Kolon Industries is moving to embed artificial intelligence across its purchasing operations in an effort to strengthen cost competitiveness and improve its ability to respond to supply-chain shocks.
The South Korean chemicals group said on 29 June that it is developing an AI-based smart procurement platform, as it pushes ahead with a broader AI transformation agenda that has been positioned as a priority under chairman Hur Sung’s leadership. The system is intended to reach a...
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cross strategic buying, development procurement, supplier management and sourcing, rather than remaining a simple automation layer for routine tasks.
The company said the platform is being designed for an industry in which raw-material prices can swing sharply and external conditions can change quickly. By drawing on both internal and external data, Kolon Industries expects the system to help it identify the most suitable purchasing strategy for each item, while also supporting material selection and cost control during the early stages of product development.
A notable feature of the plan is the use of what the company described as agentic AI in procurement, allowing the system to make independent decisions in defined processes. Kolon Industries said this should automate parts of the buying workflow, while also improving assessments of supplier performance, capability and risk in real time.
If a material substitution is required, the platform will be used to search for alternatives and run simulations to estimate the likely impact on costs. The company hopes that will help it protect both product quality and pricing power.
The move reflects a wider shift in supply-chain management, where generative AI and AI procurement tools are increasingly being promoted as ways to improve sourcing, planning and execution. Industry commentary has also highlighted the limits of such systems, particularly around data quality, integration and explainability, alongside concerns over bias, privacy and compliance. Recent analyses of AI supply-chain risk have stressed the importance of governance, contingency planning and clear oversight of vendor dependencies.
Kolon Industries said it plans to complete the platform in the second half of this year after analysis, design, development and integrated testing. A company official said AI should be seen not simply as a tool for individual tasks, but as a force reshaping how work is done, adding that the firm aims to connect research and development, purchasing, supply-chain management, production, quality and logistics into a single data-driven value chain.
Source: Noah Wire Services
