Since the introduction of ChatGPT, organizations have shown a keen interest in exploring the applications of generative AI across various business functions, with procurement being no exception. As procurement has evolved from a back-office function to a strategic one, organizations are increasingly focused on transforming procurement operations by leveraging advanced technologies. While procurement has traditionally utilized technologies such as Robotic Process Automation (RPA), Optical Character Recognition (OCR), and basic analytics, the adoption of advanced technologies such as AI/ML is still in its early stages compared to more mature functions such as Finance and Accounting (F&A) and HR. However, the emergence of generative AI and growing enterprise interest in its applicability are expected to accelerate the adoption of next-generation technologies, including AI/ML, to drive further efficiencies and achieve better business outcomes across procurement operations. Generative AI’s creative and cognitive capabilities offer multiple potential use cases across the Source-to-Pay (S2P) value chain, with some organizations already piloting generative AI-based solutions within procurement. It can potentially transform procurement operations by facilitating increased automation, offering decision support, and reducing manual intervention through virtual assistants. With the buzz around generative AI and its emerging use cases, it is imperative for organizations to prioritize the most impactful use cases while also being cognizant of the various challenges associated with the application of generative AI-based solutions in procurement. In this viewpoint, we explore the current landscape of digital adoption in procurement, examining existing AI/ML-based solutions across the S2P value chain. The report also highlights the emergence of generative AI and its implications for procurement, exploring specific use cases within the procurement value chain and emphasizing the prioritization of these use cases for implementation. Scope All industries and geographies Contents In this viewpoint, we examine: The current state of digital adoption in procurement Use cases of AI-/ML-based solutions across the S2P value chain The emergence of generative AI and its implications Generative AI’s use cases within procurement operations and their prioritization Key considerations to ensure generative AI solutions’ successful implementation Membership(s) Procurement and Supply Chain Outsourcing Excellence

Procurement, once considered a back-office function, has seen a lot of changes in the last couple of years, with enterprises centralizing and streamlining entire processes, adopting strategic and collaborative approaches with suppliers, and outsourcing to leverage third-party expertise. However, most of these changes are focused on indirect procurement. The direct spend space has seen fewer changes due to enterprise reluctance to outsource a core function, and, therefore, remains riddled with inefficiencies, resulting in huge areas of untapped opportunity. This is where third-party technology and process expertise can help, by mitigating these concerns and guiding enterprises on a transformation journey to innovate direct spend management. This paper explores the intrinsic differences between direct and indirect procurement and discusses challenges in direct spend management. It highlights the benefits of tapping into external expertise, as well as current adoption drivers. Finally, it discusses the key issues for CPOs to consider when planning to outsource direct spend. Membership(s)   Procurement Outsourcing  

In today’s rapidly transforming PO market, service providers are required to keep pace with the latest tools and techniques to drive superior business outcomes. One such powerful tool is analytics, which accelerates growth of businesses through its multifold advantages ranging from drawing insights from the past to forecasting the future. With the current scenario providing amenable conditions for adoption and application of analytics, it becomes an even more powerful force for several markets including Procurement Outsourcing (PO). In this research paper, we explore the evolution, application, and future of analytics in the area of procurement, along with the factors facilitating its operationalization in this field. Membership(s) Procurement Outsourcing