Using Predictive AI for Materials Cost Management

This case study details how Power Design, a national design build contractor, utilized Arkestro's Predictive Procurement to enhance their materials cost management amidst inflation and supply chain challenges following COVID-19. The objective was to streamline the procurement process, enabling quicker decision-making and cost reductions in a volatile market. By leveraging predictive AI, Power Design reduced the average time to purchase materials to 11 days before they were needed, which improved supply access and project timelines. The transition to Arkestro's system allowed for faster collection of bids from suppliers, alleviating previous frustrations associated with outdated processes. As a result, Power Design was able to secure preferred pricing and enhance their procurement efficiency. The case study also notes the company's shift towards focusing on strategic partnerships and competitive bidding as market conditions stabilize, moving away from a cost avoidance model. Overall, the implementation of Arkestro has led to significant improvements in procurement agility and cost management for Power Design.