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GenAI Agents for Supplier Onboarding: Insights from Procurement Leaders- Zycus

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Zycus

Published On: 10/28/2024

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GenAI agents for supplier onboarding

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GenAI Agents for Supplier Onboarding Automation: A Conversation Between Procurement Leaders

Scene: Jack and Steve, two procurement leaders, are catching up over coffee after years of working in different organizations. Jack is curious about the new tech trends, specifically GenAI agents, while Steve, whoโ€™s a veteran, has already implemented the AI solution and seen its benefits firsthand.

Jack ๐Ÿค”:

โ€œSteve, itโ€™s been forever! So, tell me, whatโ€™s this buzz I keep hearing about GenAI agents? Our supplier onboarding process isโ€ฆ well, letโ€™s just say itโ€™s not exactly a smooth ride. Iโ€™m wondering if investing in something like GenAI would actually help or if itโ€™s just another flashy tech thatโ€™ll cost us more than itโ€™s worth.โ€

Steve ๐Ÿ˜„:

โ€œAh, the old supplier onboarding struggle. Trust me, I know it all too well. GenAI isnโ€™t just hypeโ€”itโ€™s a solution thatโ€™s genuinely made a difference for us. But before we get into the specifics, letโ€™s talk about why your process is such a headache right now. Iโ€™m sure youโ€™ve got a few stories!โ€

Supplier Onboarding Process: Simplified Overview

Jack ๐Ÿ˜ž:

โ€œWhere do I even start? Right now, supplier onboarding process for us is like watching paint dry. Itโ€™s slow, tedious, and full of back-and-forths. Half the time, weโ€™re just chasing missing documents or double-checking compliance. Every delay costs us time and, more importantly, money.โ€

Steve ๐Ÿค”:

โ€œYup, sounds familiar. The ideal onboarding process should look something like this: you get the supplier registered, gather all the documentation, run compliance checks, and integrate them into your systemsโ€”ERP, procurement software, payments, the whole nine yards. Sounds simple, but in reality, without the right tools, itโ€™s anything but.โ€

Jack ๐Ÿ˜„:

โ€œExactly! Itโ€™s like weโ€™re doing it the hard way every single time.โ€

What Differentiates a Great Onboarding Process from an Average One?

Jack ๐Ÿง˜:

โ€œSo, what actually makes the difference between an average onboarding process and a really good one? Weโ€™re doing the work, but it feels like weโ€™re always behind.โ€

Steve ๐Ÿค”:

โ€œWell, the average process is clunkyโ€”itโ€™s slow, manual, and prone to human error. You spend weeks onboarding a supplier, and before you know it, production timelines are being pushed. Thatโ€™s what was happening to us, too. But the great ones? Theyโ€™re fast, automated, and leave no room for error. Hereโ€™s what separates the great from the average:

  1. Automation is keyโ€”automating document collection and compliance checks makes the process faster and more accurate.
  2. Supplier risk assessment tools ensure youโ€™re not onboarding suppliers who might cause trouble later.
  3. Real-time communication channels keep suppliers in the loop, so no oneโ€™s left waiting on emails or phone calls.
  4. Seamless ERP integration ensures all supplier data flows smoothly into your procurement, payments, and inventory systems.
  5. And, a great process is scalable and secure, so it can grow with your business while keeping supplier data safe.

