AI-powered Cost Savings Toolbox for Procurement Teams
Our AI identifies cost savings opportunities, explains the underlying drivers, and guides your next best action. It continuously scans your procurement data to surface high-impact opportunities faster, helping you uncover savings that would otherwise remain hidden. At the same time, it ensures you can act with confidence by providing clear explanations, quantified impact, and prioritized recommendations. Moving seamlessly from insight to execution, the AI enables you to generate supplier outreach in seconds and turn opportunities into measurable cost savings and tangible business impact.
Identify cost saving potentials
and risks in real time.
Automated Cost-Saving-Tools
Make full use of the tools in our software to generate your savings.
- Dual- and Multiple Sourcing
- Currency Clawback & Risk
- LPP (Linear Pricing Performance)
- Localization Opportunities
- Raw Material Clawback & Risk
- Energy Cost Clawback & Risk
- Benchmark, Quote Comparison
- Manufacturing Part Number Analysis
- Cost Model Target Analysis
- Payment Terms & Cash Flow Analysis
User Notification
Our system proactively notifies users as soon as a new savings opportunity is identified. Each automatically identified initiative is fully calculated and visualized for the user. The result: a clear list of savings initiatives that you can use for the next supplier negotiation.
Savings Potentials and Risk Lists
Our system provides an overview of all potentials and risks in real time – whether at supplier, product group or part number level. This also enables you to immediately understand the effects on your procurement in the event of material price changes and to take appropriate measures.
Talk to our co-founder Nick.
As Co-Founder of ivoflow and with more than a decade of procurement experience, Nick knows which levers can create the biggest impact across different procurement organizations.Unsure how your team could benefit from our toolbox? Schedule a quick chat with Nick.
15-minute call with Nick10 Strategic Levers in Procurement
Reduce Costs. Minimize Risks. Create Value.
Dual- and Multiple Sourcing
How do you currently respond to short-term changes in demand? What dependencies exist with individual suppliers? Instead of complex queries in Excel or ERP systems, you can answer these questions with just a few clicks in our software. The dual and multiple sourcing feature helps diversify your suppliers and identify alternatives to secure your supply chains. This way, you cannot only minimize risks but also make price-optimized decisions for your procurement.
Currency Clawback & Risk
Do you already consider exchange rate fluctuations in your contracts? Do you calculate the impact of exchange rates on item level? Our tool allows you to keep track of exchange rate fluctuations. It supports you in hedging exchange rate risks in framework agreements with suppliers or in reclaiming currency gains from suppliers.
LPP (Linear Pricing Performance)
How often do you compare pricing trends across suppliers to identify potential alternatives with better rates? Our tool allows you to optimize and renegotiate linear prices based on quantities, economies of scale, and technical cost drivers. This way, you can also identify potential excessive price increases or unfair pricing practices.
Localization Opportunities
How reliant is your supply chain currently on foreign or distant suppliers? Is production in 'higher-cost' countries really cheaper? Rather than conducting extensive supplier research, our tool provides the answers. The tool shows you opportunities to reduce delivery, freight, and customs costs, as well as risks through local sourcing and shorter delivery routes.
Raw Material Clawback & Risk
Have you paid a price increase during a period when material prices have risen significantly? What percentage of the cost of these items is influenced by the market price? Instead of relying on expensive databases and manual work, our software allows you to answer these questions easily. It supports you in managing and recovering raw material costs while considering market price developments.
Energy Cost Clawback & Risk
How flexible are your current contracts in response to market changes? Do you have strategies in place to protect yourself against price fluctuations? Our tool provides comprehensive data to support you identify energy savings and protect against price fluctuations. This way, you can better position yourself in renegotiations or future price talks.
Benchmark, Quote Comparison
Do you regularly analyze spending trends of individual product groups or parts families? Do you only consider the part price when benchmarking? ivoflow handles these tasks for you, enabling you to submit price inquiries in bulk to uncover market standards and secure the best price.
Manufacturing Part Number Analysis
How do you ensure that a single part doesn't get assigned multiple item numbers? Are there processes in your company to ensure the data integrity and consistency of MPNs? Our software takes care of the standardization and optimization of part numbers to increase efficiency and reduce costs for you. This allows you to conduct better price negotiations.
Cost Model Target Analysis
How often do you compare target costs with actual costs and take action accordingly? How often do you check if there are alternative technologies, materials, or designs that could reduce costs? Rather than doing extensive research yourself, our software helps you identify data-driven arguments for your next price negotiation. It also checks for if the current prices of your suppliers are in line with the market.
Payment Terms & Cash Flow Analysis
How flexible are your payment terms when working with suppliers? Have you ever analyzed whether adjusting the payment terms leads to direct savings? Our tool helps you develop a better payment strategy to secure more favorable terms with your suppliers.
Your Benefits
- Complete control over dynamic markets and the resulting effects on your own procurement
- Solid basis for procurement strategies and supplier negotiations
- Support in the strategic planning of your purchasing goals
- Automated market monitoring thanks to intelligent software
„I’ve been using the ivoflow platform for several months now and it has exceeded my expectations. The user-friendly interface, customizable dashboards and accurate data reporting have made analyzing our business performance a breeze. I highly recommend this tool to anyone looking for a reliable, efficient and moreover intelligent procurement analytics solution.“
FAQ
How can procurement reduce costs systematically instead of only renegotiating occasionally?
