Enabling AI in Procurement Transformation - The Case For Adoption in the Electric Utility Industry
Utilities should set their procurement technology strategy to implement a fully integrated global I.T. system infrastructure that incorporates procure-to-pay operations with fully automated workflows.
What is the role of AI in procurement transformation?
AI is transforming procurement processes by enhancing efficiencies and reducing costs. It enables better decision-making through the analysis of large datasets, streamlining operations, and improving supplier relationships. As AI adoption grows, it is expected that the market for AI-based automated procurement decision-making technologies will increase from 15% in 2023 to over 50% by 2025.
What challenges do procurement teams face in the electric utility sector?
Procurement teams often struggle with siloed operations and sub-optimal performance due to the concentration of spend among a small percentage of vendors. With 75-85% of spend coming from the top 4-8% of vendors, teams may lack the resources to focus on strategic sourcing initiatives, as 85-90% of their activities are transactional in nature.
How can utilities maximize their procurement efficiency?
Utilities can maximize procurement efficiency by adopting best practices for streamlining processes and implementing next-generation technologies. This includes creating a fully integrated procure-to-pay system, utilizing AI for data analysis, and focusing on strategic vendor management to optimize resource allocation and enhance decision-making.
Enabling AI in Procurement Transformation - The Case For Adoption in the Electric Utility Industry
published by Divergent IT
Divergent IT is a tech service operational consulting & strategy firm. Divergent IT partners with CIOs, business owners, and Non-Profits to develop strategy and implementation across their business including: cybersecurity, remote maintenance management (RMM), IT strategy, on-site maintenance and more.
Sign in with LinkedIn