Tech Giant Uncovers 90 New Suppliers in a Week with AI

A I • Apr 28,2024

A leading tech company, frustrated by the limitations of manual methods, adopted an AI procurement platform. This AI solution slashed supplier search times, identifying over 90 potential partners in just a week, and unearthed significant cost-saving opportunities.

Client:

Siemens, a powerhouse in technology, offers advanced solutions across electrification, automation, and digitalization. Their influence extends to diverse fields like energy, transportation, healthcare, and manufacturing. As a top innovator, Siemens boasts a long history of developing groundbreaking technologies. This commitment to progress extends beyond the technical realm – Siemens is a proud member of the Dow Jones Sustainability Index, recognized as a global leader in corporate sustainability.

Problem Statement:

Siemens’ proactive overhaul of its products necessitated a corresponding transformation of its supply chains. Procurement raced against tight deadlines to find top suppliers across various categories. Traditional manual scouting methods simply couldn’t keep up with the fast pace and broad scope, forcing them to seek a new approach.

Results:

90+ Potential Suppliers in 1 Week : AI identified a vast pool of suppliers rapidly.
Innovation & Competition : New, innovative solutions emerged alongside 50% more competitive pricing offers.
Hidden Gems Found : 11 entirely new suppliers and 4 in a specific category were discovered.
Cost Savings Potential : Up to 50% cheaper parts and 10-20% overall savings identified.

AI Solution:

Facing rapid product changes and tight deadlines for finding suppliers, Siemens sought a better solution than traditional manual scouting methods. For this, they have successfully integrated Scoutbee, an AI-powered platform that makes use of a vast global supplier database.

Broad Search Capabilities. The Siemens procurement team used Scoutbee to search as broad a spectrum as possible: from innovative technologies to raw materials, covering the entire value chain. AI-algorithms of the platform allowed them to quickly find numerous potential suppliers, and the speed, volume and quality of the received information often exceeded the results of manual methods.

Benefits Beyond Innovation. Siemens’ procurement team benefited from Scoutbee’s comprehensive capabilities, not only in innovation but also in value sourcing, product localization, and risk management.

Data-Driven Procurement. The Siemens procurement team further leveraged Scoutbee to prepare for negotiations with existing suppliers. Scoutbee allowed them to quickly compare their existing suppliers with new options identified by the platform, that could help them optimize their supplier portfolio.

Interesting fact:

Siemens’ Michael Klinger sees AI as a valuable procurement tool, but stresses it won’t replace human creativity in areas like supplier negotiation and collaboration.