Pactum Basics
What does Pactum automate?
End-to-end contract negotiations.
How many suppliers does Walmart have?
Over 100,000.
What type of negotiations did Maersk automate with Pactum?
Spot-rate negotiations.
What does DPO stand for?
Days Payable Outstanding.
What’s one issue with traditional negotiation?
Unrealized value and prioritization dilemmas.
What percentage of contract value is lost due to inefficiencies each year?
17–40%.
What was the main problem with “long-tail” contracts?
Smaller suppliers received little attention; missed savings.
What challenge did Maersk face with spot-rate contracts?
Manual processes slowed responses to market changes.
What does ERP stand for?
Enterprise Resource Planning.
What is one benefit of Pactum’s digital model?
Standardized, measurable negotiation flow.
What type of contracts does Pactum focus on automating?
High-volume, low-value “long-tail” contracts.
What was Walmart’s engagement rate in the pilot?
64% (target was 20%).
What core business areas does Maersk operate in?
Ocean freight, inland logistics, port terminals, digital supply chains.
What is the “long tail”?
A large number of niche products or small-value contracts.
What does “hybrid model” mean in this context?
AI handles volume; humans handle strategy.
What is one way Pactum “learns” over time?
A/B testing, supplier behavior analysis, and feedback.
How many days did Walmart’s DPO increase?
+35 days
What kind of data does Pactum collect in Maersk’s ESG initiative?
ESG (Environmental, Social, and Governance) data.
What is the meaning of “engagement rate”?
The percentage of participants interacting with the system.
What are the three flows improved by Pactum?
Information flow, monetary flow, value creation.
Name two companies (besides Walmart) that use Pactum.
Vodafone, Coupang, Wesco.
Name one benefit Walmart saw from AI negotiations.
Faster cycle (11 days), ~1.5% savings, improved fairness.
How much did Maersk invest in Pactum?
$20 million.
What does the “average cycle” measure?
Time to turn negotiation into completed agreements.
What makes this case unique compared to Glovo and Amazon?
Focuses on negotiation automation vs. delivery automation.