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How This Workflow Works
This workflow guides procurement teams through analyzing supplier proposals, extracting key commercial terms, benchmarking supplier offers against historical data when available, recommending negotiation actions, calculating counter-offers, and drafting supplier communications.
Key Features:
- Extract and structure key commercial and contractual terms from supplier proposals or emails
- Benchmark supplier offers against historical performance and pricing to inform negotiation strategy
- Automate calculation of counter-offers and draft negotiation emails for human review
- Compare multiple supplier offers using price, commercial terms, and supplier risk
Step-by-step:
- Extract and Analyze Supplier Offer:
The workflow begins by extracting structured data from a supplier proposal or email, capturing essential terms such as price, payment conditions, contract duration, and risk clauses. For existing suppliers, it retrieves internal performance history to provide context for the current offer.
- Score and Benchmark the Offer:
The extracted offer is evaluated against historical supplier data. The workflow evaluates supplier performance and commercial conditions using available historical data, including pricing history, contract terms, and supplier performance metrics. When historical data is unavailable, the workflow identifies the supplier as new and evaluates the proposal based on its commercial and contractual terms alone.
- Recommend Action and Calculate Counter-Offer:
Based on the supplier score and price comparison, the workflow recommends whether to accept, counter, or escalate the offer. If a counter-offer is appropriate, it calculates revised pricing and improved payment terms within predefined negotiation guardrails.. High-risk or out-of-bounds offers are escalated for manual review.
- Draft and Review Negotiation Email:
When a counter-offer is generated, the workflow drafts a professional negotiation email outlining the proposed terms. Every supplier-facing email is presented for human review and approval before it is sent, ensuring oversight and compliance.
- Compare Multiple Supplier Offers:
Compare scored supplier offers across price, commercial terms, and contractual risk to recommend the most suitable option.