Although ‘traditionally slow’ to adopt the latest artificial intelligence (AI) technology, procurement teams should now fully utilise them to turbo-charge performance in five areas, says The Forbes Technology Council
1. Risk assessment
AI will process risk factors, analysing billions of data points in seconds to present solutions with accurately assessed risks, tracking supplier performance based on reliability, stability and other predictable factors such as using weather patterns to predict the best delivery methods and routes.
2. Agile logistics
It can use internet-enabled GPS to track goods in real time, tagging individual shipping containers and items. It facilitates asset tracking and strategic routing as it happens, delivering the fastest and safest route after considering every detail.
3. Spend optimisation and reduction
AI can analyse hundreds of thousands of items purchased by one company to identify different unit rates charged by suppliers for the same products. Optimal agreements can then be negotiated with key suppliers to maximise savings. AI can find also process bottlenecks, resulting in avoidance of late payment fees.
4. Meet customer expectations
The technology can assess if suppliers rise to the challenge of ethical sourcing and choose suppliers from a global pool most likely to meet your business standards.
5. Bring on the future
Get ready to ramp up AI in procurement by finding and developing the talent needed to optimise your supply chain; digitising current processes, and taking advantage of new AI tech.