Introduction
Even though many CPOs are still unsure about whether Generative AI (Gen AI) can change the way things are done, some of these concerns have already been challenged by early implementations of the technology. From helping create documents and find suppliers to testing negotiation strategies, there are already plenty of practical uses for Gen AI.
Creating Content
Even if some believe that Gen AI is “just a toy” – as a senior executive from a Fortune 100 medtech company said to McKinsey, they might not realize how much that “toy” can help with day-to-day operations. When properly tailored to your specific needs, the potential of LLMs is truly mind-blowing. Let’s take custom requests for proposals (RFPs) or multiparty contracts, for example. All of them can be much more easily created than they would typically be.
Let’s take a look at a real example of one McKinsey client team that created an RFP engine capable of replicating “best-of-best” analysis by using sanitized templates and cost drivers derived from over 10,000 previous RFPs and responses. It also helped them predict and even actively prevent any errors, omissions, and mistakes. Finally, it even started to learn what made the winning bids tick, giving them the ability to redesign future RFPs and boost the chances of getting good results.
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Synthesizing Information
Gen AI can quickly and easily extract, summarize, and retrieve all kinds of data, which comes in handy when you want to create a procurement category strategy.
Getting ahold of suppliers the traditional route with industry publications and database queries can be cumbersome and time-consuming, but Gen AI has the potential to streamline these searches and make them quicker and much more efficient by using keyword- and capability-based approaches. Instead of manually browsing through large amounts of information trying to find a capable supplier, an AI can process publicly available information and compare it against known seed companies.
Companies that are exploring different ways of integrating Gen AI into their supply chain and logistics could benefit from generative AI for supply chain with Dedicatted, which can be used to create custom AI workflows.
But Gen AI doesn’t just help you with all the menial stuff; it can also greatly help you with the more complicated stuff. Wondering whether a confrontational or collaborative negotiation approach will work best for your company? Have Gen AI run some mock negotiation scenarios and use the results to pressure-test your approach.
