How a $4B Manufacturer Cut Sourcing Cycle Time 68% with AI in Strategic Sourcing
A global manufacturer of industrial pumps and fluid control systems faced a strategic sourcing crisis in 2024. With $1.8 billion in annual procurement spend spread across 14 business units and 87 product families, the company's decentralized category management approach had created sourcing bottlenecks that threatened new product launches and margin targets. RFx processes for complex machined components averaged 22 weeks from requisition to purchase order, strategic sourcing headcount had been frozen for three years despite growing product complexity, and supplier consolidation goals remained perpetually unmet. Procurement leadership recognized that incremental process improvements would not close the gap—they needed a fundamental transformation in how strategic sourcing operated. The company embarked on an 18-month implementation of AI in Strategic Sourcing capabilities across three core areas: automated should-cost modeling, intelligent RFx execution, and predictive supplier per...