iryo saves EUR €3.4 million with digital procurement overhaul

iryo has achieved full digitisation of its procurement operations, yielding reported savings of EUR €3.4 million and a return on investment exceeding 200%. The company partnered with JAGGAER to move its procurement process onto a digital platform that leverages automation and artificial intelligence.

Operational overhaul

The move from manual, paper-based procurement to a digital system has enabled iryo to increase the number of negotiation procedures significantly. According to the company, it increased the number of negotiation processes from 30 in 2024 to 154 in the current reporting period. The shift has also eliminated unauthorised purchases, according to internal figures.

Data and compliance

The digitisation project has provided iryo with comprehensive oversight and control of its supplier base. This includes monitoring who manages negotiations and contracts, as well as ensuring that all procurement activity complies with internal protocols. The company now reports real-time analysis covering 47% of the suppliers in its portal, with a target of 60% coverage by the end of 2025.

The platform has improved traceability, supporting the auditability of all procurement activities. iryo states it can now respond more swiftly to regulatory changes, legal risks, and sanctions by using the data gained from its system.

Automation and AI

Automation technology and artificial intelligence are being used to reduce procurement administration times. The company states that process management, approval workflows, and supplier negotiations are now handled digitally, allowing more procurement activity without expanding team size.

"In a highly competitive environment such as in our sector, digitalization not only drastically reduces administrative burden without expanding procurement teams but also promotes transparency and greater supplier access to each tender," said Ares Puivecino, Head of Procurement, iryo.

Supplier engagement

iryo reports an increase in supplier participation in tenders since implementing the new digital system. The company states that it has also achieved full transparency throughout its procurement cycle, thereby reducing the risk of unofficial contracts and backdoor purchasing.

The stated objectives of the procurement transformation include centralisation, better process management, and the use of data for predictive analysis and strategy development. The company prioritised these when it began procurement operations in late 2022, noting the absence of established standards or digital tools at that time.

Ongoing projects

iryo has outlined further digital projects planned through 2027. Upcoming steps include integrating the JAGGAER platform with SAP by the end of 2025, improving supplier registration and approval workflows, and optimising the procurement portal during the first half of 2026. The company has also scheduled a project to improve procurement category management by the end of 2027, aiming to enhance strategy and operational efficiency across its supply chain.

"We currently have a complete analysis of 47% of the portal's suppliers, a figure that is growing daily. The goal is to reach at least 60% by the end of 2025," said Puivecino.