At a glance
Sourcing has always been a complex process for organizations.
We, as sourcing professionals, are always under pressure to deliver year-on-year savings and ensure fulfilment under crunched timelines. Apart from this, sourcing professionals face challenges in sourcing against ambiguous or incomplete requirements, managing supplier relationships, dealing with logistics challenges. Now with unforeseen supply chain disruptions due to pandemics and wars, these complexities have increased many folds compelling procurement leaders to reevaluate strategies and look for sourcing automations by adopting innovative technologies and platforms to reduce uncertainties of any kind that have dependencies on the aforementioned factors.
Traditionally, sourcing professional have been managing sourcing with some help from technology and spreadsheet-driven calculations, thereby ending up doing tactical, repeated work instead of doing the strategic work.
Supply chain disruptions due to pandemics, Environmental, social, and governance (ESG) requirements etc., have forced sourcing professionals to create strategies that weigh less on cost and more in favor of on-time supplies. In simpler words, sourcing professional are looking for solutions which would simplify the sourcing process by embedding cutting-edge technologies and smart algorithms using artificial intelligence (AI), machine automation, and 360-degree transactional insights.
So, what is this AI that we keep hearing about? Well simply put, it is the years of tacit knowledge that we, as sourcing professionals, have developed and coded into technology platforms to make sourcing repeatable, while sourcing professional focus on adding strategic value to the organization. In other words, the procurement organization of tomorrow will need to evolve from purchasing and sourcing to enabling a seamless digital experience.
Let us now look at some of the key innovative approaches that organizations are looking to explore:
It is imperative that AI models are going to improve an organization’s strategic sourcing capabilities.
These models will help in managing sourcing in ways that not only save significant amounts of money but also open new and unique ways of procurement to deliver value to a business. Let’s come together in the journey of embracing the future of sourcing the AI way.