AI Technology: It All Starts with your Procurement Data

The beginning of any journey in indirect procurement is capitalizing on your procurement data to understand organizational performance as well as to shape both goals and opportunities.

Historically, indirect purchasing has been responsible for the procurement of non-production materials (NPM) and services.

Unlike direct purchases that have a relatively constrained supplier base and a controlled or planned use of parts, indirect procurement has almost an infinite variety in parts and supplies that can be bought from tens of thousands, if not hundreds of thousands of suppliers.

With so many supplier options out there, how does an organization stay on top of their indirect procurement? The answer: data.

It’s not enough to use any old procurement data you might have to make business decisions.

Even worse is to not utilize your source-to-settle analytics at all.

You need to start with the right data.

3 Key Steps to Start with Your Procurement Data

We understand that this can be challenging but that’s where advanced, AI-based technology can help.

A procurement tool like Xeeva is extremely beneficial. Our patented, full suite solution is powered by Xeebot, our artificial intelligence technology mixed with embedded domain expertise, working in harmony for faster and better results.

It is clear that technology and analytics are changing procurement.

Without good and well-informed data, your analytics will be powerless. In order for effective spend to happen, analytics tools are essential.

However, change in indirect procurement can only happen by using advanced, AI-based technology and starting with the right data.

The benefit of gaining awareness into your procurement data is that as you add more high-quality data and your AI learns more about the context, you will receive improved insights and better results.