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Box and Arkestro—Procurement Key Performance Indicators and Actionable Insights For Enhanced Supplier Diversity

Box is one of the most widely used enterprise technologies in the world for secure content management, workflow, and collaboration. As part of Box’s continuous advocacy towards ESG and Supplier Diversity, previous visibility into their supplier diversity spending was limited. That’s because Box didn’t have the detailed information and access to 3rd-party databases to understand how diverse and socially responsible their supply base was. Until now. 

 

Supplier Diversity — Procurement’s Crucial Key Performance Indicator 

Establishing an inclusive and equitable supply base has become mission critical for many organizations. According to McKinsey, diverse executive teams financially outperform other executive teams, and this has only strengthened over time. And the same is true for diverse supply chains. 

In 2020, Harvard Business Review reported that MBEs (minority-owned enterprises) generated $400 billion and created or preserved over 2.2 million jobs in the United States. Diversifying supply chains is more than just the right thing to do, it increases the amount of potential suppliers. More potential suppliers means a decrease in cost and better products. 

 

Identifying Diverse Suppliers 

Locating diverse suppliers can sometimes be easier said than done. Most organizations rely on the survey technique. Businesses will send surveys out to suppliers in hopes they will respond with diversity information. However, suppliers get so many requests to fill out surveys such as these, oftentimes they just ignore them. It can take months of chasing suppliers. 

Predictive procurement improves the process of collecting supplier data. Using AI and ML makes it much easier to collect data, rather than trying to rely on manual surveys. Arkestro’s Predictive Procurement Orchestration platform helps Box to more easily identify, manage and calibrate the impact that their sourcing has. As a result, Box has the information to continue to build a more inclusive and equitable supply base and measure the impact of that supply base. 

 

The Box and Arkestro Partnership

Arkestro provides Box with actionable insights to perform historical benchmarking; diverse spend analysis; environmental, sustainability and governing (ESG) reporting and more. Box was looking for a solution that was automated and low touch to implement. Although their team had collected a lot of data, the majority of that data was raw and unstructured. 

Arkestro’s AI helped Box structure the data and create a dashboard so that their team could more easily identify the areas they wanted to improve. Metrics, year-over-year data, reporting by region, and volume are visible to teams rather than being on spreadsheets or email threads. 

Linda Chuan, Head of Strategic Sourcing & Procurement at Box, says, “Arkestro has helped us transform our supplier diversity initiative, and reinforce our company values in supplier diversity, equity and inclusion (DEI). Today, with Arkestro’s help, insightful visibility into our overall diverse supplier spend helps us be more intentional with selecting our suppliers  – for example, identifying minority, small, Black, LGBTQX, or veteran-owned businesses – then back it up with a procurement process that advocates and promotes diverse suppliers.”

 

How Arkestro Will Continue to Deliver for Box:

At Box, the role of procurement and sourcing is widely entrenched with supplier negotiations, contract risk mitigations, supplier performance management, supporting business operations, and supporting sales and marketing needs to daily procurement operations. 

To help further establish an automated system that leverages machine learning (ML) to create a more diversity-focused procurement function, Box leveraged Arkestro to serve as their supplier diversity reporting and metrics dashboard reporting platform. 

With Arkestro, Box has been able to create greater transparency across their entire supplier ecosystem and also provide actionable KPI dashboards for leadership and GTM teams. As a result, Box has a level of supplier equity and diversity that is well above market average, all while improving the overall control of their supply chain. 

“With Arkestro, we are able to evaluate and advocate for suppliers with fine-grained diversity data – giving us the best opportunity to not only expand our pool of suppliers where it makes sense, but to do so with inclusion and equality in mind,” continues Chuan.

 

The Bottom Line

Box clearly understands how important supplier diversity, equity and inclusion is to their customers, employees, investors and analysts. Leveraging Arkestro puts real-time supplier diversity and spend data at their fingertips. We’re excited to see where this information will take Box as they continue to pursue enhanced supplier diversity goals in the future.

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Arkestro Series A

Feature Announcements

Arkestro Lands $26 Million in Series A Funding

Rob DeSantis

Founder

As a former co-founder of Ariba running sales, Rob has deep expertise in the procurement space, having helped propel Ariba from zero to $250 million in revenue in four years and IPO of the year in 1999 before its acquisition by SAP a decade later. In addition to co-founding Ariba, Rob was also an early angel investor and board member of LinkedIn, the world’s largest professional online network.

More recently, Rob served as an investor and advisor to a small portfolio of companies including Bloom Energy, AEye, Inc., HiQ Labs, Agiloft, USEND and more. He is also a co-founder of Dibbs Technology and TrueParity. Rob holds a BSME from the University of Rhode Island.

Marty Meyer

Chief Financial Officer

A trusted partner and advisor on the executive team, Marty has a unique background having been the CFO of nine venture backed technology companies. Marty has raised over $300M in venture funding and has closed six strategic M&A transactions with a combined value of over $1B. Marty has deep domain expertise in ecommerce, consumer internet, networking, data security, data privacy, media technology and enterprise software industries. Marty is especially experienced in the finance and operations activities of SaaS companies and is driven by data and metrics to help create outstanding customer experiences and drive efficient growth.

Neil Lustig

President and Chief Operating Officer

Neil is a seasoned executive with over 30 years of experience leading and building teams in Tech. Neil brings insights from a variety of market spaces and company sizes. Most recently Neil was the CEO of GAN Integrity, an innovative SaaS Compliance technology company serving enterprise customers in North America and Europe. Before that Neil was the CEO of Sailthru, a leader in ML driven personalized multi-channel marketing communications for media and e-commerce markets. Prior to that Neil was the CEO of Vendavo, the leader in B2B price optimization and management for large enterprises. Before Vendavo, Neil led the commercial team at Ariba, the market pioneer that defined and created the eProcurement space. Neil served as the GM of Ariba Europe and subsequently the GM of Ariba North America. Neil started his career at IBM where he spent sixteen years, initially as a software developer, and then twelve years in a variety of Sales and Marketing roles

 

Neil has a BS in Computer Science and Applied Mathematics from SUNY Albany. He is a native New Yorker, Brooklyn born, and still resides with his wife and three children in New York City.

Bonnie Adams

Director of People Operations

Bonnie is a People Operations and HR veteran, with over a decade of experience establishing successful people and culture functions for early to mid-stage tech startups going through high growth phases. She has a passion for supporting and creating inclusive and collaborative work environments and is well-versed in driving positive changes in her organizations as a trusted leader. Prior to joining Arkestro Bonnie worked as the People & Culture Coordinator for Ionic Security, helping them scale from 5 to over 200 employees in addition to a $120M funding round. Most recently she was the Head of People & Culture for blockchain innovator Storj Labs and was the Director of Human Resources at PrizePicks, the largest independently owned Daily Fantasy Sports platform in North America.

Arym Diamond

Chief Revenue Officer

Arym Diamond joined Arkestro in January 2022 bringing over 20 years of experience in the enterprise software and consultancy industry.  He is responsible for the worldwide go-to-market revenue strategy. Prior to Arkestro, Arym was Chief Revenue Officer at CalAmp focused on Telematics and Logistics. He also served as the area vice president of North American Sales within the Salesforce.com Enterprise Business unit for Einstein Analytics & AI, where analytics and machine learning were re-imagined for the front office.  Prior to that, he spent over 10 years at Oracle in various sales positions. Arym holds an MBA from the University of Southern California Marshall School of Business, and an undergraduate degree from California State University.

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