How do AI and advanced modelling techniques enable more agile and predictive category management approaches ?
SANTOSH NAIR : AI and advanced modelling techniques empower procurement teams with unprecedented agility by enabling :
AI-driven predictive category strategies Dynamic cost modelling :
• AI continuously monitors cost drivers , forecasting pricing fluctuations across commodities and supplier markets .
• Demand-supply alignment : AI predicts demand surges and identifies optimal procurement strategies based on market conditions .
Scenario-based what-if analysis Procurement teams can run multiple what-if scenarios for different supplier strategies , assessing :
• Cost-saving potential
• Supply chain risk
• Supplier capacity and alternative sourcing options
Risk-responsive procurement AI continuously scans for external risks , such as geopolitical events , financial instability and ESG compliance failures , alerting procurement teams to proactively mitigate disruptions .
Seamless AI-augmented execution AI automates the execution of sourcing events , supplier evaluations and contract negotiations based on predefined business rules , allowing procurement teams to focus on strategic initiatives rather than administrative tasks .
By leveraging AI , predictive analytics and automation , procurement teams can achieve realtime adaptability , making category management faster , smarter and more resilient in today ’ s volatile business environment .
114 March 2025