A mid-sized logistics company based out of Tennessee has encountered challenges in their sourcing and supplier management processes. While its existing procurement software was efficient, it struggled with analyzing the huge data volume generated by the growing network of suppliers.
Client: Logistics
Services: GenAI Solution
Year: 2024
Contents
Challenges
The company experienced inefficiencies as they relied on manual processes for identifying potential suppliers, evaluating contracts, tracking performance, and communicating with them.
Compliance risks such as missing deadlines or overlooking potential violations due to the manual management of complex web of contracts and regulations.
The procurement team had limited insights into existing data due to the lack of advanced analytics to help identify incoming trends, predict potential issues with suppliers, or optimize the decision-making process of selecting suppliers.
Solutions
Sparity partnered with the logistics firm and developed a cutting-edge generative AI solution to complement their existing software.
- We deployed a GenAI engine in a secure, private cloud environment to safeguard sensitive data.
- Leveraging Optical Character Recognition (OCR), the GenAI engine extracted valuable data from contracts, supplier documents, and internal reports, while employing anonymization techniques during training with this data.
- Automated contract review with GenAI analyzing contract terms, identifying key clauses, potential risks, and compliance issues significantly reducing the manual workload.
- We streamlined the sourcing process and helped procurement teams with GenAI engine recommending high-performing and cost-effective suppliers by analyzing vast amounts of supplier data and performance metrics.
- Powered the existing chatbot, enabling it to answer inquiries, automate routine tasks, and facilitate seamless communication with suppliers or internal stakeholders.
Results
- Procurement team experienced a 60% boost in productivity with GenAI integration.
- Improved decision-making regarding sourcing, supplier selection, and contract negotiation.
- Proactive risk identification through GenAI, enabled mitigation strategies to ensure regulatory compliance
