Ai-Driven Procurement's Role In Enhancing Supply Chain Efficiency How AI is Transforming Supply Chain Efficiency

Abstract

Artificial Intelligence (AI) is revolutionizing procurement and supply chain management for organizations. Traditional procurement activities include supplier management, procurement, contract management, order processing, cost negotiation and many more. But in some

decision-making scenarios the traditional methods have become less effective due to the increasing amount of business data and the complexity of business supply chains. AI-powered procurement offers organizations innovative ways to enhance forecasting, supplier assessment, spend analysis, risk detection, and day-to-day procurement. This article reviews recent research in order to analyze the significance of AI in procurement in enhancing efficiency in the supply chain. The analysis indicates that AI can help with more informed decision-making, reduced processing expenses, improved inventory management, efficient supplier utilization, and increased agility in the face of supply chain challenges. Meanwhile, the advantages of AI cannot be taken for granted. Several factors are crucial to the success of AI investments, including data quality, organizational readiness, employee capabilities, system integration, cybersecurity, and management support. The article states that AI should not replace the human expertise in procurement, but should work alongside it. Those organizations that integrate intelligent technologies with competent procurement experts, proper governance and data security will have a better chance of sustainable gains in the efficiency of their supply chains.