AI & IoT

Artificial Intelligence (AI) Computer systems and software that are able to perform tasks normally requiring human intelligence. Internet of Things (IoT / IIoT) - Network of physical devices embedded with electronics & software resulting in reduced human exertions in industrial and domestic applications.

Three Ways AI Makes Procurement Smarter

New artificial intelligence (AI) solutions make contract writing and auction management smarter and easier.

17-Jul-2019
Three Ways AI Makes Procurement Smarter
In 2017 Gartner predicted that AI would benefit procurement and sourcing technology. That moment has arrived, according to Mike Quindazzi, managing director at PriceWaterhouseCoopers and a top financial-tech influencer.

“We’re now in the golden age of AI, where advancements come from voluminous sets of data, new algorithms being created, computing power, and the ability to do this in the cloud at scale,” he says.

In part, procurement data has exploded because procurement has evolved into something called intelligent spend management, which oversees all corporate purchasing processes, including direct and indirect purchases, travel, and external labor.

But Quindazzi cautions that while AI has many use cases in procurement, such as rating vendors, “there will always be a human at the end of AI processes, so there needs to be a sense of accountability.” Business leaders must offer transparency into the metrics and data used, how vendors were selected and ranked, and other elements that trained AI algorithms.

At the recent SAP Ariba Live conference, SAP showcased several ways that AI and machine learning technology will impact intelligent spend management.

Consistent Contract Management

There are two phases of contract management during negotiations between companies and suppliers: the legal and the operational. The two phases reside in different documents and systems, and can easily become inconsistent.

Legal contracts are usually unstructured data stored in word processing documents, while operational contracts are structured documents that live in either SAP ERP or SAP Ariba applications. The operational agreements include data such as specific pricing terms, line items, or accounting information. If these details change, the two contracts can get out of sync.

For example, in the past, if the price changed for a specific item in an operational contract, it needed to be manually updated in the legal agreement. But this reconciliation didn’t always happen. Now SAP is developing a synchronization feature in SAP Ariba software that will automatically provide consistency across both documents.

Using machine learning, SAP is creating an application that will analyze the legal documents and compare them to pricing and purchasing conditions in operational agreements. The machine learning prototype can make recommendations when there are inconsistencies. For instance, the solution can make sure that taxes and insurance fees in the contracts are appropriate to specific regions and countries where the transactions are based.

Chatbot-Guided Contract Writing

Large companies generally have repositories that contain thousands of contracts. Machine learning can mine unstructured data from those repositories to help procurement professionals more intelligently write contracts and proactively avoid potential issues.

SAP is developing an AI chatbot to review contracts and propose optimizations based on historical patterns. The chatbot may suggest different payment terms or recommend a particular legal clause that addresses a regionally specific insurance law.

External data is also fed into the chatbot from more than 600,000 private and public sources so it knows things like when new regionally specific insurance laws are enacted. This enables the chatbot to flag risks and propose alternatives.

Sourcing Auctions

To find the best supplier, large multinational companies hold sourcing events, called auctions. Bram Purnot, a solution architect for SAP Ariba, explains that these events help companies negotiate prices or find the best supplier based on other criteria. But holding auctions can be very complex. There are multiple types of auctions; some might focus on region or a specific commodity, or a combination of factors. A company may want suppliers for the cheapest, most sustainably produced shea butter in Western Africa.

Collaborating with a large Dutch company that holds many of these auctions, SAP has created a prototype that uses machine learning and chatbots to help manage auctions. Once an auction has been created, the chatbots will suggest how long the auction should last, who should be invited, and how many participants to include.

These chatbots are fed by an SAP machine learning algorithm that has combed through existing data to predict how to run the most successful auction. If a company is looking for transportation services, the app may recommend Japanese providers that are more effective than the Dutch auctioneer in this type of auction.

The Challenge of AI and Business Change


AI has arrived, but organizations may still need help embracing new processes. Judith Hurwitz is president and CEO of Hurwitz and Associates, a technology consultancy and analyst firm. She recommends that companies take a hybrid approach to determining how to use AI that includes both data scientists and procurement professionals.

According to Hurwitz, “Data scientists can’t live in isolation – it’s not just an algorithm, it needs the expertise of business experts.”

