In today’s dynamic business environment, building lasting relationships with suppliers through multi-year contracts is more crucial than ever. As a procurement manager, you know the importance of choosing the right vendors. Staying ahead of market dynamics is a top priority.

But this all costs time, effort and understanding…..

Good news! Using A.I. in the right way can help enormously!

Let’s take a prominent pharmacy company as an example

Within their procurement department, they’re grappling with the complexities of multi-year contracts and the specific conditions negotiated with their vendors. This is a critical concern for them, as obtaining the right ingredients for their medicines at the best possible prices is essential for their business.

These long-term contracts are tied to global indices, such as labor costs in Germany and the fluctuations in commodities like aluminium on the London Metal Exchange. Staying ahead of these market dynamics is absolutely paramount.

The challenge lies in effectively monitoring these contracts in conjunction with the related indices and percentages, and that’s where A.I. comes to the rescue. Through the power of Artificial Intelligence, they’ve streamlined their process, making easy to identify contracts that require immediate attention. Receiving timely alerts has become a game-changer, saving them valuable time and resources.

Even better they can get a prediction on future developments enabling them to create more accurate multi-year budgets and enhancing cost transparency.

So… what does AI offer for procurement?

AI offers several advantages in streamlining procurement processes:

Cost Savings

By optimising supplier selection, negotiating better contracts, and identifying cost-saving opportunities, AI helps reduce procurement costs.

Data Analysis

AI analyses large volumes of procurement data to identify patterns, trends, and insights, enabling better decision-making and strategic planning.

Risk Management

AI can assess supplier risk factors, monitor market trends, and identify potential disruptions, helping organizations mitigate risks and ensure business continuity.

Predictive Insights

By leveraging predictive analytics, AI can forecast demand, anticipate supplier performance, and optimize inventory levels, leading to improved supply chain management.

Mandy Market Insights

All this we have put together in Mandy Market Insights. With Mandy you get the quality tool that can do this. Mandy empowers you to make informed decisions, estimate impacts on budgets and effectively monitor complex agreements within contracts that involve indexation.

One of the most valuable features of Mandy is the ability to simulate and interact with the indices, allowing to explore the potential impacts on your supply networks. This capability not only enhances strategic planning, but also enables you to proactively respond to market fluctuations.

Choose the right vendor with confidence, negotiating the best price and take control of multi-year budgets. Streamline you procurement process with A.I., use Mandy.

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