How to Upskill with AI and Procurement Automation to Build Future-Proof Teams

For followers of the New Rules of Procurement Engagement, you know the overall message of Rule 4: Redefine Value Creation is to step back, take stock, and see the bigger picture. To shift our focus from minor details and improvements to the broader perspective.

To catch up on related blogs, read

• Rule 4 intro – Procurement in the Age of Intelligence
• Beyond savings: why it’s time for procurement to redefine value creation
• Why Procurement needs to commit to continuous improvement and innovation
• Why we need to normalise data-driven procurement

In this blog, we look at the final piece of the value creation puzzle: people.

In particular, how we can upskill our teams with AI and procurement automation to build a future proof procurement team.

How to upskill with procurement automation & AI

AI and automation offer unprecedented opportunities for Procurement to streamline operations and deliver efficiencies. However, it’s crucial to address resistance to change within the organisation to fully unleash the benefits and instil a culture that embraces change and continual improvement.

“With any adoption of new technology, the key here is change management. Embrace the need for change management and first and foremost identify your goals and metrics of successfully implementing and adopting AI. Keep in mind that every department, discipline, role will have a different need.” Temeena Hussain, Specialist in Strategic Partnerships & Collaboration, Rule 3

“The appetite for AI is there from a very simple perspective of competitive advantage. If you can move faster than your competition then that allows you to get ahead of the competition.” Alun Rafique, Procurement Tech CEO, Rule 2

Upskilling and preparing the workforce for technological integration with AI tools is essential to ensure a smooth transition. However, the goal is value creation, not implementing AI technology just for the sake of it.

To aid adoption, success criteria should be clearly defined, considering factors such as processes, data requirements, key performance metrics, and the necessary skills needed to optimise these new technologies.

“AI is fantastic, it’s going to change technology, it’s going to change business processes, it’s going to change people’s lives. There’s no question about it. But as always, when we talk about AI, we go way too far. We create way too many expectations just to be disappointed a few months after, and that’s already happening. AI is not magic, it’s a tool, it does what it’s supposed to do and that’s it.

At Market Dojo and Esker, we’re trying to build technology that responds to people’s needs, with as little hype as possible, and focused on what the business requirements of the people we work for (our customers) are. And that’s our way to help the people that we work with in the Finance and Procurement departments. Technology works for people. And if people do not embrace technology, then it’s no use to anyone. It serves no purpose. So you have to get people to embrace technology.” Emmanuel Olivier, FinTech, Automation and AI COO, Rule 2

“AI needs to take some of the more manual activity away, freeing up people to climb the value ladder; to do more of the creative engagement; to work in the nuance. That’s what we’re good at. That’s where supplier relationships flourish.” Sheldon Mydatt, Procurement and Supplier Relationship Evangelist, Rule 3

Learn more about the power of AI and automation for sourcing and supplier onboarding.

6 ways to use procurement automation and AI

1. AI-powered and autonomous sourcing: streamline many aspects of the sourcing process, such as automating request creation, bid evaluation, and supplier negotiation. This can lead to faster timelines, increased accuracy, greater transparency, and a reduced administrative burden for Procurement teams.

2. Enhanced integration and compliance: Ensure compliance, minimise risks, and improve supplier relationships with automated supplier onboarding and AI assisted sourcing.

3. AI-driven supplier support: AI chatbots can provide quick and effective responses to supplier enquiries, improving response times and freeing up Procurement professionals to focus on more complex or strategic tasks.

4. Assisted learning: AI can power intuitive tools that provide templates, automated prompts and award scenarios, guiding users through each stage of the sourcing workflow. This can help bridge the skills gap and expedite the procurement process.

5. Advanced analytics and decision support: By analysing large datasets, AI can provide predictive insights and support data-driven decision-making, enabling Procurement teams to optimise their strategies and make more informed choices. Specific applications include analysing spend data, market trends, and contractual information to identify patterns and potential opportunities.

6. Spend analysis and supplier discovery: AI can analyse spending patterns to identify cost-saving opportunities, improve budget allocation, and identify the most appropriate suppliers based on weighted considerations of both cost and wider value.

People power – building a future-proof procurement team

Attracting, maximising value creation and retaining top talent is crucial for Procurement’s success in the Age of Intelligence.

To achieve this, Procurement teams must first identify the skills and mindset needed for future success. This involves focusing on upskilling current employees while also attracting new talent with the requisite skills and mindset.

Fostering a culture of continuous learning is essential for building a future-proof procurement team. Such a culture might include providing ongoing training opportunities, encouraging professional development, and promoting a learning-oriented environment.

Here are examples of how to foster a culture of continuous learning.

• Implement a strategy that prioritises talent development and skills acquisition
• Provide employees with training opportunities focused on new technologies
• Invest in equipping employees with the latest procurement technology tools and training such as AI-powered and autonomous sourcing tools (to streamline and free up people’s time spent on manual, repetitive tasks) and spend and category management solutions (to give teams data-driven visibility into spending and procurement activities facilitating more informed decision-making)
• Empower and provide career opportunities for Procurement professionals, for example talent development programmes and mentoring initiatives
• Cultivate a positive, diverse, and supportive work environment that values employee contributions and celebrates both individual and team accomplishments

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