If you can nail these five things, youโ€™re lightyears ahead.โ€

Jack ๐Ÿคจ:

โ€œOh. Understood. So how did you bridge that gap? How did you get your process to stop feeling like a broken record?โ€

Bridging the Gap: Enter GenAI Agents

Steve ๐Ÿ˜„:

โ€œThatโ€™s where GenAI agents come in. We were stuck in the same manual rut until we brought in GenAI. These agents are like digital assistants that handle all the repetitive, time-consuming tasks you donโ€™t want your team doing. Think document validation, compliance checks, and supplier communicationโ€”all handled by AI.โ€

Jack ๐Ÿค”:

โ€œWait, so theyโ€™re automating all that? No more manual back-and-forth?โ€

Steve ๐Ÿ˜„:

โ€œExactly! Itโ€™s like having a 24/7 team that never makes mistakes. The best part? They make the process faster and far more accurate. And when you speed things up, you save money. Our onboarding costs dropped significantly once we stopped wasting time and manpower on repetitive tasks.โ€

Jack ๐Ÿง:

โ€œSo, whatโ€™s in it for me in terms of cost savings? How much time does this software save? How does that translate into financial savings?โ€

ROI and Tangible Benefits

Steve ๐Ÿง˜:

โ€œLook at it this wayโ€”before GenAI, onboarding a supplier would take us weeks and cost us thousands in labor. After implementing GenAI agents, we slashed onboarding time by 60%, and errors dropped by 30%. The cost savings? Easily 25-30% per onboarding process. And thatโ€™s just the beginning. When suppliers get onboarded faster, your supply chain runs smoother, and thatโ€™s where you see the bigger financial impact.โ€

Jack ๐Ÿคจ:

โ€œWow. So itโ€™s not just about saving timeโ€”itโ€™s saving real dollars. Thatโ€™s convincing. But what if we donโ€™t jump into this GenAI thing right now? Whatโ€™s the risk? Iโ€™m not someone whoโ€™s an early adopter though.โ€

Also Read: Enhancing Supply Chain Resilience with Predictive Procurement Orchestration

Risk of Not Implementing GenAI

Steve ๐Ÿ˜:

โ€œWell, let me ask youโ€”how much is your current process really costing you? Delayed onboarding means delayed production, which could cost you contracts or delay product launches. Not to mention the compliance risksโ€”imagine missing a regulation and getting slapped with a fine. We actually had that happen once before we adopted GenAI.โ€

Jack โ˜น๏ธ:

โ€œYikes. So youโ€™re saying that not adopting GenAI means weโ€™re risking more than just a slow process. Itโ€™s hurting us in ways we might not even notice yet.โ€

Steve ๐Ÿ™†โ€โ™‚๏ธ:

โ€œExactly. Itโ€™s not just about the direct costs. The opportunity cost of not having suppliers ready when you need them? Thatโ€™s huge. And in the long run, the risk of manual errors or non-compliance can do some serious damage to your reputation.โ€

The Challenges GenAI agents for supplier onboarding Solve

Jack ๐Ÿค”:

โ€œAlright, letโ€™s narrow it down. So what are the specific challenges GenAI agents help with during onboarding? What exactly are they solving?โ€

Steve (grabs a napkin to sketch it out):

โ€œHereโ€™s a quick breakdown for you.โ€

Challenge GenAI Agent Feature How It Addresses the Challenge
Missing or incomplete documents Document auto-validationย  AI verifies the required documents and flags missing ones.
Compliance checks taking too long Real-time compliance monitoring Instantly cross-checks against regulatory databases.
Delayed communication with suppliers AI-powered supplier chatbot Provides real-time updates and reminders to suppliers.
Manual data entry errors Automated data extraction Extracts and inputs supplier details directly from documents.
Supplier risk not being assessed properly Predictive risk analytics Analyzes supplier history and market data to assess potential risks.

Read more: How GenAI agents help in Supplier Evaluation.

