1. How will Technology shake up Procurement?
Ajay Patel – Director Of Purchasing
Teresa Holcomb – Manager IT & Scientific Purchasing

2. Agenda Major technology changes in procurement What do they mean?
What does this mean to Procurement?
How will this impact you
What are your next steps?
Questions?

3. background Many technologies will change how we do business
Change procurement’s value proposition
Change our staffing plans
Presentation focuses on portions of Artificial Intelligence

4. background

5. Artificial Intelligence
I propose the question : Can machines think? (Alan Turing)

6. Artificial Intelligence
Self-driving cars rely on deep learning for visual tasks like understanding road signs, detecting lanes, and recognizing obstacles

7. Terminology
Artificial Intelligence (AI)- machines imitating human intelligence.
Machine Learning – the capability of a machine to learn and improve it’s own performance.
Deep Learning – is capable of learning unsupervised from data that is unstructured or unlabeled, e.g.; self-driving vehicles.
Bots - A bot (short for "robot") is an automated program that runs over the Internet, e.g.; virtual assistant, a chatbot.

8. Machine Learning

9. Terminology

10. Procurement process Descriptive analytics – What happened?
Diagnostic analytics – Why did it happen?
Backwards looking
Descriptive analytics to turn data into information .   
What happened? Who spent how much with whom on what?
Diagnostic analytics info backward-looking insights. Higher Prices Why, ML root causes.

11. Procurement process Predictive analytics – Where’s my risk/need?
Prescriptive analytics – What’s my strategy?
Forward looking
Predictive analytics - turn information into forward-looking insights.  Forecast Prices. Supplier?
Prescriptive analytics to turn insights into action. What should my RFI questions be? Best strategy to source? Market basket? How do I minimize risk and savings tradeoffs?
Weather
Football Game
Final Weeks

12. Machine learning
Machines need data to learn…

13. It’s all about the data Internal Data Supplier Provided Data
Spend Analytics
Supplier Performance
Supplier Provided Data
Subscription Data
Aggregators
Consumer Price Indexes
Weather services
Public Data
Artificial intelligence systems are only as good as the data they consume

14. Applications to Procurement
Greater automation of menial procurement tasks
Speech recognition/virtual assistant for requisition and approval process.
Image of the item to purchase.
Automate low dollar, high transaction purchases,
Take a picture of the item, identifies and process for approvals, order placed.

15. What does AI mean to Procurement?
Detecting Patterns
Cost/price discrepancies
Unusual order quantities/frequencies.
Top-Performing suppliers
Detect and predict purchasing patterns

16. People IN Procurement New Processes Require New Skills
Buyers need more technical expertise for the software, data and process flow.
Buyers assess risk.
Provide counsel
AI provides;
Documents w/ AI flags. 
Contracting standards.
How to debate & structure clauses.

17. Action Items Learn - Get up to speed on AI procurement tools.
Add Technology expertise to procurement qualifications.
Develop Data
Organize data
Catalog and analyze types of procurements.
Identify new data sources
Automate
Menial tasks
Low dollar, high transaction purchases
Learn attending conferences, studying best practices, and engaging with industry leaders and AI tool vendors.

18. Empowering Procurement
Financial Benefits – identify opportunities for Bottom line impact.
Higher efficiency
Data – price changes, ordering pattern, supplier information.
Automation
Negotiations are data driven.
Cultural Benefits
Changing the conversation w/ stakeholders & leadership.
Employee satisfaction
= data driven Smarter faster decisions.
data driven, Price movements, consumption volumes, supplier performance, competition
Predictive

19. The Future Of Procurement In A Word: Intelligent
Artificial intelligence and Machine learning are here. Digital technologies drive simplicity and automation. Intelligent platforms exist to provide data insights Artificial Intelligence brings facts from unstructured procurement data with predictive insights for a more intelligent source-to-settle process.
The world has gone digital.
Menial tasks, low dollar transactions are automated.
smarter, faster decisions

20. Poll

21. Questions?