Case Study: Uncovering 25% Supplier Document Errors

London, May 24th, 2025

Industry

Fortune 500 Manufacturer

Use Cases

Sam (AI teammate to recover value leakage)

Technology Stack

The Challenge

A Fortune 500 enterprise with annual revenues exceeding $50B uncovered substantial operational risk and margin leakage hidden within its supplier management processes. Procurement teams were tasked with managing thousands of supplier relationships and contracts across IT equipment spend. However, the documentation – supplier agreements, purchase orders, and invoices – was fragmented and often had mismatches.

Manual reviews had previously been attempted but took months, tying up valuable staff and still missing critical compliance failures and value leaks. As with many large organizations, negotiated savings from competitive contracts were regularly lost due to off-contract buying and unauthorized changes. Failure to update or properly enforce terms on major agreements directly impacted working capital, inflated costs, and led to inventory write-offs.

The Solution

To tackle these challenges, the company turned to the Magentic platform, deploying “Mages” to analyze all supplier contracts, POs, and invoices at machine speed. The Mages automatically flagged key documented errors and opportunities, discovering that approximately 25% of the supplier agreements and transactional documents contained issues affecting the company’s P&L. Typical value leakages identified and recovered included:

  • Payment terms inconsistencies

  • Missed rebates/volume discounts

  • Unapplied inflation adjustments

  • Contracts missing key compliance elements and clauses

Instead of months of manual review, Magentic surfaced these critical risks and opportunities in a fraction of the time, providing both detailed insight and automated remediation workflows.

"For AI to achieve its promised impact, it needs to be accepted by the Supply Chain and Procurement teams - the actual users. The team at Magentic are disrupting the way that procurement and supply chains work, their approach is focused on supporting people within Supply sourcing teams to be successful.”

Senior Executive, Supply chain

The Impact

Armed with detailed findings from Magentic, the Fortune 500 company’s procurement and finance teams delivered a cross-functional impact:

  • Value leaks were identified from just a subset of supplier files

  • Automated case handling frees up staff who were previously overwhelmed by manual paperwork, accelerating new product launches, and reducing inventory bloat

  • Policy compliance improves, so contract lapses, rebate losses, and unauthorized spending are detected before they ever impact the bottom line

  • Strategic procurement and finance reporting can now leverage AI-driven insights for enhanced supplier negotiations and risk management