Artificial Intelligence and Procurement.

Discussion on how artificial intelligence will drive efficiency and savings in procurement.

Artificial intelligence (AI) has the potential to revolutionize the field of procurement by automating many of the tasks and processes involved in sourcing and purchasing goods and services. Some of the ways in which AI can be applied to procurement include:

Supply chain optimization: AI can be used to analyze data on suppliers, prices, and demand to identify opportunities for cost savings and improve the efficiency of the supply chain.
Contract management: AI can be used to review and analyze contracts, identify potential risks and opportunities, and suggest terms and conditions for negotiations.
Demand forecasting: AI can analyze data on past purchases and market trends to predict future demand for goods and services, helping procurement teams to make more informed purchasing decisions.
Supplier discovery: AI can be used to search through large amounts of data to identify potential suppliers and evaluate their capabilities and suitability.
Supplier risk assessment: AI can analyze data on suppliers’ financial stability, performance history, and other factors to identify potential risks and help procurement teams to make informed decisions about which suppliers to work with.

Overall, AI has the potential to significantly improve the efficiency and effectiveness of procurement processes, but it is important for organizations to carefully consider the ethical implications of using AI in this way and ensure that they are using these technologies in a responsible manner.

Procurement and Supply Chain Quotes

“Let us never negotiate out of fear. But let us never fear to negotiate.” ~John F. Kennedy
“You don’t want to negotitate the price of simple things you buy everyday.” ~Jeff Bezos
“Organizational Procurement is a tight balancing act between “cost and quality” on one side and “time and compliance” on the other side, yet a seasoned procurement specialist keeps it evenly balanced.” ~Victor Manan Nyambala
“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organisational objectives. It is the fuel that allows common people to attain uncommon results.” ~Andrew Carnegie
“When consumers purchase a Toyota, they are not simply purchasing a car, truck or van. They are placing their trust in our company.” ~Akio Toyoda
“The natural strategic orientation of many companies is toward retaining existing customers and seeking further segmentation opportunities. This is especially true in the face of competitive pressure. Although this might be a good way to gain a focused competitive advantage and increase share of the existing market space, it is not likely to produce a blue ocean that expands the market and creates new demand.” ~ W. Chan Kim, Blue Ocean Strategy.
“The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” ~Babe Ruth