Cost Analysis Agent

Agent Description:

The Cost Analysis Agent evaluates and compares supplier cost structures, including unit pricing, shipping, payment terms, and total cost of ownership over time. It identifies cost drivers, benchmarks against targets, and recommends negotiation strategies to optimize procurement decisions.

Purpose and Components
  • Purpose: To analyze detailed supplier cost data, identify key cost drivers, and recommend negotiation strategies to optimize procurement decisions.
  • Components:
    • A data collector sub-agent that fetches cost data via an API.
    • An analyzer sub-agent that processes the cost data and generates a final report with recommendations.
Supported Capabilities
  • Fetching detailed supplier cost data from an external source using an API.
  • Analyzing key cost categories: Purchase Price, Shipping, Payment Term Discounts, and Total Cost of Ownership.
  • Identifying the primary cost drivers for different suppliers.
  • Generating a comparative analysis report.
  • Recommending negotiation strategies based on the findings.
LLM Used
  • Google Vertex
    Note: To learn more about the LLM and to modify its behavior, refer to the Configuring LLM settings section.

Sub-Agents

1. Cost Data Collector

  • Role: Data Collector.

    Scope: Retrieve supplier data and calculate scores using a weighted ranking formula.

  • Description:

    • Connects to a REST API using the GET Request Tool to retrieve the supplier cost dataset.

    • Reads and processes the data from the API call.

  • Tool Used: GET Request Tool
  • LLM Used: Google Vertex (inherits from parent).

2. Cost Analysis Agent

  • Role: Cost Analyst.
  • Scope: Analyze cost data passed from the previous agent and submit a report with recommendations.
  • Description:

    • Accepts the supplier’s cost data from the Cost Data Collector.

    • Analyzes the following cost categories:

      • Supplier name and details

      • Purchase Price

      • Shipping

      • Payment Term Discount

      • Total Cost of Ownership

    • Submits a final report detailing the analysis and providing actionable negotiation strategies.
  • LLM Used: Google Vertex (inherits from parent).
Tools Used:
  • GET Request Tool : Used to fetch supplier cost performance data from an external API.
Note: For details on modifying the Tools, refer Tools Library section.
Agent Workflow Behavior Summary
  • The Cost Data Collector agent initiates the process by fetching supplier cost data using the GET Request Tool.
  • This data is then passed to the Cost Analysis Agent.
  • The analysis agent processes the information, focusing on key financial metrics like purchase price, shipping, and Total Cost of Ownership.
  • The final output is a comprehensive report that breaks down supplier cost structures and recommends specific negotiation strategies to optimize procurement.
Sample Questions:
  • Tell me about the supplier with the highest purchase price
  • Tell me the highest shipping price