Case Study: a global energy technology leader achieves a 9x return on direct materials procurement with Pactum AI

a global energy technology leader achieves 9x ROI with Pactum AI

A global energy technology leader partnered with Pactum AI to automate the negotiation of direct materials procurement for its Gas Power division. The challenge was to efficiently handle requisition negotiations for complex engineered components, such as gas turbine parts, while also negotiating on critical factors like delivery lead times alongside price.

The solution implemented was Pactum's AI negotiation platform, which included a co-developed lead time negotiation module. This allowed the company to process nearly $9 million in spend in the first year, achieving a 9x return on its investment with Pactum AI and a quarter-over-quarter spend growth of nearly 300%. The success led to plans for a significant expansion, increasing the negotiable spend cap and initiating a process to integrate the system more fully across other business divisions.