**Washington**: The U.S. manufacturing sector is witnessing growth amid reindustrialisation, but inefficiencies in traditional procurement methods persist. CEO Vazghen Nikolian from Wimble AI advocates for AI integration to streamline procurement, emphasising the urgency for modernised practices to enhance competitiveness and profitability in an evolving market.
The U.S. manufacturing sector is experiencing a notable growth phase, spurred by reindustrialization efforts and a focus on increasing domestic production. However, a myriad of challenges persists in the procurement processes that underpin much of this growth. Inefficiency within procurement, particularly arising from pricing misalignment, is highlighted as a significant area of concern.
Traditional procurement methods are characterised by manual negotiations with suppliers, ensuing lengthy decision-making processes, and reliance on outdated pricing models. Such practices often culminate in inflated contract costs and operational bottlenecks. Additionally, many manufacturers rely on paper-based contracts and disparate communication channels, obstructing their ability to assess market conditions in real time and verify the competitiveness of the prices they engage in.
Vazghen Nikolian, the CEO and co-founder of Wimble AI, identifies these inefficiencies as critical issues within the industry. Drawing from his experience in supply chain management, artificial intelligence, and logistics, he established Wimble AI to automate essential components of the procurement process and mitigate the risk of cost overruns. Speaking to Digital Journal, Nikolian remarked on the pressing need for an overhaul in procurement practices, as traditional methods have proven insufficient in effectively addressing current challenges.
Wimble AI is currently being employed by various manufacturers in sectors such as automotive and chemicals. The platform leverages AI-driven negotiations and real-time data, helping businesses optimise costs, shorten negotiation cycles, and alleviate unnecessary administrative duties. Nikolian noted that procurement has historically demanded extensive manual work, with teams often investing weeks in communication with suppliers, only to arrive at prices that may be higher than optimal. This, coupled with outdated pricing models and fragmented dialogues, results in inefficiencies that deplete resources and create inconsistencies in pricing.
The inception of Wimble AI was borne out of Nikolian’s observation while serving as a leader at a supply chain company in Eastern Europe. He noted that while the need for technological advancement in procurement was apparent, past limitations in technology hampered automation efforts. However, the advent of transformer-based models has opened new pathways for optimising pricing and supplier negotiations using AI.
Wimble AI redefines the procurement landscape by integrating sophisticated negotiation algorithms and large language models, equipping manufacturers with data-driven approaches that adapt to shifting market conditions. The platform transforms procurement workflows, replacing slow, manual procedures with autonomous AI agents capable of analysing supplier pricing trends globally in real time. These agents negotiate deals autonomously based on comprehensive market intelligence, optimising purchasing decisions by considering factors such as pricing, delivery timelines, and supplier reliability. This significant reduction in manual negotiations enables manufacturers to make procurement decisions more swiftly and confidently, freeing up resources for other core business functions.
While the potential of AI is recognised, the supply chain sector has been comparatively slow to embrace such innovations, often hindered by concerns surrounding data security, implementation costs, and an overarching scepticism towards new technologies. Nevertheless, Wimble AI is already demonstrating measurable benefits for established industry players, leading the way in showcasing the effective integration of AI in procurement. As the manufacturing industry faces intensified competition and narrowing profit margins, these early success stories underline the practical advantages of automated sourcing and supplier negotiations.
Nikolian believes that the shift towards AI-driven solutions is inevitable, stating that the question is no longer “if” but rather “when” manufacturers will fully adopt these innovations. He insists that for manufacturers to remain competitive and profitable in the rapidly evolving marketplace, the adoption of automation and data-backed decision-making will be increasingly crucial.
Source: Noah Wire Services
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