DIGITAL PROCUREMENT
the right solution . Sometimes it ' s just too complex for what we want to achieve . The classic face-to-face negotiation is better . Sometimes we may even want to hold an auction or issue a concept tender where instead of asking the supplier to answer predefined questions , we ask for a solution .”
Even within an RFP , there are varying degrees of complexities . BCG ’ s “ This is where the coach is helping . It ' s giving us the intuition of what is the right tool at the right moment in time .”
Of course , it ’ s AI-based , so the tool becomes increasingly proficient as it analyses outcomes and accumulates experience from each of the organisations buying situations and actions . “ If you want to put it this way ,” says Daniel , “ because it can store that memory , it becomes a little bit like the brain of your procurement department . If new people come in , they can take a look at how you ’ ve dealt with situations before and what the result was . And so you can take some lessons from it . It ' s not only a coach for a specific situation , but it ' s a coach for running the human procurement process overall in a company .”
It ’ s kind of cool stuff .
Autonomous Sourcing- The Way of the Future ? I ask the gentlemen if autonomous sourcing is the wave of the future , as many suggest . “ This is partly correct .” Responds Weise . “ Autonomous sourcing is a great idea , but we think at the moment that it is limited in its applicability to non-mission-critical items , such as office supplies .” So , essentially , your C items can safely be put onto an automated procurement track , from identifying requirements through to invoice payment .
He argues , “ If you , let ’ s say , want to invest a billion dollars in new semiconductor
68 September 2021