Together the companies are rolling out the DirectSpend IQ solution, which deploys IBM managed services solutions with LevaData’s Cognitive Sourcing Platform. Supply chain and procurement processionals will have access to analytics and insights that provide guidance on direct procurement cost savings opportunities.
According to the announcement, IBM itself will be deploying the solution to realize savings on direct materials procurement. Using the tool will enable IBM procurement processionals to focus on more value-added activities, the companies said, while using LevaData’s platform to promote supplier collaboration and visibility in strategic sourcing.
“The technologies that transformed disciplines like engineering and finance have been slow to reach supply chain management and procurement,” said LevaData Founder and CEO Rajesh Kalidindi in the release. “LevaData and IBM are committed to ensuring leaders in global manufacturing industries can achieve competitive advantage by increasing agility, driving efficiencies and reducing risk.”
“Applied AI, analytics and process automation have become essential to innovative supply chain transformation,” added Bob Murphy, IBM’s chief procurement officer. “As enterprises continue to invest in cognitive technologies to improve their agility and competitiveness, LevaData and IBM are committed to a solution that is able to adapt and learn.”
Last year, LevaData pointed to the importance of data analytics in procurement and identifying procurement spend trends. The firm’s 2018 Cognitive Sourcing Survey found that while procurement experts are well-versed on the opportunities of data analytics, progress toward adoption of analytics solutions remains relatively muted.
In August, IBM introduced another solution for procurement and supply chain officials aimed at mitigating third-party supplier risk. The tool, Trust Your Supplier, uses blockchain to support vendor validation and on-boarding for corporate users.