Discover how AI agents are reshaping the manufacturing operating model
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Despite being prime for automation, procurement continues to lag behind when it comes to digital transformation. Many teams are still bogged down in reactive, transactional work – firefighting urgent requests, chasing suppliers for order confirmations, managing PO revisions manually, and stitching together fragmented data from ERPs and spreadsheets.
Procurement pros know the inefficiencies better than anyone, but when it comes to getting budget for the tools they need, the request often stalls. Why? Because the business case doesn’t land. C-suite responds to value. And business cases that fail to clearly communicate quantifiable outcomes, like cost savings, working capital improvements, or cycle time reductions, tend to get pushed down the priority list.
Now, adopting new tech can feel daunting for procurement. Business case modelling, ROI calculations, and navigating technicalities aren’t part of the job description. But that’s where a good tech partner comes in. We do the heavy lifting, quantifying the impact, preparing the right metrics and messaging, and giving you everything you need to speak to leadership. All you have to do is champion it internally.
This article is your playbook for getting to that “yes” – for understanding what goes into a compelling business case that speaks the language of decision-makers and justifies investment in agentic AI.
And, if you’re still figuring out how and where agentic AI can create the most value, start with The Ultimate Guide to Procuring Generative AI for Manufacturers. Once you know the opportunity, this article helps you make the case.
By the end, you’ll be able to:
- Articulate the value of agentic AI for procurement.
- Understand how to quantify ROI through real metrics.
- Work more effectively with tech vendors to co-create a winning business case.
Let’s get into it.
Aligning with broader business objectives
C-suite leaders aren’t driven by tech for tech’s sake. They’re driven by results tied to core business priorities: cutting costs, increasing efficiency, gaining visibility, and innovation. Before you build a business case for agentic AI, you need to anchor it in what matters most to your organisation.
Start by identifying your organisation’s top strategic objectives. Here are some of the most common examples we’ve seen, and how agentic AI in procurement delivers against them:
Business priority | How agentic AI supports this objective |
Cost reduction | Automates high-volume, repeatable procurement workflows like PO follow-ups, order revisions, and routine supplier communication, reducing cycle times and manual errors. |
Increased visibility & control | Offers real-time PO tracking, supplier performance data, and exception alerts – so procurement teams can monitor compliance, reduce surprises, and stay on top of every order. |
Productivity & efficiency | Provides proactive risk alerts, and automated supplier follow-ups. Clear KPIs – like on-time delivery and order accuracy – can be tracked in real time. |
Innovation enablement | Frees up bandwidth by handling low-value admin work, letting teams focus on strategic sourcing, supplier relationships, and driving long-term value. |
The clearer the alignment between AI capabilities and your company’s strategic goals, the easier it becomes to get buy-in.
Quantifying the value of AI
A strong business case speaks in numbers. That’s the language of the C-suite, and it’s what turns “nice to have” into “need to act.”
Quantifying the value of agentic AI can feel difficult because not all benefits are easy to measure – but this is where the tech vendor you’re working with steps in to do the heavy lifting. The key is to connect expected outcomes directly to business priorities and work with a vendor who can help you model impact transparently. Vague claims won’t move the needle.
Here’s an example that compares how vague benefit statements stack up against value-driven statements (using hypothetical data), along with a breakdown of how AI agents actually deliver the results:
Generic statement | Transparent, value-focused statement | How agentic AI delivers it |
Save time by automating manual PO management and internal queries. | Save $211,200/year by automating PO management, follow-ups, and internal procurement queries. | Automated order confirmations, exception alerts for delays, and providing stakeholders instant visibility over orders cuts down on urgent requests and saves time across procurement ops. |
Reduce excess stock. | Reduce inventory holding by 15%, saving $750,000/year. | Real-time inventory tracking, automated inbound planning, and stock-out prevention through risk alerts reduce the need for buffer stock. |
Prevent the need for expedited shipping. | Cut 30% of expedited freight, saving $199,999.4/year. | Automated PO delay alerts, real-time container tracking, and preemptive risk notifications reduce disruptions and costly rush orders. |
Improve supplier collaboration. | Save $200,000/year in cost avoidance through enhanced supplier tracking and communication. | Supplier scorecards, OTIF performance tracking, proactive risk alerts, and automated follow-ups improve accountability and reduce last-minute firefighting. |
Working with a tech partner that’s upfront about impact – not just features – makes all the difference. This is also where joint collaboration becomes essential. For the tech vendor to calculate and accurately forecast ROI, you need to provide key baseline data, like current OTIF performance, buffer stock levels, expedited shipping costs, and cycle times.
A good vendor will help you quantify value with data-backed statements, real use cases, and clear ROI projections hyperspecific to your organisation’s current state and priorities.
Potential blockers (and how to overcome them)
Even the strongest business case can hit roadblocks. Preparing for these blockers allows you to address concerns proactively.
Adoption resistance
The challenge: Employees may fear job loss or struggle to adopt new AI workflows.
The fix: Frame AI as an enabler, not a replacer. Engage all stakeholders early on. Digital transformation that secures budget, but without everyone on board, is a failure from the start.
Scalability fears
The challenge: Leaders may worry about biting off too much, too soon.
The fix: Start small. Begin with a high-impact procurement workflow, using a single agent to demonstrate value. Once results are clear, scale.
Security concerns
The challenge: Procurement handles sensitive data, and compliance is non-negotiable.
The fix: Ensure your AI solution meets top-tier security standards (ISO27001, SOC2).
ROI and the payback period
Agentic AI is a strategic investment. Some wins are captured in the first few months, and you can expect the full ROI to unfold over 12–18 months.
Here’s what to expect:
- 60–70% time saving wins in the first few months on things like manual tasks, faster PO fulfillment cycles, automated supplier communications.
- 3–5X ROI on long term impact through cost reduction, better cash flow forecasting, improved OTIF, and reduced supplier-related disruptions.
- Softer benefits like less burnout, increased employee retention, better supplier engagement, and less reactive firefighting.
And while not all of these can be immediately measured, they absolutely affect the bottom line. Your competitors are already moving toward leaner, smarter, AI-powered teams. To stay competitive, this shift isn’t optional, it’s strategic.
Build a case worth saying yes to
Procurement deserves better tools. Teams shouldn’t have to choose between being overworked and being overlooked.
But getting the budget means making a bulletproof case. That’s where we come in. As your tech partner, we work with you to map out ROI, identify high-impact use cases, and create a business case that’s clear, compelling, and gets buy-in.
You champion the need for change internally. We help you make the case.
Want to explore what agentic AI could look like in your procurement function? Give us a shout.
Author:
Deana Claessen
Community Manager, Kavida.ai
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