Read about: Supplier Risk Assessment Process, Estimating Risk, Third-Party Risk Management, ISM's Report On Business

Results from a recent report from CAPS Research show that 38% of companies are using Generative AI for cleaning spend data, 29% use it to analyze marketing and category intelligence, and 26% to help users through requisitions, guided buying, etc. This data suggests engaging Generative AI in procurement could bring a significant boost to productivity and profitability.

Read about: New Metrics of Supply Management Dashboard | Managed Spend Data | Decreasing Global Inflation | India's Emerging Supply Chain Role

62% of companies are currently using generative AI in procurement, according to a recent CAPS survey. However, only 15% of companies have generative AI governance policies in place, with 19% currently creating them. This indicates a significant percentage of companies are likely using Gen AI models without guidelines for protecting intellectual property and other sensitive data.

Read about: Register for Sustainability Webinar, Member Engagement Report, ESG Barriers, Manufacturing, Tariffs

CAPS asked procurement practitioners to rank the most important ESG factors they consider when selecting suppliers. Safety, Social Sustainability, and Governance were the top 3, suggesting a greater focus on the humanitarian elements of the ESG agenda.

Read about: ESG Requirements, Implementation Drivers, Sustainability Initiatives, Plastic Pollution, Shipping

Across all manufacturing and services industries surveyed, sourcing from suppliers that comply with ethical ESG practices is most important. Interestingly, just over 30% of supply chain professionals feel reducing Scope 3 emissions is important, despite looming regulatory reporting requirements in California and Europe. 

Global freight has increasingly become a focal point as it faces mounting risks and complexities. Recognizing this, CAPS Research is investing more time and research into the area of logistics and freight to build out metrics and best practices. This is critical as our data shows that more and more supply management executives have responsibility in this area. To better understand the role and importance of logistics and freight, we must take a deeper, yet retrospective glance at its significance in our profession.

Read about: Nearshoring Framework and Strategies, Sourcing Steel, Managing Geopolitical Risks, AI Degree, Payment Fraud