Tag Archives: procurement

ESG Metrics & KPIs: What ESG team Needs to Know

ESG KPIs and metrics

This blog post is geared towards ESG professionals primarily associated with the procurement department in any organization. ESG initiatives are important for organizations to measure their ESG performance. It is of utmost importance to understand ESG KPIs / metrics and how to track ESG metrics. ESGs can help companies improve their operational efficiencies, environmental impact, financial position, governance, transparency, and societal contributions while managing risks. Data analytics can play key role in identifying KPIs, data needed for that KPIs and building dashboards for tracking those KPIs. What is ESG? ESG is an acronym that stands for Environment, Social, and Governance. ESGs encompass issues such as ethics, diversity, social justice, employee …

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Posted in Data analytics, Procurement. Tagged with , .

Procure-to-pay Processes & Machine Learning

procure to pay machine learning use cases

The procure-to-pay (P2P) cycle or process consists of a set of steps that must be taken in order for an organization to procure and pay for goods and services. Procurement is the process by which organizations purchase goods, supplies, equipment, or services from outside sources. The procurement function may also serve as an intermediary between two internal departments or divisions that have overlapping needs. In this blog post, we will discuss how AI / machine learning can be leveraged to automate certain procure-to-pay processes such that procure-to-pay teams can focus on core business goals. What is the procure-to-pay cycle or process? The procure-to-pay (P2P) cycle or process is defined as …

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Posted in AI, Machine Learning, Procurement. Tagged with , , .

Supplier Relationship Management & Machine Learning

supplier relationship management machine learning

Supplier relationship management (SRM) is the process of managing supplier relationships to develop and maintain a strategic procurement partnership. SRM includes focus areas such as supplier selection, procurement strategy development, procurement negotiation, and performance measurement and improvement. SRM has been around for over 20 years but we are now seeing new technologies such as machine learning come into play. What exactly does advanced analytics such as artificial intelligence (AI) / machine learning (ML) have to do with SRM? And how will AI/ML technologies transform procurement? What are some real-world machine learning use cases related to supplier relationships management? What are a few SRM KPIs/metrics which can be tracked by leveraging …

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Posted in Artificial Intelligence, Data Science, Machine Learning, Procurement. Tagged with , , .

Supplier risk management & machine learning techniques

supplier risk management machine learning

Supplier risk management (SRM) is a serious issue for procurement professionals. Suppliers can be unreliable, have poor quality products, or fail to meet specifications. In this blog post we will discuss AI / machine learning algorithms / techniques that you can use to manage supplier risk and make your procurement process more efficient. What is supplier risk management? Supplier Risk Management (SRM) also known as Supplier Risk Optimization (SRO), refers to policies and technology that enables organizations to manage risks related with suppliers. This can be done by analyzing data about past purchases from the supplier, predicting future risks related with purchases from this particular company. It’s crucial for procurement …

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Posted in AI, Deep Learning, Machine Learning, Procurement. Tagged with , , .

Spend Analytics using AI & Data Science

What is spend analytics

In this post, you will learn about the high-level concepts of spend analytics in relation to procurement and how data science / machine learning & AI can be used to extract actionable insights from spend analytics. This will be useful for data analytics or business analytics professionals looking to understand the concepts of spend analytics. The following topics will get covered in this post: What is spend analytics? Why spend analytics? Spend analytics – Descriptive & Predictive  Some popular spend analytics products What is Spend Analytics? Simply speaking, spend analytics is about performing systematic computational analysis to extract actionable insights from spend data. As part of spend analytics, the following are …

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Posted in Data Science, Machine Learning, Procurement. Tagged with , .

Machine Learning Use Cases in Procurement

procurement machine learning use cases

This post represents some of the important machine learning use cases in the procurement domain. These use cases can also be categorised as predictive analytics use cases for procurement. The list is not aimed to be exhaustive. However, some of the most important ones are listed. In case, you would like to add one or more use cases which I might have missed, pls feel free to suggest. The following are five key business function areas / department in procurement department.  Demand management Category management Supplier management Sourcing management Contract management In all of the above function areas, there can be multiple use cases which can take advantage of machine …

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Posted in AI, Data Science, Machine Learning. Tagged with , , , , .