How Technology can Streamline Procurement Processes

🚀 A Better, more Strategic Future of Procurement in Local Government is Possible: One that is Data-Driven, AI-Powered, and Strategic 🚀 As a local government executive, I've seen the frustrations in purchasing. Traditionally an under-resourced groups deep within Finance Departments, these legions have been handcuffed with antiquated technologies and processes, forced to serve primarily to check compliance-boxes, and generally not making many of their customers (internally or externally) very happy. I’m coming to see that a new strategic level role is possible for procurement, one that adds value knows the business needs of our cities and counties and has tools to deliver. New powerful procurement that is enabled and supercharged can transform an underutilized resource. The situation is much like, I see, technology 20 years ago. IT (if it was even recognized as that as opposed to data processing or other labels) was buried in finance, considered a cost center that was a necessary evil, and charged with keeping the machines on. CIOs are now recognized as leading critical mission-centric work and have a seat at forming and supporting strategic objectives of serving the public Now local government procurement systems and leaders can be part of a strategic powerhouse. Local government city managers, assistants/deputies, finance directors, and procurement professionals, it is time to rethink the role of procurement in our organizations. An insightful white paper by Harvard Business Review Analytic Services, sponsored by Microsoft got me going. Entitled, "The Data-First Enterprise: Reimagining Finance and Procurement with Intelligence-Driven Insights," it fires up my local government improvement engines. The piece outlines how leveraging data, advanced analytics, and AI can transform procurement from a transactional function to a strategic asset. Key Takeaways: ·      AI and Advanced Analytics: Move from reactive to proactive decision-making with predictive capabilities. ·      Data Democratization: Unified financial data enables cross-functional collaboration, driving more informed decisions. ·      Automation: Streamline processes and focus on high-value strategic activities, enhancing efficiency and agility. By equipping our finance and procurement teams with cutting-edge tools and technologies, we can elevate procurement to the strategic enterprise level, ultimately saving time and money for our cities and counties. 🔍 Check out the attached full white paper for in-depth insights and best practices. Let's lead the charge in transforming procurement into a strategic asset for our local governments. The future is data-driven, and we can shape that future now! https://lnkd.in/ex2JgQUX #LocalGovernment #Procurement #AI #DataAnalytics #StrategicPlanning #Finance #SupplyChainManagement #procurement #GFOA #NIGP #civicmarketplace

I wanted to share these case studies with you on how technology simplifies Global Trade 👇 Intellectual Artificial (AI) 1. Dyson: Improved Data Analysis and Decision Making - Issue: Dyson's supply chain, product engineering, and procurement departments lacked information visibility and communication. Solution: Dyson organized data using LevaData automation and AI. This system accelerated departmental collaboration and decision-making. Results: Dyson saved money and reduced the risk on the components, ingredients, and metals. Real-time data and interactive visualizations on AI platform dashboards helped decision-making. Blockchain 1. Digital Provenance for Financial Services: The Provenance Blockchain Foundation—Difficulty: Trade finance has typically relied on outdated centralized infrastructure or paper, resulting in inefficiencies and lack of transparency. Fixation: Cosmos' Source Blockchain provides a decentralized, unchangeable ledger for financial services. Result: Smart contracts on the blockchain enable real-time tracking and settlement, cut administrative costs, and increase transparency. Provenance helps healthcare providers maintain clinical trial data and patient data safely. 2. VeChain Technology end-to-end traceability - Challenge: Tracing the product throughout the supply chain. Solution: VeChain's blockchain technology provides solid data management and a continuous view of supply chain transactions. VeChain's technology simplifies dispute settlement, record-keeping, and compliance. Shoppers Drug Mart's partnership with TruTrace Technologies reduces expenses and ensures data integrity by improving medicinal cannabis program accountability and traceability. 3. Chainlink: Decentralised Data Integration—Difficulty: Fragmented commerce ecosystems limit data exchange and product verification. Solution: Chainlink's decentralized blockchain oracle network integrates international trading systems with real data and provides CCIP and other services. Global Trade Administration 1. e2open: Multi-Enterprise Network for Trade Compliance—Challenge: Mitigating supply chain risk and complying with international trade rules. Solutions: e2open's cloud-native technology tracks billions of transactions annually and connects over 400,000 partners in a multi-enterprise network. The software helps firms operate more sustainably, effectively, and predictably. 2. CDM Software: Automating Customs Filings—Difficulty Managing US Customs' time-consuming paperwork filing process, especially for e-commerce enterprises using Section 321 for de minimis exports. Solution: CDM's Global Shipment Compliance solution automates filing and creates a single customs file format. Automation improved filing efficiency by 90% for tens of thousands of shipments per container. #ArtificialIntelligence #Blockchain #GlobalTrade #SupplyChainManagement #Logistics #AI #BlockchainTechnology #SupplyChainOptimization #TradeCompliance

My eyes have FINALLY begun to open around the possibility around AI when it comes to procurement (I know I'm late to the game here..) It seems that many believe it to be a forgone conclusion that AI will dramatically impact many roles in business. Procurement is no exception. Here are 5 ways I’m most excited about AI’s potential contribution to procurement: 1️⃣ Sourcing Helping match a business’ unique needs with the right suppliers. I’m a believer that more often than not, we choose a solution that isn’t optimal for our need. Think I’m wrong? Check the data. CSAT for SaaS tools remains much lower than renewal rates. 2️⃣ Negotiation No I don’t think robots are going to take over. But I do believe that AI will help provide incredible and action insights that can be used as leverage based on trends, supplier performance, utilization and other data points. Procurement often can’t do this at scale today. 3️⃣ Spend Analytics This seems to be a great use case to identify and prioritize cost savings, contract restructuring, rationalization and other opportunities. It's a strategic initiative that often doesn't gets deprioritized over more urgent tasks. 4️⃣ Due Diligence and Approvals This is such a common pain point now and often takes a long time. The result? A process that spawns risk. With AI, approvals will be streamlined, stakeholders will have better information to approve/reject, and suppliers will be onboarded faster. 5️⃣ Contract meta-data collection Historically we’ve often only collected basic general meta-data because too much becomes hard to collect at scale. And even collecting the basics becomes riddled with data integrity issues as it’s been a human-supported process. Going forward? Way more data pulled from contracts that is incredibly accurate which will enhance nearly every other stage of the procurement process. Parting thoughts: I see other talk recognizing plenty of other synergies from #AI but until recently it felt like most of the impact was going to be centered around automating tactical pieces. While important, it wasn't really exciting me. But when I start to understand the impact it will have on the strategic side of #procurement.... well that really gets me electrified. I'm convinced I'm just seeing the tip of the iceberg. Are you nervous? Excited? undecided? Please let me know what you think on this topic.👇