Skip to main content

How AI Will Transform the Procurement Specialist's Job

Published Date

Estimated reading time: 5 minutes, 40 seconds

(Image Source: Rieth/Stock.adobe.com)

Published May 2, 2024

Artificial intelligence (AI) has changed not only the future of technology and the electronics industry but also the way electronics procurement professionals conduct their work. Currently, so much of a procurement specialist’s job is manual. While some automated tools already exist, tasks like supplier selection, risk management, negotiations, inventory control, and forecasting can be time-consuming, prone to human error, and dependent on personal experience for decision-making. Throw in analysis of market trends and managing relationships with suppliers, and there’s little room for anything other than these “basic” tasks.

AI is poised to transform many roles by performing some tasks better than humans can—and we may be happy for AI to take them when we consider what that future can look like. In electronics procurement, the procurement pro’s job could transform into something entirely different because of AI. What that something looks like can be uncertain and unsettling for some less acquainted with AI’s capabilities—and limitations. This blog guides procurement professionals toward a clearer understanding of what the collaboration between AI and procurement might look like by examining seven ways AI stands to reshape the component procurement profession:

  • Transactional to Strategic
  • From Manual Vetting to AI Insights
  • New Sustainable Supply Chains
  • Advanced Technology Proficiency
  • Customization and Personalization
  • Change Management and Adaptability
  • Focus on Value Creation

Transactional to Strategic

It’s no secret that AI can automate routine tasks. For procurement specialists, this means more time to focus on supplier relationship management, strategic sourcing, and overall business strategy. These AI-driven digital assistants will enhance the procurement pro's responsiveness and decision-making, enabling quick replies to inquiries while improving decisions across the supply chain. For example, AI can recommend which shipment takes precedence based on a variety of factors, leading to improved delivery time and reduced costs.

In addition, with AI’s ability to forecast demand for electronic components, procurement specialists should focus more on strategic decisions that align with market trends to enhance supply chain efficiency.

From Manual Vetting to AI Insights

AI tools will facilitate more refined risk management strategies and ethical sourcing practices. The technology can help procurement specialists assess supplier risk, monitor compliance with sustainability and ethical standards, and execute responsible sourcing strategies, all of which require a deep understanding of procurement’s technological and ethical considerations. AI will become critical in building risk-resilient supply chains, so procurement specialists should integrate advanced views into oncoming disruptions and opportunities as they plan. For example, more connected data across the organization can usher in a new wave of hyper-predictive logistics that assist in vetting and risk management.

New Sustainable Supply Chains

While AI is helping to build risk-resilient supply chains by improving how organizations sense, recognize, and react to disruptions and opportunities, it will also support sustainable supply chain initiatives. AI improves the procurement specialist’s ability to identify suppliers committed to sustainable manufacturing processes and materials. The role of the procurement specialist will evolve toward strategic management of supply chains that are efficient and environmentally responsible by preemptively identifying risks and opportunities that enforce resilience and sustainability. Procurement specialists should look to fine-tune skills that include data analytics, environmental ethics, and strategic planning, which will significantly transform their contributions to organizational and environmental objectives.

Advanced Technology Proficiency

As AI technologies are embedded in procurement processes, specialists must work to understand these technologies more deeply, leading to a new skill set. These skills include understanding how AI algorithms work, managing AI systems, and staying up to date with technological advancements. As these AI technologies develop, procurement specialists can seek opportunities to continually learn and train to maintain proficiency and get the most out of their new AI resources.

Customization and Personalization

One of the most exciting aspects of AI in procurement is that it will allow specialists to analyze customer data and preferences more efficiently, creating customized product offerings. Some tools already assist in component comparisons, but future AI will enhance procurement’s ability to compare specifications and parameters of electronic components, confirming project requirements and anticipating future technological needs. Procurement specialists will need to work closely with suppliers to ensure that product specifications meet the evolving demands of the market, with an enhanced focus on negotiation and product development skills.

Change Management and Adaptability

Integrating AI into procurement processes will require procurement specialists to hone their change management skills. Procurement teams will be at the forefront of managing the transition to new systems and processes, which will require adaptability, leadership, and the ability to manage resistance to change. This job may entail guiding teams through transitions, dealing with those resistant to change, and ensuring the AI implementation runs smoothly. This job will extend beyond what is considered traditional procurement today.

Focus on Value Creation

With AI in the mix, procurement specialists can move past pure cost savings and focus on creating long-term value for the business through innovative procurement practices that AI enables. This includes identifying opportunities for product innovation, improving time-to-market, and enhancing supplier collaboration to drive competitive advantage. As procurement professionals set personal and organizational objectives, they should see how AI creates new value for their company rather than see it as a hurdle to achieving their goals.

How to Get Started

While understanding AI’s future benefits is important, how can one get started now to reap its benefits? Here are ways to start incorporating AI into your daily processes:

  • Identify which routine tasks you can automate so you can gain time for more strategic responsibilities.
  • Enroll in courses and workshops focused on AI applications in risk management.
  • Refine your data analytics skills to interpret AI-generated insights effectively.
  • Implement AI systems that analyze the environmental impact of supply chain activities, such as lifecycle analysis and predictive models for environmental risks.
  • Incorporate AI tools to analyze market data and customer reviews, identifying trends.
  • Use AI to streamline the onboarding process and qualify new suppliers.
  • Apply AI systems to optimize shipping routes, manage inventory, and anticipate disruptions.
  • Integrate AI into your project management duties to set up timelines, allocate resources, and track progress.

Conclusion

AI stands to reshape the future of procurement. The technology will perform manual, repetitive tasks, and procurement specialists’ roles and skills will evolve as they become more strategic, engaging in value-driven activities that showcase their strengths. Procurement pros can start to become more acquainted with these AI tools, looking for opportunities to better supplier selection, risk management, and sustainability initiatives. Embracing AI promises increased efficiency and cost savings and positions procurement specialists at the core of business innovation and decision-making.