Precogs’ CEO: ‘If we can’t help you, it won’t cost you’
The business model of Precogs, the company that has created a global marketplace that connects a buyers ERP with component distributors, is quite intriguing; you will only pay out of what the company can save you.
During a sit-down with co-founder and CEO, Adrien Sandrini, Evertiq had the opportunity to pick the brains of the mastermind behind the solution. The claim is that Precogs can optimise the operations for customers by finding the best options in terms of finance and quality all within the shortest amount of time. And to back the claim up, the company is running by the business model of “if we can’t help you, it won’t cost you”. Or more eloquently put; “Right now our business structure is ‘no savings – no cost’, but if we’re successful, we take a third of what we save for you.” Mr. Sandrini explains. The Paris-based company want’s to make the technology of ‘The Minority Report’ a reality, but not to stop crime, but rather to bring foresight to the task of purchasing of components. This will allow for tighter planning and cost savings in both actual spending but also in time. Adrian Sandrini told Evertiq in a previous interview that the company has managed to partner with distributors covering basically all corners of the earth; from franchised distributors to independent distributors. “This allows us to cover almost all manufacturers worldwide. We are open to any manufacturer who is interested in receiving PO’s directly from their end customers,” Mr. Sandrini told Evertiq back then. The company is young – like really young – it was founded back in 2011 and has since the early days been deep diving into big data analysis on shortages; making estimates based on big deep statistics and data in order to discover patterns and just to provide intel on an otherwise dark topic. What followed was the actual development of the platform; after about two – three years of development the company had, through its expertise in technology and experience in the electronics supply chain, created a platform which is always-on, working in the background, and conducting live searches which quickly and automatically source the best prices for electronic components, as well as the best lead times. “We are here to generate competitiveness for our customers. And supply chain issues are usually shared by customers, so will provide them with a weekly updates on lead times and intel,” Mr. Sandrini says. Right now the 10 people strong team is targeting the top 20 of the worlds biggest EMS provider, but will eventually also cater to small and midsized companies. But as Mr. Sandrini says; “We can’t do everything from Paris, so we need people as we grow,” without disclosing any further information about where this might happen. He ends by assuring that the level of savings that Pregocs can offer will definitely be visible on the bottom line.