Introduction
Procurement has come a long way from manual paperwork and phone calls to AI-powered digital platforms that streamline vendor selection, bidding, and contract management. Businesses that still rely on outdated procurement methods are struggling with higher costs, inefficiencies, and compliance risks.
In this blog, we’ll explore how procurement has evolved and why AI-driven platforms like Merqet are the future.
The Three Phases of Procurement Evolution
1. Manual Procurement (Pre-2000s)
🔹 Processes: Paper-based purchase orders, vendor lists in files, and phone-based negotiations.
🔹 Challenges: Time-consuming, error-prone, and lacked transparency.
2. ERP-Based Procurement (2000s - 2015)
🔹 Processes: Businesses adopted ERP systems to digitize procurement workflows.
🔹 Challenges: ERP systems were expensive, required customization, and lacked real-time bidding.
3. AI-Driven Procurement (2015 - Present)
🔹 Processes: Cloud-based platforms with AI-powered bid evaluations, automated compliance, and real-time analytics.
🔹 Benefits: Faster vendor selection, cost optimization, and improved procurement governance.
Why AI-Driven Procurement is the Future
✅ Automated Vendor Selection: AI compares vendor bids based on price, compliance, and past performance.
✅ Predictive Analytics: Forecasts price trends and supply chain risks to help businesses make better decisions.
✅ Faster Approvals: AI-driven workflows reduce manual bottlenecks, ensuring quicker purchase order approvals.
✅ Enhanced Compliance: Automated risk assessments keep procurement teams aligned with regulations.
Conclusion
The procurement industry has transformed from a slow, manual process to an AI-driven digital ecosystem. Platforms like Merqet are leading this transformation by making procurement smarter, more efficient, and cost-effective.