Unlocking Value with AI-Based Supplier Relationship Management

As we prepare for 2024, many of my clients are focused on plans for implementing new Artificial Intelligence (AI) based supply chain solutions.

This week, I spoke with Tiffanie Stanard from Stimulus, Inc. about the AI product that she has built for procurement teams. I'm a limited partner in REFASHIOND Ventures: The Industrial Transformation Fund , which invested early in Stimulus' seed round, so I was really hoping for Tiffanie to give an update on their journey.

Instead, we ended up talking a lot about the transformative potential of AI in Supplier Relationship Management (SRM) and how leveraging AI can create substantial value for organizations. And that seemed worthy of a newsletter.

Supply chain professionals talk a lot about "processes." In the case of procurement, the process we often focus on is Procure to Pay, or P2P. There are many steps in the P2P process; it often starts with authorizing a purchase and ends with paying a supplier invoice. There are lots of steps in between, and there are lots of other processes that enable P2P, such as identifying potential suppliers, qualifying suppliers, and curating supplier information. That's where Stimulus comes in.

Tiffanie refers to Stimulus as a?"Relationship Intelligence?Platform" because it combines data insights, relationship-building tools, and a proprietary score to help companies make the best purchasing decisions and optimize their supplier ecosystem.?As a result, Stimulus makes it easier for companies to choose the right suppliers and fulfill business objectives including location-based, supplier diversity, and ESG criteria. Then, it analyzes suppliers using relevant metrics and data points, and automatically matches them to available contract opportunities, which is a huge time-saver for the sourcing folks.

Five years ago, Rob Handfield predicted that AI would be a game-changer in SRM by introducing greater efficiency, analyzing vast datasets, optimizing procurement processes, and identifying new sources of supply. After talking with Tiffanie, I'm inclined to say that the 2018 interview Rob did for Supply Chain Management Review Magazine has aged quite well. (I've included a link at the bottom of this newsletter.)

With Stimulus, I can see how AI enhances the overall reliability of the supply chain and contributes to strategic decision-making, allowing organizations to proactively address challenges and seize opportunities.

Stimulus is designed to create a more strategic and collaborative relationship between organizations and their suppliers, fostering a mutually beneficial partnership that goes beyond traditional transactional interactions. But in order to get started on the right foot, they start with an assessment of a client's current supplier master data:

The Stimulus Assessment?is a data audit and enhancement report for companies to access accurate and up-to-date information about their suppliers. Our assessment is designed to assist in the identification, verification, and categorization of companies based on various criteria, including diversity, ESG, locality, activity status, and more. (Tiffanie Stanard)

Once Stimulus is up and running, it can help procurement teams and their suppliers become more efficient and effective by resolving several common challenges:

• Curating supplier master data
• Synchronizing communications
• Summarizing supplier relationships

Here's a how Tiffanie describes the journey that her clients have taken...

If you work in procurement and are interested in learning more about Stimulus, an easy place to start is to sign up here for a Stimulus Assessment.

We're still in the early stages of AI adoption throughout the supply chain. Stimulus, Inc. illustrates the transformative potential of AI in Supplier Relationship Management. From predictive analytics to enhanced collaboration, the integration of AI technologies opens new frontiers for creating value in supply chain management. As organizations embrace this technological evolution, they need to position themselves to navigate the complexities of modern supply chains and thrive in an era of unprecedented innovation and efficiency.

• Sign up here for a Stimulus Assessment
• "The role of artificial intelligence in the procurement process: State of the art and research agenda " Michela Guida, Federico Caniato, Antonella Moretto, Stefano Ronchi
• "Prepare for the Impact Of AI on Procurement " (Rob van der Meulen, Gartner)
• "NextGen: The Interview with Rob Handfield " (Gary Forger, NextGen SupplyChain, Supply Chain Management Review)

Daniel Stanton is a supply chain industry veteran and the best-selling author of?Supply Chain Management For Dummies .?He is dedicated to empowering professionals through education and technology. His?courses on LinkedIn Learning ?(formerly Lynda.com ) have been viewed by nearly two million students around the world, and he's a frequent speaker at educational conferences and industry events.