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Clearlead AI Consulting
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Supplier Intelligence and Procurement Search

Clearlead redirected a RAG-based procurement assistant toward hybrid retrieval and built the supplier data layer that made precision search possible across a global network of more than 8,000 suppliers.

Hands typing on a laptop with a search bar overlay

The client

  • An industrial parts distributor
  • Industrial procurement, Heavy machinery
  • Australia

Overview

The client is a specialist supplier and importer of spare parts and components for heavy machinery, managing sourcing relationships with more than 8,000 suppliers globally and distributing parts for major equipment brands across Australia and the South Pacific.

Clearlead was engaged to provide technical oversight on a RAG-based procurement assistant being built by a development team, and to ensure the architecture would hold up under real procurement conditions. That oversight led to a second, hands-on workstream: defining and building a hierarchical supplier classification system and an LLM-powered data enrichment pipeline across the full supplier base.

The client gained a structured, searchable supplier knowledge base and a retrieval architecture capable of returning accurate results for the precise, technical queries that procurement work requires.

Methods

  • RAG
  • Hybrid search
  • Agentic AI
  • LLM enrichment
  • Supplier classification

Engagement type

  • Advisory
  • Design and build

The situation

The client's procurement team handles a constant flow of requests for quotes, typically for specific parts, brands, or equipment types used across mining, construction, civil, and agricultural operations. Matching those requests to the right suppliers had historically depended on individual staff knowledge and experience. With more than 8,000 suppliers in the network and a product range spanning brands including Caterpillar, Komatsu, Hitachi, and Volvo, that kind of informal matching had clear limits: it did not scale, and it concentrated critical operational knowledge in individuals rather than in shared systems.

This problem was sharpest for the core heavy machinery parts range, where experienced staff could at least draw on accumulated domain knowledge. But customers also regularly needed supplementary products alongside their primary equipment requests: safety equipment, personal protection, consumables, and other categories adjacent to their core procurement work. For these, the situation was worse. No structured classification of supplementary categories existed anywhere in the supplier data. There was no systematic way for staff to know which suppliers in the network could source a safety helmet or a set of protective gloves, even if multiple suppliers carried exactly those products. These requests either went unanswered or required manual searching with no reliable starting point.

The business decided to explore an AI-powered procurement assistant backed by retrieval-augmented generation. Two structural problems stood in the way. The majority of supplier records contained little more than a name and contact details, with no reliable structured information about products carried, brands represented, or equipment types serviced. And in industrial parts procurement, queries tend to be highly specific: a part number, a machine type, a brand, or a combination. Pure semantic search, which works by matching on meaning, is not well-suited to this kind of precision in a domain where technical terminology is specific and non-intuitive.

Clearlead was brought in initially for technical oversight of the development team, with a remit to ensure the architecture and design decisions would produce a system that genuinely met the business's procurement needs.

The engagement

Clearlead's involvement spanned two workstreams that were distinct in nature but closely connected in outcome. The first was an oversight and advisory role: reviewing the technical architecture as it was being designed and built, and redirecting it when the initial direction would not have produced the search quality the use case required. The second was a direct implementation workstream that emerged from that oversight: defining and building the supplier data enrichment and classification system that became the data layer underpinning retrieval.

  • Hybrid retrieval architecture: guided the development team from a purely semantic search approach toward a hybrid design, combining vector embeddings with structured metadata filtering and integration of transaction history from the client's operational database. Queries with specific parameters, such as brand, machine type, or part category, use metadata filters to narrow the search space first; embedding similarity handles less structured queries as a fallback. This architecture ensures procurement queries are answered with accuracy and relevance, not broad semantic approximation.

  • AI agent for supplier data enrichment: built a pipeline in which an LLM agent with web search tools autonomously researched each supplier's online presence across the full 8,000-supplier base, extracting brands represented, products and services at a depth suited to downstream classification, and an initial categorisation of supplier type. The emphasis was on specificity in the extracted descriptions rather than brevity, so that structured classification could be performed downstream without re-visiting source data.

  • Taxonomy for machinery parts: the classification structure was derived from how experienced staff described their manual sourcing process, then validated against their domain knowledge. The resulting multi-level hierarchy covered equipment applications, machine types, and component areas, and was used to classify the specific products each relevant supplier supplied, with multi-category assignment where a supplier's range spanned more than one area.

  • AI-discovered taxonomy for supplementary product categories: for the products that fell outside the core machinery parts range, no classification framework existed. Rather than imposing a predefined structure, the enriched supplier descriptions were used to discover what product categories were actually present across the supplier base: batches of suppliers were analysed to surface category candidates, redundant and overlapping labels were consolidated, and the result was reviewed and approved by the client before being used to classify the supplementary products each supplier carried. The outcome was a structured, searchable taxonomy covering categories including safety equipment, personal protection, and consumables that had never been formally catalogued, and that previously made matching impossible even when qualified suppliers existed in the network.

  • Integration with the retrieval system: the enriched and classified supplier profiles fed directly into the vector indexes and metadata filtering layer of the procurement assistant, providing the structured attributes needed for precision retrieval on technical queries.

Outcomes

  • More than 8,000 supplier records transformed from largely sparse entries into structured, enriched profiles, with two distinct classification layers: a hierarchical machinery parts taxonomy built with domain experts, and an AI-discovered supplementary products taxonomy covering categories that had never been formally catalogued.
  • A hybrid retrieval architecture capable of handling the precision that specialist procurement queries demand, combining semantic search with metadata filtering against the enriched supplier data and structured transaction history.
  • Reduced reliance on individual staff knowledge for matching requests for quotes to qualified suppliers, with the procurement assistant able to surface relevant results for specific technical queries at a level of precision that pure semantic search could not achieve.
  • A reusable classification framework and enrichment pipeline that scales as new suppliers are added to the network, providing a consistent, structured data layer for the retrieval system to depend on.

Similar applications

This engagement combined several techniques that each apply broadly in their own right.

  • Specialist technical search

    Legal, engineering, financial, and clinical domains where precise terminology and structured attributes matter more than semantic similarity.

  • Sparse database enrichment

    Large databases of companies, contacts, products, or assets where publicly available information could fill gaps and unlock search or AI capabilities.

  • Tacit knowledge capture

    Organisations where expertise on how to find or evaluate something lives with experienced staff rather than in systems, and needs to be formalised as the organisation grows.

  • Catalogue and product data quality

    Product data that varies in quality and needs enrichment before search, filtering, or recommendation works reliably.

  • Taxonomy discovery from data

    Internal knowledge retrieval where the right taxonomy needs to emerge from the data rather than be imposed from a structure decided in advance.

  • CRM and account intelligence

    CRM or prospecting databases enriched from public sources to support better segmentation, targeting, or sales decisions.

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