Consider the level of risk that businesses would be able to mitigate if they could predict significant supply chain events. If organisations could utilise current data to visualise future issues, no challenges would be unforeseen and pre-emptive planning could take place.
While many industries have survived and thrived on traditional methods of operation, the pros of artificial intelligence applications certainly outweigh the cons. Particularly when it comes to mitigating risk and continuously improving supplier relationship management.
Simplify and develop procurement processes
One of the crucial benefits of improving supplier connections is the impact on procurement processes from the initial stages of procurement, right through to contract agreements and purchasing:
- Allow for faster and more informed procurement decisions.
- Support collaborative working, eliminating costs and inefficiencies.
- Empower suppliers to confidently make innovative decisions on the buyer’s behalf.
- Encourage supplier transparency with confidence.
- Incentivise suppliers to improve their performance and compliance.
- Mitigate supply chain risks, by implementing well-informed contingencies through a collaborative risk management plan.
‘Unsurprisingly, supplier management, specifically supplier risk management, is now a top priority for procurement leaders around the globe, trailing only behind cost reduction’, says Simon Thompson, Sales Director at JAGGAER.
AI creates supply chain resilience
‘Resilience: The ability of a system or organisation to respond to or recover readily from a crisis or disruptive process’.
True resilience comes as supply chain organisations gain visibility of potential risks, allowing them to act upon changes much faster.
JAGGAER ONE is a solution that enables greater visibility for procurement teams and allows for instant remediation. JAGGAER ONE ticks all of the boxes when it comes to optimising procurement practices:
- Proactively manages supplier data and identifies risks in real-time, providing actionable insights.
- Enhance supplier relationships and risk management strategies for improved remediation.
- Mitigate risks by localising supplier networks and limiting geographical disruption.
- Complete supply chain transparency allows for predictive monitoring of potential risks.
- Manage supplier contracts to ensure the fulfilment of KPIs.
- Maintain compliance with industry standards and government regulations.
‘Artificial intelligence is still an evolving technology, with new use cases and developments popping up constantly’, says Thompson.
‘Especially in procurement or supply chain management, AI isn’t quite mainstream yet, but being an early adopter will pay huge dividends down the road by allowing you to iteratively improve internal processes and speed up your ultimate time to ROI’.
Click to read JAGGAER’s report on The Journey to Autonomous Procurement with Spend Matters.
You can also catch Simon Johnson at Procurement and Supply Chain Live.