How Leading Companies Use AI for Efficient Supplier Discovery

Leading companies have cracked the code: AI is a game-changer in supplier discovery.

Why spend weeks or months looking for suppliers when AI can do it in a fraction of the time?

Beyond speeding up procurement, AI’s reach and real-time insights become critical when navigating supply chain disruptions.

Today, we’ll explore how industry giants like PepsiCo, Unilever, Siemens Energy, Kärcher, Cisco, and BT Group are leveraging AI to stay ahead—proving that smart supplier discovery leads to strategic growth.

PepsiCo

Lay’s, Doritos, Gatorade, Pepsi—you can’t walk through a supermarket without seeing these products.

But making sure they’re always available on store shelves is no small task.

PepsiCo, a global leader in food, snacks, and beverages, relies on an extensive supplier network to keep its operations running.

Without the right suppliers in place, those familiar products wouldn’t reach consumers as seamlessly.

And that’s exactly why PepsiCo has embraced AI—it’s transforming how the company discovers and manages suppliers.

Athina Kanioura, PepsiCo’s Chief Strategy and Transformation Officer, explains the power of AI for PepsiCo:

“AI has changed how we interact with almost every company. And now businesses have systems that have intelligence behind them that have transformed the way we solve problems, engage with consumers and make products.”

At PepsiCo, AI is integrated across operations, from determining the best time to plant potatoes to predicting how many bags of Lay’s should be stocked in stores.

But beyond logistics and forecasting, AI helps PepsiCo find, assess, and onboard suppliers faster and more effectively.

How does PepsiCo do it?

One of the key AI-driven solutions PepsiCo uses for supplier discovery is Veridion.

Veridion is an AI and machine learning-powered data engine that scrapes the internet weekly, gathering fresh and precise data on over 120 million suppliers across 240+ locations.

Source: Veridion

This real-time intelligence helps PepsiCo strengthen its global procurement and sourcing strategies.

With Veridion, PepsiCo benefits from:

• AI-powered supplier discovery for a more efficient global sourcing strategy.
• Highly accurate supplier data for better risk mitigation, reporting, and business visibility.

To put it simply, Veridion helps PepsiCo work towards a global sourcing strategy, as Chad Moore, Director of Sales at Veridion, points out:

Illustration: Veridion / Quote: Wonder Services on YouTube

Veridion provides PepsiCo with over 60 data points per supplier, covering location, size, revenue, product specifics, classifications, certifications, compliance data, and ESG insights.

Supplier profiles can be assessed by natural language queries made through APIs that seamlessly integrate with PepsiCo’s other systems, or in Veridion’s discovery tool—Scout.

Source: Veridion on YouTube

Beyond supplier discovery, Veridion helps protect PepsiCo’s business by continuously delivering updated supplier data and real-time alerts.

These alerts cover issues like lost certifications, geopolitical risks in a supplier’s location, ESG-related controversies, and more.

With AI-driven insights from Veridion, PepsiCo stays ahead in discovering the right suppliers while minimizing risks—ensuring that its products keep reaching customers without disruption.

Unilever

Every day, 3.4 billion people around the world use Unilever products.

From household essentials to personal care items, Unilever’s vast portfolio reaches billions of consumers.

Source: Unilever

As expectations for its products continue to evolve, Unilever is leveraging AI to stay ahead—navigating supply chain disruptions, managing cost inflation, and addressing sustainability challenges.

The company has integrated AI across various operations, from improving shopping experiences to exploring blockchain for sustainability initiatives.

But one of the most impactful ways Unilever uses AI is for supplier discovery—especially when sourcing alternative suppliers on short notice.

Unilever relies on an AI-driven discovery solution that automatically generates a list of potential suppliers by scraping online data.

The tool analyzes key supplier attributes, including:

• Financial health
• Customer ratings
• Sustainability scorecards
• Intellectual property insights

This AI-driven approach speeds up supplier discovery by 90% or more, which is a critical advantage, especially during sudden supply chain disruptions.

