The five foundational pillars of Spend Intelligence: Pillar One

February 27, 2024

Developing a deeper understanding of the spend allows business leaders to craft smart procurement strategies. Prudent procurement decisions rely on access to quality information that is reliable, trustworthy, and accurate. Large swaths of such information stream in from multiple sources making the analysis cumbersome, time-consuming, and prone to errors. With an AI-powered spend product, you no longer have to grapple with bulky spreadsheets and manually match apples to apples. Machine learning models can ingest staggering amounts of data and provide intelligent insights in a matter of weeks, not months.

The continuous intelligence from this real-time data elevates Procurement from a transactional to a strategic function. The result: Improvement in strategic sourcing, cost reduction opportunities, and gain in efficiency leading to competitive business advantage.

Pillar One: Unique Vendor identification - What's in a name?

Why do I care about Unique Vendor identification? Vendors may not have precisely the same name across various disparate systems in your enterprise from where this data is pulled. Furthermore, with M&A, their identities may change over time. AI-powered products can normalize these names to a single entity allowing you to know the total spend with each unique vendor. Normalization, thus, creates an opportunity for volume discounts, and this visibility helps you seek the most favorable agreement.

This creates the first foundation over which Spend Intelligence is built. The visibility into supplier data makes business leaders aware of the negotiating leverage they have.

ElectrifAi's SpendAi: 2-4% savings in 6-8 weeks

ElectrifAi is one of the US' leading ML products providers with an extensive library of pre-built products enabling our clients to capture tangible benefits quickly. We work with the C-suite to understand and solve business problems through data and machine learning. The insights generated from SpendAi help our clients realize 2-4% savings in 6-8 weeks. In addition, it provides specific recommendations to mitigate supply chain risks. All this is done with zero data quality requirements and zero need for a data science team.

You probably have many platforms, and they may even be working. We are not one more new platform. The truth is, we don't make platforms … we make platforms better. We don't generate data … we make them actionable!

We are the last mile that sits on the top to solve specific business problems and bring about savings. We have seen many companies dealing with procurement struggles. And we have helped them through those challenges to see actual results that cut costs, reduce risks, and increase revenue. We helped a Fortune 5 company reduce the number of multiple supplier entries, resulting in immediate cost savings with enhanced spend visibility and 5X supplier normalization.