Close this search box.
Zycus positioned as a Visionary in the 2024 Gartner® Magic Quadrant™ for Source-to-Pay Suites. Read More

Home » Blog » Procurement Technology » AI and ML for Cognitive Procurement in the Value Chain

AI and ML for Cognitive Procurement in the Value Chain

AI and ML for Cognitive Procurement in the Value Chain
Zycus Recognized as a Visionary in the 2024 Gartner® Magic Quadrant™
Speak to our expert and achieve similar results
This field is for validation purposes and should be left unchanged.
Table of Contents
Subscribe for the Latest Posts
This field is for validation purposes and should be left unchanged.

First and foremost, procurement functions have evolved astronomically. In the past, this function operated in silos with common knowledge and spend data report gathered in an emergency to compute unit cost improvement. However, now, procurement has migrated to a vast field of technology, enabling global teams to strategically drive their supplier relationships with a focus on the total cost of ownership. In addition to that, with state-of-the-art technologies parsing clouds of data, procurement has claimed itself an autonomous entity we’ve named cognitive procurement.

Learn More: Zycus iContract Solution

Indeed, for organizations that have just started to automate their existing capabilities, it is a good start, but knowledge is there that cognitive procurement is not limited to functional automation alone. Besides that, cognitive procurement is a facelift for end-to-end workflows that harness the maximum potential of a co-working of humans and machines complementing each other.


It should be noted that within the premise of cognitive procurement, professionals are at the forefront to drive strategic relationships and innovate across the value chain. Cognitive procurement offers capabilities that fetch real-time insights into your market and competitors to help plan ahead of time. In addition to its capability of self-learning, cognitive procurement through demand-sensing combs through a massive volume of structured or unstructured data sets that generate enormous output. Here, category managers can fully exploit a high degree of segmentation of automated tail spend possible within cognitive procurement.

Further Reading: 5 Cognitive Technologies to Look Out For in the Future

in addition to the above, cognitive procurement is not a different science but the application of disruptive technologies (Artificial Intelligence, Machine Learning, RPA) in areas that are challenging to the functional fluidity of all procurement related operations. Along with that, cognitive procurement is not just a facelift for the traditional role of supply chain management; it also brings supply chain managers to new limelight of strategic advisors.

Cognitive Procurement can help-

  • Achieve huge breakthrough volumes of structured and unstructured data
  • Replace the need for purchase order systems
  • Replace the need for supplier onboarding workflows
  • Automatically forecast prices, create templates and assess/evaluate
  • suppliers (Zagorin, 2017).
  • Identify hidden risks through in-depth risk assessments
  • Create an intelligent assistant to identify opportunities for procurement agility

Particularly, according to Bernard Maltaverne, intelligent procurement assistant in the context of natural disasters, generates weekly reports gathering from the global supply chain landscape, helping businesses avert unpleasant risks and loses thereof scaling one’s business to the top of the line brand value. In this, cognitive technology triggers automated messaging via open-source data regardless of its structure.

Last but not the least, “The Procurement assistant learns immediately about the event because it is connected to external sources of information (there are many providers of supply chain risk management technology that enable that) or to public sources of information (news outlets or social media, for example). Consequently, it will then:

  • list all impacted suppliers and what the organization buys from them
  • identify existing alternate sources
  • prepare a report with prioritized recommendations for action” (Maltaverne 2017)

Impact of Cognitive Technologies in Procurement & Supply Chain

Procurement Supply Chain
Analytics & Reporting

Generate Report, Predictive Modelling & Analytics

Draft Industry Standard Cost Models


RFx & Auction Support

Generate easy RFx

Receive decision data to support auction


Supply Risk Management

Predict risk in advance

Come up with an efficient mitigation strategy

Spot Buy Operational Procurement

Virtual assistant

Call off Method mapping

Generate catalog



Assess transportation & plan logistics

Optimize logistic efficiency

Supplier Performance & Master Data Management

Easy supplier performance evaluation

Find relevant suppliers for backup

Supplier data management


Supply & Materials management

Planning for predictive production

Predictive MRO inventory management


Help Desk & Support

Round-the-clock Virtual Support

Round-the-clock Support from SMEs


 Related Reads

    1. Blog – The Only Vendor in the Procurement Industry with Advanced Forward-Looking AI Capabilities!
    2. Blog – 5 Cognitive Technologies to Look Out for in the Future
    3. Blog – Leveraging Conversational AI in Procurement
    4. White Paper – Decoding AI in Procurement
    5. White Paper – Unraveling Cognitive Procurement: Unlocking Efficiency With AI
    6. White Paper – Source-To-Pay Transformation With AI And RPA – A study by ISM and Zycus
Don't Forget to Share
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.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top