Maggie Brommer, Head of Procurement for Unilever’s Prestige Products, said for Harvard Business Review:

Illustration: Veridion / Quote: HBR

Beyond mitigating disruptions, Unilever also uses AI to identify diverse suppliers.

Such businesses are often difficult to discover through traditional keyword searches.

However, as Lullit Jezequel, Unilever’s former Procurement Manager for Sustainability and Partnerships, explained for HBR, AI-powered tools can identify even such small and mid-size businesses:

Illustration: Veridion / Quote: HBR

This is especially important for Unilever’s commitment to spending €2 billion annually on diverse suppliers by 2025.

All in all, it’s perfectly clear why a leader like Unilever turned to AI’s help for supplier discovery.

Greater agility, resilience, and inclusivity in its supply chain are just some main advantages.

Siemens Energy

Siemens and its independent company, Siemens Energy, have both embraced AI-powered supplier discovery to tackle sourcing challenges.

In late 2022, Siemens Energy needed new suppliers for photovoltaic systems, which convert sunlight into electricity.

Stricter regulations in Germany made solar panel installations mandatory for new industrial buildings, bringing new business opportunities.

However, Siemens Energy struggled to secure suppliers due to limited availability and poor response rates.

Rather than relying on traditional time-consuming supplier discovery methods, Siemens Energy turned to AI-powered supplier discovery, which rapidly scanned global markets to identify new suppliers.

Within just four weeks, the solution:

• Identified 59 new suppliers across 12 countries
• Provided structured data for supplier evaluation
• Helped Siemens Energy, onboard multiple new partners

The entire process—from kickoff to RFI deadline—took just over four weeks, saving Siemens Energy valuable time and strengthening supply chain resilience through expanded competition.

Source: Scoutbee

Siemens has also experienced how AI helps during shortages.

The company faced a shortage of Surlyn—a highly specialized ionomer resin created by DuPont and used in medical diagnostic product packaging.

Since Surlyn is a patented product, Siemens couldn’t source an alternative manufacturer.

By analyzing import and shipping documents, the AI system quickly generated a list of 150 Surlyn distributors in just days.

Siemens’ procurement team refined the list, and further analysis identified distributors with available inventory, allowing Siemens to secure supply faster than traditional methods.

Michael Klinger, Siemens’ Senior Director of Supply Chain Excellence, says AI-driven technology is here to save the day by enabling quick reactions to supply chain disruptions:

Illustration: Veridion / Quote: HBR

In a nutshell, both Siemens and Siemens Energy have streamlined procurement, reduced supply risks, and accelerated sourcing timelines.

If anything, this proves that AI-driven supplier discovery really is a game-changer in modern supply chain management.

Kärcher

Kärcher, a global leader in cleaning technology, has turned to AI to transform how it discovers suppliers and ensures the continuity of its supply chain.

The company faced the challenge of sourcing vendors for a range of materials, including motors, injection-molded parts, and chemicals.

With the help of an AI-powered supplier discovery tool, Kärcher was able to identify most of the suppliers within just a few weeks.

For example, the supplier scouting for chemicals was completed six weeks from kickoff to the RFP process.

This dramatically sped up what was once a lengthy and resource-intensive procedure.

The speed of AI-driven discovery has enabled Kärcher to remain agile, allowing the company to adapt quickly to changing market conditions.

Heiko Braitmaier, Executive VP of Sourcing & Procurement, emphasizes the importance of staying fast and flexible.

He points out that modern procurement is more about quick, agile actions than long, drawn-out efforts.

Illustration: Veridion / Quote: Procurement Leaders

Kärcher’s real win came from the ability to maintain a steady supply of products during the COVID-19 pandemic.

With alternative suppliers sourced in multiple countries, the company was able to continue production when many competitors faced significant delays or shortages.

Ultimately, this enabled them to gain market share.

Kärcher’s North American division has also seen the benefits of AI in its data management practices.

