solution image

Cognitive Procurement

Created By: Digitate
Created On: 01 Oct 2018
Type: Web
Category: Procurement

An AI based oversight mechanism for the Procure-to-Pay function that scans purchase orders to detect and predict different types of anomalies driving sub-optimal procurement. It allows Procurement organizations to empower people to procure closer to business demand and intervene only on a need basis to strike the right balance between efficiency and agility.

  • Discover Maverick Items: Analyzes historical purchase orders to understand the procurement behavior of an organization. It characterizes unmanaged spend behavior to derive normal price points for items and identifies mavericks where the price variance is significant. It also establishes transaction fingerprints based on who buys what from whom, at what rates and at what frequency.
  • Detect Maverick Purchases: Monitors unmanaged spend on goods and proactively flags live purchases or claims as mavericks based on undesirable price variance or some odd behavior. Organizations can prevent such purchase orders or claims from being approved after human scrutiny and save money. This is also a handy tool to detect attempts to game the system when purchases or claims below a certain amount are allowed a straight through processing through the system.
  • Discover Patterns Driving Exceptions: Analyzes historical exceptions encountered during procurement and mines patterns that consistently explain such exceptions with evidence. It allows earmarking of specific patterns for close monitoring in the future.
  • Predict Likely Exceptions: Monitors live purchase orders and flags the ones that are predicted to result in one or more exceptions downstream in the Procure-to-Pay process. It provides sufficient headroom to the procurement organization to take corrective action and prevent the exception from actually happening.
  • Discover_Maverick_Items Click to enlarge
    Discover Maverick Items
    Detect_Maverick_Purchases Click to enlarge
    Detect Maverick Purchases
    Discover_Patterns_Driving_Exceptions Click to enlarge
    Discover Patterns Driving Exceptions
    Predict_Likely_Exceptions Click to enlarge
    Predict Likely Exceptions