Smart Sourcing in Manufacturing: The Impact of AI-Driven RFX Automation

1. Challenge

Addressing Resource Constraints in Procurement

A leading manufacturing company encountered several challenges in its procurement processes, which impeded operational efficiency and strategic decision-making:

• Limited Resources for RFX Management: The company lacked sufficient capacity to effectively handle RFX creation, supplier communication, proposal comparisons, and negotiations.
  
  
• Difficulty in Attracting Talent: Recruiting skilled procurement professionals was a significant hurdle, further straining internal resources.
  
  
• Time-Consuming Processes: Manual RFX management reduced the time available for strategic initiatives, limiting the ability to drive innovation and cost optimization.

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2. Solution

AI-Driven RFX Automation for Enhanced Procurement Efficiency

AICONIC helped the company overcome these challenges by implementing a comprehensive AI-powered RFX automation solution:

• Deployment of an AI Agent: An intelligent RFX automation agent streamlined supplier communication, proposal comparisons, and negotiations.
  
  
• Integration with the IFS ERP System: The seamless integration allowed procurement teams to leverage existing data and enhance decision-making.
  
  
• Automated Process Management: Proposal evaluations, negotiations, and compliance checks were automated, reducing manual effort and errors.

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3. Impact

Tangible Benefits from RFX Automation

The integration of AI-driven RFX automation led to measurable improvements:

• +120 Hours Saved for Strategic Tasks: Automation enabled procurement teams to redirect resources to higher-value activities, such as managing supplier relationships and long-term planning.
  
  
• +6% Procurement Cost Savings: Rule-based sourcing processes and optimized supplier selection resulted in significant savings, positively impacting the bottom line.

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4. Our Approach

AI-Driven Transformation for Procurement Excellence

AICONIC implemented a tailored solution to address the company’s procurement challenges. By deploying an RFX automation AI agent and seamlessly integrating it with the IFS ERP system, the focus was on automating supplier communication, proposal comparison, negotiations, and evaluations.

This approach ensured a smooth transition from manual processes to automation, enabling immediate improvements in efficiency and resource utilization.

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5. Looking Ahead

Expanding AI Integration Across Procurement

With the successful implementation of RFX automation, the company is better equipped to handle procurement processes efficiently. By leveraging the +3 FTEs release for strategic tasks and achieving +6% savings in procurement spending, the company has established a solid foundation for sustained operational improvements.