The International Federation of Purchasing and Supply Management (IFPSM) has advised organizations, state agencies and corporates to integrate Artificial Intelligence (AI) in their procurement and supply chain operations to improve decision making and increase efficiency.
International Federation of Purchasing and Supply Management President Eng. Chris Oanda said Artificial Intelligence backed solutions in purchasing and supply management enables buyers, suppliers and financiers to work seamlessly while allowing organizations to monitor their procurement and supply chains in real time.
Eng. Oanda who is a Council Member of Egerton University, indicated that digital transformation and AI technologies were tools and enablers of strategic value creation in the procurement and supply chain of modern entities.
In his virtual presentation from the University’s Njoro Main Campus to the 8th Internet and Supply Chain Conference that took place in Xiamen, China, Eng. Oanda emphasized that AI technology was shaping the future where procurement and supply chain functions were not only functional but also strategic and digitally empowered.
He said AI was no longer a concept in the procurement and supply chains but a powerful driving force that is redefining how firms and government agencies worldwide manage risks as it facilitates smarter and faster decisions.
Eng. Oanda observed that AI in supply chains could deliver the powerful optimization capabilities required for more accurate capacity planning, improved demand forecasting, enhanced productivity, lower supply chain costs, and greater output, all while fostering safer working conditions.
IFPSM is a global federation of over 250,000 associates from over 40 countries. The conference brought on board over 300 professionals from over 200 internet and supply chain companies.
While championing transformative thinking in global supply chain management, IFPSM President indicated that Artificial Intelligence was poised to revolutionize procurement and automation within supply chains by enabling more efficient and strategic decision-making.
“AI can automate repetitive tasks, analyze data for better forecasting, and optimize processes to reduce cycle times and improve overall efficiency,” he explained.
Eng. Oanda further said that AI had the potential to transform procurement and supply chains by automating tasks, improving decision-making, and increasing efficiency in tasks like supplier research and contract management, analyze spend data for better insights, and predict demand accurately.
He noted that AI could help identify inefficiencies in the supply chain and suggest improvements, leading to cost savings and increased efficiency. AI, he added, could help identify and manage suppliers more effectively, including evaluating their performance, identifying risks, and ensuring compliance.
“AI-powered tools can also help businesses respond quickly to changing market conditions and customer demands. AI can automate tasks like data entry, invoice processing, and purchase order generation, freeing up human resources for more strategic work,” he added.
Procurement has traditionally relied on human expertise, manual comparison of supplier options, and analysis of past performance with Procurement teams being under pressure to cut costs, boost efficiency, and stay agile, all while dealing with growing complexity.
However, AI is quickly becoming a game-changer in modern procurement, with Eng. Oanda saying that AI helps simplify the complexity challenges by orchestrating tasks, analyzing data, and supporting better decisions across the board adding that firms that had adopted AI had simplified their supply chain management processes and boosted efficiency.
By Esther Mwangi
