In an era defined by economic volatility and changing trade policies, procurement teams are increasingly challenged by tariff-related complexities. Arkestro, an innovative provider in this field, has introduced a predictive procurement platform that leverages artificial intelligence to turn these challenges into strategic opportunities.
Edmund Zagorin, Arkestro’s Founder and Chief Strategy Officer, outlined how the platform addresses the intricacies of modern procurement during a recent webinar. He emphasised the importance of not letting time-consuming tasks—such as managing spreadsheets and PDFs—divert focus from high-impact negotiations. According to Zagorin, the real value in procurement lies in data-driven decision-making and strategic negotiations that yield significant savings.
The platform employs what Arkestro refers to as the “Three Sciences of Predictive Procurement”: Negotiation Science, Supplier Science, and Process Science. This framework allows teams to act swiftly in the face of tariff fluctuations, enabling them to identify alternatives among vetted suppliers who have not been previously used for specific items. This approach is critical for rapid responses to tariff changes, allowing for the generation of backup plans without the customary onboarding delays often associated with new suppliers.
Zagorin noted that traditional pricing models are often distorted by tariffs. To counteract this, Arkestro’s AI embeds real-time cost modelling into the quoting process, utilising external benchmarks and volume-based pricing to create optimal negotiation scenarios. He stated, “You can think of the way that Arkestro’s AI approaches pricing as a new way of cost modeling,” which helps businesses adapt to shifting market conditions with unprecedented speed and precision.
Alongside pricing strategy and supplier flexibility, Arkestro actively assists companies in renegotiating terms and optimising freight strategies. The AI within the platform identifies exact needs and facilitates efficient execution, streamlining what would traditionally be a cumbersome process. As Zagorin pointed out, “These are all process and people changes…but with AI, it is less work.” The resulting benefit is a more agile procurement function that is better equipped for tariff-induced challenges.
Complementing this analytical strength is Arkestro’s Opportunity Intelligence, designed to facilitate timely sourcing actions based on real-time data analysis. This tool aims to transform procurement from a reactive operation into a proactive driver of resilience and value creation, capitalising on the team’s ability to manage price volatility effectively.
During the same session, Ben Leiken, Arkestro’s Chief Technology Officer, provided a live demonstration of the platform’s capabilities. He showcased its intelligence features that analyse past purchasing behaviour to generate actionable insights. By recommending optimal timing and alternative suppliers who may be less impacted by tariffs, the platform equips procurement teams with tools for immediate action.
Leiken also illustrated how the platform enables users to create draft events populated with essential data, suggested pricing, and potential suppliers. Through machine learning, Arkestro can generate competitive initial offers and cater to items that have not been previously sourced. The aim is to facilitate smoother supplier engagement and enhance overall procurement efficiency.
While Arkestro’s platform has made strides in addressing procurement challenges in the face of tariff volatility, it underscores a broader trend in the field. With the influence of economic factors, including the global semiconductor shortage, organisations are prompted to leverage data-driven approaches to navigate these complexities effectively. Such adaptive measures not only drive faster savings but also enhance operational resilience.
In conclusion, Arkestro’s advancements in predictive procurement are poised to reshape how teams engage with sourcing challenges in a volatile economic landscape. By integrating AI and strategic methodologies, Arkestro is not just responding to tariff challenges but is redefining procurement itself, allowing businesses to remain competitive and responsive in a rapidly changing marketplace.
As procurement teams continue to face evolving challenges, Arkestro’s solutions provide a forward-thinking framework to not just react, but to anticipate and adapt—turning potential disruptions into avenues for strategic growth.
Reference Map
- Overview of Arkestro’s platform and Three Sciences of Predictive Procurement.
- Importance of machine learning in pricing and supplier engagement.
- Context of economic factors influencing procurement strategies.
Source: Noah Wire Services
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