Companies are constantly challenged to manage multifaceted supply chains, negotiate favourable terms, and maintain supplier relationships. For the very largest businesses, particularly those with multi-billion dollar revenue streams, this can be a cottage industry in itself, and teams of people constantly need to manage supplier contracts.
AI is hot right now, and that is right across the enterprise. The challenge is to find a niche where it really helps a business—where it eliminates manual processes and scales—and Pactum believes it has found that niche. From automating repetitive tasks to analyzing vast datasets for actionable insights, AI systems provide procurement professionals with a new efficiency level.
How Pactum's Software Works
Pactum's AI-powered negotiation software revolutionizes how businesses negotiate contracts and manage their procurement processes. Its core strength lies in its ability to automate negotiation workflows, delivering personalized solutions that cater to both the buyer's and the supplier's interests.
The software begins by understanding the company's specific goals, constraints, and procurement strategies. Once it gathers this foundational data, Pactum's AI algorithms engage suppliers in an automated negotiation process, leveraging predefined parameters and flexible negotiation strategies. The software conducts real-time dialogues, offering personalized deals that align with both parties' interests while simultaneously optimizing cost savings, efficiency, and profitability for the organization.
Key features include:
Automated Contract Negotiations: The software handles repetitive negotiation tasks, freeing up procurement teams to focus on strategic initiatives.
Personalized Offers: Pactum generates tailor-made proposals based on each supplier's preferences, building stronger supplier relationships.
Comprehensive Data Analysis: The AI analyzes vast amounts of data, providing insights into negotiation outcomes, supplier performance, and potential areas for improvement.
Who Would Benefit From Using Pactum?
Pactum suggests that its solution is aimed at companies with $5bn revenues or above, so its ideal customer threshold is pretty high. However, there is some logic in this. The larger the company, the more suppliers it has—the harder it is to get value and negotiate each appropriately, particularly those lower down the pecking order.
Pactum says that for a typical company "around 80% of their commercial agreements are high volume and low value – tail spend. And because there are so many suppliers, it’s hard for employees to keep on top of them and impossible to manage these deals effectively and efficiently. It’s why so much value gets left on the table and why so many suppliers go unmanaged".
Current Pactum clients include the likes of Walmart, Vodafone, Wesco, and Maersk - significant names, and companies with lots of suppliers. On average, for every $1m worth of spend the Pactum solution negotiates, they believe it creates $42k in net value, so you can certainly see the value and the logic in bringing in this type of solution
Find Out More About Pactum
Pactum is likely a new name to most people. It's why we feature the most exciting vendors in our 'Viewpoint Analysis Tech Vendor Spotlight' - to showcase some of the brightest and best in the tech market.
If you want to learn more about Pactum or similar technologies, our Viewpoint Analysis 'Technology Matchmaker Service' is a great opportunity to bring a range of technology vendors to present how they can help you and your business.