Enterprise companies can leverage AI in Procurement to quickly connect their spend and contract data to surface opportunities for demand aggregation.
With increasing labor rates and the rising cost of fuel, freight and raw materials, finding opportunities to reduce spend is becoming more difficult by the day. Aggregating the spend for each supplier under one contract is a common technique used to get the best pricing. But different business units may make independent agreements with the same supplier. Purchasing goods or services outside of an MSA might be faster, but it causes a problem for anyone in procurement.
With so many people involved in purchasing, how does a procurement manager uncover all the opportunities to aggregate demand?
Discover More Opportunities to Aggregate Demand
Suplari Contract Intelligence connects spend data from accounts payable to the information stored in a Contract Management System (CMS), then leverages AI to compare the two sources, providing a 360-degree view of supplier spend. With this kind of visibility, procurement teams can reduce cost and improve services by:
- Identifying business units who are spending with a supplier on separate contracts, at different prices.
- Determining which contracts aren’t part of an MSA, and use the information to negotiate better terms.
Value Across the Enterprise
In addition to helping aggregating demand, Contract Intelligence also enables procurement teams, legal counsels, financial analysts and contract managers can use it to negotiate better deals, mitigate risk and manage budgets. With access to the same data, the entire enterprise will see a vast improvement in their ability to reduce cost and create value.
In a recent supplier negotiation, the CPO at one company used Suplari’s proactive data visualization to quickly surface the total supplier spend trend for the past 3 years. The obvious upward trend in spend enabled the negotiation of over $1M in supplier discounts.
In another example of AI in Procurement, the sourcing team from a large media company used Suplari this year to identify more than 30 subscription contracts for the same software that had a number of price variations. The sourcing team used this data to negotiate consolidated pricing at a larger discount in just a few short discussions with the software vendor.
Keep a lookout for “How AI Solves the Search for Missing Contracts,” the next blog in our series on leveraging the value in your CMS.
Suplari helps procurement and finance organizations uncover the hard-dollar cost savings hidden inside millions of data points. By analyzing millions of sourcing transactions from disparate data sources, Suplari’s AI-driven platform generates the insights needed to reduce spend, increase compliance, and improve employee productivity. Our mission is to enable procurement organizations to achieve higher levels of operational intelligence, efficiency and effectiveness, so that their companies can invest in growth, innovation and their people. For more information, contact firstname.lastname@example.org.