Tipically, 80% of total supplier spend is typically concentrated in 20% of suppliers while the remaining 20% is fragmented among 80% of suppliers. This means that the tail spend has far too many vendors to be efficiently and effectively managed.

As a result, negotiations with long-tail suppliers are typically run inefficiently and ineffectively leading to mediocre results, a lack of control and oversight over these smaller vendors, and, crucially, money left on the table, that, in the aggregate, could generate substantial cost savings to the corporation.

Features

Data Export Transform and Load

Axtom downloads supplier data from a company’s ERP. Then Axtom cleans the data, validates records, completes missing data, and removes duplicates. The now cleaned data is then enriched with relevant external data, allowing for improved identification of all negotiation opportunities for each supplier that’s been analyzed.

Opportunity Identification

Once supplier data has been cleaned and enriched, the Axtom Brain processes this information and identifies all possible negotiating levers or opportunities. Our AI based algorithms search for ways to improve pricing, payment and delivery terms, or other negotiation objectives. We’ve automated all of the most commonly used negotiation levers ensuring that Axtom’s negotiations are effective.

Identify Optimal Negotiation Strategy

Axtom takes all of the negotiation opportunities it has identified and puts them through our optimization engine. Axtom evaluates all negotiating alternatives in order to identify the best overall negotiation strategy for every supplier, maximizing the total expected value of the negotiation.

Automate Negotiations with Suppliers

Axtom lets users review and edit proposed negotiation strategies for every supplier. Users can launch negotiation campaigns on an individual supplier basis or with thousands of suppliers simultaneously. The negotiation will be carried through our easy to understand but powerful platform where incumbent suppliers will be able to respond easily. We use well-structured forms which allow the platform to react and adapt all negotiations according to supplier responses in real time. Thus, Axtom not only speeds up negotiations but can also iterate with suppliers as much as is needed to arrive at a mutually acceptable negotiations outcome.

Execute Agreements Seamlessly

Axtom completes negotiations by generating clear and well defined agreements which can be quickly and easily transformed into contracts with suppliers.

Average Savings: 7% to 12%

Based on years of experience in cost reduction and profit recovery consulting, a well-run negotiation with smaller supplier yields average savings between 7% to 12% in most cases.

Benefits

Data as is

As supplier management systems evolve and become more complex, there continue to be issues with data such as corrupt records, duplicates, missing fields and applications misuse. Axtom doesn't require "good" data to run, as it is able to process, clean and analyze customer data "as-is"

Adopt the Best Negotiation Strategies

Negotiation strategies can always be adapted to each company’s particular way of doing business, allowing you to control how your company interacts with each of its suppliers

Let AI do de job

Our AI based algorithms identify winning negotiation strategies that are equivalent to and in some respects superior to what human beings can achieve, but at orders of magnitude faster than the status quo dramatically improving productivity.

Maverick Spend

Axtom identifies both buyer and seller patterns that are "outliers" which may indicate "maverick spend" which can then be brought under control and back in-line with the rest of company purchasing

Detailed Data Insights

Axtom generates and presents insights from our AI processing engine in simple and easy to understand views which allows users to export and present information including exporting reports to other business platforms

Ease of Mind

As Tail Spend is highly fragmented over many suppliers, it is almost always very difficult to manage. Axtom can provide procurement and other buyers ease of mind, ensuring company spend is efficiently and effectively addressed.

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