**Xiamen, China**: The International Federation of Purchasing and Supply Management calls on organisations and governments worldwide to integrate AI technologies into procurement and supply chains, highlighting benefits such as cost reduction, efficiency gains, and enhanced risk management.
The International Federation of Purchasing and Supply Management (IFPSM) has issued a call for organisations, state agencies, and corporates to adopt Artificial Intelligence (AI) technologies within their procurement and supply chain operations. This recommendation comes as part of efforts to enhance decision-making processes and improve operational efficiency.
Eng. Chris Oanda, President of IFPSM and Council Member of Egerton University, highlighted the significant role AI-backed solutions play in modern purchasing and supply management. Speaking virtually from Egerton University’s Njoro Main Campus during the 8th Internet and Supply Chain Conference held in Xiamen, China, Eng. Oanda described AI as a critical enabler for seamless collaboration between buyers, suppliers, and financiers, enabling real-time monitoring of procurement and supply chains.
He emphasised the strategic value of digital transformation and AI, stating that these technologies are not merely functional tools but are reshaping procurement and supply chain functions into digitally empowered and strategic components of organisations. “AI was no longer a concept in the procurement and supply chains but a powerful driving force that is redefining how firms and government agencies worldwide manage risks as it facilitates smarter and faster decisions,” Eng. Oanda noted.
According to Eng. Oanda, AI applications in supply chains offer optimisation capabilities that enhance capacity planning accuracy, improve demand forecasting, boost productivity, reduce costs, and increase output. Additionally, AI contributes to safer working environments. He further stressed, “AI can automate repetitive tasks, analyse data for better forecasting, and optimise processes to reduce cycle times and improve overall efficiency.”
Eng. Oanda elaborated on the practical benefits of AI in procurement, citing its ability to automate tasks such as supplier research, contract management, spend data analysis, and demand prediction. AI’s capacity to identify supply chain inefficiencies and suggest improvements may lead to considerable cost savings and enhanced operational efficiency. Moreover, AI tools can evaluate supplier performance, manage risks, and ensure compliance standards are met. He added, “AI-powered tools can also help businesses respond quickly to changing market conditions and customer demands. AI can automate tasks like data entry, invoice processing, and purchase order generation, freeing up human resources for more strategic work.”
Traditionally, procurement has relied heavily on human expertise with manual comparisons and analysis under increasing pressure to reduce costs, enhance efficiency, and maintain agility amidst growing complexity. However, AI is emerging as a transformative force, simplifying these complexities by orchestrating tasks and supporting improved decision-making. Eng. Oanda observed that organisations which have embraced AI have experienced streamlined supply chain management and elevated efficiency.
The IFPSM, a global federation representing over 250,000 professionals from more than 40 countries, convened over 300 experts from more than 200 internet and supply chain companies at the Xiamen conference. Through such gatherings and thought leadership, the federation continues to advance innovative practices in global supply chain management.
The Kenya News Agency is reporting.
Source: Noah Wire Services
Subscribe to Industry Updates
