Procurement Solution for the Digital Age

What is the right Procurement Solution for the Digital Age?

As much as some may resent the overuse of buzzwords in today’s technology-focused world, words like “Procurement Analysis” “AI” and “Machine Learning”, particularly when discussing the best software as a procurement solution, the trend in the industry is that to AI-powered platforms.

AI procurement platforms assist procurement teams – they do not replace them. The procurement solution Robobai does not just quickly, efficiently, and accurately process the analytical data from your ERP system (in particular P2P and AP data), but they have learned how to detect trends and patterns within your spending based on this data. RobobAI in particular offers suggestions on where and how savings can be made. There is always the need for human oversight to work out the exact details of how to apply these suggestions in the real world – but this is how man and machine work in harmony.

In reality, these programs and platforms should not really be seen as “Man vs Machine”, but more as “Man + Machine”. In fact, people are only as good as the data supporting them, ready to implement changes in line with the AI suggestions. In this way, the machine focuses on the time-consuming data analysis, and the humans spend time making meaningful decisions and executing the benefits.

Why AI Savings Insights should be included in your chosen Procurement Solution.

It doesn’t matter what industry you work within, having a well-structured, cost-effective supply chain in today’s world can be the make or break between a highly successful company and one that fails, in turn providing the edge against your competition. As harsh as that sounds, it's frighteningly accurate, and as a result, your procurement team must be focused as much as possible on analyzing all the relevant data that could lead to your next major insight into how to cut costs in your supply chain.

These “saving insights” are crucial to streamlining your procurement function, however, in order to cover all possible avenues of savings, great care has to be taken to accurately and efficiently analyze the data and without this accuracy, insights are meaningless. The ability to ensure Classification accuracy drives everything when choosing the right procurement solution, if it’s not right, procurement folks get frustrated, and spend more time fixing the data and less time making savings. If only there was a way to effectively and accurately automate the process of analyzing this data.

Well luckily, thanks to the advances in AI technology and Deep Machine Learning, RobobAI AI platforms effectively and efficiently process all procurement spend data stored in your company ERP systems, it then classifies all data to a higher degree of accuracy than any of our competitors (up to and above 90% accuracy across the board). RobobAI is an easy, hassle-free software platform that classifies your data with no IT integration required. After a standard file extracts from your system/s, RobobAI will classify and accurately display the analysis of your entire organization's spend and highlight the various savings insights for investigation. Procurement teams are able to make informed and measurable decisions and actions in order to cut costs across your supply chain.

Your procurement solution should provide insights into supplier contract compliance

Supplier contract compliance within procurement has always been a complicated measure for the profession to master, unfortunately, it is also an extremely important measure of any procurement function, ensuring that your company is spending with the right contracted suppliers at the contracted rates.

This affects all industries. Procurement has seen a dramatic shift in responsibilities for their teams, moving from transactional to strategic, and realizing the benefits and importance of having longer-term agreements with their suppliers, securing price, delivery, service, quality, and KPIs – not just a PO!

Contract Management is all about managing the contract, ensuring the business directs its spending to the preferred contracted suppliers. Procurement calls it “keeping the money” that has been agreed upon and contracted by procurement with the preferred suppliers. This ensures the business shores up its bottom line, as well as buying to the appropriate standards for its goods and services.

This can often be quite a labor-intensive task and these days many companies are leveraging their procurement systems with additional analytical platforms to help their procurement teams keep track of their companies’ compliance. RobobAI goes one step further and leverages its AI technology to help quickly and accurately assess where spend leakage is occurring, providing recommendations, insights, and actions to procurement teams so they can address and re-direct spending to the agreed source. This helps your procurement team save time by providing actionable information based on accurate data, leaving them with more time to address any issues.

Ensure a Contract life cycle management module is included in your chosen procurement solution

Contract life cycle management is the backbone of the supply chain, ensuring suppliers adhere to their contractual obligations and pricing. That being said as much as people may bemoan it, it is never the less a vital part of day to day operations of any business and is a much more complicated task than simply ensuring the supplier contract is valid and doesn’t need renewing.

Even a small business, at any given time, could be in contact with dozens of different contractors and suppliers in order to provide their goods and services. Now imagine what a large company’s contract management requirements look like. Not pretty right?

It’s about managing current contracts still in play and planning and deciding on what action to take on contracts nearing expiry. Planning the expiry of a contract depending on the complexity can take time, renegotiating, understanding market changes, finding a better deal elsewhere, takes time, and if you don’t plan, you get the same or worse results.

So our AI-powered procurement solution provides insights and alerts to owners based on when contracts are coming to an end, making sure that your analysis and negotiations are never rushed and always properly considered.

RobobAI now has its own contract life cycle management app, available to companies that don’t have one. We will either connect to your contract life cycle management or, should you be without, you can use the RobobAI contract life cycle management app. Our team will load all your legacy contracts into the contract life cycle management app to get you started. Our initial bulk load of contracts has been a perfect cost-effective solution for our clients who have always managed their contracts on legacy file drives.

SAVINGS AS A SERVICE (SaaS)

CLASSIFY, IDENTIFY, TRACK, MEASURE

GET THE DEMO