Smart Procurement in Process and Manufacturing Industry: Transforming Efficiency and Cost Savings

Procurement processes play a crucial role in ensuring operational efficiency and cost-effectiveness in Process and Manufacturing Industry. Smart procurement, driven by digital transformation, is reshaping how companies in this sector manage their supply chains. This blog delve into the concept of smart procurement, its impact on procurement practices, and the role of technology, automation, and data analytics in this evolving landscape.

What is Smart Procurement in the Process and Manufacturing Industry?

To successfully implement smart procurement, companies need to undertake several preparatory steps:

  1. Data Management: Collect, organize, and standardize all relevant procurement data, including vendor documents and historical purchase records.
  2. Digital Infrastructure: Invest in robust digital platforms and tools that support AI and machine learning capabilities for data analysis and automation.
  3. Stakeholder Engagement: Ensure all stakeholders, including procurement teams, engineers, and suppliers, are aligned and trained on the new processes and technologies.
  4. Process Evaluation: Assess current procurement processes to identify inefficiencies and areas for improvement.
  5. Vendor Collaboration: Establish strong relationships with suppliers to facilitate smooth data exchange and collaboration.

The Challenge of Smart Procurement Process: Repurchasing

Repurchasing equipment, instruments, or parts for existing assets is a significant challenge for many owner-operator companies. The process often involves extensive manual searching through decades old engineering and vendor documents to gather the necessary technical data. This not only consumes valuable time but also increases the risk of errors and delays. Common challenges include:

  • Time-Consuming Searches: Manually searching through vast amounts of documents to find specific information from historical Vendor data. Finding and assembling technical packages for inquiry takes days or sometimes weeks.
  • Data Silos: Information spread across multiple systems and formats, making it difficult to consolidate and analyze.
  • Inconsistent Documentation: Variability in document quality and formats, leading to difficulties in data exchange with suppliers, and need multiple checking and rechecking between owner and manufacturer.

AI for Smart Procurement

IPS offers innovative solutions to address the challenges of repurchasing through its AI-powered iWorkflow Solution. Here’s how it works:

  • Efficient Data Identification: The AI Solution efficiently identifies equipment tags, manufacturers, suppliers, and pertinent engineering information across various document types.
  • Smart Linking: iWorkflow establishes links between vendor documents and assets through tags, facilitating smart procurement and ensuring accurate and timely repurchasing.
  • Automatic Generation of procurement Documents: iWorkflow automates the generation of vendor documents, reducing the need for manual intervention.
  • Validation between Owner and vendor purchasing documents: iWorkflow automates the validation of procurement document between owner and vendor, including validating between inquiries and RFQ, quotation and P.O, and later logistic document against P.O

Value it creates:

  • Productivity and Cost Savings: By leveraging IPS’s iWorkflow solution, companies can achieve productivity gains of 5 to 10 times and cost savings of up to 90%.

Conclusion

Smart procurement is transforming the oil and gas industry by enhancing efficiency, reducing costs, and improving supplier relationships. By preparing adequately and leveraging advanced AI solutions like IPS’s iWorkflow, companies can overcome the challenges of repurchasing and achieve significant operational benefits. Embracing smart procurement is not just a competitive advantage—it’s a necessity for thriving in the modern oil and gas landscape.

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