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AI, ML, & RPA for Cognitive Procurement in the Value Chain

By Linda Ashok
In Procurement Technology
Jun 17th, 2019
0 Comments
698 Views

Over the years, 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. But 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. With state-of-the-art technologies parsing clouds of data, procurement has claimed itself an autonomous entity we’ve named cognitive procurement.

For organizations that have just started to automate their existing capabilities, it is a good start, but knowledge be there that cognitive procurement is not limited to functional automation alone. 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.

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. With its capability of self-learning, cognitive procurement through demand-sensing combs through massive volume of structured or unstructured data sets that generate information needed to scale an 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

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. 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.

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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

According Bertnard 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 top of the line brand value. In this, cognitive technology triggers automated messaging via open source data regardless of its structure.

“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). 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)

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Impact of Cognitive Technologies in Procurement & Supply Chain

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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 catalogue

 

Logistics

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

 

 

For more information, contact Zycus at marketing@zycus.com

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About "" Has 51 Posts

Linda Ashok is a content, communications, & branding professional with 12 years of work experience in BPO, Banking, Payroll, Robo-Advisory, Internal Communications and Social Media. She is interested in how businesses perform at the intersection of Big Data, AI, IoT, and other emerging technologies.

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