Artificial intelligence to drive digital transformation amongst APAC telcos

Majority of telcos in the Asia-Pacific (APAC) region are integrating AI tools and platforms into their existing business processes

Deloitte Launches Smart Factory Fabric on Amazon Web Services

New cloud-based smart factory applications built on AWS help companies improve operational performance and reduce costs

Mark Sheldon appointed CTO of the Sidetrade Group

This appointment corresponds to the Group’s accelerated international development strategy

Consumer confidence remains low as companies look to provide a human touch

Now more than ever, businesses will be focussing on providing a seamless digital customer experience, optimising customer engagement

Eurotech Integrates Infineon TPM to Enable End-to-End Security from IoT Edge Gateways to the Cloud

Eurotech teams up with Infineon to offer utmost protection of IoT Edge solutions

If AI could feel, it would fear cyber attacks from people

New report from EU research group says attacks against AI systems are already occurring, difficult to identify, and potentially far more common

Dematic presents The Future of Intelligent Logistics at IMHX 2019

Step into the future of intelligent logistics on stand TL4 at IMHX 2019

ERM Advanced Telematics Enters the IoT market

New Sensing Solutions Designed to Monitor and Track Assets

FuturMaster launching a new AI-powered forecasting software

The new solution will help manufacturers and retailers launch new products more successfully

Artificial Intelligence: a disruptive force in the UK financial services sector

AI is seen as tech disruptor frontrunner but firms are hindered by a skills shortage

Digital Transformation of Oil and Gas: Industry Experts from over 30 Countries meet in Amsterdam

Implico shows how to benefit from digital change at “IIoT and Digital Solutions for Oil & Gas 2019”

Manhattan Associates Unveils Native IoT Support to Solve the Retail Industry’s Biggest Omnichannel Store Fulfillment Dilemma

New solution supports native RFID to increase store inventory accuracy and improve order picking speed

Atos enforces security of IoT ecosystems with new dedicated Hardware Security Module

A high-performance security device designed to protect IoT ecosystems through cryptographic features

Strategic Partnership to provide IIoT and Artificial Intelligence for Industry Manufacturers

Elisa Smart Factory and NVision Czech Republic partner to provide IIoT and Artificial Intelligence for industry manufacturers

Toyota Material Handling Europe presents future logistics vision with Microsoft

Toyota Material Handling showed a first preview of its future logistics vision at the Microsoft booth: 'A.I.TeamLogistics'

ignio™ Wins Artificial Intelligence Excellence Award

Digitate’s Cognitive Automation Software Recognized for its Contextual Awareness and Ability to Reason

DataArt partners with MHS to build innovative AI-powered predictive maintenance system for conveyors

Store, analyze and visualize data, detect anomalies and trigger alerts from conveyor equipment

Asian manufacturing and logistics sectors power ahead with IoT adoption despite some concerns

New report reveals the readiness of Asian manufacturers and supply chain enterprises in the adoption of innovation in the IIoT

Tessco Announces Distribution Agreement with IoT Solutions Leader Digi International

The breadth and scale of the Digi IoT portfolio make them a strategic manufacturer. Tessco continues its endeavour to be the leading IoT Distributor

Royal Swaziland Sugar Corporation Leverages SAP Leonardo IoT for Harvesting Logistics

SAP Co-Innovation Lab & long-time SAP partner Britehouse enabled the RSSC to digitalize the management of its vehicle fleet

JDA Showcases Powerful Luminate Portfolio Built on Microsoft Azure at Hannover Messe

Imagine your supply chain could capitalize on big data, use AI/ML capabilities and a digital control tower to predict real-world behaviors

New Collaboration Between Deloitte France and Dataiku to Bring Companies Toward Enterprise AI at Scale

Deloitte France has announced a new partnership with Dataiku, aiming at transforming the consulting field and solidifying the path to Enterprise AI

The future of AI for the food and drink supply chain

The hype around AI has continued to soar during the beginning of 2019

Noodle.ai Partners with NFI to Bring Artificial Intelligence to the Transportation and Distribution Industries

Leading Enterprise Artificial Intelligence® provider, Noodle.ai, and leading supply chain solutions provider, NFI, announced their partnership

PTC Fuels Leadership Momentum in Industrial IoT with New Manufacturing Workforce Productivity Solution

Latest Release of ThingWorx Introduces Operator Advisor; Enhances Data Sourcing, Analysis, Visualization, and Security

From Sensor to Business Value: Bringing Intelligence to the Enterprise with SAP Leonardo IoT

At this point, we all know that the Internet of Things (IoT) for the enterprise is based on data generation for the business.