Systematic cost reduction in procurement comes from continuously matching supplier prices against external market indices for raw materials, energy, freight, labour, and FX – rather than negotiating them once and then leaving them unchanged for years while the underlying cost structures keep shifting. In serial procurement, organizations often lack a systematic way to spot price deviations as soon as cost drivers change – not only at the next annual negotiation. ivoflow's AI Cost-Saving-Toolbox connects internal procurement data with live market data and automates this comparison across ten automated saving levers, without procurement teams having to search for deviations manually.
How much savings potential is realistic in procurement?
Users of the AI Cost-Saving-Toolbox typically achieve 3–7% savings on addressed categories, measurable within weeks. As an illustration: for a total direct material spend of €500 million, with roughly 40% commercially addressable (€200 million), a realistic negotiation potential of 3–5% translates into an annual savings potential of about €6–10 million. The actual potential depends on category structure, contract terms, and how frequently prices have historically been reviewed.
What is an AI Cost-Saving-Toolbox and how does it identify savings potential?
The AI Cost-Saving-Toolbox connects internal procurement data – prices, spend, BOMs, suppliers, contracts – with live external market data, and uses this to automatically identify which supplier prices are no longer economically justified. For market enrichment, ivoflow draws on 200+ raw material indices (metals, plastics, chemicals), 40 energy indices, 50+ freight indices, 29,000 FX pairs, and tariff and labour cost data from 50+ industrial countries. Ten automated levers continuously calculate savings opportunities, and generative AI then translates the results into prioritized, ready-to-use negotiation arguments.
How quickly are savings visible?
ivoflow delivers measurable value in weeks, since the platform connects existing procurement data directly with live market data instead of waiting on manual analysis. Evidence-backed negotiation opportunities are available correspondingly early. How quickly these translate into realized savings depends on contract terms and negotiation cycles with individual suppliers – identification is the fast part; execution follows the normal procurement process.
Does the AI negotiate with suppliers automatically?
No. The AI provides decision support, not autonomous negotiation – final review, approval, and negotiation remain with the buyer. The AI Negotiation Advisor prepares negotiation documentation, suggests anchor points, and drafts initial supplier communication. ivoflow operates on a human-in-the-loop principle: AI supports the decision but never replaces the buyer.
How is cost reduction with ivoflow different from classic spend analytics or BI tools?
Spend analytics and BI tools show where money was spent. ivoflow additionally shows which current supplier prices are no longer economically correct under today's market conditions – and delivers a concrete negotiation opportunity instead of another dashboard. BI tools visualize existing data but don't explain the economic logic behind price development. ivoflow automatically connects running prices with cost drivers such as raw materials, energy, and currencies, and makes price deviations systematically visible across large part portfolios – not just occasionally and manually, as with spreadsheet or BI analysis.
What data is needed to calculate savings potential?
The toolbox uses internal procurement data from existing ERP, SRM, and data warehouse systems – such as SAP, Oracle, Infor, QAD, Snowflake, or Azure – and enriches it with external market indices. Consolidation across up to seven different ERP systems spanning multiple regions (EU, AP, NA, SA) is possible, with 95–100% spend data coverage and drill-down to transaction level. Integration happens within existing systems – no system replacement is required.
How is it ensured that identified savings actually get realized?
Every identified opportunity is moved into an execution workflow and tracked through to actual realization – from pipeline to booked P&L impact. A kanban-based logic keeps savings from sitting unused in a dashboard; instead they're managed as concrete, trackable actions with evidence and margin impact attached. The platform also provides early warnings on supplier performance and risk, supporting the execution process.
Which companies benefit most from using this for cost reduction in procurement?
The AI Cost-Saving-Toolbox is built for global manufacturing enterprises with significant direct material spend – typically starting at around €500 million in annual revenue, more than 2,000 employees, and serial production. Primary target industries are automotive (OEMs, Tier 1/2/3), industrial manufacturing, machinery, aerospace, and med-tech. A prerequisite is recurring, ongoing material procurement rather than purely project-based manufacturing – companies without significant direct material spend, or with strongly electronics-dominated purchasing, benefit less.
What does the AI Cost-Saving-Toolbox cost?
Pricing consists of a one-time onboarding/implementation fee plus an annual subscription, driven primarily by Spend under Management – not by number of users. Access for an unlimited number of users within the company is included, as is a predefined AI usage allowance. Customers with higher AI usage needs can purchase additional capacity. There's no classic free trial tier, but a proof-of-concept using the customer's own data is available.
Does ivoflow train its AI on my procurement data?
No. Customer data is never used to train foundation models. The platform operates with role-based access control, controlled execution through predefined application functions rather than free-form prompting, tenant isolation, and audit logging. The platform is certified to ISO 27001:2022 and ISO 9001:2015.
Want to know more
about our procurement solution?
Let us show you how ivoflow can support your business. We are ready to showcase our procurement management system. Together we will find the perfect solution for your company. Feel free to give us a call or e-mail us today!
Save your power and
empower your savings.
