We’re back with part 2 of a 3 part series of live episodes recorded at Procurement Summit in Berlin on 29 and 30 September 2021.

Each podcast features a different theme, focusing on some of the newer, less well-known startups who pitched and exhibited during the summit to bring awareness to some of the exciting new players out there who have a bright future.
Hot Digital Procurement Startups which Utilise AI and Game Theory to Deliver their Solution
This episode is all about startups who heavily feature AI or game theory as part of their experience and solution.
Pactum
My first guest is Fabio Herle from Pactum.

Pactum leverages AI and game theory to automate negotiations. Quite a bold claim to automate something that many procurement professionals have spent their whole careers trying to refine, improve and perfect!

Fabio explains how the German-speaking area of Europe offers both challenges and advantages in equal measure. On the one hand, Procurement is a fairly mature function and there are some world class companies, procurement functions and well-managed processes. On the other hand, it’s a more conservative business culture where resistance to change can be quite common.

While Pactum was founded in Estonia, they are actually headquartered in the US. Not because of investment but due to ease of customer acquisition in relation to Europe’s largest markets.

So, what can it do, and what are its limitations?

Fabio goes on to explain that Pactum is not able to replace a human in a complex negotiation which requires preparation, emotional intelligence and the need to maintain a strategic relationship with a critical vendor. 

Instead, Pactum focuses on automating negotiations for tactical purchases where it may not be the best use of a procurement professional’s time, or where the spend would not have been previously managed by anyone in the procurement team because of the value of the transaction. 

NDAs and simple payment terms “horsetrading” are two examples which Fabio cites as being prime opportunities where Pactum can add value.

The goal is that over time, it will be able to handle more complex negotiations as the AI matures. The example of being able to give counter offers and counter proposals, in a proper trading style negotiation, is an area where Fabio explains is part of Pactum’s plans as the tool matures.

Another advantage of using a machine is that it never forgets any of the details!

This is definitely one to watch and a rapidly scaling company.

Fabio’s’ LinkedIn profile

Pactum website
MySupply
Next up is Andreas Zimmermann, CEO of MySupply.

This is an e-sourcing tool, looking at some of the more tactical areas of sourcing. Whereas most e-sourcing tools tend to focus on strategic sourcing for highly complex tenders, MySupply focuses on the more straightforward sourcing requirements.

The specific USP of MySupply is the engine behind the tender which guides it towards the right strategy e.g. should it be an auction, 3-bids-and-a-buy, simple RFP...