Debunking 5 common myths about Predictive Procurement Orchestration

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Over 50% of organizations have automated their procurement processes, with around 35% using AI in procurement — an impressive increase from 29% in 2020. This evolution enables procurement teams to make superior decisions, initiate more events and cover broader ground without additional resources.

Despite these advancements, some professionals remain skeptical about Predictive Procurement Orchestration (PPO). Concerns about the learning curve, cost and time investment persist. This article addresses five common misconceptions about PPO and explains its potential as a revolutionary tool for procurement teams.

Myth 1: AI will replace procurement professionals

A prevalent fear is that AI will eliminate jobs in the procurement industry. While AI can automate repetitive tasks, such as data entry and analysis, it cannot substitute the human touch necessary for negotiating with suppliers or establishing enduring relationships. AI should be perceived as an enhancement tool, enabling professionals to dedicate more time to high-value activities, thus gaining a competitive edge. AI amplifies procurement’s impact on the business rather than replacing it.

Myth 2: Predictive Procurement Orchestration has a lengthy implementation time

Implementing many procurement solutions, particularly for large enterprises with intricate needs, can be challenging due to data migration, specific business requirements and user training complexities. PPO differs significantly. Unlike other solutions, PPO can be operational within days. For instance, global contract manufacturer Westfall Technik experienced 18% savings with an incumbent supplier within 72 hours of implementing Arkestro, showcasing the platform’s efficiency and dispelling initial apprehensions.

Myth 3: It takes years to see clear ROI

Often, new procurement processes require months or years to demonstrate a clear return on investment due to change management, data gathering and organizational complexities. PPO, however, can deliver substantial savings in as little as 60 days, which includes getting the platform up and running. For example, Koch Industries transformed single-source spot buys into multi-supplier, multi-round events, achieving significant value and improved supplier performance. Similarly, Dover Chemical Corporation has consistently attained 12% savings annually by efficiently analyzing data with PPO.

Myth 4: You already have an ERP — You don’t need another platform

Adopting multiple procurement software solutions can lead to fatigue among teams already managing numerous interfaces and processes. Nonetheless, PPO platforms can seamlessly integrate with existing ERP systems, enhancing decision-making organization-wide. PPO empowers procurement teams to run more events and address more spend without increasing headcount. It reduces time spent on low-value activities and frees resources to focus on strategic initiatives, making PPO a valuable investment rather than merely another platform.

Myth 5: Suppliers don’t want to learn yet another tool

Suppliers may be reluctant to adopt new procurement software due to concerns about integration and workflow disruptions. PPO simplifies suppliers’ workflows through dynamic feedback, transparent communication and ease of use. Once suppliers experience the intuitive process and clear advantages of PPO, they are likely to embrace it enthusiastically. Effective communication highlighting these benefits by procurement teams can facilitate this transition.

Transform procurement with PPO

Skepticism towards new technologies is natural, yet overcoming these concerns is crucial to remaining competitive in the evolving procurement industry. Procurement teams globally are already leveraging the power of PPO, achieving notable cost savings, short implementation times and high returns on investment. Do not miss out on the advantages of PPO. Discover how this technology can help you reduce costs, expand your influence and enhance efficiency.

FEATURED COMPANY

Arkestro

Calvin Sigelbaum, Senior Account Executive

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