The Future of Procurement: Digital Transformation and the Rise of Procurement Robots

Anderson Cotias, Procurement and Insurance Manager, Wilson Sons

The business world is constantly evolving, and procurement teams are no exception to that. Over the past decades, procurement has undergone profound changes driven by technological developments, ever-changing client expectations, and growing environmental and social awareness. Globalization has given rise to a myriad of vendors, enhancing supply chain complexity and making supplier selection a critical task. On top of that, client expectations for fast and efficient product and service delivery have put increasing pressure on all procurement teams.

With these changes, organizations have redesigned their procurement strategies, seeking greater efficiency, sustainability, and resilience in their supply chains, obliging the organizations, in my view, to find ways to optimize their processes, eliminate inefficiencies and make decisions with better information.

Digital transformation is surely a driving force behind changing procurement processes. Advanced technologies such as data analytics, machine learning, and artificial intelligence are helping companies to gain deeper insights into their procurement operations. Data can be collected and analyzed in real-time, which helps one make smarter decisions. Additionally, automating routine tasks has freed up time for procurement teams to focus on strategic activities such as developing supplier relationships and finding new business opportunities.

Procurement teams are increasingly focused on optimizing processes and automating daily tasks. Implementation of procurement management systems, advanced data analysis, and procurement robots have become common practices in companies wishing to gain a competitive advantage. These technologies have allowed greater visibility and control over expenses, which makes it easier to identify opportunities for savings as well as cost reductions.

" Collaboration between procurement professionals and automated systems will be key to producing the best results."

One of the most visible signs of digital transformation in procurement is the growing application of procurement robots. These automated systems are capable of performing many tasks, including market research, supplier selection, processing and analyzing price quotes and placing purchase orders. They operate 24/7, non-stop, which ensures greater operational efficiency and reduced error levels.

Procurement robots are particularly useful when it comes to handling large amounts of data and information from different vendors. They can quickly compare quotes from multiple vendors and identify the best purchase options based on predefined criteria. At Wilson Sons, we implemented our procurement robot SOFYA towards the end of 2022 after fulfilling some important requirements:

a) Master Data Governance: operations with a procurement robot require reliable master data. This guarantees that the robot will buy the correct material requested and that we do not have any backflow upon delivery.

b) E-Procurement Platform: a reliable, stable, vendor-friendly sourcing platform is required.

c) Robot Adaptability: robot flexibility to different spending scenarios and types of acquisitions with easy integration with our platforms, including ERP.

In its first phase, our robot is already processing just over 30 percent of our spot purchases. Our target in the first year is to have our robot complete 50 percent of all spot purchases. Attesting to its ability to reduce the service flow, last month, for example, our robot managed to deliver customer service levels 58 percent faster than our procurement officers. This type of efficiency directly supports opportunities to optimize our inventories.

Therefore, in my view, the future of procurement will be even more impacted by technology, driving a significant change in the way companies purchase products and services. The growing adoption of artificial intelligence, machine learning, and predictive analytics will allow procurement robots to perform complex analyses, identify hidden patterns in data and anticipate future business needs.

Furthermore, procurement robots can extend their influence to the selection of vendors based on sustainability, ethics, and social responsibility metrics, ensuring that companies only seek partners aligned with their values. However, it should be noted that procurement robots will not fully replace humans in procurement tasks. Collaboration between procurement professionals and automated systems will be key to producing the best results. The future of procurement will therefore be a combination of technology and human skills, enabling companies to tackle the challenges of an ever-changing world while promoting efficiency, innovation, and responsibility in their purchasing operations.

In this future scenario, by integrating human talent and technology, Wilson Sons will be well positioned to take on the industry challenges, remain competitive, and meet the demands of a world in constant evolution because our DNA holds the ongoing pursuit of innovation, with the expertise acquired over more than 185 years of operations while committed to supporting global trade and the competitiveness and development of Brazil, ensuring safe and sustainable port operations.