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We've all seen the advancements in AI in recent months. And if you're like me, you might be asking, "Months? It surely feels like years!!" And you'd be right. Not only that, but the pace of innovation shows no signs of stalling. While some of it may be hype and noise, you'd be better off not ignoring the change that's taking place right now.
Let's look at some real-world examples of how AI is already rocking the procurement world and also discuss some areas where improvements can be made.
# Smart Sourcing – The AI Matchmaker 🤖💘
Ever had this question, who will be the right suppliers to quote on my RFQs ? or who are best suppliers is a specific geography?
Platforms like Scoutbee are already using AI to solve this problem . They find the best suppliers by assessing compatibility, risk, and performance. We see enhancing the adaptability of AI algorithms to different industries and emerging markets can widen the sourcing spectrum and better personalize supplier recommendations.
# Predictive Analytics – The Crystal Ball 🔮
Predictive analysis with AI involves using algorithms, statistical models, and machine learning to predict future outcomes based on historical data. It's like a well-trained psychic that analyzes the past to foresee the future.
SAP's Integrated Business Planning (IBP) offers predictive analytics to forecast demand and market trends. Though a hard problem to solve, we think expanding data sets and integration with real-time market fluctuations can sharpen the predictions, reducing the margin of error, and providing more actionable insights.
# Automated Processes – The Virtual Assistant 🧞♂️
Do you enjoy manually tracking order details, invoices and being the manual interface matching data from multiple systems?... Didn't think so!
Coupa's Procure-to-Pay (P2P) solution automates ordering and invoicing, simplifying the procurement cycle. We believe increased customization and seamless integration with various organizational structures could enhance efficiency and user-friendliness across different business sizes and sectors.
# Enhanced Negotiations – The Diplomatic Robot 🤝🤖 ... Diplobot anyone?
We all know one star negotiator in a team. In our team it was Kathy, when Kathy got into supplier negotiations it was a sure WIN! What if we could transform the entire procurement org to be at the same level of Kathy, the star negotiator?
Pactum's negotiation suite just does that, it employs AI to optimize procurement negotiations by providing actionable insights. Developing AI-driven emotional intelligence can add a more to negotiations, recognizing subtle cues, and adapting negotiation strategies accordingly.
# Sustainability Insights – The Eco-Warrior 🌿
Sustainability is no longer a trendy term to be used in the last slide of your presentation, it's down right essential. Sustainability insights refer to understanding, monitoring, and optimizing the environmental and social impacts of a supply chain.
EcoVadis provides sustainability ratings for suppliers using AI to analyze environmental and social performance. Broadening the assessment criteria and incorporating more localized sustainability norms can help create a more global and nuanced perspective on environmental practices.
AI's journey in procurement is like a thrilling sci-fi adventure with loads of potential yet to be explored. The current implementations are paving the way for a smarter, more efficient, and eco-conscious procurement process. However, the sequel (or improvements) promises even more excitement with greater personalization, accuracy, human-touch, and global sustainability.
So, buckle up! The AI-driven procurement saga is unfolding, and it's a thrilling ride full of possibilities and improvements. 🚀
