How AI Enhanced the Procurement System of a Global Leader in Water Treatment

Summary:

AI transformed a company’s procurement system by enhancing data visibility, optimizing spend analysis, and streamlining processes. This not only delivered substantial cost savings and increased efficiency but also empowered the company to adopt a more strategic and proactive procurement approach.

Client: 

Pentair is a global leader in water treatment and sustainable water solutions. 

Problem Statement: 

The company faced challenges in managing its procurement processes efficiently. Pentair’s procurement data was spread across different regions and systems, creating data silos. The lack of consolidated data hampered strategic decision-making and hindered the ability to analyze spend effectively.

Results: 

• A significant improvement on spend accuracy.
• More efficient workflows and faster response times.
• A more than 10% improvement in consolidation of suppliers.
• Achieved over 90% accuracy in spend classification.
• Realized a $15 million improvement in working capital through negotiating payment terms.

AI Solution Overview:

Sievo partnered with Pentair to overhaul and streamline their procurement system. Sievo’s platform offered comprehensive analytics and insights tailored to improving Pentair’s procurement performance.

Due to the intuitive and user-friendly features of the Spend Analytics tool, Sievo’s training session took less than two hours to complete. Employees showed strong engagement, offering suggestions and feedback during the process. They quickly adapted to the robust tool, incorporating it as their go-to solution for sourcing activities.  

Using an agile implementation strategy, Sievo was rolled out in just two months, covering both Spend Analytics SaaS-based solution and Contract Management functionalities.

The centralized data allowed stakeholders to access real-time insights, enhancing collaboration and strategic planning.

Sievo provided advanced spend categorization capabilities, breaking down expenditures to identify savings opportunities. This insight enabled Pentair to leverage purchasing power and negotiate better terms with suppliers.

References: 

1. 10 AI Procurement Use Cases & Case Studies. https://research.aimultiple.com/ai-procurement/
2. Pentair Case Study Spend Analysis. https://hub.sievo.com/hubfs/Ebooks%20and%20PDFs/Case%20Studies/Pentair%20Spend%20Analysis%20Case%20Study.pdf?hsLang=en

Industry: Industrial Manufacturing

Vendor: Sievo

Client: Pentair

Publication Date: 2024