5 Ways to Beat AI in Procurement!

Last week on the Procurement Leaders Playbook, we discussed 6 hidden costs in procurement you need to watch out for.??

This week, we're diving into a hot topic that's on everyone's mind: AI in procurement. With the rapid rise of automation, it's easy to feel like AI is taking over procurement.??

In this edition, we're sharing 5 ways you can outsmart and outperform AI in the current evolution

1. Develop Indispensable Supplier Relationships

AI can analyze supplier data and trends, but it can't replace the value of human relationships.?

Building trust and rapport with suppliers is key to negotiating better deals, gaining access to insider information, and resolving issues quickly.?

Tip: Take the time to understand your suppliers' needs and goals. This will make them more willing to go the extra mile for you, something an algorithm can never achieve.        

2. Focus on Creative Problem-Solving

AI (as of now at least) is great at following patterns and crunching numbers, but it struggles with creative problem-solving.?

In procurement, unexpected challenges arise all the time, from supply chain disruptions to fluctuating market conditions.?

Example: When faced with a sudden supply shortage, AI might suggest alternative suppliers based on price and availability, but you could negotiate with an existing supplier to expedite delivery or find a local solution that AI might overlook.        

3. Understand the Bigger Picture

AI is excellent at analyzing data within a given scope, but it often lacks context. As a strategic procurement professional, you have the ability to see the bigger picture, understand how different factors impact your organization, and align your strategies with overall business goals.?

Advice: Regularly communicate with other departments to gain insights into how procurement impacts their operations. This will help you make decisions that benefit the entire organization, not just your department.        

4. Truly Utilize Emotional Intelligence (EQ)

Procurement isn't just about data and contracts, it's also very much about people and relationships.?Emotional intelligence allows you to navigate complex negotiations, understand stakeholders' needs, and manage conflicts effectively.

Strategy: When negotiating, pay attention to body language, tone, and unspoken signals. This will help you gauge the true intentions of your counterparts and adjust your approach accordingly.        

5. Train Your Team on Strategic Decision-Making

AI can handle data analysis and repetitive tasks, but strategic decision-making is where humans shine.?By leveraging training from experience and intuition, you can train yourself and your team to make decisions that align with long-term goals rather than just short-term gains.

Tip: Encourage yourself and/or your team to participate in training that includes exercises and case studies that simulate real-world procurement challenges.?        

Move From Tactical to Strategic Procurement

Instead of viewing AI as a competitor, see it as a tool that can enhance your capabilities.By combining the power of AI with your human skills, you can create a more efficient, effective, and competitive procurement process.

Want to beat AI in procurement? Move on from Tactical to Strategic Procurement by enrolling into this intensive 2-day program here!

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