Revolutionizing Sourcing with AI: Harnessing Technology for Unprecedented Efficiency and Savings

Praveen Kumar 1, *, Divya Choubey 2, Olamide Raimat Amosu 3, Yewande Mariam Ogunsuji 4,  Bibitayo Ebunlomo Abikoye 5  and Stanley Chidozie Umeorah 6

1 The Ohio State University, Fisher College of Business, Columbus, OH, USA.
2 University of Washington, Information Systems, Seattle, WA, USA.
3 University of Virginia Darden School of Business, Charlottesville, VA, USA.
4 Egbin Power Plc, Lagos, Nigeria.
5 Central Bank of Nigeria, Banking Supervision Department, Abuja, Nigeria.
6 University of Michigan, Stephen M. Ross School of Business, Ann Arbor, MI, USA.
 
Review Article
World Journal of Advanced Research and Reviews, 2024, 23(02), 925–938
Article DOI: 10.30574/wjarr.2024.23.2.2357
 
Publication history: 
Received on 25 June 2024; revised on 04 August 2024; accepted on 06 August 2024
 
Abstract: 
Artificial Intelligence (AI) is transforming the landscape of sourcing, providing unprecedented efficiency and cost savings. This paper explores how AI technologies such as machine learning, natural language processing, and predictive analytics are revolutionizing sourcing processes. We examine case studies across various industries, highlighting the impacts of AI on supply chain optimization, supplier selection, and procurement processes. The findings indicate significant improvements in operational efficiency, decision-making accuracy, and financial performance. For instance, a leading automotive manufacturer reduced procurement costs by 20% using AI-driven sourcing (Smith et al., 2020), while a global retail giant increased supplier quality by 25% through AI-enhanced evaluation (Johnson et al., 2019). Additionally, a healthcare provider optimized inventory management, resulting in a 10% reduction in inventory costs (Williams and Brown, 2021). Future research directions and practical implications for AI-driven sourcing are also discussed, emphasizing the potential for continued innovation and growth in this field. The challenges and opportunities associated with AI implementation in sourcing are addressed, highlighting the need for quality data, integration with existing systems, and skilled personnel to manage AI technologies.
 
Keywords: 
Artificial Intelligence; Sourcing; Efficiency; Cost Savings; Supply Chain Optimization
 
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Copyright information: 
Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0

 

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