Texas-based energy industry software-as-a-service (SaaS) platform provider Enverus has announced the acquisition of BidOut, a Houston-based startup that uses generative artificial intelligence (AI) to automate elements of the request for anything (RFx) process.
It’s the latest in a long line of procurement and supply chain organisations looking to integrate generative AI into the procurement process for its potential to automate significant portions of the procurement professional’s workflow.
However, the announcement comes at a fraught time for the sector as hype gives way to trepidation. AI chip-maker NVIDIA’s share price continues to slide, and investors in Google, Microsoft, and OpenAI have begun to question the viability of sharply rising Cap-Ex over the coming years with no profitable practical applications in sight. Nevertheless, AI spending still continues to be considerable.
What is BidOut and what does it do?
Enverus has described BidOut as “the industry’s premier AI-powered procurement platform”. The company’s press team has also called the acquisition marked “a significant milestone” for Envervus’ business automation offerings.
BigOut’s generative AI-powered offerings help procurement teams to more easily and quickly source bids from multiple suppliers. Traditionally a labour-intensive process, Enverus claims that, by using AI, BidOut’s solutions dramatically accelerate the request process. BidOut was founded by 2020 and is backed by capital investment from Ascent Energy Ventures & Leazar Capital among others. Since launching, BidOut has rapidly expanded its customer base, leading to their recent acquisition.
What is RFx?
In procurement, RFx means “Request for anything”. The exact nature of what’s being requested can vary dramatically throughout the lifecycle of a procurement project.
An RFx refers to a formal and structured process executed in a document form. It’s used by organisations and businesses to acquire information, proposals, quotes, and bids from various potential suppliers. It could refer to a request for proposal (RFP), request for quotation (RFQ), request for information (RFI), or something else.
Procurement SaaS synergy
Enverus pointed to the synergy between BidOut’s RFx platform and Enverus’ existing Source-to-Pay solution. It argued that the purchase presents “an exciting opportunity” for the energy industry. By bringing together BidOut’s buying capabilities with Enverus’ solutions, users can now manage their entire procurement process in a single Source-to-Pay platform, they say. The integrated offering will also reputedly enhance decision-making, save costs and time. Enverus added it will also improve compliance and supplier management, ultimately making the procurement process better and enhancing supplier relationships.
“The acquisition of BidOut marks a transformative milestone in accelerating Enverus’ vision to become the foremost end-to-end provider of business automation solutions for the energy industry,” stated Manuj Nikhanj, CEO of Enverus. “Currently, Enverus partners with more than 450 buyers and 40,000 suppliers, facilitating more than $250 billion annually in digital invoicing for our customers. By integrating BidOut’s cutting-edge technology into our expansive network, we will immediately enhance value for our clients with our complete Source-to-Pay solution. This strategic acquisition underscores Enverus’ commitment to driving efficiency and technological advancements across the energy sector.
“As Enverus integrates BidOut’s products and services into our existing suite, we anticipate customers across all the verticals we serve will truly benefit. This investment will not only accelerate product development and innovation, but these enhanced offerings will help define some of our customers’ futures,” said Jeff White, general manager of Business Automation at Enverus. White will lead the integration of BidOut into Enverus’ platform.
