Case Study

Alcoa generates cost-savings and sourcing efficiency using Fairmarkit’s AI in a volatile market

With a go-live timeframe of just 4 months, including the holidays in December, Alcoa was able to deploy Fairmarkit’s autonomous sourcing solution in multiple locations, including Brazil, United States, and Canada with rapid expansion plans for other territories like Australia and Europe.

year one ROI
identified cost savings and avoidance
sourcing events

About Alcoa

Alcoa is a global industry leader in the production of bauxite, alumina and aluminum. Since developing the aluminum industry more than 135 years ago, Alcoa has built a legacy of breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever they operate. Through direct and indirect ownership, Alcoa has 27 operating locations in nine countries, situated primarily in Australia, Brazil, Canada, Iceland, Norway, Spain, and the United States.

Focus on digital transformation

Across the company, Alcoa is focused on three strategic priorities: Reduce complexity, Drive returns, and Advance sustainably. Recognizing the significant impact that procurement can drive for strategic initiatives, the leadership at Alcoa Procurement sought to digitize their purchasing processes in order to drive better & faster decision-making.

Our decision to invest in an autonomous sourcing solution was driven by a dual purpose: cost savings and efficiency gains. We envisioned a streamlined requisition cycle, where complexity would yield to simplicity. By embracing a standardized approach globally, we aimed to transform the very fabric of our buyers’ operations. And woven into this transformation was a commitment to ensuring compliance to specs, reducing delivery lead times, and increasing and meticulously tracking our spend with qualified I&D/ESG (Inclusion & Diversity / Environmental, Social, and Governance) suppliers.

Marcos Reis
Sr. Manager, Procurement Transformation and Governance

Jay Holton, from the Procurement Center of Excellence at Alcoa, recognized cost-savings and supply resilience as the key goals for digitization, especially considering the volatile nature of the aluminum market. With that goal, the team set out to evaluate best-in-class solutions to automate their procurement processes and leverage emerging technologies like Artificial Intelligence.

The solution

Alcoa approached Fairmarkit with the intention of:

  • Reducing manual work for the buying team, whether it be creating a sourcing event, identifying suppliers, managing invites & responses, or collaborating with internal stakeholders. This would help Alcoa liberate the procurement team from rote work and focus on managing more spend at a larger scale.
  • Introducing transparency and visibility into the centralized buying process at Alcoa so that every team member can make deliberate, data-driven award decisions no matter how large or small the event. This would help Alcoa ensure that all spend flowing through procurement actively contributes to KPIs.

Fairmarkit revolutionized our tail spend management. Before its implementation, our processes were fragmented, manual, and lacked standardization.

With Fairmarkit, we streamlined the source-to-PO process, ensured compliance to specs, compared delivery lead times, and achieved transparency across countries and operating locations. The impact was profound. Beyond our initial goals, Fairmarkit surprised us. It became a catalyst for collaboration. Buyers engaged more effectively, and data-driven insights empowered decision-making. Supplier interactions became transparent, fostering trust.

Fairmarkit’s real-time analytics and AI-driven recommendations stood out. They guided our sourcing decisions, optimized supplier selection, and accelerated cycle times. The platform’s user-friendly interface fostered adoption and even skeptics embraced the solution.

Jay Holton
Global Director - Center of Excellence, Procurement
suppliers engaged through supplier recommendations
quotes generated through supplier recommendations