From Talks to AI Deals: How AI Streamlines Negotiations

A global company faced time-consuming manual negotiations for non-production materials. They implemented an AI solution that automates these processes and uses intelligent routing to select the best suppliers. This resulted in streamlined operations and significant cost savings, and freed up valuable time for their procurement teams to focus on strategic tasks.

Client:

Spanning the international landscape, Kärcher Global Services GmbH & Co. KG stands as a subsidiary of the Kärcher Group, providing a spectrum of business support services: from accounting and controlling to procurement of non-production materials. The company strives for maximum efficiency and quality in its work, using modern technologies and methods. Thanks to its experience and professionalism, Kärcher Global Services GmbH & Co. has established itself as a reliable partner for the Kärcher Group.

Problem Statement:

Kärcher sought a way to streamline manual negotiation processes in non-production procurement. These processes were inefficient and took up a lot of time, requiring significant effort without yielding substantial savings. This led to a loss of valuable time for the purchasing teams.

Results:

Enhanced Efficiency:

• Automated negotiation, execution, and award processes streamlined procurement operations.
• Intelligent routing optimized requisition pre-selection, saving time and effort.
• Reduced manual tasks and secured pre-contract discounts, boosting savings.

Cost Reduction:

Significant cost savings achieved through automated negotiations and reduced manual efforts.

Quality Improvement:

• AI technology contributed to improved efficiency and quality across procurement processes.
• Buyers gained time to focus on strategic tasks and leverage advanced technologies.

Supplier Satisfaction:

Suppliers appreciated the intuitive user experience and flexible processing.

AI Solution:

Facing time-consuming manual negotiations in non-production procurement, Kärcher implemented Procure Ai’s “Autonomous Operations” AI solution.

Automating Tactical Procurement. This AI streamlines tactical procurements by automating execution, negotiation, and award processes. Additionally, the AI utilizes intelligent routing to pre-select purchase requisitions based on factors like commodity group and price range. Kärcher benefits from this wise selection process to prioritize its procurement efforts and find the most suitable suppliers.

Efficiency Gains and Cost Savings. Furthermore, the AI reduces manual work in tactical and operational spending by automating repetitive tasks. This enables Kärcher to obtain extra discounts before contract allocation, thus maximizing their savings. (Automation-fueled efficiency and supplier competition yield substantial cost savings for Kärcher.)

Seamless Integration and Data-Driven Decisions. The AI seamlessly integrates with Kärcher’s existing backend systems, ensuring data flows smoothly. Thanks to this integration, the procurement process benefits from real-time data analysis and informed decision-making.

Empowering Procurement Teams. The AI solution empowers Kärcher’s purchasing teams, which liberates them from monotonous tasks. Freed from routine, they can focus on strategic tasks and use advanced technology for better procurement results.

References:

1. Case Study Kärcher Global Services

2. Autonomous Operations / Procure AI

Industry: Industrial and Consumer Goods

Vendor: Procure AI

Client: Kärcher Global Services GmbH & Co. KG