In-Depth Review: How Egret Soft Reduces Procurement Costs by 12%?
In today’s fiercely competitive market, enterprises' procurement cost control capability directly impacts profitability. Egret Cloud Intelligent Procurement System leverages three core capabilities—process automation, data synergy, and AI-assisted decision-making—to help enterprises reduce procurement costs by over 12% and decrease slow-moving inventory ratios below 8%. This article dissects the technical methodology and implementation cases behind it.
I. 5 Core Metrics for Procurement Cost Control
Egret Cloud quantifies management through real-time monitoring of key indicators:
- Price Deviation Rate: System auto-compares historical transaction prices. Deviations >5% trigger instant alerts, safeguarding cost baselines.
- Slow-Moving Inventory Ratio: Real-time dynamic tracking of inventory turnover days. Overdue stock pushed to decision-makers within seconds, accelerating liquidation.
- Process Cost: E-approval compresses procurement cycles from 3 days to 2 hours, boosting efficiency by 70%+.
- Supplier Performance Score: AI analyzes 6D data (complaints/quality compliance/on-time delivery), auto-generating scientific scoring matrices to optimize partnerships.
- Inventory Turnover Rate: Unified procurement-sales database integration increases turnover by 35%, significantly improving efficiency.
Real-time dashboard displays metrics, enabling one-click issue localization：
II. Case Study: 35% Inventory Turnover Boost
1) Procurement-Sales Data Synergy
● Sales data pushed to procurement system with millisecond-level response
● Self-developed dynamic safety stock engine: Purchase Quantity = Avg.Daily Sales × Procurement Cycle × Elasticity Factor
2) Smart Replenishment Engine
Real-time alerting: Balances shipment volume + purchase volume + inventory level– auto-triggers replenishment alerts when crossing safety thresholds
3) Visual Dashboard Management
3. Transformation Results
| Metric | Pre-Reform | Post-Reform | Improvement |
|---|---|---|---|
| Slow-Moving Inventory | 15%-30% | <8% | ↓73% |
| Inventory Turnover Rate | Baseline | +35% | ↑35% |
| Procurement Cost | Original | -12.7% | ↓12.7% |
Results:
● Slow-moving inventory ratio dropped from 30% peak to below 8%
● 35% higher inventory turnover released ¥23M working capital
● Procurement costs decreased by 12.7% YoY
III. AI-Powered Price Comparison Algorithm
1. Breakthrough Beyond Traditional Methods:
Core Outcome: Supplier repurchase rate ↑67%, dispute rate ↓90%.
2. Algorithm Advantages:
• Dynamic Weighting: Prioritizes delivery speed (emergency orders)/cost optimization (bulk orders).
• Slow-Move Firewall: AI auto-blocks high-risk category purchases upon turnover alerts, triggering circuit breakers.
• Blind Test Verification: 2,000+ SKU trial—algorithm outperformed manual procurement by 8-15% cost savings.
IV. Financial Collaboration Upgrade
1. Legacy Pain Points vs. Solutions:
| Legacy Pain Points | Egret Cloud Solutions | Outcome |
|---|---|---|
| 0.1% reconciliation errors | Bank API auto-reconciliation | ≤0.001% error rate (audit risk ↓90%) |
| 3-5 day report generation | Real-time export of financial statements¹ | Month-end closing 40x faster |
| Opaque payment cycles | Payment Simulator + Supplier Credit Radar | Cash flow health ↑35% |
¹ Includes balance sheet, income statement, cash flow statement + visualization drill-down.
2. Revolutionary Value Breakthrough:
| Innovation Dimension | Capability | Business Value |
|---|---|---|
| AI-Driven Decision | Price-comparison + slow-move prediction | Blind purchase risk ↓80% |
| End-to-End Digitalization | Supplier files → payment reconciliation | Process efficiency ↑70% |
| Real-time Control Tower | Anomaly localization in 10 seconds | Decision response speed ↑90% |
Enterprise Testimonial:
"The system achieved real-time data synergy between procurement and production, with full ROI within 12 months."
Experience Now: Egret Cloud - Low-Code AI Procurement System