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AI-Powered Supplier Management Software – Your Magic Wand for Procurement

Supplier Management Software
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As a procurement professional, a typical day includes an hour or two setting up sourcing events, responding to supplier queries, forwarding payment queries to AP/finance, etc.

That’s an hour or two too long!

Bet you wish you had a magic wand, and that all your tasks would be resolved with a flick of the wrist. Read on and discover how AI-powered Supplier Management Software can make that a reality!

Evolution of Supplier Relationships

To understand how all aspects of supplier management can be improved, we need to understand the status quo, and why there is a need for improvement.

The way organizations interact with suppliers has seen a paradigm shift over the years. Organizations can no longer regard suppliers simply as vendors or service providers. Instead, suppliers are seen as important strategic partners who are essential to fostering innovation, reducing risks, and gaining a competitive edge. This shift in perspective necessitates moving away from transactional supplier engagements and towards comprehensive supplier relationship management.

The methods and systems for communicating with, collaborating with, and cultivating a network of suppliers are referred to as supplier management. It fosters long-term, value-driven relationships in addition to the transactional activities associated with procurement. Reliable supply chains, lower prices, and greater quality can all be realized with effective supplier management.

To achieve end-to-end visibility, coordinate workflows, and acquire insightful data through the supplier ecosystem, organizations employ AI-powered supplier management software solutions developed. For better collaboration, centralized systems streamline interactions. Risks and performance gaps are identified using analytics fuelled by data.

As suppliers and complexities continue to proliferate, manual supplier management is not as prudent or practical.

Supplier Engagement: A Potent Spell

Building strategic partnerships with suppliers has been demonstrated to be a catalyst for value creation. Collaborative relationships provide numerous advantages, such as:

  • Being able to gain from developments, expertise, and capabilities beyond those provided internally.
  • Improved quality of inputs and finished products.
  • Diversified sources that develop supply chain resiliency.
  • Cost reductions through bundled spending and bulk discounts.

Using old manual procedures, managing an extensive global network of supplier connections is highly challenging. This can render it difficult for an organization to reach its maximum potential. We’ve seen first-hand the impact a supply disruption can have on archaic procedures – especially during the pandemic.

McKinsey claims that we’re likely to face a supply-disrupting-event once every 3.7 years, on average.

That makes it more crucial to digitize supply chains, utilize resilient AI-powered supplier management tools, and implement tensile yet tenacious supplier management processes.

Recent advances like the integration of artificial intelligence in procurement functions, offer potent arms for bettering supplier performance, risk management, and collaboration. Analytical tools powered by AI provide insights that help identify high-impact interactions and business expansion opportunities. Machine learning supplemented with NLP and NLU, can anticipate and recommending measures against potential supplier risks.

Thus, the source-to-pay process, from sourcing to contracting are augmented to maximize supplier management success.

Building Your Procurement Wizardry with AI-Powered Supplier Management Software

It’s time to leave behind the old ways of procurement.

Here’s a comparative description of why the status quo is limiting, and how Merlin’s magic touch can help you discover new horizons.

1. Supplier Identification and Onboarding

The Old Way

Procurement professionals often find supplier identification and onboarding a daunting task. It usually requires time-consuming market research, RFP development, and evaluation.

The Merlin Touch

Merlin AI optimizes the supplier identification process by auto-generating a list of potential vendors based on pre-set criteria such as industry certifications, financial stability, and past performance. The AI further speeds up onboarding by automating compliance checks and document submissions.

2. Order Management and Invoice Reconciliation

The Old Way

Traditionally, managing orders and reconciling invoices involves an array of spreadsheets, emails, and manual verifications, often leading to delays and discrepancies.

The Merlin Touch

Merlin AI automates these tedious tasks by reconciling purchase orders with deliveries and invoices in real-time. The software flags any discrepancies, allowing for swift corrective action.

3. Contract Management

The Old Way

Manual contract management is a hotbed for errors, missed deadlines, and compliance issues.

The Merlin Touch

Merlin AI takes over contract lifecycle management, from creation to renewal. AI-driven analytics provide insights into contract performance and compliance, helping you make data-backed decisions.
Merlin can also populate regularly used clauses & payment terms, and highlight clauses leading to potential exposure.

4. Risk Management

The Old Way

Monitoring supplier risks manually is often reactive, leading to crisis management rather than proactive planning.

The Merlin Touch

Merlin’s AI-powered analytics offer real-time risk assessments, allowing procurement professionals to act rather than react.

Integrated with Merlin Risk Radar, Zycus offers you in-depth, real-time insights into which of your suppliers are at what level of risk of supply failure, based on thousands of reputed sources, enabling you to stay a step ahead at all times.

It is estimated by Gartner that by 2026, 75% of supply chain managers will invest in the digitization of supplier network management.
Lead; do not follow!

Let Zycus’ suite of comprehensive, AI-powered S2P solutions transform your procurement.

Come, witness the capabilities of AI-powered supplier management software on free demo call!

Related Read:

  1. Supplier Management–Benefits, Process, & Best Practices
  2. 8 Unique Phases of Supplier Lifecycle Management
  3. Supplier Relationship Management: A Comprehensive Guide 2023
  4. 4 Formulas for Supplier Risk Management
  5. Download Whitepaper – Supplier Performance Evaluation for Better Results
  6. White Paper – Ensuring Efficient Supplier Risk Management with Supply Chain Transparency
  7. Supplier Relationship Management: A Comprehensive Guide
  8. Optimizing Supply Chain Operations With Strategic Supplier Management
  9. Why Maintaining Supplier Relationship Management is Important?
  10. A 5-Step Process to Effective Supplier Management
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Pranav R is a Content Marketer with expertise and experience in creating & curating content for audiences of all ages. Graduating with an MBA from IITM in 2021, he explored his PM inclinations for a year, before joining Zycus. He’s been writing about procurement & paraphernalia for 1.5+ years and is passionate about bringing new perspectives, pointers & puns to what he writes. Outside work, he’s an Arsenal fan, and is a quiz & word games enthusiast.
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