The above question is nothing unique except for one thing—it is the perfect example of the power of peer-to-peer social engagement and interaction. It is also the perfect example of how solution providers should pause and listen to become a part of the practitioner dialogue versus trying to control it by pumping out “look at us” information or touting the features, functions, and benefits of their “AI technology.”
Over the past 40-plus years, I have been in high-tech and procurement, and I can confidently say that today’s technology is generally solid and reliable across the board. In short, AI is not really a technology play but an industry experience and expertise competition. For example, it is the driver, not the car, that matters most, and in the case of procurement and AI, it is the practitioner, not the provider, that must be at the wheel of digital success.
Peer-To-Peer Trust
Once again, the above question, “I would like to connect with you to understand how to apply AI in the realm of procurement,” is a comment from a Senior Vice President of Global Procurement from one company regarding a post by the Head of Global Supply Chain Digital Transformation from another company.
There is an implied peer-to-peer trust that doesn’t require the discernment of complex solution maps or industry accolades, which have a shelf life. It is a “one professional to another professional” seeking guidance beyond a spec sheet or industry review. As a result, it opens the door to a non-biased exchange of experiences and insights.
My Contribution To The Discussion
After reading the comments, expanding this discussion to specific supply chain applications would be great.
For example, in the late 1990s, I developed one of the first self-learning algorithm platforms to procure MRO parts to support the DND’s IT infrastructure. Based on strand commonality, the algorithms considered historical and real-time factors or attributes, e.g., time of day, dynamic real-time pricing, and changing delivery requirements. We later extended the program to manage strategic stocking locations – https://bit.ly/45jEgny
The key to success, however, was implementing the technology using an agent-based model – https://bit.ly/3FBnFRr
Additional Comments
Here are two other comments worth noting from the same discussion stream:
Having helped implement gen AI in social and environmental due diligence in the supply chain, it’s good to see that it’s being used across the complete supply chain!
There is a big potential for higher efficiency, accuracy, and impact.
Hi Jon W. Hansen, It’s all interesting around AI and real folks. I have been engaged with AI since my days selling NLP solutions at Nuance. One thing has not changed yet. More complex business areas such as sourcing and procurement are not the low-hanging fruit for generic AI. Expertise is king, and empowering your teams with data is king. This process still needs expertise to get the full value.
I would appreciate the chance to discuss this.
Today’s Takeaway
- Today’s (2024) Technology is amazing and generally stable across the board for most solution providers.
- 10 to 20 years from now, we will look back on today’s technology with the same dismissive attitude we now have for 286 computers, floppy drives, and spreadsheets – okay, only some with disdain for spreadsheets
- Regardless of what technology exists, success will always be based on a people-process-technology agent-based approach versus a technology-process-people equation-based approach.
- There isn’t a provider or technology that will make you successful – only you can make the provider and technology successful, e.g., as a practitioner, you are in the driver’s seat.
- When selecting a service provider, always look beyond the logo and technology and assess the experience and expertise the provider’s team has in YOUR INDUSTRY.
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Procurement Insights
How would you answer the question: how do I apply AI in procurement?
Posted on April 5, 2024
0
The above question is nothing unique except for one thing—it is the perfect example of the power of peer-to-peer social engagement and interaction. It is also the perfect example of how solution providers should pause and listen to become a part of the practitioner dialogue versus trying to control it by pumping out “look at us” information or touting the features, functions, and benefits of their “AI technology.”
Over the past 40-plus years, I have been in high-tech and procurement, and I can confidently say that today’s technology is generally solid and reliable across the board. In short, AI is not really a technology play but an industry experience and expertise competition. For example, it is the driver, not the car, that matters most, and in the case of procurement and AI, it is the practitioner, not the provider, that must be at the wheel of digital success.
Peer-To-Peer Trust
Once again, the above question, “I would like to connect with you to understand how to apply AI in the realm of procurement,” is a comment from a Senior Vice President of Global Procurement from one company regarding a post by the Head of Global Supply Chain Digital Transformation from another company.
There is an implied peer-to-peer trust that doesn’t require the discernment of complex solution maps or industry accolades, which have a shelf life. It is a “one professional to another professional” seeking guidance beyond a spec sheet or industry review. As a result, it opens the door to a non-biased exchange of experiences and insights.
My Contribution To The Discussion
After reading the comments, expanding this discussion to specific supply chain applications would be great.
For example, in the late 1990s, I developed one of the first self-learning algorithm platforms to procure MRO parts to support the DND’s IT infrastructure. Based on strand commonality, the algorithms considered historical and real-time factors or attributes, e.g., time of day, dynamic real-time pricing, and changing delivery requirements. We later extended the program to manage strategic stocking locations – https://bit.ly/45jEgny
The key to success, however, was implementing the technology using an agent-based model – https://bit.ly/3FBnFRr
Additional Comments
Here are two other comments worth noting from the same discussion stream:
Advait Raykar (He/Him) • Co-founder and CEO at Esger | AI, Impact, Supply Chains | Cornell Tech
Having helped implement gen AI in social and environmental due diligence in the supply chain, it’s good to see that it’s being used across the complete supply chain!
There is a big potential for higher efficiency, accuracy, and impact.
Gareth Adams • Helping organisation operate sustainable and ethical supply chains
Hi Jon W. Hansen, It’s all interesting around AI and real folks. I have been engaged with AI since my days selling NLP solutions at Nuance. One thing has not changed yet. More complex business areas such as sourcing and procurement are not the low-hanging fruit for generic AI. Expertise is king, and empowering your teams with data is king. This process still needs expertise to get the full value.
I would appreciate the chance to discuss this.
Today’s Takeaway
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