Use Case: AI-Driven Procurement Optimization in Construction
Company Profile
Type: General Contractor
Size: $125M annual revenue
Challenge: Manual procurement processes, inconsistent vendor selection, frequent material delays, and budget overruns
Problem
The contractor faced several challenges that impacted procurement efficiency and decision-making. Bid evaluations were highly time-consuming, often delaying project timelines. Inaccurate demand forecasts led to frequent instances of over- or under-ordering, affecting both budget and material availability. Managing supplier risk and performance proved difficult without standardized metrics or real-time insights. Additionally, limited visibility into historical spend patterns hindered the contractor’s ability to identify cost-saving opportunities and optimize sourcing strategies.
AI Solution
The contractor implemented an AI-enhanced procurement platform that integrated with their ERP and project management systems. The platform included:
- AI Bid Comparison: AI analyzed submitted quotes against past pricing, scope, compliance, and delivery timelines.
- Supplier Risk Scoring : Aggregated financial health indicators, litigation history, and performance data to flag high-risk vendors.
- Demand Forecasting: Used machine learning models trained on project schedules, seasonality, historical consumption, and external data.
- Spend Analytics Dashboard: Identified over-budget categories, opportunities for bulk purchasing, and supplier consolidation.
Results
40% reduction in RFQ evaluation time
25% fewer procurement delays due to better vendor selection and lead time prediction
$1.2M in savings over 12 months from optimized buying and supplier negotiations
Why it Matters
AI brought clarity, speed, and consistency to the procurement process. Instead of relying solely on instinct or spreadsheets, the team made faster, data-informed decisions reducing waste, improving schedules, and delivering better project outcomes.
Client Testimonial
From IT Director:
“Burger Consulting Group is extremely knowledgeable in all aspects of construction, and they did well in leading conversations, asking probative questions, and forcing us to think about how we’re doing things”.