Artificial intelligence will change supply chains as we know them today, so we must understand what it is, how it works, and what it can do for organizations.
New technologies demand that we all learn new concepts and ways of working, and this is no exception when we talk about the subject of Artificial Intelligence.
BENEFITS.
Artificial intelligence can work in tandem with humans, with humans contributing their problem-solving skills and understanding of the context of the situation, and the machine contributing its speed in making decisions, its low operating cost, and its 24/7 availability.
When applying AI to the topic of purchases We can focus it on the following functions:
- Management of supplier riskTo monitor and identify potential risks
- Review, approve, and place orders Purchase automatically.
- Accounts payableAutomate the review and payment of supplier invoices
- Spending analysisTo improve and accelerate the review of the organization's spending
- Supplier informationCreate and maintain accurate supplier information
- Strategic suppliesManage, guide and automate supply processes.
- To analyze and consolidate the insights contained in the contracts.
Taken to the extreme, one could think that AI can achieve the following four aspects in purchasing:
- Total process automation
- Automating value creation
- Total transparency in spending
- An agile ecosystem of suppliers
AI will transform procurement processes in all types of businesses; it's not limited to large corporations. All processes will be affected to a greater or lesser degree, and it must be accepted that there is a certain risk associated with using this technology.
Today, a large number of practical applications of AI systems can be found. Although some of them are in an early stage, there is no doubt that this growth will consolidate in the coming years.
We can clearly see that the application of AI in supply chain management is a generator of value creation for companies through improved productivity, better customer service, better working conditions for employees at all levels of the chain, and reduced emissions.
Many governments in developed countries are implementing AI strategies to help their companies compete in highly technological environments. It is important that these strategies align with companies' needs and become a support system for AI application, especially in small and medium-sized enterprises (SMEs), which typically account for a large portion of these countries' gross domestic product.
The implementation of AI must consider the end-to-end security of the people and systems it operates with. This requires cybersecurity systems that ensure the integrity and maintenance of the data generated and stored.
AI is a great tool for minimizing time, reducing risks, and better managing suppliers.