How AI agents will change procurement

- How can agents help you source the highest quality materials at the optimal price? Say a procurement team searches for the optimal suppliers, requests quotes, compares prices and interest compliance with company policies. But unexpected disruptions in the supply chain mean that the team needs to find alternatives quickly. This is especially critical to ensure your production continues. AI agents will help identify and address issues before they become major problems. For example, they will be part of a procurement system and monitor its transactions. When an agent notices a supplier's delivery is delayed, they can arrange to source from an alternative one. The agent can scan your supplier database and evaluate supplier's profiles to create a short list. To do that, it takes into account criteria that an organization has previously defined. Those criteria could be cost, reliability, and delivery times. Then the agent sends a message to these suppliers to request quotes. It compares the ones it receives back and determines the most cost effective and suitable options. Now, in the first step, it presents the proposal to a purchaser who reviews it if needed, the purchaser can edit and adjust the proposal before approving it. In the future, the agent could also negotiate the terms with the supplier directly. And if the supplier can deliver faster, the agent could even decide to pay more for the order. That could be another threshold that's defined upfront. Now, incorporating agents into a procurement process will reduce the time and effort required for vendor research in quote comparison. The procurement team can then focus on strategic tasks like negotiating master agreements and building supplier relationships. Agents will also monitor supplier performance. They will ensure you receive the best material at the lowest cost and optimal time. This approach will transform procurement into a highly efficient data-driven and agile business function, and that helps to significantly enhance your organization's competitiveness and resilience.