Intelligent technologies are controlling procurement costs.
Constellation Research’s VP and Principal Analyst, Dion Hinchcliffe, has identified many areas where savings are currently being made, not the least of which is the ability to self-serve anywhere, any place via mobility. In addition, Hinchcliffe says the use of ‘smart’ contracts, analytics and the IoT (internet of things) is mitigating the cost of risk by up to 30%; savings of up to 20% are being gained through more on-time procurement; and up to 30% is being saved on ‘spot/aggregation’ purchasing.
In regard to spend optimisation, he says that savings of between 10-15% are being won by organisations applying AI and machine learning while up to 30% of spend can be conserved through automated purchasing, i.e. no human intervention.
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