Onventis holds its ground in the crisis
Building Resilience: Sustainable Growth in an Unpredictable Market
Stuttgart, 26 September 2023 – It is more important than ever to seek business stability and sustainable growth in the face of market turbulence and unpredictable shifts. Amidst this landscape, Onventis, a leading procurement technology company, has demonstrated remarkable resilience. With a steadfast commitment to client satisfaction and their vision, they have not only weathered the storms of fluctuating markets but thrived – growing from 104 employees in 2019 to 163 today.
Business stability and sustainable growth can go hand in hand, even amidst the most challenging market conditions. “Our stability in the face of fluctuating market conditions is a testament to our unwavering commitment to adaptability and innovation. With a customer base of 1,000 buying organizations, 800,000 users, and 280,000 suppliers spanning multiple industries, we have built a resilient foundation,” notes Frank Schmidt, CEO of Onventis.
“We have built up an extremely robust, profitable, and resilient SaaS business model focused on providing an end-to-end software suite for mid-market organizations to digitally manage their procurement processes, automate internal decision-making, and drive operational improvements since our founding in 2000. This model and focus allow us to remain true to our sustainability principles even in difficult market situations and in times of global economic crises and to pursue them consistently, regardless of short-term effects on the operating business,” says Zoran Steko, COO of Onventis.
“We have a clear vision and mission anchored in a long-term corporate and growth strategy. We aim to be the European market leader as an all-in-one procurement platform for midsize companies, connecting buyers and suppliers.” Steko is confident that their commitment to a defined market niche and clear goal drives its success. “The success of a strategy is based on conviction and consistent implementation.”
The company’s leadership recognizes that stability and sustainable growth are not mere buzzwords but strategic imperatives. “We are driven by a relentless pursuit of our long-term goal to be the leading all-in-one procurement platform for midsize European companies and propelled by a leadership team deeply invested in this mission. Our leaders embody the essence of Onventis, bringing their passion, expertise, and unwavering dedication to every strategic decision,” says Schmidt.
Through careful financial planning built around 70% recurring revenue, diversification of revenue streams, and continuous market analysis, they have been able to mitigate risks and seize opportunities, ensuring steady growth over time. Onventis follows the rule of 40 – when the growth rate is added to the profit margin, the combined value should typically exceed 40% – popular among SaaS companies. Through these efforts, Onventis has cemented its position as a stable force in the market and garnered a reputation for reliability and dependability.
Prioritizing Client Success and Customer Satisfaction
“Our corporate culture is determined by our ‘CORE’ values: customer-oriented, open-minded, responsible, and excellent. It is no coincidence that ‘customer-oriented’ comes first. Our mission,” explains Steko, “is to make our customers happy and successful. We can only be successful if we do everything to ensure our customers succeed with our products and services.”
They understand that the key to sustainable growth is prioritizing client success and ensuring unwavering customer satisfaction. “Our exceptional churn rate, less than 4%, showcases the trust and loyalty our clients place in us. Schott is a great example, they have been utilizing Onventis software for an impressive two decades. This longevity is a testament to our ability to nurture strong partnerships and consistently exceed expectations. We don’t simply weather storms; we thrive and empower businesses to do the same,” says Schmidt.
Sales doubled despite the crisis
With a deep understanding of the adverse effects of a reduction in workforce on customer satisfaction, Onventis has proactively avoided such measures. Schmidt explains, “avoiding employee turnover is not just a matter of financial stability; it is a strategic decision rooted in our unwavering commitment to customer satisfaction. Maintaining a loyal workforce ensures constant contact with our valued customers, fostering a genuine and personalized relationship and a deep knowledge of their business. This invaluable connection allows us to truly understand our customers’ evolving needs, anticipate their challenges, and proactively provide tailored solutions.”
“Not once did we consider laying off employees,” states Steko, “we are convinced of our very robust business model and long-term strategy. Despite the crises, we have grown at least 20% annually in recent years: doubling our €10 million revenue in 2019 to €20 million in 2022.”
“At the heart of our success lies the belief that investing in our employees is investing in our customers’ success. By preserving our talented team, we cultivate a culture of trust, expertise, and empathy, empowering us to deliver exceptional experiences and forge enduring partnerships,” adds Schmidt.
Balancing Short-Term Considerations with Long-Term Vision
One of the key challenges in maintaining stability and sustainable growth is striking the right balance between short-term financial considerations and the company’s long-term vision.
“A strategy is meant to be pursued consistently over the long term, not constantly adapted to temporary external influences,” says Steko. “The digitalization of purchasing departments and financial processes remains a huge challenge, regardless of all the global economic and political upheavals.”
Maintaining Stability and Sustainable Growth
By focusing on sustainable rather than rapid growth, Onventis ensures the preservation of its core capabilities and expertise, enabling them to seize expansion opportunities and capitalize on emerging market trends.
“An important building block of a resilient corporate DNA is that management itself is invested in the company and takes an entrepreneurial approach. This drives thinking and acting in long-term, sustainable, and value-creating dimensions,” states Schmidt.
Moreover, Onventis greatly values building strong relationships with its stakeholders – including suppliers, partners, and investors. “Finding the right investors is not just about financial support; it is a strategic partnership that enriches our products and serves as a risk mitigation system,” notes Schmidt. “By aligning ourselves with investors who share our vision and values, we leverage their expertise, network, and resources to propel our product offerings to new heights. This collaborative synergy enhances the value we provide to our customers and strengthens our resilience in a dynamic market landscape.”
In conclusion, Onventis exemplifies resilience and success in an unpredictable market. They have proven that business stability and sustainable growth are achievable and go hand in hand, even in market turbulence and shifting landscapes. Adherence to a robust and profitable business model has allowed Onventis to weather market storms and thrive without layoffs, demonstrating its unwavering commitment to client satisfaction.
Geopolitical challenges, volatile markets, and a wide range of due diligence requirements make transparent cooperation with qualified and sustainable business partners within the supply chain indispensable.
Suppliers are thus assuming an increasingly important position within the companies’ value chain, and supplier management is thus becoming a decisive factor for operational resilience and economic success. Against this background, Onventis is expanding its product portfolio to include ESG risk information from IntegrityNext.
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