Automate Supplier Negotiations and Boost Profits with Pactum

Automate Supplier Negotiations and Boost Profits with Pactum

Table of Contents:

1. Introduction
2. The Challenge of Supplier Management
3. Introducing Pactum: An Automated Negotiation Solution
4. How Pactum Works: A Step-by-Step Guide
5. Unlocking Hidden Value: The Benefits of Pactum
6. Success Stories: Walmart and Fortune 500s
7. Improving Contract Value: The Impact of Pactum
8. The Full Product Portfolio: Industries and Use Cases
9. Series A Funding and Growth
10. Contacting Pactum: Starting the Conversation
11. Jury Questions: Implementation and Commercial Model

Introduction

In today's competitive business landscape, managing suppliers efficiently is crucial for success. However, dedicating time and resources to negotiate contracts with hundreds or even thousands of suppliers can be extremely challenging. This is where Pactum, the first-ever solution for fully automated end-to-end negotiations, comes in. With the power of artificial intelligence (AI), Pactum aims to unlock hidden value and improve bottom line profits for organizations. In this article, we will explore how Pactum works, its advantages, success stories, and its impact on contract value.

The Challenge of Supplier Management

The majority of an organization's time and effort are often spent on negotiating contracts with its suppliers. However, due to the sheer volume of suppliers and the complexity of negotiations, much of this time and effort go to waste. Human brains are not designed to handle the intricacies of multi-dimensional calculations involved in supplier negotiations, resulting in missed opportunities and leaving money on the table. This is a common problem faced by many organizations, but Pactum aims to change that.

Introducing Pactum: An Automated Negotiation Solution

Pactum is a groundbreaking solution that automates the end-to-end negotiation process. By leveraging AI, Pactum enables organizations to streamline supplier negotiations and unlock hidden value. The process begins with an email sent to suppliers, directing them to the Pactum supplier portal. Here, suppliers engage in a conversation with an AI representative, just like in a real negotiation. They can express their preferences, make offers, counter offers, and explore various payment terms options. The magic behind Pactum lies in its AI's ability to understand the values of different contract terms and make complex trade-offs automatically. Once an agreement is reached, both the supplier and the organization receive an email to electronically sign the contract using Docusign. This automated system then updates the organization's internal systems seamlessly.

How Pactum Works: A Step-by-Step Guide

1. Supplier receives an email with a link to the Pactum supplier portal.
2. Supplier engages in a conversation with an AI representative.
3. Supplier communicates preferences and participates in offers and counter offers.
4. AI makes complex trade-offs based on the values of different contract terms.
5. Once an agreement is reached, both supplier and organization electronically sign the contract.
6. Pactum automatically updates the organization's internal systems.

Unlocking Hidden Value: The Benefits of Pactum

Pactum offers numerous benefits to organizations, including:

• Uncovering hidden value in supplier negotiations.
• Automation of the negotiation process, saving time and resources.
• Improved bottom line profits by increasing contract value.
• Data-driven decision-making for future negotiations.
• Streamlined communication and contract signing with suppliers.
• Customizable AI-driven solutions for various industries and use cases.

Success Stories: Walmart and Fortune 500s

Pactum's effectiveness is evident through its success stories with industry giants like Walmart and other Fortune 500 companies. By implementing Pactum, these organizations have witnessed significant bottom line profit improvements. For example, Pactum generated $193 million in pure profit annually for one client. On average, Pactum improves contract value by 4.2 percent, which can Translate to 40 to 50 percent extra profitability per supplier for businesses with low margins.

Improving Contract Value: The Impact of Pactum

The main goal of Pactum is to increase the value of contracts between organizations and their suppliers. Through automation and AI-driven decision-making, Pactum ensures that each negotiation results in improved contract terms. With the ability to handle thousands of negotiations and learn from previous results, Pactum continuously fine-tunes its algorithms to optimize outcomes. By leveraging the power of data, organizations can generate greater net value and profitability.

The Full Product Portfolio: Industries and Use Cases

Pactum's solution goes beyond a single negotiation Scenario. It caters to various industries and use cases, such as PEO negotiations, bidding negotiations, item-level negotiations, merchandising negotiations, working capital negotiations, freight negotiations, and more. Pactum's versatility allows organizations from different sectors to benefit from automated negotiations and unlock value across their supply chains.

Series A Funding and Growth

To fuel its expansion and product development, Pactum recently raised $11 million in a Series A funding round led by Atomico. This investment enables Pactum to further enhance its AI capabilities and expand its product portfolio to serve a wider range of industries and use cases. With its proven success and growing recognition in the market, Pactum aims to revolutionize the supplier negotiation landscape.

Contacting Pactum: Starting the Conversation

If you are interested in discovering how Pactum can improve your bottom line profits and unlock hidden value in your supplier negotiations, reach out to Pactum via LinkedIn or direct message. Start a conversation and experience the benefits of automated negotiations firsthand.

Jury Questions: Implementation and Commercial Model

During the Q&A session, the jury members raised important questions regarding the implementation of Pactum and its commercial model. Casper, the co-founder of Pactum, explained that clients usually start with a proof of concept to witness the effectiveness of the solution. The implementation process involves understanding the negotiation space, setting up the system, and integrating existing rates and terms through financial systems or APIs like SAP Ariba or Coupa. As for the commercial model, Pactum aims to meet the unique needs of each client. While a gain share model, where Pactum takes a percentage of the value created, is ideal, license fees per negotiation are also considered.

Conclusion

Pactum's automated negotiation solution addresses the challenges faced by organizations in managing supplier negotiations effectively. By leveraging AI, Pactum streamlines the negotiation process, unlocks hidden value, and increases bottom line profits. Its success stories with industry leaders and its ability to improve contract value make it a valuable tool in today's competitive business landscape. With its full product portfolio and a commitment to data-driven decision-making, Pactum is revolutionizing the way organizations negotiate with their suppliers.