
Result
Customer
Moldovan food retailer Verde Local, operating 83 stores with over 4,000 employees, has seen rapid growth fueled by a diverse range of 9,000+ SKUs. In 2021, the company launched a long-term digital transformation, upgrading its demand forecasting and merchandise management systems to support continued expansion. The supplier network includes over 30,000 companies and continues to expand.


Challenges & solutions
Like many companies with large-scale procurement operations, Verde Local faces challenges in managing negotiations with its extensive supplier base of over 30,000 companies. Roughly 40% — primarily small suppliers — sign standard agreements with little to no negotiation, leading to inefficiencies. However, expanding the procurement team to handle these talks would outweigh the potential gains. To address this, Verde Local set out to automate negotiations with smaller suppliers using AI-driven technology.


Verde Local launched an AI-driven pilot program aimed at optimizing supplier negotiations by adjusting payment schedules. The goal was to secure early payment discounts or extend payment terms without discounts, while offering suppliers expanded assortment and sales opportunities in return.
The company invited 300 suppliers to join the trial, with 249 agreeing to participate. Internal buyers handpicked participants and collaborated with tech partner Plavno to develop machine learning-based negotiation scripts. These structured dialogues allowed suppliers to respond at their own pace.
Verde Local projected the system would deliver a positive return on investment if just 20% of the participating suppliers finalized deals through the chatbot.
For the 249 suppliers selected for its AI-powered negotiation project, Verde Local had detailed payment data and identified clear opportunities to improve terms and secure additional discounts. When a supplier requested higher prices, the AI system analyzed historical data, competitor benchmarks, and key product price trends to recommend a maximum acceptable price — guidance procurement officers could adjust if needed.
The results exceeded expectations: the AI chatbot successfully closed deals with 78% of participating suppliers — far surpassing the 20% target — within an average of 17 days. Verde Local achieved an average cost saving of 12% and extended payment terms to an average of 45 days.
As the system learns from each negotiation, it continues to boost efficiency and reduce onboarding time for new categories. Today, the AI can manage up to 1,500 simultaneous conversations, significantly enhancing procurement productivity.

Looks like your business could benefit from a similar service? Let’s discuss how we can help you reach your business goals!
process
Agile methodology forms the cornerstone of our work philosophy. Through a seamless blend of innovative practices, including regular demos, comprehensive progress tracking, and a unique pay structure based on hours invested, we've constructed a workflow that ensures optimal outcomes and client satisfaction.
project team

Contact Us
We can sign NDA for complete secrecy
Discuss your project details
Plavno experts contact you within 24h
Submit a comprehensive project proposal with estimates, timelines, team composition, etc
Plavno has a team of experts that ready to start your project. Ask me!

Vitaly Kovalev
Sales Manager