Are you ready to let go of decision making and allow AI to make decision for you whether it’s placing a PO or scheduling service for equipment. That’s what’s coming if you listen to the hype. There are a lot of control freaks that would never let go – and I understand that. But what if you’re open to change and just looking for efficiency and cost savings?
Let’s consider purchasing and ask whether AI can improve it. As you may know, MRP (Material Requirements Planning) has been the workhorse for suggesting what to buy for 50 years. It suggests what to purchase based on a lot of factors, which could also be done by AI. But it takes a holistic approach rather than transactional. So rather than react to a shortage of a single item,it considers all items with benefits in:
- Savings in quantity breaks from suppliers
- Savings in transportation costs
- Savings in reduced administration in processing multiple PO’s
The other thing missing in letting go is the human touch by purchasers who have relationships with suppliers and know who to trust and how much can be saved in discounts.In my own work, I am told I should use AI, but I am not ready to let go either.
