TMT

Delivered $125M in savings annually and 99% spend classification

Challenges
The client—a leading technology multinational—needed a rigorous spend analysis solution to negotiate and prioritize with limited resources available. There was lack of clarity on spending to support annual planning to one off requests from executives or category managers. The client needed to rank their suppliers in order of priority based on total spend by all business units for annual planning. The client needed to track their spend with diverse suppliers to demonstrate regulatory compliance with federal entities.
Solutions
ElectrifAi solution to drive spend classification for 10 data sources through: Data Validation, Data Cleansing and Consolidation, Vendor Clustering and Parenting, Spend Classification, Data Extraction and SpendAi Dashboards available to all licensed users.
Outcomes
$125M
annual savings from spend
Reduce supplier by 40% improving negotiating leverage
99%
of spend classified
ElectrifAi’s solution reduced the number of suppliers by approximately half in the past five years with 40% Supplier Compression. The solution achieved $125M in savings from spend annually through spend insights and lowering spend as % of revenue to 3.8%, exceeding best in class for a Technology multi-national. 99% of spend was classified.