In the webinar "The BME Award Winner – How VEMAG Decodes Procurement Signals with AI," Steen Bösche (Digitalization Project Manager, VEMAG) and Melinda Behncke (Business Development, Tacto) demonstrate how VEMAG not only realized savings potential through an AI-supported procurement strategy but also won the BME Procurement Excellence Award. This success is built on the ability to strengthen negotiations, increase transparency in the procurement process, and efficiently identify cost-saving opportunities.

Initial Situation – Improving Negotiation Foundations and Increasing Efficiency

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At VEMAG, procurement was initially characterized by fragmented information and manual processes. Price changes, market movements, and supplier data were stored in various systems, making quick and precise analysis difficult. Negotiations were often based on individual assessments and experience rather than a systematic data foundation.

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The challenge was to bring more transparency and clarity to procurement processes and to place the negotiation process on a more solid, data-driven foundation. The goal was to use AI-supported solutions to automatically decode procurement signals, enabling faster and better decision-making.

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AI as a Lever – How Intelligent Systems Make Procurement Signals Visible

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With the introduction of Tacto, VEMAG implemented an AI-powered approach that enables the automatic detection of procurement signals and makes savings potential visible at an early stage. Through seamless ERP integration, all relevant data—such as orders, invoices, and supplier information—is evaluated directly, without any media discontinuities.

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Key features of the solution at VEMAG:

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• Automatic Analysis: AI agents continuously scan procurement data for savings potential and forward relevant insights directly to buyers.
• Proactive Recommendations: The system automatically detects when volume adjustments, alternative suppliers, or market changes offer savings potential and provides corresponding recommendations for action.
• Adaptive Optimization: Through buyer feedback, analysis processes are continuously refined, which reduces false alarms and increases precision.

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Implementation – Technical Deployment and Successful Enablement

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Implementing the AI solution was not just a technical challenge, but a cultural shift as well. VEMAG prioritized robust change management, engaging all relevant team members early on. This ensured the procurement team was not only familiarized with the technology but also empowered to actively apply the insights gained during negotiations.

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The VEMAG team thoroughly reviewed the AI-generated insights, verified them, and made informed decisions based on the data. This created transparency across the entire supplier base and all order volumes, allowing the procurement team to act more quickly and strategically.

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Results – Savings, Transparency, and Future Implementation

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The AI-powered solution has delivered measurable results for VEMAG:

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• Six-figure savings achieved through targeted negotiations based on precise procurement signals.
• Over 1,500 avoided deliveries per year through optimized order quantities and consolidated shipments.
• Reduced process costs through more efficient handling of ordering and delivery workflows.
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Thanks to this successful implementation, VEMAG received the BME Procurement Excellence Award, highlighting the impact and success of the project. VEMAG plans to further expand its use of AI to drive even greater efficiency in other areas, such as volume contracts and process optimization.

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Conclusion – Successful AI Transformation in Procurement

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The VEMAG case study impressively demonstrates how AI and automated analytics can make procurement more efficient and transparent. VEMAG has not only identified cost-saving potential and realized actual savings, but has also significantly strengthened its negotiating power through fact-based arguments. The BME Procurement Excellence Award serves as a testament to the success of this AI-driven procurement solution.

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In this webinar, Steen Bösche (VEMAG) and Melinda Behncke (Tacto) share how their AI-powered solution not only revolutionized daily procurement at VEMAG but also earned them the BME Procurement Excellence Award. They also discuss the next steps for continuing to drive efficiency within the procurement organization.