**London**: A multinational energy company has signed a multi-year deal to implement Arkestro’s Predictive Procurement Platform across its global operations, aiming for significant cost reductions and improved efficiency, as it seeks to transform procurement strategies within the industry.
A major multinational energy company has signed a multi-year agreement to implement Arkestro’s Predictive Procurement Platform across its entire global supply chain operations. This decision follows an extensive evaluation process and is poised to yield significant financial benefits, reportedly delivering tens of millions in material value and enhancing the company’s earnings per share.
Implementation of the Arkestro platform aims to streamline procurement processes by eliminating outdated practices that reduce profitability. The energy leader has already achieved over a 20% reduction in procurement margins through the platform, reflecting a concerted effort to drive efficiency and cost-effectiveness in a complex procurement environment.
Edmund Zagorin, Arkestro’s Founder and Chief Strategy Officer, stated, “Our customers are seeing an immediate and significant impact on cost reductions and cycle times with the Arkestro platform.” This partnership, he adds, will allow the procurement team of the energy company to concentrate on strategic priorities by addressing larger spending portfolios.
Rob DeSantis, Co-Founder and CEO of Arkestro, expressed his enthusiasm about the collaboration, describing it as a significant milestone for the company. He noted the long-standing relationship between Arkestro and the energy firm, dating back to their early partnership when he co-founded Ariba nearly 25 years ago. DeSantis asserted that with Arkestro’s technology, procurement teams are empowered to make faster, data-driven decisions, transforming their role from simply managing costs to actively driving margins.
Arkestro’s platform employs advanced technologies, including artificial intelligence, behavioural science, and game theory, to enhance supplier collaboration, reduce sourcing cycles, and generate average cost reductions of 18.8% across various spending categories. The integration of these techniques aims to shift procurement from a traditionally reactive function to a proactive entity capable of fostering substantial operational agility and improved supplier relations.
As the global energy leader joins a growing list of clients leveraging Arkestro’s technology, the implications of this partnership could reshape procurement strategies across the industry, fostering greater operational efficiencies and financial performance.
Source: Noah Wire Services
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