Solvoz

NGOs and Health Agencies are under pressure to address several issues:

NGOs need to improve their efficiency to do more with the same budget in order to address the growing need for humanitarian aid and health care delivery. Non profits combined make up for the fifth economy in the world (John Hopkins University 2005). Two third of the total budget of (humanitarian) NGOs is for the procurement of goods and services. This makes it a ‘no-brainer’ to focus on how they procure and what they procure, if we are serious about addressing inefficiencies, and want to increase the efficiency and effectiveness of our programs. Assuring we reach more people in a responsible way, and to achieve access to (health) care for all.

Challanges and factors 

• NGOs can save up to 30% on their total procurement budget if they procure smarter: in a more competitive process and more with local suppliers involved (2020 Report on the DAC Recommendation on Untying ODA)
• NGO’s and health actors can reduce their ‘time to market’. The procurement process takes place under complex circumstances and is knowledge intense, therefore lengthy. Organisations often have to do market scans to identify potential solutions and/or have to hire expensive consultants for specific product or market knowledge. 
• NGOs need to improve the effectiveness of the solutions they implement. Solutions are often not fit for their purpose or context from the start, are of too low quality, or are lost because spare parts or maintenance are not included in the initial procurement. 
• Donors require transparency and audibility. NGOs spend nearly 80% more to track their finances and employ nearly twice as many finance staff as comparable for-profit companies (Harvard Business School, 2013: "Global NGOs spend more on accounting than Multinationals").Due to the current structure and mechanisms in the sector, one-third of their total budget is spent on overhead.
• Donors require NGOs to green their humanitarian response (see: DG ECHO https://www.dgecho-partners-he...)  Most NGOs lack the knowledge and/or access to the right suppliers to implement policies at the required speed. 

Solvoz offers a platform where NGOs, health actors and any social impact organisation operating in LMICS can professionalize their procurement by gaining access to a solutions catalogue with detailed, specialist knowledge on product & services. This is integrated with a professional e-procurement platform. Providing direct access to over 360k suppliers worldwide. This enables them to make their procurement better, faster, cheaper and greener. 

Solvoz enables all actors to source locally and internationally, creating a fair marketplace for all. Empowering both local actors (NGOs and Health Agencies) as well as local suppliers to achieve our objectives.

The Solutions Catalogue

The solutions catalogue is like a technical back office: users can quickly identify the right solutions (including requirements and meeting sector standards) and create semi-automatically tender documentation.

• Builds on expert and (existing) sector knowledge
• Searches for solutions based on a use case and includes full life cycle analysis and cost (TCO) 
• Builds up procurement documentation in hours instead of days
• Solutions meet donor expectations

The e-procurement platform

The e-procurement platform is like a procurement department as a service. It enables NGOs to create a transparent, auditable procurement process, connect to suppliers and efficiently manage their bids.

• Based on procurement software used by governments and corporates
• Meets all requirements set by donors, including an audit trail and transparency requirements
• Includes a database of suppliers
• Offered at a fraction of the normal cost

Solvoz does not directly serve recipients of aid or patients; Solvoz supports health agencies, NGOs and social impact agencies to increase their efficiency and effectiveness in procurement. Therefore, Solvoz has by design of its service only an indirect impact on peoples lives.  

Solvoz helps health agencies, NGOs, and social impact agencies to procure better, faster and cheaper. This means that health agencies, NGOs, and social impact agencies has more funds to spend on reaching their impact, e.g. by increasing their quality and/or by increasing their reach.

By using Solvoz, there are several mechanisms which makes the procurement of higher quality and more efficient. First, the Solvoz platform saves time in market scans, defining product or service requirements, expert consultations, and supplier search. The platform has by design the information included which is replacing these activities to a great extend (and which are often outsourced to consultants). This leads to a 50% less time and money spend on the procurement process itself, which reduces the overall procurement cost by 5%.

Second, creating a professional, competitive tender process creates more competition and more (perceived) price pressure to place competitive bids. The feedback of our customers so far is that they have more bidders on their tenders and that prices, on average, go down by 10 to 15%.

