Cutting Operational Sludge in Procurement with AI
Ahead of GEP's executive dinner: Unsticking Procurement, this article will look at how AI is helping procurement teams cut through the operational sludge – those manual workflows, slow approvals and repetitive administrative tasks that burdened teams, drain time and energy.
While technology has chipped away at these inefficiencies over the years, the advent of AI-driven process efficiency is proving to be the most decisive step yet towards a leaner, smarter procurement function.
From friction to flow
In many organisations, procurement workflows remain bogged down in layers of manual intervention. Staff spend hours reviewing purchase requests, chasing sign-offs or managing compliance documentation. AI-powered procurement workflow automation offers an elegant solution by streamlining these repetitive processes and allowing teams to focus on higher-value strategic work.
By integrating AI into digital procurement tools, approvals can move dynamically through the system based on risk level, spend category or supplier performance. This not only speeds up cycle times but also enforces governance and compliance automatically. What once required multiple emails and manual checks can now be completed in seconds, ensuring decision-making flows without friction.
With research from Focal Point showing that AI automation reduces manual efforts, minimises errors and increases accuracy to around 95% in procurement and supply chain operations. While McKinsey's research, "The future of category management: The power of AI category agents", shows that autonomous category agents can deliver efficiency gains of 15 to 30%, by automating low-value administrative tasks – cutting through the sludge.
Eliminating approval bottlenecks
Perhaps the most common and frustrating form of operational sludge lies within approvals. Traditional approval chains – often spread across multiple stakeholders – create bottlenecks that stall procurement agility. AI changes this dynamic through approval automation, using machine learning to interpret patterns in historical data and route decisions intelligently.
For example, if similar low-risk purchases have been approved repeatedly in the past, the system can automatically green-light them within predefined thresholds. More complex or unusual requests are flagged for human review, ensuring focus stays where it's actually needed. As a result, CPOs can maintain rigorous oversight while dramatically reducing process latency.
Redefining operational procurement transformation
For many leaders, the push towards digitisation was the first wave of change. But the current shift marks something deeper – a true operational procurement transformation. What was once about digitising existing processes is now about redesigning them entirely with intelligence at the core.
Modern AI platforms integrate seamlessly across sourcing, contract management and supplier collaboration tools. They capture and analyse live data from multiple sources to continuously improve operational efficiency. For instance, predictive algorithms can identify delays before they occur, recommend the next best action or automate purchase order creation based on forecast demand. The impact is both immediate and cumulative: savings in hours, costs and strategic focus.
The topic of cutting through operational sludge will form part of the discussion taking place on Tuesday, 3 March 2026 at an exclusive executive procurement dinner in London. GEP is bringing together senior leaders to explore how AI-driven procurement strategies are eliminating friction, accelerating decision-making and delivering measurable business impact.
US Steel's digital transformation journey
Take, for example, how GEP is helping United States Steel Corporation (US Steel) modernise its source-to-contract procurement process across both direct and indirect spending categories.
The global steel manufacturer, which operates world-class facilities throughout the United States and Central Europe, chose GEP's software platform following an extensive evaluation process.
Through the implementation, US Steel is seeking to enhance operational efficiency, improve transparency throughout procurement workflows and reduce manual workloads – freeing its procurement professionals to concentrate on strategic initiatives that drive business value.
GEP's platform encompasses US Steel's North American source-to-contract operations, covering sourcing activities, supplier relationship management, contract administration and intelligent category management. This comprehensive approach is designed to deliver meaningful process enhancements and sustainable long-term benefits.
The AI-powered software suite offers flexible, low-code solutions that align with US Steel's strategic objectives by:
- Providing complete visibility into procurement activities, revealing actionable insights that unlock additional value
- Enabling sophisticated sourcing strategies to identify savings, strengthen negotiations and foster productive supplier partnerships
- Reducing exposure through rigorous contract and supplier assessments
- Streamlining workflows by automating repetitive tasks to boost overall procurement performance
Santosh Nair, GEP's Chief Product Officer, said when this announcement was made: "This leadership positioning validates our investment in our AI and low-code platform, providing our clients actionable intelligence to optimise their sourcing strategies, reduce costs and mitigate risks.
"We're even more excited about the future of applied AI transforming business – beginning with our just launched Total Orchestration Solution, which provides users with a simple guided intake process and visibility into the next steps and sourcing recommendations, while automating workflows to dramatically improve procurement."
GEP's Procurement Roundtable Dinner: What to Expect
Designed for senior procurement and supply chain leaders, the evening will offer a confidential, peer-led environment for open discussion.
Topics will include:
- Practical AI use cases in procurement teams
- Smarter supplier collaboration through data and automation
- Driving adoption and mindset change across procurement functions
- Small changes that unlock measurable performance improvements
Venue: Kimpton Fitzroy, London
Located on Russell Square, Kimpton Fitzroy seamlessly blends contemporary design with classic British heritage. Its private dining facilities provide an ideal setting for senior-level conversations in central London.
Event: GEP Executive Procurement Dinner
Theme: Unsticking Procurement - AI Strategies for Impactful Teams
Date: Tuesday 3 March 2026
Time: 7-9pm
Location: Kimpton Fitzroy, London
Register your interest today.
Attendance is strictly limited to CPOs, Heads of Procurement and senior decision-makers who meet the event criteria. Seats are limited.
