Procurement/SCM leaders consider enhancing supplier collaboration and partnerships, along with refining category management strategies to be strategically important for future cost savings. These are closely followed by adoption of emerging technologies and expanding cross-functional collaboration within the organization. Using these strategies can unlock significant cost-saving opportunities, boost operational efficiency, and contribute to overall organizational success.

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While Generative AI use is increasing in supply chain, it is not without its challenges. The biggest challenges include data security/privacy; workforce training/skill gaps; integration challenges with existing systems/processes; and data quality/compatibility. As solutions to these challenges are discovered, the use of Generative AI is expected to increase.

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According to a recent CAPS quick poll, the top 3 ways a procurement/SCM team gathers market intelligence is through industry events and networks; free resources; and from paid third-party tools and subscriptions. Effective market intelligence is a key tool for reducing supply chain costs and risks.

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The use of Generative AI in procurement has increased by 15% in the past year, mostly for creating documentation; translating, standardizing, or improving language; as well as analyzing spend to identify opportunities for savings or consolidation. With most organizations spending under $10,000 for AI adoption, it is proving to be a cost-effective time saver.

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The most common methods that supply chain executives justify their investment in risk mitigation strategies are with ROI estimates, customer satisfaction, impact on cost, and revenue dollars at risk. Authorizing costly risk mitigation expenses is one of the primary challenges for executives, particularly when they are only potential risks.

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