Marketplace Matchmaking

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: The most suitable buyer-supplier matches are identified by AI algorithms (e.g., JAGGAER) analysing large data sets, such as product specifications, supplier capabilities, and demand trends, to provide both parties with deeper insights into one another
• Impact: AI-based Marketplace Matchmaking automates procurement processes and enables more efficient and agile responses to market fluctuations, trends, and constraints 

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Advanced AI: AI capabilities efficiently interpret large data sets, including supplier performance metrics, pricing histories, and logistical capabilities which allows the platform to identify the best buyer-supplier match
• Increase Importance of Resilience: Following several supply chain disruptions, for instance through the pandemic or Russia’s invasion of Ukraine, buyers are more sensitive towards their supply chain resilience
• Localizing Procurement: Companies diversify their suppliers according to their manufacturing location, e.g., two different suppliers provide materials for the Asian and European facilities

Use Cases 

How to apply this trend? 

• Strategic Sourcing Optimisation: AI-based algorithms enable various scenario simulations to find the optimal supplier
  Example: Archlet integrates AI into its strategic sourcing platform to provide user-centric RFx processes, bid analytics, and scenario simulation, fostering efficiency and savings in procurement by aiding supplier evaluations and negotiations
• AI-driven Procurement Process Design: Identify suppliers and moderate the process
  Example: JAGGAER uses artificial intelligence to identify the most suitable suppliers but also to guide the buyer through the entire sourcing process by providing tailored recommendations on the next steps

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Setup and Monitoring: Develop a core team focused on integrating AI marketplace matchmaking insights and virtual simulations into procurement supplier strategies and systematically track savings and efficiency gains through the implementation
• Pilot Projects: Test and implement AI tools (e.g., Archlet, Keelvar) for real-time market analysis and supplier identification to optimise procurement