How Artificial Intelligence Transforms Procurement?
In today’s business environment where technology takes center stage, procurement professionals are juggling multiple responsibilities such as ensuring financial stability, regulatory compliance, and managing savings. SutiProcure’s source-to-pay suite helps you achieve compliance, savings, and cost factor so you can spend time on key business strategies.
Let’s take a look at why procurement automation should be a key priority for your business:
How Can AI (Artificial Intelligence) Help Procurement?
AI-based procurement solutions analyze data points to identify patterns, correlations, and anomalies; allowing you to make spending choices wisely. Automating routine tasks, connecting different departments, and gaining deep insights are some aspects where artificial intelligence can enhance your business.
AI in procurement can help collect summaries and recommendations on everything from supplier information and performance management to compliance. There is a direct impact on both upstream and downstream activities.
AI can help procurement in three ways:
Improved Efficiency – Performs existing tasks faster
Deep Analysis – Analyzes data patterns accurately
New Capability – Links data to business information
Each method brings organizations multiple benefits right from decreased labor costs to increased savings across the enterprise.
- Price comparisons
- Identifying high-growth suppliers
- Complete visibility into policy compliance and maverick spending
- Identifying opportunities for aggregation and supplier consolidation
A cloud-based AI procurement solution improves the quality of reporting, which means real-time data can be shared with procurement teams easily. AI can also link purchase and vendor data with other data to add value to inventory management and corporate risk assessment.
Where to Start?
Spend Management
With spend analytics, the procurement department can quickly identify cost savings. Automating collection, cleaning, and data classification can help identify savings quickly. Automating spend management requires you to ensure that tools have been adopted within the company to get the data for the organization. SutiProcure’s AI-based mechanism can classify spend items easily, giving you greater visibility and complete control.
Sourcing
Adopting sourcing optimization strategies helps you gain a significant edge in the industry. AI can help in consolidating spend, rationalizing vendors, policy enforcement, and validating pricing, giving you complete visibility for exception reporting. AI can also help sourcing teams in data collection, integration, improved reporting, and other follow-up actions. AI can eliminate the tedious task of data cleanup and improves overall efficiency.
SutiProcure offers a robust sourcing solution, which makes sourcing easier. Sourcing cycles are reduced while giving you the scalability for thousands of line items and hundreds of suppliers in sourcing events.
Contract Management
Supplier contracts should be stored in a centralized repository. Contract lifecycle management helps you identify risks and opportunities by leveraging some clauses in the contract library.
SutiProcure guided contracting functionality helps you to leverage appropriate clauses to meet the business need. Dynamic reporting capabilities can help turn your organization into a smart contract warehouse.
Compliance
Ensuring compliance prevents financial leakages such as tax liabilities, and maverick spending from occurring. Spend compliance, SOX compliance, IT compliance, and Tax compliance are some of the parameters to look for in the procurement industry.
SutiProcure helps manage these compliances with built-in features such as guided buying and contract to look-up.
You cannot leverage the critical information when most of your time is spent on performing repetitive tasks. With SutiProcure, you can automate most of the repetitive tasks, so you can spend time on strategic business activities such as invoice extraction that can accelerate your business.
Invoice Extraction
Extracting supplier information from supplier emails is tedious when you have hundreds of suppliers on board. A missing invoice is the most common issue. Responding to supplier queries also takes longer than expected. SutiProcure solves all the problems with the AI-powered invoice extraction mechanism that automatically extracts invoices from emails without manual intervention.
The AI-powered solution can simplify tedious tasks such as managing supplier queries and requests. Most businesses have their preferred way of working, which includes sorting tasks, allocating to the team, and other external stakeholders. SutiProcure’s source-to-pay solution can track and update the status of transactions and draft automated responses that the AP department can send or edit as per their preference. Procurement solutions can help in sorting incoming emails, review analysis, check for duplicates & frauds, and helps you to respond to supplier queries on the go.
The Bottom Line
Organizations have moved beyond digitization to intelligent procurement. Incorporating technology can improve efficiency, and savings are going to be significant.
AI in procurement can help minimize common procurement and accounts payable challenges. SutiProcure offers innovative solutions across the procurement suite and transforms your procurement into a profit warehouse.
