AI can boost the procurement function in consulting firms

Date Posted: 23/10/2019 Category:
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AI can boost the procurement function in consulting firms

Date Posted: 23/10/2019 Category:

Artificial intelligence (AI) is making inroads in different industries, and as a result, the technology is helping organisations to improve their processes and systems while minimising costs.

Consulting firms can use AI to boost their offerings and meet the demands of their stakeholders.

According to Globality’s chief customer officer Diego Barilla, AI can improve and streamline the procurement process in consulting firms.

Barilla states that when a consulting firm partners with a new marketing agency, HR services firm or an IT vendor, they do not know whether it is the right fit for their organisation.

The service provider’s quality of service will vary based on how motivated they are to cater to the needs of the consulting firm.

With more firms increasing their external spend on technology, productivity, marketing, development and hiring, enterprise procurement has become an expensive and complicated process.

Also, consulting firms are invariably unaware of the differences between providers, and therefore they often struggle to compare proposals from different vendors for the same services.

This is where AI can help consulting firms, according to Barilla.

Rather than getting multiple proposals from different vendors for the same service and then going with their gut feeling, consulting firms can use AI to use resources more prudently, get better ROI and ensure better decision-making.

He believes that consulting firms can use AI to make the brief to vendors more accurate and precise, leaving no scope for ambiguity.

This way, proposals will be similar, and they can be compared to eliminate vendors that do not fit the scope of the brief.

AI tools can help the procurement team in consulting firms to use a library of templates to make brief writing more efficient and use features that allow them to customise the brief based on their knowledge.

It helps to enhance the quality of proposals and ensures consistency.

As a result, it shortens the decision-making process, which otherwise could take weeks or months.

AI can also match the service provider to the brief, minimising the chances of disappointment.

Source: https://www.consultancy.uk/news/22726/ai-can-enhance-procurement-function-of-consulting-firms

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