Western Digital and WekaIO Collaborate on NVMe Flash Platforms and Object Storage

Western Digital Capital Makes Strategic Investment in WekaIO to Accelerate NVMe Adoption for Data-centric Enterprise Workloads

Gartner Survey Shows 37% of Service Leaders Are Piloting or Using AI Bots and Virtual Customer Assistants

Gartner Research Reveals What Technologies are Truly Having an Impact on Service Organizations Worldwide

Fluid Power 4.0 Smart IIoT-enabled Fluid Power Solutions Create New Business Models & Investment Opportunities

IIoT Ensures the Survival of the Fluid Power Industry Against Encroachment from Electric Drives

Capgemini to enter into a partnership with IDEMIA

Capgemini to enter into a partnership with IDEMIA for the launch of a secure IoT device management platform

Inmarsat and Microsoft Azure IoT join forces to deliver cloud services via satellite

New collaboration brings global access to Microsoft Azure IoT cloud services via satellite connectivity

The Food & Beverage Industry Increasingly Adopts IIoT to Enable End-to-end Traceability in the Supply Chain

Big Data Analytics and AI to find significant application opportunities with greater digitization of the industry, finds Frost & Sullivan

People First: How to Gain a Leading Edge in AI and the Production of Tomorrow

We must ensure that smart machines work to serve humans, rather than compete with them.

The State of Artificial Intelligence by Reply – an Insight powered by SONAR

Digital transformation specialist Reply has today released the results of its research on The State of Artificial Intelligence in the media. For the f

Tinyclues Leads AI-first Transformation of Retail Marketing

Retailers using AI have measured on average 79% higher campaign revenue and a 51% increase in customer engagement

Konecranes adopts IoT technology to bridge virtual and real worlds using Siemens' digital innovation platform

Konecranes has implemented the Siemens digital innovation platform to accelerate its product development process

Showcasing Leading AI and ML Solutions, JDA Predicts “What’s Next in Retail”

JDA will showcase how AI/ML helps retailers reimagine customer experiences featuring RaceTrac, bonprix and Morrisons

Best practice for Successful IoT Implementations to optimise your supply chain

Lora Cecere’s Supply Chain 2020 study, the Internet of Things (IoT) was considered one of two disruptive technologies

Bosch extends its position as a leading IoT company

IoT and AI: “Only with the help of artificial intelligence will we be able to unleash the full potential of the IoT.”

AAIH Sponsoring Panel at Biotech Showcase as Part of Official AAIH Launch

Alliance for Artificial Intelligence in Healthcare is sponsoring a panel discussion open to the public, titled "The Future of AI-Powered Healthcare"

Italian AI Rethinks Products and Services Making Them AI-centric

CES Innovation Award Winning Volta to Showcase its Service Offerings at CES 2019

Dataiku Raises $101 Million Series C to Transform and Democratize Enterprise AI Globally

ICONIQ Capital leads the largest investment in Enterprise AI to date

SAP and Software AG Launch Joint Platform for Smart Cities

SAP and Software AG announced today that they will be cooperating on the development of an open Smart City platform.

TDK Showcases Solutions for Automotive, AR/VR, IoT, Mobile and Wearables at CES 2019

Solutions are showcased in real-world applications such as AR/VR, automotive, drones, sound systems, wearables and more.

Avnet Adds Software and Artificial Intelligence to Ecosystem and Bolsters IoT Capabilities

Positions Avnet as the premier provider for AI, IoT and digital data platform solutions

Siemens Healthineers Debuts AI-Rad Companion Chest CT Based on New AI-Rad Companion Platform

AI-based software assistant enables automated enhanced visualization of CT images of the lungs, heart, and aorta

GE Healthcare Unveils New Applications and Smart Devices Built on "Edison"

Expanding on GE Healthcare’s 200+ Imaging applications, Edison includes new technologies to improve scan consistency