Chapter Two

Intelligent procurement for a sustainable tomorrow

Master AI with our panel featuring AppsFlyer, Globality and Flaconi, and gain exclusive insights into Schindler's bold plans to be entirely carbon neutral by 2040.

Beyond the Hype: How AI is Reshaping Procurement's Future

"I think three-year ROIs are a thing of the past. I think you have to look at speed to value."

Doug Halka VP Globality

In the bustling main hall of ProcureCon Europe 2024 after the day-one coffee break, a revolution was brewing as industry leaders gathered to discuss the future of procurement.

The one topic on everybody's lips? Artificial Intelligence (AI). The "Mastering AI" panel was not just another conference session; it was a glimpse into a future where algorithms and human ingenuity dance in perfect harmony.

On the panel were a vast array of experts from diverse backgrounds, who gathered to share their experiences and insights on integrating AI into procurement processes.

The AI Journey: Challenges and Solutions

Radharaman Jha, VP of Supply Chain at Flaconi, emphasised the importance of implementing AI for the right reasons: "AI should not be implemented because it's a new technology and there is buzz around it," he said. "AI should be implemented if you have a real use case, a real problem, which could not be solved with the existing algorithm or any other process." Jha highlighted several key factors for successful AI implementation, including:

Aligning AI solutions with overall company strategy
Ensuring AI literacy across all levels, including top management
Focusing on change management to address fears of job displacement
Demonstrating clear ROI, especially for scalability
Addressing data biases and fragmentation

Fostering AI Adoption: A Cultural Shift

Irina Poliakov, Head of Global Procurement at AppsFlyer, shared her experience of encouraging AI adoption within her team. She introduced the concept of a "prompt library" to overcome initial hesitation: "I looked at some of the major areas in procurement that are related to us in AppsFlyer," she said. "Whether it was market research and benchmarking sourcing and communication and so on. Then for each of those clusters, I created around three to five prompts."

Poliakov's approach helped break mental barriers and encouraged team members to explore AI tools more freely.

Democratising Procurement through AI

Alejandro Schipani, Global Head of Transformation at Santander, believes AI is democratising procurement: "Business units sometimes feel that the organisation is imposing procurement rather than selling it as a service," he said. "This creates friction between procurement and business unit" However, Schipani explained how AI-powered platforms can reduce this friction by offering:

Autonomy and agility for business units
Improved visibility of processes
24/7 availability through virtual agents

Avoiding Common Pitfalls in AI Implementation

Doug Halka, VP at Globality, warned against overcomplicating AI implementation. In an apt analogy, he said: "I see a lot of companies trying to boil the ocean," suggesting firms attempt to tackle AI implementation on too large a scale. or with too much complexity right from the start. "This complexity builds time and time loses value," he added. Halka advocated for a more agile approach, focusing on speed to value and quick ROI. His advice was to start small and focus on demonstrable value in the shorter term. His strategy can hep organisations to avoid the pitfalls of over-ambition and ensure AI investments deliver tangible benefits in a timely manner.

The Future of Procurement: From Process to Relationships

Jonathan Winters, panel moderator and head of outsourced procurement at Allegiance Club Solutions, concluded with a vision of procurement's future: "AI is without a doubt going to fundamentally impact what procurement looks like over the coming years. I think a lot of the process that we manage today, writing RFPs, evaluating RFPs, negotiating contracts, that's ripe for automation."

"I had the idea to create what I call the prompt library. Once my team started using it, we eliminated that fear, that mental barrier they had with using AI."

Irinia Poliakov Head of Global Procurement AppsFlyer

"Find a real business use case which would add value and then implement AI. Don't bring AI and then start finding which problem should be solved."

Radharaman Jha VP of Supply Chain Flaconi

AI, Politics and Talent: A Recipe for Peril?

The political landscape is evolving rapidly, and AI is both a driver of efficiency and a source of uncertainty. As discussed in our panel, firms must adapt to these changes while managing the ongoing talent shortage.

Schindler's Journey to Carbon Neutrality

Ever wondered how the elevators you ride daily are contributing to climate change? Schindler, the company behind many of them, are working towards carbon neutrality by 2040. They outlined their bold plan in a compelling keynote.

Future-Proof Supply Chains with Prewave

In a world of constant disruptions, AI can be your procurement superhero. If you are tired of relying on outdated questionnaires and playing catch-up with supply chain risks, Jonas Artmeier's speech could help transform your strategy.