How is AI transforming traditional category management practices and what are the most significant technological disruptions ?
SANTOSH NAIR : Traditional category management has long been reactive and fragmented , relying on historical spend data , manual processes and limited market intelligence .
AI is redefining this function by introducing real-time data synthesis , predictive analytics and automation , enabling procurement teams to shift from tactical execution to strategic orchestration .
Key technological disruptions in category management include :
• AI-driven market intelligence : Aggregates internal spend data , supplier insights and external market indicators to create a dynamic category strategy .
• Predictive and prescriptive analytics : Helps category managers anticipate pricing shifts , supply disruptions and risk factors before they materialise .
• Scenario modelling and what-if analysis : Enables procurement teams to evaluate multiple sourcing strategies under different economic and market conditions .
• AI-powered negotiation assistants : Automates supplier benchmarking and contract optimisation based on AI-generated insights .
• Generative AI in category planning : Automatically suggests sourcing levers , risk mitigation strategies and negotiation tactics tailored to each category ’ s dynamics .
By embedding these AI capabilities , organisations can proactively manage costs , supplier relationships and risks while ligning procurement with broader business goals .
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