How AI Can Help India Inc. Streamline Supplier Selection And Management
Founder, Director of Avaali Solutions Pvt Ltd, Ms. Srividya Kannan’s article published in ndtvprofit website.
In an era where cost, efficiency, and accuracy are paramount, procurement departments across enterprises increasingly turn to artificial intelligence to revolutionise their operations. AI offers many applications that can drive significant value for any enterprise, from automating repetitive tasks to providing actionable insights. Below are some high-level use cases of AI for procurement and its opportunities for organisations to streamline their procurement processes.
Streamlining Supplier Selection And Management
One of the most time-consuming tasks in procurement is identifying and managing suppliers. This complexity only gets more amplified with several companies running on legacy and other applications that don’t talk to each other. With traditional methods, this process can take weeks or even months, involving multiple stakeholders and significant amounts of paperwork.
However, with AI, this process can be automated and streamlined. By using machine learning algorithms to analyse historical data on supplier performance, AI can assist in selecting suitable suppliers for each requirement, reducing the time and effort required for this task. Additionally, AI can continuously monitor supplier performance and provide real-time insights to help CPOs make data-driven decisions when managing suppliers.
Optimising Contract Management
Another area where AI can significantly impact procurement is contract management. With large organisations handling hundreds or thousands of contracts, manually tracking and updating them can be daunting. Using natural language processing algorithms, AI can analyse contracts and identify critical clauses, dates and obligations, making it easier for business stakeholders to monitor and manage their contracts effectively. Furthermore, with machine learning capabilities, AI can predict potential risks and suggest improvements to existing contracts.
RFX Process Made Effortless
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Automated Document Creation: Creating RFX (request for information/proposal/quotation) documents is traditionally time-consuming. AI simplifies this by automatically generating these documents based on predefined templates and criteria. This not only saves time but also ensures consistency and accuracy across all documents, providing a sense of relief from tedious tasks.
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Auto Evaluation Of Responses: Once responses are received, AI can automatically evaluate them against set parameters. This eliminates the need for manual review and significantly speeds up the decision-making process, making the audience feel more efficient in their roles.
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Bid Analysis And Comparison: AI can quickly analyse and compare bids from different suppliers, highlighting the pros and cons of each. This allows procurement teams to make informed decisions more rapidly and confidently, empowering them in their roles.