With Procurement having the highest adoption rates of Artificial Intelligence of any business function* is Cognitive Intelligence (CI) right for you? What are the KPIs which CI can affect in your business and how are you measuring up currently?
The following quiz will give you an understanding of whether you would benefit from CI and what it could do for your business.
*2018 Key Issues Study, The Hackett Group
The Level Procurement Leader Quiz
Q1: How much time does your Team spend with Suppliers negotiating Contracts and Managing Supplier Performance?
a) Less than 10%.
b) 10% to 25%
c) More than 25%
Q2: What percentage of your Spend is Maverick?
a) More than 8%
b) 3% to 8%
c) Less than 3%
Q3: How much time does your team spend answering queries from Requestors helping them to use the correct Procurement Channel with the correct Suppliers?
a) It seems like all of their time, the phones ring off the hook.
b) Some of their time, the Requestors need a fair amount of help.
c) Very little; it’s easy for them to place accurate orders.
Q4: What does your team think about goods receipts?
a) They spend all day hunting them down.
b) Some are elusive but mostly they arrive on time without much chasing.
c) My team never have to chase receipts they arrive like clockwork.
Q5: How well do individual budget holders manage their budgets?
a) Some exceed their limits regularly and others spend most of their budget in the last month last of the Financial Year
b) Most are pretty good, a few need careful monitoring.
c) Every one of them knows how much they’ve got in their budget, at all times.
Q6. How long does it take to set up a new supplier?
a) Way Too long, we have to warn new suppliers of this.
b) Not too long, some get prioritised when needed.
c) It happens very quickly with the right approvers accurately getting only the information they need to approve.
Q7. How often do your POs match your Supplier Invoices first time?
a) Less than 70%
b) 70% to 80%
c) Over 90%
Q8. How much time does your team spend responding to Supplier queries regarding Invoices or Payments?
a) More than 30%
b) 5% to 30%
c) Less than 5%
Q9. What is your average Processing Cost for an Invoice?
a) More than £5 (or don’t know.)
b) £2 to £5
c) Less than £2
Q10. How many invoices do one of your team process per month?
a) Around 500
b) 500 to 900
c) More than 900
Q11. How often do you pay your invoices on time?
a) Rarely; we always significantly exceed our Payment Terms.
b) Mostly; we are fairly close, most of the time.
c) Always; we benefit from early payment discounts wherever possible.
You are not alone in the Procurement system pit of despair. You’ve probably implemented an ERP “solution” only to find your team has at least as much work as they did before but it’s too cumbersome and expensive to make changes to it. You would benefit enormously from the power that Cognitive Agents can deliver without changing your core System of Record. Your costs can be brought down, your speed and quality of service can improve exponentially and your people could be spending much more time doing what you and the business need them to be doing.
You are running a pretty tight ship but you know it could be better in certain areas. Cognitive Agents can plug those areas which are an expensive drain and are dragging your team down from being as efficient as they could be and from spending more time aligning Supplier performance to what your Business needs.
You are Best in Class! Your systems and processes are as streamlined and exceptional as possible. You’ve probably automated as much as you possibly can and your happy team enjoy their working days ensuring that your Suppliers are delivering optimally for your business.