Automating Tasks with GenAI

Jack ๐Ÿคฉ:

โ€œAlright, Iโ€™m sold on automation. But how does it work in practice? What does this actually look like day-to-day?โ€

Steve (animated):

โ€œPicture this: A supplier submits their documents. Normally, your team would have to go through everything manually, right? With GenAI, the agent scans the documents, validates them, and flags anything missing within seconds. Compliance checks that used to take days now happen in minutes, and the AI chatbot communicates with the supplier, giving them updates without you even lifting a finger.โ€

Jack ๐Ÿ˜ƒ:

โ€œSounds like it saves you from all the back-and-forth emails and manual labor.โ€

Steve ๐Ÿ™†โ€โ™‚๏ธ:

โ€œExactly. No more chasing people down. And let me tell you, the predictive risk analytics are a lifesaver. The AI analyzes supplier data to give you a risk score, so you can avoid working with suppliers who might cause trouble down the road.โ€

Jack ๐Ÿ˜ƒ:

โ€œBasically, itโ€™s the assistant Iโ€™ve always needed but never had!โ€

Case Study: How We Optimized Our Supplier Onboarding with GenAI

Jack ๐Ÿง:

โ€œYou mentioned that you had spearheaded the adoption of GenAI agents in the Supplier Onboarding automation process and saw its benefits. Iโ€™d love to hear how this played out for you.โ€

Steve ๐Ÿค”:

โ€œAbsolutely. Before GenAI, our onboarding process was dragging, taking weeks and impacting our timelines. We needed a solution that could handle the volume without adding more manual work. Thatโ€™s when we brought in Zycusโ€™ Merlin-powered supplier management module.

Hereโ€™s what changed:

  • Document Validation: Auto-validation slashed document review time by half, allowing us to onboard suppliers in record time.
  • Compliance Checks: What used to take days was now completed in minutes, keeping us aligned with regulations.
  • Supplier Communication: AI chatbots handled updates, reducing back-and-forth emails and ensuring suppliers were always in the loop.
  • Risk Assessment: Predictive analytics helped us identify high-risk suppliers early, preventing potential disruptions.

In just a few months, we reduced onboarding time by 40% and cut costs by 15-20%. Our suppliers appreciated the smoother process, too, and we saw a noticeable improvement in our AI-enabled supplier relationship management.โ€

Jack ๐Ÿค”:

โ€œThatโ€™s incredible. So, itโ€™s not just internal benefitsโ€”itโ€™s improving the supplier experience too.โ€

Conclusion: Should You Invest in GenAI agents for supplier onboarding?

Jack (leaning back, thoughtful):

โ€œYouโ€™ve definitely given me a lot to think about. It sounds like this could be the game-changer we need.โ€

Steve ๐Ÿค”:

โ€œHonestly, Jack, if slow processes and compliance risks are holding you back, GenAI is worth exploring. Itโ€™s more than just automating tasksโ€”itโ€™s about reimagining how smoothly your onboarding can run. Take this back to your team, evaluate where it fits into your workflow, and see if it aligns with your long-term goals. The results weโ€™ve seen make the initial investment worth it.โ€

Jack ๐Ÿ˜ƒ:

โ€œLooks like Iโ€™ve got some convincing to do on my end. Thanks for the insights, Steve.โ€

Interested in transforming your supplier onboarding process with GenAI? Contact us today to schedule a demo or learn more about how Zycusโ€™ AI-powered solutions can streamline your procurement processes and drive measurable results.

Related Reads:

  1. 8 Unique Phases of Supplier Lifecycle Management
  2. Supplier Relationship Management: A Comprehensive Guide 2023
  3. Solution: Zycusโ€™ Supplier Management Software
  4. Solution: Zycusโ€™ Supplier Risk Management Software
  5. Solution: Zycusโ€™ GenAI Power Apps for Procurement
  6. Supplier Risk And Performance Management: Best Practices For KPI Creation
  7. Supplier Information Management Software
  8. Supplier Management Automation
  9. A 5-Step Process to Effective Supplier Management
  10. Diving deep into Supplier Management Solutions with Zycus
  11. Taking a 360ยฐ Approach to Supplier Management
  12. Supplier Performance Evaluation โ€“ A Quick Checklist

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Zycus is a leader in Cognititive Procurement. A leading SaaS platform used by many large enterprises across the globe for enabling efficiency and effectiveness of the procurement function.

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