Cognitive Procurement Definition
Cognitive procurement is the application of cognitive technologies to the procure-to-pay process. Cognitive technologies include artificial intelligence (AI), machine learning, and natural language processing (NLP).
Cognitive procurement can be used to automate and improve a number of tasks in the procure-to-pay process, including:
1. Contract management: Automating the contract management process can help organizations save time and money. Cognitive technologies can be used to automatically identify relevant contracts, flag expiring contracts, and negotiate contract renewals.
2. Supplier management: Managing suppliers is a key part of the procure-to-pay process. Cognitive technologies can be used to automatically identify new suppliers, track supplier performance, and manage supplier risk.
3. Spend analysis: Organizations need to understand their spending in order to optimize their procurement processes. Cognitive technologies can be used to automatically collect and analyze data on an organization’s spending patterns. This data can then be used to identify areas of potential savings.
4. Sourcing: Identifying potential sources for goods and services is a vital part of the procurement process. Cognitive technologies can be used to search through large amounts of data to find potential suppliers that meet an organization’s specific needs.
