Let Tech Take Care of the Tech, Let Humans Take Care of the Human
Rapid technological evolution can be intimidating, even for the most tech-forward companies. With the acceleration of Artificial Intelligence and its role in our world and how procurement functions, it’s easy to become overwhelmed by both the possibilities and the risks. But the only way out of fear is through it, and when you get to know the tech, generative AI will transform procurement processes and create highly inspired procurement teams.
Talent retention is a growing priority in procurement and supplier relationships as market demands and technology evolve.
As the pace of change in the market accelerates, demands on staff to keep up with advances in technology are creating talent gaps, and companies are struggling to teach and train staff. Talent is not just expected to meet traditional supply chain objectives such as low cost and on-time delivery but also entirely new objectives and metrics such as addressing ESG, building resilience, avoiding disruptions, achieving compliance with new regulatory frameworks, and even more specific to the industry or the company. All in all, the global economy is more dynamic than we have seen in decades. Certainly, I have not seen changes of this order of magnitude in my 30 years in business.
The Growing Pressure on Talent in Procurement
So, the question is, how do we better leverage the talent pool that we already have in procurement and supply chain management? This is where artificial intelligence comes in. By automating some of the more mundane tasks, we can not only close the gap in the short term but also make the profession more creative, rewarding, and fulfilling – attracting new talent and, in turn, making the employer organization more forward-thinking.
In short, let technology take care of the routine tasks that talented individuals don’t like doing (and if we are honest, are often not very good at). Talents can then focus on the strategic stuff that humans excel at, like planning, problem-solving, and building relationships. This will not only drive their personal success as individuals but also their organizations’ success in the marketplace, which will make them an employer of choice.
It’s a virtuous circle.
Artificial Intelligence: More Than Just Cool Technology
Okay, so let’s get down to some specifics. Generative AI has certainly been grabbing the headlines everywhere for the past year. But really, I think it’s the all-encompassing aspects of AI that will make a difference to specific processes in the procurement function. There’s a tool for every task and each of them will require a different approach to machine learning and AI. For example, to streamline new users, JAGGAER has embedded a solution that automatically guides a user through procurement processes. We prioritized this solution because we know we can’t train new or even experienced users to tackle these business processes the way we used to. We simply don’t have the capacity to pull them off their day jobs and send them off on a week-long classroom training.
JAGGAER Assist: AI-Driven Support in Procurement
“With artificial intelligence, companies can automate routine tasks and focus on strategic ones.”
Instead, we’ve taken the experience of an expert user or training instructor and put it into the application. This means that a new user or an existing user confronted with a new process or a new situation gets guidance when it matters: at the point of need. It does not overwhelm the user with a lot of irrelevant information at that point of need. It’s right there, exactly what they need in the form of a video or a prompt. Given that up to 90% of what is taught in the classroom is not retained in a person’s memory after a few weeks, this is a real game-changer.
Efficient Decision-Making at the Executive Level
Building on generative AI in procurement is JAGGAER Assist. Yes, it’s a chatbot, but what sets it apart is that it uses natural language processing so the user can simply ask a question, and the application will not only reply but make recommendations on the next steps. For example, it will lead you to a specific purchase requisition if that’s what you want to do, or if you’ve never done it before, it will show you how to create one and guide you through it step by step. Artificial intelligence makes the guidance very prescriptive to the task at hand, saving time and making the day’s work more productive.
Navigating the Complexities of Modern Supply Chains
This is great for users at the operational level, but JAGGAER has also developed a recommendations engine that supports procurement leaders. For example, the CPOs responsible for efficient and agile supply chain management across multiple organizations in various geographies. The sheer volume of data these leaders are confronted with would slow them down, even in a traditional executive information system (EIS). It’s like being in command of a battleship that you need to maneuver like a jet ski. JAGGAER harnesses the data, applies machine learning and AI, not to provide a rear-view mirror like an EIS, but to provide predictive and prescriptive insights through the recommendation engine. In other words – what is likely to happen in the future and what to do about it. This could consist of identifying underperforming areas of the business and recommending four or five steps for improvement. Of course, this ability becomes more essential in today’s dynamic business environment, where disruptions can come from anywhere.
Embracing AI for Future Success
It’s certainly important that each company adopts and implements AI strategically and according to its own specific needs. But the big mistake is to view it as “the technology of the future” and delay, or worse, ignore its importance. We’ve already seen this among JAGGAER customers who started investing in progressive technology early on. The improvements in efficiency and reduced staff turnover have culminated in a competitive edge over those who prefer to do things the way they’ve always been done. Our commitment to practical, impactful AI solutions is driven by early adopter initiatives, ensuring our products are tailored to meet our customers’ specific needs and inspiring fresh talent to stay and drive the organization further.
“Artificial intelligence is a critical path to success in supply chain management and not just cool technology!”
AI is a critical path to success in supply chain management, and not just cool technology!
Watch Dawn’s interview with Founder & CEO of Supply Chain Now Scott W. Luton at the Gartner Supply Chain Symposium 2024.
