Pactum, the creator of autonomous negotiation technology, wins the prestigious Digital Procurement World 2021 Startup Competition
The procurement industry recognizes Pactum as a category creator that helps the world's largest brands unlock millions' worth of net new value
SAN FRANCISCO, Sept. 20, 2021 /PRNewswire/ -- Pactum, the creator of autonomous negotiations, has won in the Automation & Efficiency category in this year's edition of Digital Procurement World's DEMO Startup Competition. This prestigious award recognizes those startups driving procurement's digital transformation and generating the highest ROI for organizations worldwide.
Commenting on Pactum's award, the DEMO 2021 Judging Panel highlighted that "Pactum's vision is to automate supplier negotiations for tail end spend which are one of the core processes of procurement and oftentimes very time consuming, while adding little value to the company. Not only are they freeing up valuable time by automating the process, they are also building a strong data foundation which can be used to further optimize future negotiation processes".
"The majority of companies' investment goes into dealing with a small group of their suppliers. That means that about 80% of businesses' providers go unmanaged, leaving money on the table", says Kaspar Korjus, Chief Product Officer and co-founder at Pactum. Tail spend, especially when dealing with large suppliers, is time-consuming and labor-intensive, which leads many procurement professionals to conclude that trying to optimize this spend isn't worth the effort. For the average Fortune 500 company that means $240 million locked in inefficient long tail deals that often go unmanaged. Pactum changes that.
Our autonomous negotiations are built upon advanced mathematical models and cognitive science and designed to reach optimal agreements for both parties in a matter of minutes, yielding the potential to achieve 5-15% in savings in this spend category[1].
Pactum is currently enabling companies like Walmart, one of the ten largest banks in the world, a Fortune 200 electrical manufacturer, a top logistics brand, and other industry leaders across retail, consumer packaged goods, logistics, industrial, financial services, and auto to create between $2M and $11M of new value per $100 million of tail spend. Some of these companies are already seeing gains up to 6.5% in profitability from each supplier deal Pactum negotiates on their behalf.
"We believe that strategy should be driven by humans while machines take care of the implementation.That's why we created a brand new technology, autonomous negotiations. This award is a testament to the way Pactum works with global industry leaders like Walmart to automate their end-to-end suppliers' negotiation process so they can unlock that hidden value without any human effort," adds Kaspar.
Our solution is designed to easily fit within our clients' strategy and tech stack, enabling them to remain at the forefront of innovation while expediting their time to value. "Pactum's autonomous negotiations help procurement professionals automate and streamline repetitive processes and manual tasks to increase efficiency, improve accuracy and create value," highlights Matthias Gutzmann, founder of Digital Procurement World (DPW).
Procurement teams can take advantage of this newly created technology and use autonomous negotiations to transform what used to be an unavoidable challenge into a source of new value for their company.
About Pactum
Pactum is an AI-based system that helps global companies to autonomously offer personalized, commercial negotiations on a massive scale. The system adds value and saves time for both the Pactum client and their negotiation partner by aligning their values to determine win-win agreements via an easy-to-use chat interface that implements best-practice negotiation strategies. The web-based tool's applications focus on enterprise procurement negotiations. The company is based in Mountain View with engineering and operations in Estonia. Pactum was built by luminaries from Skype, Starship Technologies and the Government of Estonia's e-Residency program. Learn more at www.pactum.com
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Media Contact
Angela Gonzalez-Rodriguez
Head of Communications, Pactum
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[1] As estimated by McKinsey. https://www.mckinsey.com/business-functions/operations/our-insights/long-tail-big-savings-digital-unlocks-hidden-value-in-procurement
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