Claritum’s focus on AI in Procurement
Claritum’s focus on Procurement AI or AI in Procurement is on Machine Learning applied to the wealth of data collected through the process of Indirect Spend management. Using Machine Learning to identify opportunities and anomalies within this spend data.
Using Artificial Intelligence (AI) applied in context of the automated collection of data that Claritum provides. Plus, automating analytical processes that are carried out either manually (consultancy projects) or delivered using unsuitable technology solutions.
Using AI selectively we are able to create a disruptive sector change delivering lower cost and higher value management information. Claritum’s perspective is that AI technology should be used to reduce cost and provide higher value management information for organisations.
AI, applied in this way, will produce the best return on investment for Claritum’s customers and additional return on the investment made in the overall Claritum solution.
When we talk about AI in Procurement at Claritum, we mean training systems to emulate human tasks through learning and automation – the Machine Learning aspect of AI applied to Procurement data. Focusing on tools to analyse data and on collaboration for extended enterprise teams.
Why does automation and the application of AI matter for Tail Spend?
Why does automation and the application of AI (Machine Learning) matter for Tail Spend? “Unreliable spend data remains the greatest challenge for many procurement organizations. No matter how much time is spent cleaning up and classifying long-tail spend, the complexity of millions of line items of spend goes beyond the time and resources of even the most talented Procurement teams.” Spend Matters
Analytics are the Competitive Advantage
“Analytics are the Competitive Advantage: Companies that still aren’t investing heavily in analytics by 2020 probably won’t be in business in 2021. Flying blind and following your gut are no longer viable options when every other business is leveraging sophisticated analytics tools to identify problems, opportunities, and solutions.” If you are going to invest in analytics, you also need to invest in AI and machine learning to be able to navigate the vast, churning seas of information and data you aim to put to good use. The value of AI and machine learning to data analytics can be distilled into three separate value propositions: speed, scale, and convenience.” Forbes
Data quality is cited as the main barrier to AI adoption. Claritum believes that an essential part of any AI strategy is the underlaying automation of processes to ensure that data is entered correctly in the first instance. As opposed to an approach of cleaning up the data later. Claritum has applied structured automation to ensure users enter the key data correctly. Plus, for unstructured data, such as specifications, even here we have added structure where this is both sensible and possible to do so.
“The often most-underestimated step, is creating your data pipeline and aligning it to overall data strategy: determining how you plan to ingest, store, pre-process and ultimately manage it.” Intel
Claritum can help you to:
- understand how to integrate process automation technologies, artificial intelligence and machine learning, so that you become more efficient and make better decisions
- define a realistic set of savings targets and explore new options for applicable areas
- explore suppliers that can offer solutions to boost productivity and shave down costs
- make informed decisions and predictions
- create processes that allow you to pivot and collaborate
- develop a robust framework for understanding and critically examining AI in Procurement in context of data collected during a purchase process
- assess the implications and possibilities of AI in your industry and build a business case for your specific implementation
Benefits that you will realise with Claritum:
- More accurate forecasting and decision making
- Faster response times to organisation requests and resulting customer satisfaction
- Improved supplier engagement
- Higher productivity / resource utilisation
- Significant reduction in transactional tasks
- Better opportunity and anomaly detection
Where will Claritum AI take you?
Claritum envisages Procurement Professionals and Suppliers able to answer these fundamental questions through their own analytics solution:
- Where can I make savings?
- Where, with who and how can I improve my supply chain?
- How do buyers find cheaper/better products?
- How do buyers find alternative or more appropriate suppliers?
- How do suppliers break into new markets?
- How do suppliers find new customers?
Many buyers are unaware of potential suppliers that could provide products, materials or services with greater efficiency, lower cost or better quality. Plus, their potential suppliers are unaware of potential new customers for their products, materials or services.