Author: Dawn Andre, Chief Product Officer, JAGGAER
Acquiring and retaining top talent is the key to driving forward any business function: you need the best people, suitably motivated and regularly trained to ensure that you are always ahead of the curve. And you need your talent to understand the role of artificial intelligence.
This is of course also true for the supply chain management and procurement function, where companies complain that they are facing a growing ‘talent gap’ caused by the struggle to teach and train staff at speed required to keep up with market changes.
In fact, procurement talent today is not just expected to meet traditional supply chain objectives such as low cost and on-time delivery but also entirely new objectives and metrics such as addressing ESG, building resilience, avoiding disruptions, achieving compliance with new regulatory frameworks, and so on. Add to this the volatile global economy and increasingly frequent supply chain disruptions such as the COVID-19 crisis, the Russian invasion of Ukraine or the Red Sea attacks on cargo boats and it is clear that conditions are tough.
In stark contrast with commentators that fear AI will replace human jobs, this article argues that by automating some of the more mundane tasks we can not only close the talent gap in the short term, but we’ll also make the profession more creative, rewarding, and fulfilling.
AI tools that guide users through processes automatically are one key enabler of this talent revolution. Users no longer have the time to take part in lengthy training sessions on solutions that are subject to frequent updates and changes in line with the speed of technological development.
To tackle this issue, AI-based tools exist. These tools ensure users are able to train ‘on the go’: this means that a new user, or an existing user confronted with a new process, or a new situation, gets guidance precisely when they need it in the form of a timely short-form video or a prompt within the user experience suggesting next action or in some cases taking the next action for the user automatically.
Similarly, natural language processing is helping support talent by letting them ask the questions they need to ask, when they are stuck. NLP Applications are then able not only to reply but to make helpful recommendations on the next steps. They can, for example, lead to a specific purchase requisition, or if the user has never done it before, the system can show them how to create one.
Another area where AI is a game changer for procurement talent are recommendation engines. These can support supply chain professionals at the executive level, for example CPOs who are responsible for supply chain management across multiple organisations globally. With machine learning and Al, it is possible to access predictive and prescriptive insights through the recommendation engine helping, for example, identify underperforming suppliers and recommending steps for improvement.
While still in its infancy, AI is clearly already able to support the procurement and supply chain function across a range of activities. Its role in improving efficiency and productivity goes hand in hand with talent retention and development, helping free up workers to focus on more creative and strategic tasks. Businesses that want to retain competitive advantage, as well as top staff, would do well to start assessing their AI preparedness before they fall too far behind.
This article originally appeared in the September issue of Procurement Pro.
