Valvoline Inc. reports significant savings through its innovative partnership with Arkestro, leveraging artificial intelligence to optimise procurement processes and reduce operational expenses.
Valvoline Inc., a prominent name in preventive automotive maintenance, has reported notable cost savings stemming from its partnership with Arkestro, a company specialising in predictive procurement technology. According to a recent announcement, this multi-year collaboration has enabled Valvoline to realise a 14 percent reduction in annual maintenance, repair, and operations (MRO) expenses, alongside a 27 percent saving on snow removal and landscaping services across its corporate stores.
Arkestro’s platform, which integrates artificial intelligence, game theory, and behavioural science, is designed to streamline procurement activities by creating dynamic sourcing events. These events encourage competitive pricing and foster closer strategic engagement with suppliers. Valvoline’s Senior Purchasing Manager indicated that the platform has significantly reduced the manual effort typically involved in complex service categories, allowing the procurement team to focus on higher-impact priorities. The platform’s centralisation of sourcing events and simplified evaluation processes are cited as contributing factors to these efficiencies.
The partnership represents a push towards transforming procurement from a traditional cost centre into a strategic business advantage. Arkestro’s CEO highlighted the particular demands of Valvoline’s scale and supply chain complexity, suggesting that the platform’s predictive capabilities are helping construct a more data-driven procurement function. As the collaboration enters its second year, Valvoline plans to expand the use of the platform further to streamline evaluations and establish scalable, consistent workflows.
Arkestro has been gaining momentum in the procurement industry, evidenced by further strategic collaborations and recent investment rounds aimed at accelerating its innovation in AI-powered procurement solutions. The company also integrates its technology with broader enterprise resource planning systems, such as those offered through Infor Marketplace, thereby extending its reach and utility across various organisations and sectors.
Notwithstanding these positive results, broader market reviews indicate that such procurement platforms are still evolving, and their long-term efficacy depends on factors including integration depth, user adoption, and supplier responsiveness. For instance, while predictive procurement platforms promise measurable savings and risk reduction, the scale and sustainability of such benefits can vary by industry and company operational complexity.
Ultimately, Valvoline’s experience with Arkestro reflects a growing trend among large enterprises to adopt AI-driven procurement tools as a means to unlock trapped savings and enhance operational efficiency. This case adds to the accumulating evidence that technology-enabled procurement transformation is becoming a critical enabler of competitiveness in increasingly complex supply chain environments.
Source: Noah Wire Services
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