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Using AI to accelerate value creation (CS282)


This story is for CEOs who

  1. Have lost sight of member or customer behavior
  2. Are unable to access critical data
  3. Need to track their progress toward financial goals

The Challenges

A general procurement organization in the food services industry negotiates with vendors on behalf of its members. Before SGS Maine Pointe came in, the organization had no clear idea of member purchasing behavior, including vendor preferences. Critical data was buried in a mountain of invoices that were processed manually.


Giving visibility into current and future spend and profit drivers

SGS Maine Pointe:

  • Analyzed purchasing behavior with a group purchasing management operation system (GPMOS)
  • Gave the organization the data needed to convince new members to join and current members to stay
  • Provided financial insight with an executive dashboard linked to the data base
  • Identified profit drivers such as management fees and annualized rebates and uncovered the organization’s own spending patterns.
  • Enabled organization to negotiate strategically with vendors to create more favorable contracts based on volume
  • Enabled organization to better justify management fees and rebates to members

Lessons learned for other executives

  • Advanced data analytics provides insight into spend, customer behaviors, and profit drivers 
  • Validation and formatting make data accessible, reliable, and valuable
  • Deep learning AI expedites the process of gleaning and organizing data

The Results

  • Captured 365,000 line items in 75 days
  • Delivered $3M annualized benefits
  • Improved EBITDA 20%
  • Grew group volume 7%
  • Created a group member purchasing management operation system (GPMOS)
  • Built a spend cube and executive dashboard

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