TECHNOLOGY
The role of AI and machine learning in enhancing procurement data analysis AI and machine learning significantly enhance procurement data analysis by automating processes and providing advanced insights .
Heather Dawe , Chief Data Scientist , UK , and Head of Responsible AI at UST , is a well-known AI thought leader with over 25 years working in the field .
She says the tool is increasingly used to plan and manage supplier engagement , the contract and ensuring there are smooth and efficient supply chain operations .
She highlights consumer packaged goods ( CPG ) companies which use the technology : “ CPG companies use machine learning to predict customer demand for different products and manage the supply of the product ’ s
raw materials based on this predicted demand . Procurement teams within retail companies use generative AI to identify potential new niche suppliers which can help the given retailer improve their sustainability rating .”
While Jack was keen to point out how AI , like its many implementations across procurement , is there to remove human error in analysis , he adds that it is : “ Providing the advantage of predictive analysis to inform decision-making .
“ AI can also detect patterns humans might miss and provide actionable insights . This data informs their supply chain strategies , optimising procurement and minimising waste and costs associated with overstock .”
Keith elaborates , adding : “ In the past , most procurement data analysis , especially concerning sourcing or spend analysis ,
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