Case Study: Saving 4% on MRO spend at a $40B Global Manufacturer

London, July 4th, 2025

Industry

Consumer Packed Goods Manufacturer

Use Cases

Sam (AI teammate to recover value leakage)

Technology Stack

The Challenge

The global manufacturing company faced significant difficulties managing its Maintenance, Repair, and Operations (MRO) procurement processes. Despite MRO accounting for only a small percentage of total spend, the company handled millions of individual items with numerous part variations. Sourcing category managers negotiated agreements and price lists centrally, but the purchasing was actually done at plant level, leading to outdated contract documents and manual workflows. This resulted in slow operations, errors, and a lack of visibility into inefficiencies. This complexity made it difficult to accurately quantify costs, track errors, or identify areas for improvement, ultimately risking overlooked savings and increased operational risks.

The Solution

To address these challenges, the company implemented the Magentic platform; which helps global manufacturers and producers hunt down and deliver savings opportunities with AI teammates called “Mages”. This Mage systematically matched part numbers, monitored discrepancies, and enforced compliance with existing contracts. During the pilot, the Mage identified that approximately 4% of MRO spend was lost to issues such as missed volume discounts, pricing mistakes, and billing errors. Notably, the platform detected 16 price mismatches within a single purchase order from on OEM totaling €3,022. The Mages then generated the workflow to close the case and recover the value leakage.

“Everyone is impressed, we’ve found a very enthusiastic user community, and now we’re expanding Magentic to direct materials and logistics”

Senior Manager, Data & Analytics

The Impact

The project allowed the company’s procurement team to highlight significant savings and efficiency gains; tasks that would have taken hours were completed in moments, major discrepancies in its part ordering processes and documentation were addressed, and long-lost database relationships between entities were matched. The insights gained from Magentic’s detection capabilities illustrated the strategic value of strategically deployed, end-to-end, agentic tools in managing complex procurement relationships.

The customer is now moving to a broader Magentic implementation into direct material and logistics spend categories.