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Using GenAI to Streamline Procurement and Supply Chain Operations

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Using GenAI to Streamline Procurement and Supply Chain Operations

Esther Levine
June 18, 2022 /
4min. read

Industry: Manufacturing

Strategic Audience

Manufacturing companies and industrial organizations with global supply chains, particularly procurement managers, supply chain directors, and operations administrators managing multi-vendor operations which rely on a range of ERP systems and other backend databases and applications.

Personas

  • Global Procurement Manager
  • Supply Chain Director
  • Procurement Specialist

Challenge

Decision-makers lack real-time visibility into critical metrics like order status, customs documentation, and supplier performance, preventing them from responding rapidly to supply chain disruptions and procurement inefficiencies.

Solution

eRAG transforms how manufacturing organizations access and act on their procurement and supply chain data by enabling ad hoc spontaneous natural language queries against multiple structured databases.

Instead of waiting days for siloed data from multiple teams, procurement managers can instantly get critical information derived from multiple data sources through simple conversational requests. This enables them to respond rapidly and proactively to supply chain disruptions, delivery delays, surges in orders or unexpected regulatory requirements.

Typical questions users ask eRAG:

  • How many orders did buyer 100 have in 2023, broken down by month?
  • How many import orders from 2024 don’t yet have import files?
  • What is the average time between opening a requisition and creating an order for buyer 100 in 2024?
  • How many purchase orders with a total amount over $250,000 were placed with vendor ‘A’ in 2024?
  • Which orders are currently held up in customs and what documentation is missing?
  • Compare supplier performance metrics across our top 10 vendors for the last quarter

Benefits

With eRAG, manufacturing companies can achieve:

  • 60% reduction in time spent getting current procurement information and compiling order data (from hours to minutes) enabling rapid response to supply chain issues
  • 15-40% decrease in port storage costs through proactive customs documentation management
  • Elimination of production disruptions through fast resolution of potential supply issues
  • Enhanced supplier negotiations with instant access to purchasing history and vendor data

Implementation Considerations

eRAG integrates with multiple procurement and backend operational database systems with no need for pre-processing or data modeling. Initial setup involves mapping procurement data terminology and establishing user permissions. Training focuses on query optimization rather than technical system management, with most users becoming proficient within 2-3 weeks. SaaS delivery eliminates infrastructure requirements.

ROI Analysis

The following are estimates for a mid-sized manufacturing company implementing eRAG for procurement operations:

Benefit Category Conservative Annual Value Aggressive Annual Value
Direct Cost Savings (port storage, manual processes) $100,000 $200,000
Productivity Gains (report generation, analysis) $95,000 $140,000
Risk Mitigation Value (avoiding disruptions, compliance) $80,000 $200,000
Total Annual Value $275,000 $540,000

Let’s Talk

Let’s chat to see how eRAG can integrate with your environment and empower your teams with the data they need to make smart, on-the-spot decisions.

Tags:

Esther Levine

Product Marketing | B2B

Esther Levine joined Product Marketing at GigaSpaces in 2022, bringing 20 years of experience in software technology companies ranging from security, ERP, cloud computing, and media platforms, among others. Esther has a Bachelor of Science from the University of Toronto.

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