JOIN OUR NEXT PROCUREMENT AGENT BUILDING DAYREQUEST ACCESS
Procurement

Cost Savings Agent

Runs supplier reduction campaigns when commodity prices fall below threshold.

Monitors commodity prices against configured thresholds and initiates supplier reduction campaigns when a price movement is detected. The agent calculates the justified reduction per supplier, drafts and sends negotiation emails, handles responses, and updates ERP pricing on accepted terms.

+ Details- Close

The agent monitors commodity price feeds and triggers a reduction campaign when a tracked material crosses a configured price threshold. It maps the movement to affected suppliers using material-to-supplier data and calculates the justified reduction amount and projected savings per supplier. For each eligible supplier, it drafts a price reduction request citing current market data, then sends the email autonomously for tail-spend accounts or holds it for human approval on strategic accounts. It manages follow-up correspondence within the campaign and writes accepted reductions back to ERP contract pricing. Outcomes are recorded in supplier profiles for use in future negotiation rounds, and unresponsive strategic suppliers are escalated to the strategic negotiation agent.

KPI it moves

  • 0.5–2%

    Cost saved

    Of the spend the agent sees, prices drop by 0.5–2% in real terms — cash back to the bottom line.

What it does

  • Monitors commodity price movements

    Polls configured commodity indices and triggers a campaign run when a tracked material crosses a defined price threshold.

  • Maps price drops to affected suppliers

    Identifies which suppliers are exposed to the moved commodity using material-to-supplier mappings, then calculates a justified reduction amount and projected savings for each.

  • Drafts and sends reduction request emails

    Writes data-cited outreach emails per supplier and either sends autonomously for tail-spend contracts or routes to a human approver for strategic accounts.

  • Manages supplier back-and-forth

    Handles replies within the negotiation thread, tracks acceptance or rejection, and escalates non-responding strategic suppliers to the strategic negotiation agent.

  • Updates ERP pricing and supplier records

    Writes accepted price reductions back to ERP contract records and logs outcomes to supplier profiles for use as reference points in future negotiation rounds.

How it works

  1. Trigger

    Monitors commodity price movements

    Polls configured commodity indices and triggers a campaign run when a tracked material crosses a defined price threshold.

  2. Step 1

    Maps price drops to affected suppliers

    Identifies which suppliers are exposed to the moved commodity using material-to-supplier mappings, then calculates a justified reduction amount and projected savings for each.

  3. Step 2

    Drafts and sends reduction request emails

    Writes data-cited outreach emails per supplier and either sends autonomously for tail-spend contracts or routes to a human approver for strategic accounts.

  4. Step 3

    Manages supplier back-and-forth

    Handles replies within the negotiation thread, tracks acceptance or rejection, and escalates non-responding strategic suppliers to the strategic negotiation agent.

  5. Resolution

    Updates ERP pricing and supplier records

    Writes accepted price reductions back to ERP contract records and logs outcomes to supplier profiles for use as reference points in future negotiation rounds.

Why it matters

  • Price drops converted to savings without delay

    so that procurement captures margin when commodity windows open, instead of losing the opportunity while campaigns are manually assembled and routed.

  • Buyer time shifts to strategic negotiation

    so that procurement staff focus on high-value supplier relationships rather than drafting, sending, and chasing tail-spend reduction emails.

  • Accepted reductions written back to ERP immediately

    so that contracted prices reflect current market rates and future spend runs at the negotiated cost without a separate data-entry step.

What it needs

Live commodity price feed
Connects to a commodity data provider (e.g. S&P Global Commodity Insights or Bloomberg Commodity) to monitor prices against configured thresholds. Without this feed the agent cannot detect price movements or calculate the justified reduction per supplier.
Supplier and material master data
Reads supplier-to-material mappings, open purchase orders, and current contracted prices from the ERP (e.g. Infor LN/M3/CloudSuite, Microsoft Dynamics 365, IFS Cloud, or SAP S/4HANA). Also writes accepted price reductions back to contract and purchase order records and updates supplier profiles with negotiation outcomes. Without this access the agent cannot identify which suppliers are exposed to a price movement or post agreed savings.
Outbound and inbound email access
Uses the corporate email system (e.g. Microsoft Exchange or Google Workspace) to send campaign emails to suppliers, receive replies, and manage the negotiation thread. Tail-spend emails are sent autonomously. Strategic emails are queued for human approval before dispatch. Without this the agent cannot initiate or track the supplier communication loop.
Related agents