What opportunities and benefits does Artificial Intelligence bring in sourcing & procurement? [Part 2]
January 28, 2021
As mentioned in our previous blog, new Artificial Intelligence (AI) related business opportunities can be found by considering which tasks could be automated, in what way the business value drivers could be impacted or how the current main pain points could be minimized or better yet, removed.
Various AI based technologies are currently available, for example: Natural Language Processing (NLP), Speech to Text, Text to Speech, Optical Character Recognition, Machine Learning including Deep Learning (Neural Networks) and Linear and Logistic Regressions, Smart Workflows, Robotics (Process Automation), Image Recognition and Chatbots or Virtual Agents. Within sourcing & procurement, these technologies can help you to create business value-added by automating processes and providing predictive, cognitive and guiding capabilities. Read on and find out how.
AI can enable guided and automated processes for sourcing and procurement experts, suppliers and internal customers from other functions. As a result, the availability of sourcing and procurement experts would no longer be a bottleneck, and guided processes would lead to better compliance and shorter process throughput times as well as a better user and customer experience:
AI can also provide more advanced spend and performance analytics with outlier and pattern identification, using technologies such as Machine Learning, Deep Learning, Logistic and Linear Regressions, Anomaly Detection as well as unstructured data analytics, such as NLP and Image Recognition:
Finally, most of the Strategic Sourcing and Procurement core solution suite providers (SAP Ariba, Ivalua, GEP, JAGGAER, Zycus, Coupa, and others) are in the middle of extending and embedding AI technologies into their solutions. If your digitalization journey is about to start and your intention is to select such a core Sourcing and Procurement solution suite beside your ERP solution, AI capabilities should be one of the main requirements to be evaluated. The AI capability roadmaps of these solution suite providers should be understood well before concluding and selecting such a core solution suite.
If you are not extending your core solution suite, there are also some AI specific solution platforms available that are worthwhile to consider, including Google AI, IBM Watson, Microsoft AI, and Amazon AI. If you have your own AI and Machine Learning experts, recommendable tools to investigate include TensorFlow, R, Python, Caffe, Weka, Keras and CNTK. These should get you off to a good start on your AI journey.
Are you familiarized with all the ways in which Artificial Intelligence (AI) can benefit the…