How AI can supercharge your supplier relationships 

In today’s tech-crazy world, it feels like everyone is talking about artificial intelligence (AI), right? Businesses are constantly hearing about how they need to jump on the AI bandwagon or risk being left behind.  

But honestly, is the rush necessary? Not always. 

The reality is, that for most businesses, success doesn’t come from adopting every new shiny tech tool on the market. Instead, it’s about finding simple, user-friendly technology that makes life easier: introducing it gradually, one step at a time. No one’s winning prizes for stressing themselves out over new software. 

What exactly is AI? Private vs Public 

AI, as we currently know it, allows computers to learn and solve problems better and quicker than a human can. Systems are trained on vast quantities of data and work on the basis of probability, rather than intuition. 

So-called ‘generative’ AI, or chatbots, like ChatGPT are the new cool kids on the block. But these publicly available tools shouldn’t be depended upon by procurement professionals.  

That’s because they use the content of the internet to formulate their response, and their output is only as good as the instruction (or prompt) you provide. With any data model, the old computer science adage remains true - garbage in, garbage out. 

Instead, the real power sits within private AI tools that are enterprise specific, have functionalities designed to improve existing workflows and are trained on high-quality corporate data sets. That’s why leading procurement software providers are integrating AI capabilities into their platforms.  

Here’s how AI, accessed via your eProcurement software, can supercharge your supplier relationships... 

Spoiler! Procurement is about relationship-building 

Now, when it comes to procurement, sure, everyone’s thinking about cost cutting. But here’s the kicker: real, lasting savings are about more than just money. It comes from building relationships with suppliers for the long haul - think of it like dating, but with fewer dinner reservations and more contracts. 

Instead of settling for the cheapest date, the one showing off, or the newly available, procurement teams should focus on marriage potential. eProcurement solutions with built-in AI tools that help them find the right suppliers and build long-term relationships. That means greater trust, communication, evolution and collaboration.  

These tools help find new, relevant suppliers to engage across all categories and all regions, whilst saving significant time on admin and freeing up resources to build strong relationships with key suppliers. 

Integration is easier than you think 

If the idea of AI sounds overwhelming, you’re not alone. Start by using AI functionalities to automate the small stuff - like managing supplier emails or organising RFPs. Get the boring, repetitive work out of the way, so your team can spend more time doing what really matters: building connections with suppliers. 

Once you’ve got the basics down, AI can lend a hand with bigger procurement decisions. Need help choosing the right supplier? AI has got your back. It can analyse data like past performance, pricing trends, and even sustainability practices to help you make smarter, evidence-based decisions. No more guessing games—just solid choices that build trust and reliability. 

Better human-to-human collaboration 

Here’s where it gets cool: AI can actually help foster better communication between humans. Think of it like having all your conversations and data organised neatly in one place—no more searching through endless email chains. This transparency not only builds trust but also keeps everyone on the same page, reducing misunderstandings and boosting collaboration. 

Plus, with real-time data on things like delivery times and product quality, you’ll spot problems before they blow up. No more scrambling to fix a disaster at the last minute. You can nip issues in the bud and keep things running smoothly, without breaking those hard-earned supplier relationships. 

It’s your secret weapon for risk management 

Every business faces risks, but AI can give you a crystal ball (okay, more like a dashboard) to foresee potential hiccups in your supply chain. With real-time insights into supplier performance and market shifts, you can adjust your strategy before things go south. That means no nasty surprises and stronger, more resilient relationships with your suppliers. 

And if something does go wrong, AI can quickly help you find alternative suppliers, ensuring your operations don’t miss a beat. Having a backup plan keeps both you and your suppliers happy—even when the unexpected happens. 

Long-term improvements to workflows 

As your team gets the hang of using AI, it becomes more than just a tool for managing daily tasks. AI can help you spot patterns and trends that lead to better ways of working together. Maybe you’ll discover how to reduce waste, or how to optimise order schedules so both sides benefit. 

In short, AI turns procurement into a continuous improvement game—one where both you and your suppliers always win. 

Don’t be afraid 

At the end of the day, adopting AI in procurement isn’t as scary as it sounds. With private AI tools built into your eProcurement software, you can start small and build gradually. You can also lean on your software partner to train you and your colleagues on how to get the most out of the technology as it evolves. 

With AI handling the data-intensive and repetitive tasks, you’re freed up to focus on what matters most: relationships, trust and communication. AI is here to help you build those strong, long-lasting supplier partnerships, not replace them. 

So, take it step by step, let AI lighten the load, and watch as your supplier relationships grow stronger and more successful—without sacrificing quality or reliability.