AI & Procurement Performance: The Connection

AI & Procurement Performance

Artificial intelligence is a proper performance driver that is already being employed in a variety of businesses and industries, but it still has a lot of room for growth.

As we move forward, the potential for AI technologies is becoming clearer in procurement, and it is affecting every cycle from information processing to service quality. Let’s see what AI can accomplish.

AI & Procurement Performance

Photo by Possessed Photography on Unsplash 

Processing procurement data using AI

To begin with, artificial intelligence can handle data from a range of sources, such as online catalogs, customer relationship management software (CRM), contracts,  and more.

AI, which is composed of algorithms, can analyze and use this real-time data, aggregate and replicate data automatically, and index it. Buyers can employ tools that leverage this technology to constantly monitor and utilize data at every point of the supply chain process, from selecting suppliers to executing agreements, placing and planning orders, tracking receipt and invoicing, etc.

Improving procurement processes using AI

Data collection and analysis will provide huge value for the procure-to-pay chain and improve all aspects, including procurement management, supplier relationship, and performance optimization.

Procurement Management

Artificial intelligence may organize purchases based on specified criteria and product types according to a set procedure. When an internal client submits a demand, the software can determine whether it is covered by a catalog or a supplier contract, whether an estimate from a supplier is needed, or whether we should consider sourcing.

Supplier Management

Different facets of the supplier relationship, including risk management, can be handled by AI. By tracking the supplier contracts timeline and the suppliers’ standard of work, for instance, the system can inform users if deadlines are not met, or a promise is not kept.

Performance Optimization

Buyers can also use AI to better monitor procurement performance by providing insight into costs, improving decision-making, and proactively generating reports and tailored dashboards based on the target audience.

The Bottom Line

There is no hiding the fact that AI is here to stay. The easiest way to avoid being left behind is to accept change, not resist it. Why? Because whether you want to or not, artificial intelligence and technology in general will play a vital role in procurement.

So, it’s better to keep up with the race and use effective procurement solutions that are flexible enough to meet your company’s goals and needs. We at Penny can provide you with such procurement solutions. Just contact us and see for yourself. 



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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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