According to Jeanne Brett, Professor Emeritus, Kellogg School of Management, Northwestern University, “Organizations that have massive numbers of supplier contracts forgo value for their suppliers and themselves when they impose the same contract terms regardless of local conditions or the different services a supplier can provide. Pactum leverages AI to implement negotiation strategy with the potential to facilitate agreements that are unique to individual relationships and that capture value for both parties.”
The increasing shift to digital commerce is pressuring retailers’ margins and need to make investments in digital initiatives. Given this challenging business environment, retailers need to find offset strategies and new sources of free cash flow. Pactum can help.
Pactum is an AI-powered negotiations platform that brings a 360-degree, holistic and automated approach to the negotiation process for both procurement and merchandise contracts at global retail companies. The platform’s ability to conduct simultaneous negotiations and pick up value from thousands of supplier deals enables a retailer to unlock millions of dollars of free cash flow at speed. Deployments are seamless and typically take two months without heavy demands on business resources. Pactum has a no-risk pricing model tied to customer success.
Augmented artificial intelligence evaluates agreement terms and offers an unbiased resolution for merchandise and procurement agreements where all parties have been equally and impartially evaluated for a fair deal. Many of these contracts have been unmanaged for a long time due to the immense volume of them and the low return on effort, but the economics are very different when an AI Powered platform conducts the negotiation. We’ve transformed a process that used to take days, involving back and forth communication and preparation, contracts drafts, updates, and approvals and signatures to take an average of 15 minutes.
“Pactum enables people to focus on strategy, leaving implementation to machines.”
How It Works
Based on an organization’s historical contract data, terms are suggested and discussed through an auto-generated chat-like interface with retailers and suppliers to generate a contract that is then ready for review and sign off in DocuSign. Our platform helps retail companies enable growth and recover lost income through stronger agreements while minimizing waste by conducting thousands of parallel automated negotiations simultaneously. Pactum takes a 360-degree, holistic approach to both merchandise and supplier contracts plus improves both gross margins and operating expenses with significant bottom-line impact. These are hard, cost based benefits that are not tied to assumptions around generating additional revenue.
The Deployment Process
During set-up, Pactum works with you to define the objectives of both the retailer and the vendor, which are then codified in a use case for negotiations and validated during interviews. Pactum’s team of negotiation analysts and systems integrators handle the implementation and deployment of the solution without significantly burdening a retailer’s internal resources. Pactum provides API’s for its retail clients so they can integrate their supplier data with its negotiation engine and see the value being generated by Pactum in real time on a customizable, executive dashboard.
The current implementation process takes about two months to get up and running. With the exception of a minimal set-up fee, Pactum has a no risk pricing model that is success-based. We get paid according to the value that we create. We believe so much in our approach that we are willing to put our skin in the game.
Our Team Gets It
Pactum’s team includes AI experts who have worked at successful startups and global tech companies. It also has world-class negotiating experts including Jeanne Brett, Professor Emeritus, Kellogg School of Management as well as former senior retail executives with nearly 70+ years of combined experience in the retail industry. The retail marketplace includes thousands of partners, each with different requirements, languages and cultures. It has always been a marketplace that places a huge premium on relationships. The multidisciplinary Pactum AI team has global expertise in supporting personalized deals with millions of partners within minutes, enabling global retailers to actually increase their relationships with partners that would otherwise be neglected.