Procurement AI Transformation Assessment

Customer Value added

OPTIMIZATION

up to

50%

process efficiency improvement

DIGITALIZATION

up to

25%

Headcount reduction

WAY FORWARD

working with suitable and customized

applications

Procurement organizations in general – and procurement staff in particular – are facing challenging times, which will only get more demanding

The dilemma within purchasing organization: Despite increasing workload and expectations, the availability of skilled labor is steadily diminishing.

Managing a growing volume of data while still using Excel, amidst declining data quality, is compounded by a shortage of skilled workforce, making it challenging to retain and attract talent. Additionally, navigating through a surge in new legislation, such as sustainability and supply chain protection acts, adds complexity. Coupled with operating in a perpetual crisis mode, buyers are forced into operational tasks, diverting attention from strategic priorities, further exacerbated by inadequate tools to handle the mounting workload.

It is success critical for purchasing organizations to increase the output per employee to match the increasing expectations and balance the reduced available workforce. AI applications and usage offers various potential solutions.

Surprisingly, ambition and reality show a large and widening gap –
instead of accelerating digitalization, declining tendencies can be recognized

As crises unfolded, ranging from conflicts to supply chain disruptions, companies hit pause on their digital transformation initiatives, instead opting to navigate through ongoing crises, thereby prolonging their stay in crisis mode. In response to the growing urgency for change within Procurement, ambitious digitalization goals for 2025 were established. However, these objectives prove challenging to attain due to various constraints. Experience from previous technology enhancement (TE) projects highlights a notable trend: while sophisticated digital applications exist, the full potential of digitalization and artificial intelligence (AI) often remains untapped due to limited awareness and inadequate utilization.

To achieve the ambitious digitalization targets, companies must shift focus back to strategic digitalization initiatives

Obstacles in Purchasing Digitalization and AI Implementation

Business process efforts not known

Effort drivers and cross-functional processes are not properly identified.

Insufficient
data quality

55 % of questioned purchasing professionals state that the existing data is difficult to leverage due to quality issues

Rising number of software providers

Number of software providers in the procurement area is huge and still rising

Lacking knowledge about digitalization levers

TOP digital use cases within procurement roadmaps (numbers in % of total respondents)

Our Procurement Excellence Team helps you to overcome this hurdle by using our “AI Transformation Assessment” as a navigator to bring materials management to the next level and make it future ready

Right Toolset

We support in the selection process of the right digitalization tools

Process data transparency

The gained process data transparency supports a structured elimination of pain points using digitalization opportunities

Efficiency improvement

Time-consuming, non-value-added tasks are minimized to increase efficiency

Digitalization strategy

Together, a roadmap will be generated, with milestones that can tip the scales

AI tool options

The spectrum of possibilities for implementing artificial intelligence in procurement is virtually limitless

With our unique track record in digitalization projects, we are perfectly positioned to help your organization to reach its full potential

To access more information, kindly download the full insight below:

Procurement
Our Specialists

Martin Kruschel

Partner

Materials Management
Product Profitability Programs
Restructuring & Organizational

+49 151 46700477

m.kruschel@tsetinis.com

Linkedin®

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