How a Japanese Automotive OEM Cut Costs and Scaled Sourcing Efficiency

Rising costs. Supply constraints. Pressure to move faster with fewer resources. For one of the world’s top automakers, the status quo was no longer an option. They partnered with Arkestro to break through procurement bottlenecks, accelerate sourcing cycles, and unlock new opportunities for immediate impact.

In just two days, they were live. Within a week, they were delivering savings—even in single-sourced categories traditionally resistant to change.

A global automotive manufacturer needed to modernize how it sourced indirect materials and services. The stakes were high: they were tasked with delivering billions in savings, but were stuck using outdated tools like Excel and email, limited by manual processes and a lack of visibility.

Despite investing in traditional procurement software platforms like Zycus and Pactum, the same issues kept getting in the way:

• Rigid, multi-level approval processes slowed sourcing to a crawl
• Many categories were single-sourced, raising both cost and supply chain risk Sourcing teams lacked bandwidth to run more events or pursue competitive alternatives
• Lost savings opportunities due to timing, bandwidth, or lack of supplier response

Procurement needed to act faster and influence more spend without waiting on a system overhaul or more headcount.

This Japanese automaker turned to Arkestro’s Predictive Procurement Platform to move faster, uncover savings, and expand procurement’s impact, even in constrained, single-sourced categories.

With minimal disruption to workflows, the team began using document-based event creation to launch sourcing faster and more frequently, dramatically expanding reach while reducing workload. Arkestro’s embedded game theory and real-time supplier feedback introduced the perception of competition, helping shift outcomes in categories that had long been considered locked in.

Early events showed just how transformative this shift could be:

Plant Services Contract: 23% Savings
The team was renegotiating multi-year plant services agreements with several incumbent suppliers. They used Arkestro’s Intelligent Counter Offer feature to show a market-aligned suggested price, prompting stronger quotes. By consolidating several contracts into one award with the most competitive incumbent, they saved $828,000—23% below previous costs.

Rewards Program Services: 41% Savings
For a supplier-funded rewards program, the team uploaded past pricing as a baseline. In Round 1, every supplier came in below Arkestro’s suggested price, driven by the system’s predictive pricing signals. In Round 2, all reduced pricing again—including the incumbent, who dropped theirs by 12%. The result: 41% total savings, with no compromise on service or supplier relationships.

Core Pins and Inserts for CYL Block
5 suppliers participated driving over 5% additional savings.

Wear Plates
6 Providers (including Incumbents) competed, resulting in an 87% cost reduction with Arkestro’s Behavior and Negotiation Science.

Vacuum Valves Impression Set
Competitive bidding drove a 29% discount.

This transformation didn’t require a new ERP or a massive systems overhaul. With Predictive Procurement, this manufacturer turned slow, reactive processes into proactive cost drivers—while giving procurement a new edge in speed, savings, and supply assurance at a time when all three were under pressure from shifting trade dynamics and rising localization requirements. Their team delivered results without adding systems, headcount, or delays.

AI-powered speed
Achieved 4-day event cycles with AI guidance and automation

Supplier communication
Embedded supplier feedback supports two-way engagement

Fast ROI
Demonstrated results faster than our competitors’ implementation time

Trade resilience
Helped identify new suppliers amid tariff and sourcing shifts

Continuous Improvement
Arkestro embraces Kaizen principles, driving greater efficiency and measurable gains with every sourcing cycle.