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A New Robust Procurement Model Driven by Data

artificial intelligence data digitization machine learning procurement Jul 14, 2021

The role of procurement officers is changing and becoming increasingly critical for organizations. The role of procurement went from having the main objective of driving costs down to developing the key to a strategic organization. Recently, technological advancements and the increasing capabilities to leverage newly available sources of data are the main contributors. 

 Strategically-thinking procurement leaders have become instrumental in the growth of organizations and can even drive a positive impact from a revenue perspective through the following: 

Better Manage & Mitigate Risks

  • Improve product quality & compliance by highlighting key risk factors.
  • Improve supplier performance with clear ratings, escalations, improvement plans and follow-ups on corrective action plans.

Drive Business Growth Through Optimization & Integration

  • Optimize and standardize processes, bringing visibility & transparency across the entire supply chain. 
  • Drive quality improvement and consistency through standardized quality processes and root cause analysis.
  • Optimize processes through to Tier 1 and Tier 2.
  • Reduce costs through efficiency gains.
  • Empower and engage teams through more targeted training, certification and collaboration.

Shorten Lead Times

  • Shorten lead times via supply chain optimization. 

Minimize Waste

  • Reduce internal rework and rejections.
  • Reduce inventory.
  • Improve inventory turn-over.

Encourage Innovation

  • Provide a feedback loop upstream to design and innovation teams. 
  • Drive team engagement. 

 

These benefits are only possible through the automation of processes enabled through digitization. Adding layers of Artificial Intelligence and Machine Learning will allow the removal of more technical and time-consuming tasks, allowing teams to become more strategic.

A good quality and compliance system, combining different processes seamlessly, will replace the common data overload, provide the insights needed to generate impact and build this robust procurement model.

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