Third, a more indirect cost saving is that by using the Solvoz platform, buyers (health facilities, NGOs, etc.) are encouraged to think through the life cycle of the products being procured. For example, when procuring incubators, it is important to think upfront of the training of staff, replacement parts (e.g. the light bulb), maintenance services and even disposal or recycling. Also, checking the preconditions to operate the incubator (like 24/7 electricity) is important. Buyers are encouraged on the platform to consider this life cycle, increasing the lifetime of solutions (sometimes dramatically). While not having data available on this (yet), we estimate this effect on a 5% cost saving.

These three mechanisms lead to a cost reduction of over 20%. A healthcare facility with an annual procurement budget of USD 2m would be able to save USD 400k, which enable them:

• lower the cost of their service which makes it better accessible for the underserved, and/or  
• to serve 11,500 more people in low income countries, or almost 1,400 more people in middle income countries (based on the average spend on healthcare of USD 35 per capita in low income countries and USD 291 per capita in middle income countries, source: Worldbank)

This effect can become bigger when Solvoz will roll out a functionality for pooled procurement. With pooled procurement health facilities and other buyers in the healthcare space can pool their procurement, which becomes more interesting for suppliers and will increase the (price) competition on tenders. 

Solvoz is a unique, dedicated humanitarian, aid and health procurement platform made by and for our sectors. Solvoz focuses on enabling health actors and NGOs to improve the delivery of critical supplies and equipment to those served by those actors through improved procurement (and sourcing) practices. Our founding and core team is well-positioned to deliver this solution, as we deeply understand the challenges these agencies face since all come from within this sector. We all came together to solve the main challenge we face in our sectors (funding need) systematically through our belief in enabling technology and open-access capacity to empower all; while creating a fair market. 

Our founders come from the agencies we serve. We work closely with those we do to understand needs further and develop Solvoz modularly fitting the sector while incorporating donor-specific requirements.

Solvoz is a purely digital organisation; while registered with a business address in the Netherlands, we do not have an office. Over 90% of Solvoz's staff is based (and from) LMICs, from Rwanda to Romania, Ukraine to Colombia, and Sri Lanka to South Africa. Technical, domain, and procurement experts work with our users globally to enable and drive change and open up capacity for all. 

To this end, we constantly engage with all relevant actors (User NGOs, health agencies, Suppliers, Manufacturers, donors and philanthropists). We believe meaningful engagement is vital to ensuring that our platform effectively delivers the critical support required to enable localising aid, strengthen economies, empower local/national actors, and commit to ensuring that our solution is grounded in the real-world needs of those we serve.

Solvoz's innovative solution has been making a significant impact in the global aid and healthcare sector, by serving as a valuable partner to numerous NGOs and health agencies worldwide. While Solvoz does not directly serve recipients of aid or patients, its platform offers essential support to these agencies, helping them increase their efficiency and effectiveness in delivering their services and strengthen local (health) supply chains.

Through its paid subscriptions, Solvoz has built strong relationships with various NGOs, health agencies, and social impact organizations in LMICs. By providing open-access knowledge (incl quality standards), contextual and fit-for-purpose solutions, connecting them to over 360k suppliers, strengthening local economies, Solvoz has enabled its partners to achieve better outcomes in their programs and activities.

Solvoz's impact is measurable, with its solution resulting in significant cost savings for its partners. These savings have translated into increased efficiency, enabling agencies to serve 1/4 more people through their programs and activities. This remarkable achievement underscores Solvoz's commitment to improving the lives of those in need, and its dedication to enhancing the efficiency and effectiveness of the global aid and healthcare sectors.

Overall, Solvoz's solution has been instrumental in supporting NGOs and health agencies, enabling them to serve more people, reduce costs, and achieve better outcomes. Its innovative approach to problem-solving and commitment to its partners' success make Solvoz a compelling choice for any organization seeking to maximize the impact of its aid and healthcare initiatives.

