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 Clearscope Technology Solutions
At Clearscope Technology Solutions (CTS), we are dedicated to providing reliable and innovative technology solutions that empower businesses to reach their full potential. Our focus is not just on offering services, but on becoming a catalyst for growth and success for businesses of all sizes.
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