“ Procurement process must have a governance model in place with an appropriate mitigation strategy in the event AI gets it wrong”
Shaz Khan CEO & Co-Founder Vroozi
The non-negotiables and where AI accelerates them In a procurement framework, certain elements are absolute:
• Qualifying a supplier with the appropriate due diligence and risk review.
• Strategic purchases governed by a contract and / or purchase order outlining financial commitments and specific terms and conditions.
• Confirmation from a supplier that the contractual terms for delivery of products or services are met.
• Facilitation of payments to suppliers with trust and visibility.
“ Add a regulatory component on top of this, such as public sector procurement. Deeper vetting of suppliers with sanctions screening. Traceability of supplier parts manufacturing and subcontractors. Additional cybersecurity requirements. These can add necessary complexity to a structured procurement workflow, but this is also where the opportunity becomes apparent,” explains Shaz.
With procurement teams now managing 50 % more spend per employee than five years ago, according to a McKinsey report, companies can accelerate innovation by combining AI, data and business intelligence to improve cycle times for traditionally lengthy procurement cycles.
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