Tiger Biletnikoff, a former Director of Sourcing and Procurement at Kärcher North America, noted that large-scale AI tools allow the company to conduct analysis in a fraction of the time it would normally take.

Illustration: Veridion / Quote: Issuu

Ultimately, AI has revolutionized how Kärcher approaches supplier discovery, making it not only faster but also more resilient.

The company’s ability to quickly identify alternative suppliers has kept production running smoothly, allowing it to respond faster than many of its competitors, especially in times of crisis.

In the modern supply chain, agility is just as valuable as cost savings, and Kärcher’s use of AI proves just how crucial it is to stay one step ahead.

Cisco

Cisco, a giant in digital communications technology, has made diversity a key focus of its procurement strategy.

As Chuck Robbins, CEO of Cisco, explains, as technology transforms the world, it’s crucial to incorporate diverse perspectives and cultures from the regions where Cisco operates.

“As technology transforms every company, city, and country, and more people, places, and things become connected, it is more important than ever to consider and incorporate the many viewpoints and cultures from the places in which we do business.”

Indeed, supplier diversity has become a priority for many companies, especially as customers increasingly demand it, and it has been proven to foster innovation.

In fact, 85% of Fortune 500 companies now have supplier diversity initiatives.

Concurrently, 46% of organizations globally report experiencing innovation as a direct result of their efforts in this area.

However, even with the best intentions, finding diverse suppliers can be a difficult task.

Cisco faced this challenge for years, particularly when it came to identifying suppliers that are owned by women, veterans, and minority groups, or those based in economically underserved regions such as rural communities or tribal lands.

These groups, designated as HUBZones by the federal government, can be hard to identify manually, especially when relying on traditional procurement methods.

To address this, Cisco turned to TealBook, a platform powered by machine learning and natural language processing that helps teams find suppliers that meet specific diversity criteria.

Source: TealBook

The platform aggregates public and proprietary information, allowing Cisco to quickly assess whether a supplier aligns with its diversity goals.

By using AI to sift through vast amounts of data, Cisco reduced the time and effort involved in discovering diverse suppliers.

However, while the AI tool provides valuable insights, Cisco still needs to engage directly with suppliers to ensure they are truly interested in working with the company.

As Bryan Wiggins, Cisco’s Supplier Diversity Leader, points out:

Illustration: Veridion / Quote: TechTarget

Overall, AI has enhanced Cisco’s ability to quickly identify and engage with a broader range of diverse suppliers, driving both efficiency and innovation in their procurement process.

BT Group

BT Group, a major player in telecommunications, wanted to modernize its procurement process.

The company aimed to introduce self-serve technology that would lower costs, simplify the process, and make it more digital, sustainable, and value-creating.

To achieve this goal, BT implemented Globality’s AI platform across its operations in February 2021.

The AI technology enabled both BT’s procurement team and business end-users to easily scope their requirements, avoid overbuying, and discover new suppliers in real time—beyond their existing supplier base.

As Cyril Pourrat, CPO at BT, explains, the AI’s generative capabilities enable users to simply type a sentence to start a supplier search.

Illustration: Veridion / Quote: Globality

This AI-driven system makes supplier discovery faster, more efficient, and far less reliant on manual processes.

Source: Globality

The integration of AI-powered smart sourcing has allowed BT to automate tasks, which in turn reduces time-to-market for procurement projects.

By leveraging data-driven insights and increasing competition among suppliers, BT has significantly cut costs while improving the accuracy and speed of supplier discovery.

In just two years, BT has seen consistent annual savings exceeding 10% in indirect spend.

This demonstrates how AI not only transforms procurement but also delivers tangible cost benefits and more effective supplier engagement.

Conclusion

From food and beverages to telecommunications and manufacturing, one thing is clear—AI is reshaping supplier discovery across industries.

The examples we’ve explored highlight how AI delivers speed, agility, and resilience, ensuring businesses stay competitive even during disruptions.

The question is: are you ready to leverage AI for your procurement success?

The future of sourcing belongs to those who adapt quickly, so don’t let your business fall behind.