The procurement department in the companies is one of the most important factors for the job to go on, without any problems between. These people are crucial, and their job is pretty stressful because a lot of things depend on them, from office supplies to buying the materials for the working process, as needed.

All this comes with a huge responsibility, for which the manager is responsible, no matter where the process has stopped. Over the years, there has been a need for appropriate software solutions, through which the specific stocks of raw materials will be monitored and new ones will be procured on time. This whole process goes much easier if modern and up-to-date IT and AI solutions are implemented, for easier control and management of the processes. Gone are the days when it all had to be done manually and expected to have no flaws.

This is why it is important to know that there are really effective solutions for modernizing this whole process. If you look at Softengi, you will see that they really work on such elegant solutions, which increase productivity in a company.

What is the role of AI in procurement processes?

The answer is simple – SEO and efficiency. We are sure that in the past the people in charge of this position did a great job, but today’s corporate and production processes are quite different and sometimes things go much faster than we expect. That is why we need artificial intelligence to help us constantly have an insight into the situation in the company so that the necessary resources for work are always procured on time.

Nowadays, a downturn in the production process also means a loss of money. Because of this, the responsibilities of the procurement department are even greater and vital for the work of a company.

Algorithms help you get notifications at the exact moment when a new purchase needs to be made. In high-performance modes, you can even automate this process, ie when stocks reach a critical point, the order is automatically placed by suppliers.

You will also always have access to data from all departments and you will be able to establish control over the process. And at the same time, you will be able to:

Follow and track down the priorities

Sometimes some things are more important than others. If you cannot, artificial intelligence can. Rely on it and there will be no mistakes that cannot be corrected in a very short time. We know that the whole process is important, but surely there are things that are more important than the others, and you shouldn’t oversee them through the implementation of your strategy.

Connecting and building a healthy relationship with the suppliers

As already mentioned, this is crucial for a company to function smoothly. For example, you can receive notifications whenever a stockpile of raw materials is running low, but you can also formulate an emergency strategy, as unpredictable situations are possible in such processes. In this way, you improve the complete quality of communication and realization, and you can be sure that even the payments will be realized on time, before the deadlines.

Increasing the efficiency of the work process

All departments in large companies are interconnected. This means that in order for the marketing department to function, there must be sufficient resources coming from the procurement, IT, corporate communications, public relations, and so on departments. So it is with procurement. This department follows the needs of each part of the company so that the process can be optimal and efficient. In this way, the results that are expected are achieved, and sometimes they even exceed them.

What else does AI involve in production processes?

In addition to the procurement of raw materials as a specific process, AI can be applied in production through self-driving vehicles that will distribute them where needed, virtual assistants, fault detectors, critical point mapping, production automation, and so on.

In procurement departments, AI is actually smart software that is “learned” to perform certain tasks through the machine learning process. This process translates the language into a data sequence so that it can be properly processed and the necessary feedback obtained.

This makes it much simpler and more efficient. The software recognizes patterns and therefore processes information, relates it to what it has already learned through machine learning, and provides relevant information through data extraction.

AI in procurement will not replace people

This is a very misconception of artificial intelligence because it does not replace the human factor. However, for that machine to learn how it works, it needs people who will “fill” it with the necessary data. With the right strategy, even with the implementation of state-of-the-art AI solutions, there will be no overstaffing in the department. However, machines do what we teach them to do, and without us, they are just a bunch of electronics doing nothing.

But, on the other hand, when all this is cleverly implemented, it saves a lot of time and money, but also makes automatic analysis and extraction of complex databases, and the end-user receives only a certain notification that some raw material is running out or that it is necessary to pay an invoice or renew an order.


As we have already said, AI advanced solutions are not a substitute for humans, but they make things a lot easier. With the help of artificial intelligence, you can automatically classify a large number of data and processes, monitor production, be in contact with suppliers and the end-user, communicate with related departments, and monitor the development of the market of your interest.

Of course, human effort is needed to make it work. Artificial intelligence is nothing if it is not implemented by people who know how to work and apply it. AI really greatly facilitates the whole production process and eliminates possible delays due to a lack of raw materials. And that is the most important thing nowadays, to be constantly up to date and not to allow the competition to overtake us.