Deploying next generation procurement tools

Abstract

The previous generations of procurement tools are largely a failure, but it is not time to despair. The next generation of procurement tools is here, and a new wave of procurement transformation is set to change our tools and our profession more in the next five years than in the previous 40. In order to be ready for this transformation, procurement professionals must: 1) understand the future architecture of procurement-related tools and services; 2) develop a new language of expression for dealing with suppliers, tool providers and stakeholders; 3) fundamentally shift the focus of reporting and performance metrics in procurement; and 4) avoid falling into new hazards. Those procurement organisations that can make this shift will enable competitive differentiation for their teams and their company overall. Like all business improvement efforts, changes in procurement tools and the associated practices require adequate change management including structured initiatives for communication, education, and transparency to end users and overcoming specific resistance factors. This paper discusses a new age of procurement, in which full automation through AI will be key. The aim of the paper is to inspire procurement professionals to redefine their practices, beginning by redefining their mission, vision, and values.