Use case 04 · EBITDA lever: COGS / SG&A spend reduction + sourcing leverage
AI-Driven Procurement
AI-Driven Procurement
& Spend Intelligence.
Addressable spend
3–7%
savings, calibrated
Procurement cycle
−30–50%
faster sourcing
Vendor count
−15–30%
via consolidation
Engagement
8–12 wks
$200–400K
Typical mid-market ranges, not guarantees, your single target metric is agreed in week 1.
§ The problem
Most mid-market organizations can't answer the question "where does the money actually go?"
Vendor sprawl accumulated through acquisitions and decentralized buying. Maverick spend outside contracts. Contract terms vary by vendor with no centralized leverage at renewal. Procurement is reactive, not strategic. The CFO knows there's leakage; nobody can quantify it.
§ What we deliver
Seven things, in order.
- Spend categorization and classification across AP and ERP data, at the line-item level, not vendor level.
- AI agents for vendor consolidation analysis: identifying duplicates, near-duplicates, and consolidation candidates.
- AI agents for contract clause extraction and comparison across the contract portfolio.
- Sourcing event preparation: AI-built RFP packages, baseline pricing analysis, target savings identification.
- Maverick spend detection and root-cause analysis.
- Procurement dashboards for CFO and operating partner: addressable spend, savings pipeline, supplier risk.
- Change management: procurement team enablement, governance for AI-surfaced opportunities.
§ Expected outcomes
Calibrated, not promised.
Addressable spend savings
3–7%
Procurement cycle time
30–50% reduction
Active vendor count
15–30% reduction
Contract review velocity
+50–70%
Maverick spend visibility
anecdotal → GL line
Supplier risk view
scattered → unified
§ Prerequisites for success
- AP and ERP data accessible (transactions, vendor master, GL coding).
- Contract repository, even if scattered or inconsistent. Consolidation can be part of the engagement.
- CFO or VP Procurement as engagement champion with authority to act on surfaced opportunities.
AI Transformation Sprint
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