Frequently asked questions
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The areas of benefit touched by implementing Cirtuo Guided Strategy Creation™ are manifold. Most obviously, the tremendous increase in efficiency by using this AI-powered solution will save significant amounts of time and resources. Expect 40-50% in the beginning, up to 60-70% once category managers fully embrace the tool. The overall quality of category strategies will improve over time, leading to better results. Alignment with key stakeholders will improve and reduce frictions during the implementation of category strategies, leading to better results. The share of addressable spend covered by high-quality category strategies will increase, leading to better overall results. You will also avoid one-time or recurring costs for consulting and training as they become obsolete. The combined effect of implementing Cirtuo Guided Strategy Creation™ on results will be tangible and sustainable. Digitization is here to stay and irreversible.

While the exact amount of savings and better results highly depends on a broader set of company-specific factors, which we can neither predict nor quantify upfront, the general theme will be valid for all of them. Moving from a manual process to an AI-enabled digital one will save time and resources in the range of 50-70% mid-term. Look at your current resources engaged in strategic category management activities, and you get the impact expressed in FTEs, which can easily be translated into financial terms. The combined positive impact on results (from higher cost reductions, higher cost avoidance, better value for money, faster decision-making, fewer disruptions, etc.) stemming from implementing Cirtuo Guided Strategy Creation™ is best expressed by an incremental amount of whatever you are reporting today. Try to quantify as much as possible, best with a colleague from Finance/Controlling, and make a judgment call on the rest. Be conservative in your assumptions, keep it accurate, and make it a Procurement Team exercise – don’t allow the impact to be neglected or ignored! Apply this incremental benefit percentage to the underlying addressable spend, add the savings based on efficiency improvements and avoided costs for consulting and training, and you get your recurring annual benefit.

Take the calculated recurring annual benefit and put it in relation to the annual license cost for Cirtuo Guided Strategy Creation™. Given Cirtuo’s pricing policy, the ROI will reliably shoot through the roof, and payback times will typically be expressed in months or weeks.

We can help you make a business case for Cirtuo Guided Strategy Creation™. Once we have gained insights into your procurement organization, it’s level of maturity around Category Management, and its current practices, we feel comfortable supporting you in quantifying the benefits you can expect from a successful implementation of Cirtuo Guided Strategy Creation™. This is typically the case after completing a “Pilot” project, which most of our clients have gone through as a “proof-of-concept” to take an informed decision on implementing Cirtuo Guided Strategy Creation™.

The pricing model for Cirtuo Guided Strategy Creation™ is an annual fee for a company license with an unlimited number of users and category strategies. The amount for a standard license fee depends on the company’s size measured by annual revenue, a reliable indicator of complexity, and the effort on our side to support a client – from infrastructure to IT security, customer success, etc. It includes the modules of “Category Management,” “Supplier Management,” “Risk Management,” “Initiatives Management & Savings Tracking,” and several more. Cirtuo currently offers three additional value-adding modules as “options,” which can be purchased at extra cost, namely “Spend Analysis PRO,” “Supplier Evaluation,” and “Contract Management.”