Agentic AI-Powered Procurement Optimization

A diversified enterprise specializing in sustainable bio-based solutions, has a decades-long legacy of driving innovation across agriculture, food technology, and industrial applications.

With a global manufacturing and distribution footprint and a workforce of over 10,000, it partners with enterprises across consumer goods, health sciences, and industrial sectors to co-develop high-performance, nature-derived products.

The Business Challenge

Despite managing over a billion dollars in annual spend, the company couldn’t see where the money was going—or if they were spending it right. They came to Oraczen with a straight question:

“We’re spending a lot, but are we spending it wisely?”

Their global operations produced massive, poor-quality accounts payable transaction data—multicurrency, multilingual, and often missing key attributes. Data classification was largely semi-manual, slow, and error-prone, relying on a cumbersome rule-based engine with over 15,000 to 20,000 rules, yet achieving less than 70% accuracy. This created huge blind spots in spend analysis, making it impossible to view the bigger picture under one roof. The current process was costly, inaccurate, and not effective.

Supplier information was scattered across multiple ERP systems, fragmenting visibility into spend categories. This decentralized setup prevented a unified view of global procurement operations, stifling strategic decision-making. Even after cleaning the data, their manually built centralized BI dashboard—created at significant cost and effort—lacked real-time insights. Lack of real time deep actionable insights delayed decision making and limited enterprise ability to optimize costs and scale operations effectively.

Traditional AI couldn’t handle the scale or complexity. With millions of transactions flowing monthly from various ERPs, regions, and categories, the data was distributed and unstructured. Missing descriptions, misaligned categories, and static rule-based systems failed to adapt to the client’s needs or deliver autonomous, context-aware decisions.

The Solution: Oraczen’s Agentic AI Stack

Oraczen’s Procurement Spend Analyzer (PSA), developed on Zen platform and deployed on the client’s private cloud, brought all procurement data under one roof, to provide visibility and actionable insights. Unlike traditional tools, PSA’s agentic AI approach combined autonomy, adaptability, and multi-agent collaboration to transform the client’s procurement process.

How It Worked

Integration with distributed systems: PSA seamlessly integrated with multiple system of records to consolidate and harmonize data using broad, high‑resolution taxonomy

Data Cleansing and Enrichment: PSA standardized and enriched transaction data across regions, filling gaps like missing product descriptions and correcting misclassified categories. Using the client’s organizational taxonomy, it achieved 90-95% classification accuracy and 100% coverage, a massive leap from the previous 70%.

Real-Time Transparency via dashboards: By directly extracting data from multiple ERPs, PSA provided a unified view of global procurement activities, enabling quick identification of unusual costs and responsible parties via charts and dashboards.

Human-in-the-Loop (HITL): A user-friendly interface allowed teams to review and refine classifications, ensuring continuous improvement.

Continuous Learning: By integrating enterprise rules and retraining continuously, PSA kept discrepancies below 5%.

The R&D team used PSA’s clustering module to uncover hidden patterns, driving 5-10% cost optimization through supplier consolidation. Category managers relied on the Insights Agent for strategic recommendations, including market trends, risk analysis, and competitive positioning. The more teams used PSA, the more value they uncovered, moving beyond static dashboards to dynamic, AI-powered procurement intelligence.

Why Agentic AI?

Unlike traditional AI, PSA’s multi-agent system didn’t just follow rules—it reasoned, adapted, and collaborated like a team of experts. It learned from past misclassifications and integrated with tools like Ariba for direct category corrections, using Zen’s role-based access controls for security. This adaptability made it ideal for handling complex, unstructured data at scale.

Execution Approach

The implementation unfolded over three months in clear phases:

Proof of Concept (Week 1–4): Tested PSA on a subset of data to validate accuracy and integration.

Data Staging (Week 5–8): Cleaned and enriched historical data, aligning it with the client’s taxonomy.

Agent Implementation (Week 9–12): Rolled out PSA across all regions, with full ERP integration and real-time dashboards.

Orchestration logic ensured smooth data flows, while feedback loops and HITL refined the system. The Zen Platform’s APIs made integration with existing tools seamless.

Results

The impact was immediate and measurable:

90–95% classification accuracy, slashing misclassifications to under 5%. PSA’s precise categorization delivered a unified, crystal-clear view of all procurement activities across regions and categories under one platform.

30% faster decision-making, thanks to real-time dashboards and insights. With PSA they got spent transparency like never before.

5-10% cost savings through supplier consolidation and optimized negotiations.

150+ person-hours saved annually per category manager by automating manual processes.

Empowered Negotiation Leverage: Armed with real-time, data-driven insights, the procurement team secured stronger terms with global suppliers.

PSA Intelligent data enrichment tools helped R & D team to reveal patters and trends.

Client Quote

“Oraczen’s PSA didn’t just automate our procurement—it made us smarter and faster, turning messy data into strategic wins.”

– VP, Digital Transformation

Future Plans

The success of PSA has sparked plans to expand its use to other departments, like R&D and logistics. The client is exploring Oraczen’s broader AI roadmap, including additional agents for demand forecasting and inventory optimization. Long-term, they aim to deepen collaboration with Oraczen to scale AI-driven automation across their global operations.

Final Takeaway

Oraczen’s Agentic AI didn’t just clean data—it reshaped how procurement works. By turning fragmented, unstructured transactions into real-time, trusted insights, PSA unlocked the kind of intelligence that transforms enterprise decision-making. The future of procurement isn’t just digital—it’s agentic.

‍

How Oraczen Helped a Global Food Ingredients Leader Unlock Procurement Visibility with 95% Accuracy Using Agentic AI