Solvoz is excited to apply to MIT Solve because we recognize the tremendous value that MIT Solve offers in terms of resources, expertise, and mentorship. As a dynamic and innovative organization focused on improving the efficiency and effectiveness of aid and healthcare initiatives, we believe that our goals align closely with MIT Solve's mission and challenges.

At this point in our journey, we are seeking guidance and advice on growth strategy, marketing visibility, and sales/business development (client base expansion and business model). While we have experienced significant success through word-of-mouth referrals, we recognize that in order to take our organization to the next level, we need to scale up our operations and increase our visibility in the Health sector.

We believe that MIT Solve's extensive network of experts and mentors can provide us with the guidance and support we need to achieve these goals. Specifically, we are eager to tap into MIT Solve's expertise in fundraising and marketing, as we seek to expand our reach and increase our impact. In addition, we recognize that MIT Solve offers a unique platform for connecting with like-minded individuals and organizations who share our passion for improving the efficiency and effectiveness of aid and healthcare initiatives. By participating in MIT Solve's community, we hope to gain valuable insights and perspectives that can help us further refine and strengthen our approach.

Overall, collaborating with MIT Solve will enable us to take Solvoz to the next level, achieving our goals of increasing visibility, expanding our reach, and making a meaningful impact on the lives of those in need. 

Solvoz's innovative solution stands out in the global aid and healthcare sector by providing a new and significantly improved approach to supporting NGOs and health agencies in LMICs. Unlike traditional procurement platforms, Solvoz's platform offers contextual, fit-for-purpose solutions, and open-access knowledge (including quality standards), enabling its partners to achieve better outcomes in their programs and activities. By connecting them to over 360k suppliers and strengthening local economies, Solvoz has enabled its partners to achieve significant cost savings, resulting in increased efficiency, and the ability to serve 1/4 more people through their programs and activities.

Solvoz's platform has the potential to catalyze broader positive impacts from others in this space by demonstrating the benefits of a more contextually sensitive approach to procurement in aid and healthcare. By providing a more tailored approach to procurement that accounts for local economic and cultural factors, Solvoz's approach could encourage other organizations in this space to adopt a more contextually sensitive approach, ultimately leading to more effective aid and healthcare programs worldwide.

Solvoz's innovative approach to procurement in aid and healthcare can change the market by setting a new standard for our spending, supply chains, and procurement. Its contextual and fit-for-purpose approach to procurement, open-access knowledge, and strong relationships with various NGOs and health agencies worldwide can position Solvoz as a leading player in the market. Solvoz's commitment to improving the efficiency and effectiveness of aid and healthcare programs, and its dedication to its partners' success, make it a game-changer in the industry.

Solvoz's impact goals for the next year and the next five years are focused on creating a fair marketplace for healthcare and aid, localizing spending, empowering actors, and achieving a closer match of needs, goods, and services procured.

In the next year, Solvoz plans to expand its platform's supplier network with 50% with local (LMIC) suppliers, strenghten local procurement practices of our users by enabling its partners to access a more diverse range of goods and services from a wider range of suppliers, including more local suppliers. Solvoz also plans to invest in its user experience, making it easier for its partners to find the goods and services they need, and to streamline their procurement processes.

Over the next five years, Solvoz aims to achieve a more equitable and localized procurement process that empowers local actors and ensures that the goods and services procured better match the needs of recipients. Solvoz plans to expand its platform to reach at least 1,000 new organizations in LMICs. By expanding its platform and establishing new partnerships, Solvoz aims to drive positive change in the aid and healthcare sector, creating a fairer marketplace for all and empowering local actors to deliver the aid and healthcare services that communities need most, serving more people with the same funding available.

To measure our impact goals, Solvoz has integrated a robust reporting and monitoring and evaluation (M&E) system that tracks the progress of its platform and its impact on the healthcare and aid sector. As well as fully auditable workstreams for our users (compliant to donors and auditors). Solvoz users various metrics to measure its impact, including the number of local suppliers added to the platform. In collaboration with our users, we assess the increase in efficiency and effectiveness for them, and the reduction in procurement costs. Solvoz also measures the degree of localization of organisational spending, tracking the percentage of its procurement that is sourced from local suppliers in LMICs.

