How ewiz commerce helped India’s leading FMCG group transform its procurement with AI and Analytics

Explore how ewiz commerce (A Powerweave brand) enabled a transformative procurement process for a leading Indian multinational conglomerate, integrating AI to enhance decision-making, automate documentation, and visualize key performance indicators.

Summary

Our client*, a leading FMCG group, stands at the forefront of innovation in the personal care and healthcare segments. With products sold in over 60 nations and available across 4.5 million retail outlets in India, the company has cemented its status as a leader in its field. Known for its relentless pursuit of excellence, the conglomerate constantly seeks ways to enhance its operational efficiency and maintain a competitive edge in the market.

They collaborated with ewiz commerce to overhaul their procurement processes. It illustrates how AI and analytics were harnessed not just as tools, but as integral components to reimagine procurement, making it more intuitive, efficient, and strategically sound. The transformation story here is not merely about adopting new technologies; it's about embedding intelligence at the core of procurement operations, setting new benchmarks in efficiency and decision-making in the global market.

* Client confidentiality is paramount for us, and due to NDA commitments, some customer names cannot be disclosed publicly.

The Challenge

• Complex spend analysis: Struggled with analyzing its vast procurement data, making it challenging to optimize spending across vendors, locations, and brands.
• Manual decision-making process: Manual decision-making led to inefficiencies and suboptimal strategies, especially under fluctuating market conditions.
• Limited visibility to Senior Leadership: Inefficient, Excel-based processes reduced agility and obscured senior management visibility.

Before the AI transformation, the company’s procurement landscape was mired in complexity and inefficiency. The manual and intuition-based processes, coupled with the lack of a sophisticated analytical system, meant that procurement decisions were often not as data-driven or timely as required. This situation was further complicated by rapidly changing external factors like market trends and commodity prices, which the existing system was ill-equipped to adapt to or predict effectively.

At a strategic level, the need for a comprehensive and flexible solution was clear. The existing approach to procurement was not only limiting the company's efficiency but also its ability to capitalize on market opportunities and manage risks. A transformative solution was required—one that could leverage AI to bring precision, speed, and foresight into their procurement processes.

The Solution

Implementing a smart procurement platform to automate procurement processes

Control Tower dashboard for spend analysis: An AI-enabled Control Tower dashboard was developed to provide a holistic view of the entire Spend Cube. This tool allowed for advanced filtering, sorting, and analysis of procurement data, enabling the senior leaders with much-needed visibility for strategic decision-making based on a variety of criteria, such as vendor performance, location, and market trends.

AI-driven automated decision making: The system was equipped with AI and machine learning algorithms to absorb and analyze internal data, supplemented with external factors like weather conditions and macroeconomic trends. This integration enabled the system to make automated procurement recommendations, such as the optimal timing for contract negotiations, advisable rates, and vendor selection.

Automated documentation and supplier evaluation: The solution utilized LLM Agents to automate the generation of RFQs and negotiation scripts, utilizing real-time data to create dynamic supplier evaluation scorecards. This not only streamlined the documentation process but also ensured accuracy and consistency in supplier assessments.

KPI visualization dashboard:A specialized dashboard for visualizing procurement KPIs was integrated, offering capabilities for in-depth analysis, including historical data review and budget-to-actual comparisons. This feature provided the organization with crucial insights for continuous improvement and strategic planning.

Customization and flexibility: Recognizing the diverse needs of the conglomerate's global operations, the solution was designed for high customization and flexibility, allowing it to adapt to various procurement scenarios and requirements.

This AI-enhanced procurement solution represented a significant step forward in automating and optimizing the organization’s procurement processes, offering a level of insight and efficiency previously unattainable.

The Result

Setting new milestones with AI-driven procurement

Performance demonstrated over 1.5 years post-implementation.

The implementation of the AI-powered procurement solution delivered remarkable results for the FMCG giant, marking a significant improvement in several key areas:

Enhanced decision-making efficiency: The AI-driven decision-making process significantly reduced the time required to make procurement decisions. This efficiency gain enabled quicker responses to market changes and opportunities, streamlining the entire procurement cycle.

Increased data processing speed: The ability to quickly process and analyze large volumes of data was dramatically improved. The system's enhanced speed in handling data meant that insights and recommendations were generated more rapidly, contributing to more agile procurement strategies.

Improved accuracy in spend analysis: The precision of spend analysis was substantially increased. The Control Tower dashboard allowed for more accurate and insightful spend data analysis, leading to better-informed strategic decisions.

Consistency in supplier evaluations: Automation of RFQs and supplier evaluations brought about a higher level of consistency and accuracy. This improvement was crucial in maintaining strong supplier relationships and ensuring the best procurement choices.

The The client’s procurement process was not only optimized for efficiency and speed but also enhanced in terms of strategic capability and insight. These advancements represent a significant leap forward in the organization's procurement operations, setting a new standard in the industry.

Looking ahead

Fostering continuous improvement and innovation in procurement

As the client looks towards the future, its eyes are set on deepening the integration of AI across its operations. Building on the successful implementation in procurement, the company envisions an expanded role for AI that transcends traditional boundaries, promising not just incremental improvements but a transformative impact on its business landscape.

The immediate focus is on enhancing AI capabilities within procurement, pushing the boundaries of predictive analytics and decision-making precision. This effort is coupled with plans to roll out AI applications in other business areas, aiming to replicate the success and efficiency achieved in procurement. Additionally, a commitment to continuously enrich the data used by AI systems stands at the forefront, ensuring that every decision is backed by robust and comprehensive insights.

In parallel, the company is gearing up to empower its workforce with AI-focused training initiatives, equipping them to harness the full potential of these advanced tools. This upskilling is more than just an investment in technology—it's an investment in people, fostering a culture where innovation thrives. With these strategies in place, the company is not just navigating the future; it's shaping it, leveraging AI to unlock new opportunities and drive sustainable growth in a dynamic global market.