and insights needed to effectively manage their supplier base, regardless of whether they're focusing on cost optimisation, risk reduction, or driving sustainability initiatives.

 

7. What are you doing that is good for the planet?

Alex

Our mission is to make enterprises faster, safer, and more transparent, which is of paramount importance to us. The pandemic highlighted the critical nature of efficient procurement and supply chain management, but this understanding runs deeper for us due to our personal experiences.

Stan and I grew up in the former Soviet Union, waiting in line for oranges and eggs. These experiences ingrained in us a profound appreciation for the complexities and vital importance of supply chains. Procurement and supply chain management are not merely functional aspects of a business; they require careful attention and management. When they fail, the impact is widespread, affecting suppliers, customers, and business operations alike.

We are deeply committed to ensuring that procurement and supply chains operate smoothly. Effective procurement enhances business operations and improves the overall experience for everyone involved, from suppliers to end customers. Our work is driven by this commitment to excellence in supply chain management, and we believe that when procurement works well, it significantly benefits the entire business ecosystem.

 

INSTANT INSPIRATION

1. What is your favourite book or blog?

 

Alex

Ben Horowitz’ book, ‘The Hard Thing About Hard Things’. If you read it, you realise there is always a fire every day you walk into the company, and it’s a good reminder to say that it will be okay.

 

Stan

To add on, Dale Carnegie’s book, ‘How to Win Friends and Influence People’.

 

2. Who is your favourite inspirational leader?

 

 Alex

Jeff Bezos for me.

 

 Stan

Andy Grove for me.

 

3. What is your favourite piece of technology?

Alex

Waymo, I use it a lot in the city, and it is a fun thing. Anyone who visits San Francisco has seen it and I try to make it part of the experience.

Stan

Mine's a bit controversial, it's Tesla. Not everybody loves the founder, but you cannot argue with the fact that it is a company that has changed the world.

 

4. What is your favourite cocktail or guilty pleasure?

Alex

I would say Dirty Martini.

Stan

Anything with bourbon, but Old-Fashioned, no sugar, would be my go-to.

 

5. What is your favourite way to celebrate success?

Alex

We like to celebrate with the founders and families together, and we’ve done that for many companies.

Stan

I would agree, we like to celebrate with the team. One of the things we are doing in September which we are excited about is Pathfest. We bring the whole company from Europe and the states together once a year. We hang out and talk about the future, and that is where lots of Old Fashions and Dirty Martini’s are consumed!

  

KEY TAKEAWAYS

1. Focus on User Experience: There is a trend towards making procurement processes "delightful" and user-friendly, emphasising the importance of intuitive interfaces and mobile accessibility.
   
2. Customer-Centric Approach: Successful procurement technology companies prioritise customer feedback and collaboration, integrating customer insights into product development and roadmap planning.
3. Integrated Data Models: The adoption of unified data models is becoming crucial in procurement technology to streamline operations and improve data accuracy across different modules and platforms.
   
4. AI and Automation: AI technologies like Hyperbridge are being integrated into procurement platforms to automate workflows, enhance efficiency, and provide intelligent insights such as automatic summaries and supplier enrichment.
   
5. Broad Industry Adoption: Procurement tech solutions are being adopted across diverse industries including tech, insurance, finance, manufacturing, and healthcare, highlighting the broad applicability and need for customisable solutions.
6. Future-Proofing and Sustainability: There is a focus on future-proofing businesses through technology, including the development of comprehensive supplier systems of record to enhance visibility, reduce risk, and support sustainability goals.
7. Continuous Improvement and Innovation: The industry values continuous improvement and innovation, with a commitment to incorporating advanced technologies and evolving product offerings to meet changing market needs and customer expectations. 

 

About Levelpath

Powered by their Hyperbridge technology, their AI and mobile-first platform transforms procurement by unifying processes, automating complexity, and delivering insightful analytics. Designed for ease and efficiency, they guide each user through a simplified, intuitive process, enhancing workflows and approvals across enterprises of all sizes.

 

About ProcureTechSTARS

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