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Customer stories / Global packaged food manufacturer

Finding missed price breaks in packaging orders.

A $10 billion manufacturer connected its SAP orders to negotiated price scales, then deployed a Digital Worker to check the next order before it goes out.

SAP S/4HANASAP Ariba
$XM

a year in missed price breaks, 0.7% of direct material spend in the audit baseline

1 day

to first candidate findings after SAP exports were available

“Once the audit showed us exactly which orders were missing their tiers, we worked with Optimized to deploy a digital worker that checks every new order against the scale. The gap we had just seen now gets closed before the PO goes out.”
Head of Procurement$10 billion packaged food manufacturer

Negotiated centrally. Ordered locally.

The company negotiates quantity-based prices for selected packaging materials, while plants order for their own production needs. Separate orders can miss a better price tier.

Buying more only makes sense when the price benefit exceeds the cost of carrying the extra stock.

What the audit found.

Optimized compared SAP purchase orders with their contract price scales. First candidate findings arrived one day after the exports were available, with the purchase order behind each one.

About 79% of the modeled opportunity came from quantity changes. The rest flagged PO prices for review against tiers already earned; confirming overbilling would require invoices.

79%from quantity changes

A Digital Worker to optimize packaging orders.

The Digital Worker is deployed for packaging alongside SAP S/4HANA and SAP Ariba. It compares each requested quantity with the next price tier and other demand for the same material and plant, including the cost of carrying extra stock.

Buyers stay in their existing systems, with the order and approval record in SAP S/4HANA.

As requested

Baseline order

Price the requested quantity against the applicable contract.

Within two weeks

Approved automation

Apply eligible combinations automatically when they reduce net cost.

Out to 60 days

Buyer review

Present a recommendation with the net saving for a buyer to review.

Automation requires firm demand, an approved supplier and contract, and checks on pack size, inventory and the earliest delivery date. Replaced requisitions are reconciled to prevent duplicate orders. Exceptions go to a buyer.

“Optimized showed us the return on packaging order by order, with the purchase order behind every dollar. After that, my only question was how fast we could put the same worker on the rest of what we buy on a price scale.”
Finance Director$10 billion packaged food manufacturer