Deal Dynamics: The Next Phase in Procurement Intelligence Driven Negotiations

The groundwork for learning-driven negotiations has begun

The Procurement Technology landscape is vast.? Our work covers a number of areas including eSourcing, Procure to Pay, Supplier Management, Risk Management, Spend Analysis, Sustainability, and Contract Management, to name a few.? Considering all that is encompassed within our landscape and the increased focus on Procurement digitalization, most organizations are lacking in the way they use data insights.?

Having the data available is one thing, but using that data in a timeous and effective manner is where we really begin to unlock value. At GSSC, our Deal Dynamics team have been working to solve this problem and use data analytics to identify and leverage strategic opportunities. Watch the video here . Our approach is significantly different from simply having multitudes of dashboards.?

How it works:

The GSSC Deal Dynamics team is a curated group of Data Scientists who come together to deliver customized recommendations for upcoming negotiations. These recommendations are precise, specific, and time-sensitive.?

We harness internal and external data sets to create various negotiation scenarios using linear and dynamic programming, including price models, category-specific constraints, and behavior models. We also use Game Theory to select only a few scenarios to run the negotiations. As we progress through each round, the Deal Dynamics team refreshes these custom models to measure the results achieved and re-align the negotiation strategy for the next round, if required. We consider this work to be the early days of reinforcement of learning-driven negotiations, where we constantly adjust the negotiation policy model.

Today, we have successfully established the Deal Dynamics team as a de facto way to run Procurement Negotiations. We have handled highly complex strategic sourcing events and achieved significant results.?