Procurement

Semantic Product Recommender

Challenge

A leading US procurement platform struggled with inefficient product recommendations, limiting users' ability to find relevant alternatives when items were out of stock or overpriced.

Solution

We designed a sophisticated semantic product recommender using advanced embedding techniques, hybrid search combining semantic understanding with metadata filtering, and optimized text representation.

Results

The system dramatically improved recommendation relevance, with items now appearing in top positions. This resulted in significant reduction in search time and increases in successful product substitutions, while maintaining reasonable query response times.

Project Overview

This semantic product recommender helps a leading US procurement platform provide relevant alternative products when items are out of stock or overpriced. The system transforms the product discovery experience through advanced semantic understanding and metadata-aware search techniques.

Technical Solution

System Architecture

We designed a sophisticated recommendation engine with:

  1. Semantic Core Development:
    • Advanced embedding techniques for product similarity
    • Hybrid search combining semantic and metadata filters
    • Optimized context window size for embedding model effectiveness
    • Product text restructuring to prioritize distinctive features
  2. Technical Optimization:
    • Multiple text pooling methods with first-token pooling proving superior
    • Expanded candidate pools for recommendation diversity
    • Metadata-based filtering for price ranges and manufacturer data
    • Benchmark testing framework for continuous improvement
  3. Enhanced Search Features:
    • Price sensitivity awareness
    • Manufacturer relationship mapping
    • Category-aware recommendations
    • Usage pattern matching

Optimization Process

The solution incorporates several key innovations:

  • Context window optimization increasing from default to 32,768 tokens
  • Text pooling experimentation (mean, first-token, last-token)
  • First-token pooling providing 67% improvement in relevance
  • Product text restructuring to place distinctive features first
  • Hybrid search combining text similarity with attribute matching

Implementation Challenges

Key challenges we addressed included:

  • Balancing semantic similarity with critical product attributes
  • Maintaining reasonable query response times
  • Creating a robust benchmark dataset for evaluation
  • Handling diverse product categories beyond initial test cases
  • Optimizing text representation without expensive model fine-tuning
  • Dealing with incomplete and inconsistent product metadata

Business Impact

The system delivered substantial value across multiple dimensions:

Recommendation Quality Metrics

  • Mean Reciprocal Rank (MRR): Improved from 0.3000 to 0.7000 (133% increase)
  • Recommendation Position: Relevant products now appear in positions 1-2 vs. previous 3-4
  • Mean Average Precision (MAP@10): Increased from 0.36 to 0.65
  • Query Response Time: Maintained reasonable 1.39 seconds despite more sophisticated processing
  • Recommendation Diversity: 46% improvement in product category variation
  • Relevance Score: 87% in blind expert evaluations (vs. 52% for previous system)

User Experience Metrics

  • Search Time Reduction: 73% less time spent searching for alternative products
  • Successful Substitutions: 28% increase when preferred items unavailable
  • Productivity Improvement: Procurement specialists now manage 35% more purchase orders
  • User Adoption: 68% of users regularly utilize recommendation features within 90 days

Business Outcome Metrics

  • Purchase Order Efficiency: 35% more POs processed with same resources
  • Cost Savings: 26% average savings when selecting recommended alternatives
  • Process Exception Reduction: 37% fewer procurement process exceptions
  • Abandoned Purchase Reduction: 12% decrease in abandoned procurement journeys

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