Solvoz also plans to conduct regular surveys and focus group discussions with its partners to gather feedback on the platform's impact, usability and to identify areas for improvement. Overall, Solvoz is committed to measuring the enabled impact goals rigorously, using a variety of metrics and feedback mechanisms to ensure that it is achieving its mission of creating a fair marketplace for healthcare and aid and empowering local actors to better serve their communities.

Solvoz's theory of change is that by providing a user-friendly, open-access, and context-specific platform for procurement in aid, we can empower actors in the aid and healthcare sector, creating a more fair and effective marketplace for healthcare and aid. Through our platform, Solvoz aims to increase access to a wider range of suppliers, including more local suppliers, reducing costs and increasing efficiency for NGOs and health agencies. This, in turn, enables them to serve more people with the same funding, ultimately leading to better outcomes and increased impact for the communities they serve.

To achieve this, Solvoz will continue to focus on expanding its supplier network, strengthening local procurement practices of our users, and investing in user experience to make it easier for its partners to find the goods and services they need. By doing so, we aim to drive positive change in the aid and healthcare sector, creating a fairer marketplace for all and empowering local actors to deliver the aid and healthcare services that communities need most. Overall, Solvoz's theory of change is focused on creating a more equitable and localized procurement process that empowers local actors and ensures that the goods and services procured better match the needs of recipients.

The key infrastructures below are hosted by Azure Cloud – a world-leading cloud service provider, offering better scalability, reliability and security

SOLR web service: platform search engine, and it is a popular, blazing-fast, open-source enterprise search platform that is highly reliable, scalable and fault tolerant. SOLR is trusted and powers some of the most heavily-trafficked websites and applications in the world

Web servers based on:

• Linux: the leading operating system on servers (over 96.4% of the top 1 million web servers' operating systems are Linux)
• Oracle Jave: the #1 programming language and development platform, powers our backend applications
• Vue.js and NUXT.JS: popular modern progressive, approachable, performant and versatile JavaScript framework for building a modern website and user interfaces
• Linux
• Oracle Java
• .NET

Azure storage: CDN for reliable and fast content delivery

Backend Applications Servers / APIs

Backend DB: Azure Database for MariaDB, a trusted relational database service based on the open-source MariaDB Server engine. It's a fully managed database as a service that can handle mission-critical workloads with predictable performance, dynamic scalability and industry-leading security.

Keycloak: open-source software to allow single sign-on with identity and access management for modern applications and services, namely user/authentication/authorisation service. Keycloak provides user federation, strong authentication, user management, and fine-grained authorisation. It is fast, flexible and easily scalable with a huge community of contributors and users globally.

At Solvoz, a woman-led and founded digital agency, we are committed to incorporating diversity, equity, and inclusivity into every aspect of our work. As a digital organization with staff globally, including mostly (over 90%) in low and middle-income countries, we understand the importance of building a team that represents a diverse range of perspectives and experiences

Our team's goals for becoming more diverse, equitable, and inclusive are grounded in the belief that these values are essential for achieving our mission of improving the efficiency and effectiveness of aid and healthcare initiatives. There is no other way if one wants to truly make a meaningful impact on the lives of those in need, and serve the agencies in the best way we can, that we must build a team that is reflective of the communities we serve.

Our commitment to diversity, equity, and inclusivity is not only the right thing to do but also critical to the success of our organization. 

Solvoz is a SaaS based platform, with additional consulting services (called PaaS, Procurement as a Service) available. 

Solvoz has relied on grants and soft loans so far, and is planning a funding round in 2023. Based on our growth, we plan to become break-even in 2025 and be solely reliant on subscription and consultancy revenue. 

We see an increasing appetite for the Solvoz platform due to our effective marketing campaigns as well as worth-of-mouth and referrals. The sales cycle time is decreasing while the conversion is increasing, improving our recurring revenue line. 

We have received grants and a soft loan from corporate foundations as well as development finance institutions (names available upon request).