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AI analytics for procurement

A contract claimed 480,000 of savings; the invoices show 296,000, because one site never switched and another bought elsewhere. AI analytics reads the purchase order, invoice and contract files, and answers the category manager's question: what was actually saved, who is buying off contract, and which suppliers are slipping.

Ask it in your own words

These are the questions procurement teams ask. Each one maps to a measure our tools compute from your files. The AI model chooses the measure and explains the result; the arithmetic is done by our code, and every total is checked.

The questionThe measure behind itWhat comes back
How much of the claimed saving actually landed?Savings realised against claimedInvoiced volume at the new price against the forecast, with the volume at old prices and off contract, by site.
Who is buying off contract, and what?Maverick spend by requesterSpend outside contracted suppliers by requester, site and category, with the items.
How much of each category is under contract?Contracted share by categorySpend with contracted suppliers over category spend, with the tail of suppliers behind the rest.
Are we paying to the agreed terms?Payment terms complianceInvoices paid inside terms over invoices, by supplier, and the early payments' cost.
Which suppliers are deteriorating?Supplier performance against own baselineDelivery, quality and price against each supplier's own history, with the ones sliding.
Which contracts expire with no plan?Contract expiry coverageContracts expiring in the window against those with a renewal or tender under way, by category.

A conversation, with the figures

Every figure below was computed by a tool from the rows and checked before it was shown. The lines sum; the percentages match; each line opens to the rows that make it.

How much of last year's claimed savings was realised?

Savings not realised against claims total $381k across 3 categories, where volume went to the old price, another supplier or another item. Packaging accounts for $184k, 48% of the shortfall.

Packaging$184k48% of the total
Logistics services$121k32% of the total
MRO supplies$76k20% of the total
The 3 lines sum to$381k0 unexplained

Where did the packaging saving go?

3 causes account for $184k of the $184k shortfall in Packaging, 100% of it. One site never switched to the new price, and one requester kept ordering from the previous supplier.

Riverside site at old price$84k2.1m units never repriced
Off-contract supplier, one requester$61k1.9m units bought elsewhere
Volume below forecast$39k12m forecast, 11.4m bought
These 3 are$184k100% of Packaging

What does the category manager do?

Fix the price on the Riverside site's item master, take the maverick spend to the requester's manager, and report realised savings beside claimed from now on. The tool shows the same three lines next quarter.

Category manager, packagingCorrect the Riverside price and block the old supplierThis week
Site procurement leadsReview maverick spend by requester monthlyMonthly
Head of procurementReport realised against claimed to financeQuarterly
How much of the claimed saving actually landed?Who is buying off contract, and what?How much of each category is under contract?Are we paying to the agreed terms?

The measures behind the answers

Each measure has one formula, one source and one meaning. They are computed per category and requester and in total, and every one carries an identity that must hold before it is shown.

MeasureFormulaFromWhat it tells you
Spend under managementInvoices with a contracted supplier, in force, covering the category, through the agreed channel ÷ addressable spendPayables ledger; contract fileWhat procurement has really seen
Contracted share by categorySpend with contracted suppliers ÷ category spendPayables ledger; contract fileCategories with a contract and low compliance
Maverick spend by requesterOff-contract spend in contracted categories, by requester and cost centrePayables; purchase ordersWhere off-contract buying comes from
Savings realised against claimed(Baseline price − price invoiced) × volume invoiced under the agreement ÷ savings claimedInvoice lines; sourcing recordsWhether the savings reached the ledger
Suppliers per category and the tailSuppliers making up the last 5 percent of category spend; transactions and cost to processPayables ledgerA tail that costs more to run than it buys
Payment terms complianceDays paid against contracted terms, value-weighted; invoices paid earlyPayables ledger; contract termsWorking capital given away
Supplier performance against own baselineOTIF, defects and lead time against the supplier's trailing 12 monthsReceipts; quality fileSuppliers that have changed
Contract expiry coverageContracts expiring in 180 days with a sourcing plan ÷ contracts expiring, by spendContract fileRenewals that will be rolled over by default
Price variance on like itemsHighest ÷ lowest unit price paid for the same item across sites and suppliersInvoice lines with item codesThe same item bought at three prices
Supplier concentrationLargest supplier's share of category spend; single-source categoriesPayables ledgerDependence, and negotiating position

Each measure is worked through, with the export it comes from and what to drop, in KPIs for procurement teams.

What the AI model does, and what our tools do

The AI model chooses the measure

From your question and the measures declared for procurement, the model picks the one that answers it, and the period and comparison the question implies.

Our tools do the arithmetic

Deterministic code reads the rows, computes the measure, and checks the identities below. The same question on the same data gives the same answer, every time.

The AI model explains, and cites

The AI model writes the sentence around the result, naming the category or account behind it. It states no figure that is not in the result, and every figure links to its rows.

The identities that must hold

SpendTotal spend = addressable + excluded; addressable = managed + unmanaged
CategoriesCategory spend sums to addressable spend; every supplier in one primary category
SavingsVolume forecast = bought at new price + bought at old price + bought elsewhere + not bought
ContractsContracts = in force + expired + no end date recorded

What it reads

The exports procurement teams already produce. Column names are mapped once and the mapping is reused. A file is the way in; scheduled delivery and connections to your systems come with the plan, and every source is listed here.

  • Payables ledger
  • Contract file
  • Purchase orders
  • Invoice lines
  • Sourcing records
  • Contract terms
  • Receipts
  • Quality file

Who owns each answer

An answer is a list with an owner and a cadence, or it is a chart nobody works.

MeasuresOwnerCadence
Maverick spend; payment terms complianceCategory managers; accounts payableMonthly
Supplier performance; contract expiry coverageCategory managersMonthly
Savings realised; price varianceChief procurement officer; financeQuarterly
Spend under management; tail; concentrationChief procurement officerQuarterly

Questions procurement teams ask about AI analytics

How does it measure a saving that was claimed?

By reading the invoices. Units bought at the new price times the price difference is the realised saving; units still at the old price, bought elsewhere, or never bought are the shortfall, each as its own line. The claim came from a forecast; the realisation comes from the ledger, and the two are shown together.

Can it find maverick spend by person?

When the purchase order or invoice file carries the requester, yes. Spend outside contracted suppliers is listed by requester, site and category with the items, so the conversation is specific. Names can be replaced with identifiers before upload, and are on Enterprise.

What does a procurement team need to load?

Purchase orders and invoices with supplier, item, price and site, the contract file with prices and terms, and receipts for supplier performance. Payment dates add terms compliance. Every file is one the ERP and accounts payable already produce.

Does it reconcile to accounts payable?

Invoiced spend by supplier sums to the AP file's total, and every saving or shortfall line is a set of invoices. Where the category manager's spreadsheet disagrees with the tool, the difference is a list of invoices, not a debate.

See it on your data

Bring a few thousand rows. The data map opens next, every column mapped once, and the first question is answered in minutes. Free, in your browser, no account.