The title of Software Entrepreneur of the Year 2024 is exceptionally being awarded this year to three individuals: the founding trio of the rapidly growing RELEX Solutions. “RELEX is a remarkable success story: a Finnish startup that has risen to be the world leader in supply chain optimization through its self-developed technological solutions,” says Taija Engman, Chair of the Board at Software Finland. Johanna Småros (in the photo), Michael Falck, and Mikko Kärkkäinen founded RELEX in 2005 and continue to lead it to this day.
A Solution for Supply Chain Optimization
RELEX Solutions was founded nearly 20 years ago and has been an industry pioneer from the start. In 2005, no one else offered a supply chain optimization solution like the one developed by three logistics researchers from the Helsinki University of Technology, Johanna Småros, Michael Falck, and Mikko Kärkkäinen.
“Technological advantage has always been at our core. SaaS (Software as a Service) was entirely new when RELEX began. We were also quick to adopt in-memory technology when memory prices dropped rapidly. This allowed us to offer a level of computing power that no one else could provide at the time. Our strength has always been having the most advanced technology at the right time,” explains Johanna Småros. Innovation remains one of the cornerstones of success, adds CEO Mikko Kärkkäinen: “We invest 25 percent of our revenue in research and development, so there is a strong focus on innovation.”
Now, RELEX’s founding and leadership trio receives the software industry’s most prestigious recognition: the Software Entrepreneur of the Year award. The award is based on strong profitable growth, innovative solutions, and responsible business practices. The board of Software Finland, the umbrella organization that determines the award, sees enormous potential in RELEX.
“RELEX has already grown into a unicorn valued at billions, and with an annual growth rate of 50 percent, it is set to soar even higher. RELEX is a remarkable success story: a Finnish startup that has risen to be the world leader in supply chain optimization through its self-developed technological solutions. RELEX has successfully combined technological expertise with the needs of the global market, with major retail chains and manufacturers already among its clients. The growth potential remains enormous. RELEX is proof of Finland’s capacity for global success,” describes Taija Engman, Chair of the Board at Software Finland.
Michael Falck has contributed to RELEX’s international growth, especially in North America.
“Technology doesn’t deliver itself to customers; it’s done by our over 2,000 employees. We have people who joined as part of a small startup and are now industry veterans. For example, Marko Nikula’s proposal for an in-house database was absolutely pivotal in our early stages. Our turnover rate has been low: salaries are competitive, and our culture allows people to have influence and understand the reasons behind decisions. It’s been easy for people to join us from anywhere globally, as our company language has always been English – around 40% of our staff in Finland are from other countries,” Falck notes.
Rapid Growth, but Responsibly
Johanna Småros, one of the three founders, is responsible for sustainability at RELEX, a priority for the company.
“Our technology helps reduce food waste, optimize inventory, and thereby reduce overconsumption. We are building supply chains that are not only profitable but also environmentally and climate-friendly. Our entire operation is tightly connected to sustainable development and environmental responsibility,” Småros emphasizes, highlighting the foundation of RELEX’s work and growth.
Rasmus Roiha, CEO of Software Finland, holds RELEX’s commitment to responsibility in high regard. Roiha also mentions the RELEX Foundation, established in 2023 by Småros, Falck, Kärkkäinen, and Nikula.
“In addition to the responsibility embedded in the business itself, the founding trio has exemplarily committed to social responsibility through the RELEX Foundation. The foundation supports efforts to combat climate change and reduce social inequality. This combination of business and social responsibility places RELEX and its founders in very high regard,” Roiha commends.
RELEX Solutions
RELEX Solutions is a Finnish company specializing in comprehensive solutions for optimizing supply chains, retail, and space management. Its products and services help companies manage demand forecasting, resource planning, and various aspects of supply chains in a smart and cost-effective way. RELEX’s innovative solutions leverage machine learning and large datasets, enabling more precise forecasts and decision-making. This allows clients to reduce inventory levels, improve product availability, and decrease waste, resulting in significant cost savings and enhanced operational efficiency.
The company provides solutions for retail, wholesale, distribution companies, and consumer goods manufacturers. RELEX’s services cover demand planning, supply chain optimization, space management, and workforce planning. These enable customers to achieve better outcomes: for instance, product availability can exceed 99 percent, and waste can be reduced by up to 40 percent. The company’s clients include internationally recognized retailers and brands, and its solutions are considered pioneering, especially in the field of supply chain optimization.
Software Finland Association
Software Finland association is a Finnish organization that supports and promotes the success of software companies both domestically and internationally. The association aims to create a strong support network for the industry by providing member companies with various training and networking opportunities. Software Finland ry also advances advocacy work related to the industry, actively engaging in areas such as legislation and education. Members gain access to expert networks and programs, such as the “Mimmit koodaa” (Women Coding) initiative, which encourages women to enter the field. Through Software Finland, companies receive tangible support to grow their businesses and develop their skills in a competitive and rapidly evolving industry.
The Software Entrepreneur of the Year award is one of Software Finland’s most prestigious recognitions, celebrating software entrepreneurs who have demonstrated exceptional innovation, growth, and success. The award highlights entrepreneurs who advance the development of the entire industry and bring Finnish software expertise to the global stage. This recognition is significant for industry-wide appreciation, as it brings visibility and encourages other entrepreneurs to pursue innovative solutions and ambitious growth goals. The award offers winners both recognition and additional networking opportunities with top professionals in the field.
Photo: Mikke Pöyhönen, Photomikke.
