Machine learning has been proven to upgrade current supply chain ecosystems to a more robust form. Certain key issues plague the procurement industry, such as instability, reduced visibility, uncertainty, etc.; that can be remedied with the help of machine learning systems.
This is where RFPs come into play. The Request For Proposal (RFP) is a structured way of sending a request to any vendor while also providing them with all the necessary information required to place a bid.
While RFPs have existed in the procurement landscape for a while, the addition of machine learning modules such as Gen AI has been a game-changer for their effectiveness. From becoming swifter to ensuring that the best vendor is always selected without fail, cutting-edge RFP software is proving to be a lifeline for procurement agents.
Machine Learning can Open New Doors
With the help of AI, RFPs are now able to serve multiple functions. These include Natural Language Processing (NLP), whereby manual data can be converted into a structured format without any human intervention. The ability to combine NLP functionality with RFPs alone is saving procurement agents countless hours.
Predictive analytics is another AI-aided function performed by RFPs. With the help of data visualization tools, selecting the right vendor is easier than ever before. This is not only a cost-effective method, but it also allows for informed choice-making.
AI is also a key proponent in ensuring that vendor management and communication are as seamless as ever. Be it across departments or organizations, AI-driven RFPs are completely transparent and secure.
Benefits for All
Shifting to AI-driven RFPs is not only beneficial for the procurement agent, but also for the vendors, thereby empowering the entire ecosystem. Apart from saving cost and time, it also works as a means of risk mitigation
RFP software with machine learning capabilities is fast becoming the go-to means of finding vendors for the procurement sector. It is expected that for the next decade, the RFP software market will grow at a 21% CAGR, becoming worth $532 million by 2033.
The advancement of AI in the procurement sector has given rise to changes in many traditional practices. Now, it is time for the RFPs to hit the next stage of evolution worldwide. In a country such as India, where the supply-chain systems are deeply interwoven, AI-driven RFPs can truly be a game-changer.
