Helping a Chemical-Based Product Manufacturer Achieve Procurement Transformation and Become an Industry Pacesetter
Learn how ElectrifAi provided a Chemical-Based Product Manufacturer useable, relevant, actionable insights attuned to client-specific spend categories for long term value creation.
Transparency and visibility in procurement are top ways to safeguard a supply chain and protect margins. When costs, categories, and vendor lists scale, so do the risks.
ElectrifAi helped a large chemical-based product manufacturer solidify its procurement control by turning data into visibility through practical AI and ML. Together, we created a system that was able to understand suppliers and vendors, improve procurement processes, and identify new opportunities.
Turning Raw Data into Actionable Insight
The ProcurementAi suite enabled ElectrifAi to work with the manufacturer to collect and analyze raw manufacturing data and vendor partner information to diagnose and resolve procurement concerns. Through data cleaning and normalization, the platform categorized suppliers and performed spend analysis via SpendAi.
Together, we ensured that data the company had was reliable and relevant enough for procurement professionals to rely on for business insights and actionable spending decisions.
Machine learning models improved classification to build a repeatable, trustworthy process for managing overall spend by category and identify cost reduction opportunities. The manufacturer’s procurement arm was then able to seek out cost savings in unanticipated spend categories.
Applying the ProcurementAi system led to:
- Exceed targeted cost-reduction objectives
- Reach 98% classification of vendor spend in categories
- Create trust in data, allowing procurement to confidently use it for decision-making
- Generate ROI in 30 days
- Improve abilities to understand and renegotiate supplier contracts
Building Visibility and Proficiency
By working together, the finalized solution can help procurement and leadership optimize overall spend categories and identify areas of improvement. Classifications of direct and indirect spend have been validated and can be used to understand total costs across the supply chain.
Shedding light on supplier practices and relationships allows the manufacturer to assess vendor contracts and capabilities, plus make more direct comparisons when those contracts are up for renewal. Development plans powered by AI and ML assist in understanding procurement opportunities and sources, while also identifying ongoing opportunities for growth and savings.
Through an onboarding process that took weeks instead of months, capturing and cleaning data, and improving transparency via AI, the ProcurementAi solution provided reliable data that enabled their procurement experts to act.
I could not find an industry "standard" for how long these take. Might be worth specifying if there is data you trust.
i.e. "...process took 6 weeks instead of 6 months..."
Helping Experts Shine
The manufacturer is emerging as an industry pacesetter and thought leadership in the procurement space because of its optimization capabilities. ElectrifAi provided the groundwork for managing and utilizing data, enabling our client to perform advanced planning and management required for innovative procurement.
Combining ElectrifAi’s expertise in AI and the client’s procurement talent led to a system that will continue to simplify category-based spending, vendor management, and long-term supplier partnerships.
Read the full case study to learn more about ElectrifAi’s approach to giving procurement professionals better control over their data. See how we make it easier for you to focus on mission-critical spend objectives, or inquire about a customized demo to see results that ProcurementAi can deliver.