When it comes to re-negotiating your supplier contracts, timing, and the right data, is everything. This is where using AI in Procurement comes in handy. With AI, Enterprises can quickly gain the information they need to avoid unwanted renewals and strengthen their negotiating position to get the best deals.
For a suspense novel or a blockbuster movie, surprises are a good thing. Not knowing what to expect keeps us interested and engaged. But the world of procurement is different.
When it comes to managing your company’s supply chain, nobody likes surprises.
There are turbulent times for anyone involved in managing supplier relationships. Success is predicated on knowing what’s going to happen, long before it does. It’s a simple goal that’s been notoriously difficult to achieve – until Artificial Intelligence appeared on the scene.
Timing is everything
Take, for example, the ritual of re-negotiating supplier contracts. Busy with the day-to-day aspects of minimizing supplier spend, many procurement teams don’t have time to adequately prepare for contract negotiations. Often the case, procurement has limited access to the data stored in contract management systems. Without visibility into contract details, renewal dates can slip by. Suddenly a supplier is operating without a valid contract. Or worse, a clause in the agreement triggers a renewal before there’s time to re-negotiate.
That’s the kind of surprise you don’t want.
It stands to reason that you can achieve more favorable terms by re-negotiating a contract renewal just before the supplier’s fiscal year ends. What if it were easier to prepare for supplier negotiations?
AI in Procurement drives Insights for informed decisions
That’s the idea behind Suplari Contract Intelligence. The AI-powered application extends the value of the Suplari platform, giving enterprises the information they need to avoid unwanted renewals and strengthen their negotiating position. In addition, by combining information on vendor spend with key contractual details, procurement managers can come to the negotiation table armed with the information they need to get the best deal.
Take for example, a large retailer we’ve been working with had 7 different ERP systems to manage. The ability to visualize all their spend and contracts in one place was a challenge, making it difficult it understand what was happening across their suppliers. Using Suplari, the retailer immediately discovered that one of their top 20 suppliers fell in the travel category and did not have a negotiated contract. This insight prompted additional investigation in their travel spend and led to new cost savings contracts with three different airlines.
Building value on the foundation of the Suplari Intelligence Platform
Suplari Contract Intelligence leverages AI to provide real-time insights you need to proactively negotiate contract renewals, aggregate demand across the enterprise, and identify suppliers operating without a contract.
It’s part of our growing library of extension packs that build on the value of the Suplari platform.
Stay tuned for our next blog in this series, “Finding New Opportunities to Aggregate Supplier Demand with AI in Procurement.”
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.