Klaus Staubitzer, chief procurement officer and head of supply chain, Siemens AG

“Recent events, like the Covid-19 pandemic and focus on sustainability, have given us the opportunity to establish procurement and supply chain as a key value function instead of a simple support function,” Klaus Staubitzer, the chief procurement officer and head of supply chain at technology and engineering giant Siemens AG, says in a new report on procurement industry trends from Economist Impact and business software company SAP SE.

But the report notes that living up to that “key value” provider role isn’t easy and requires more coordination among procurement and other business departments as companies deal with ongoing supply chain threats, such as the armed conflicts in sea lanes that arose after the pandemic.

The report, “Across the procurement-verse: changing trends in the procurement function,” is based on a first-quarter 2024 global survey of 2,307 senior executives across various business operations, including supply chains, financial management and human resources as well as procurement.

The report asserts that while most executives recognize that procurement departments have made notable strides in collaboration with other departments, “procurement teams have considerable room to improve collaboration skills.”

“While 75% of executives agree that procurement collaborates effectively with the business on issues of strategic importance (up from 53% last year), only a fraction of these (18%) have high confidence in procurement doing so, and only 14% have high confidence in the application of procurement insights across the organization,” the report says. “Procurement has yet to gain the full trust of stakeholders in this area.”

The report, citing crucial trends in AI and supply chain diversification, also asserts:

• Procurement’s success in digitalization increasingly rests on its ability to adopt and master emerging technologies.

“Accelerating digitalization is the highest procurement priority for the majority of respondent organizations over the next 12-18 months, and AI adoption is a centerpiece of these efforts, cited by 44% as a top technology priority,” the report says. “The respondents make clear AI should play a key role in improving procurement process automation.”

• Procurement teams are seeking a balance between centralized and decentralized operating models.

Asked about procurement operating model changes in the next 12-18 months, survey respondents said their intentions were roughly evenly split between two directions: “One is increasing the role of centers of excellence (CoEs), which support best practices in strategic sourcing, knowledge management, performance tracking and other areas. The other is adopting a center-led model, in which the central procurement team makes decisions in key areas while leaving business units to decide on unit-specific procurement matters. CoEs complement and support a center-led approach.”

• Businesses look to reduce supply chain risk in the long term by prioritizing supplier diversification — a priority cited by 40% of surveyed executives.

“In the shorter term, meanwhile, companies are putting stronger emphasis on supply-base consolidation (26% in 2024 v. 10% in 2023) given the push to build trusted relationships to overcome supply-chain challenges,” the report says.

Procurement and supply chain teams are also using new technology applications to improve how they ensure getting the right products for their organizations.

Pushing procurement’s more valuable role

For example, the report notes that Siemens uses “a digital twin (a digital model of a real-world product, object or process) to analyze, with precision, the material cost of the parts it purchases and how they are produced.”

The report adds that Staubitzer’s  team at Siemens now also uses the tool to determine the CO2 emissions of those parts as well as the carbon footprint of the supplier’s entire operations. The survey uncovered a similar trend, noting that 46% of CPOs “prioritize carbon footprint mitigation, more than any of their counterparts.”

“Our suppliers are sometimes surprised that we have a better breakdown of these details than they have from their own calculations,” Staubitzer says.

Roman Belotserkovskiy, a partner in the Austin, Texas, office of the global management consulting firm McKinsey & Co., says the inflation trends in recent years have provided an opportunity for procurement teams to demonstrate their value and increase their prominence.

“CPOs who did well are those who went and found new sources of supply or who focused on protecting revenues or margin, rather than focusing exclusively on cost,” he says in the report.

Belotserkovskiy has also observed an increase in the number of CPOs presenting to their board of directors — another sign of increased prominence.

“That was very rare two or three years ago,” he says.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Shelley Salomon, worldwide vice president, Amazon Business

“Amazon Business wants to change how companies shop for supplies through our unmatched selection, deep discounts, and smart capabilities,” says Shelley Salomon, worldwide vice president of Amazon Business.

The new toolset includes:

• Amazon Business App Center, a global “one-stop shop” where companies can connect their Amazon Business account with more than 25 third-party applications for such purposes as integrated shopping, financial accounting management, inventory management, business analytics, and loyalty program management.
• Guided Buying for managing employee spending and steering buyers to an organization’s preferred purchasing. For example, a toolbar lets account administrators highlight preferred products with sustainability certifications.
• Integrated Quoting is designed to help businesses generate custom quotes for bulk orders placed through Amazon Business as well as other suppliers via third-party e-sourcing and e-procurement platforms. Amazon says the Integrated Quoting feature is “ideal for business customers purchasing more than 1,000 items or more than $10,000 in total value.”
• Budget Management helps companies manage how they set and review time-bound budgets across their organization, Amazon says. “Business customers can set spend thresholds and make budget amounts visible to buyers to get ahead of overspending,” Amazon says.
• Cross-domain Identity Management is a new feature that Amazon says saves companies time maintaining their Amazon Business accounts by automatically syncing users’ and group data from their organization’s identity provider.

The new Guided Buying tool available through Amazon Business.

Amazon Business says it “drives roughly $35 billion in annualized gross sales and has more than 6 million customers worldwide, including 96 of the Fortune 100.”

Greg Long, purchasing manager at Seminole County Public Schools in Sanford, Florida, says in an Amazon Business press release: “One of our favorite Amazon Business features is Budget Management. It gives teachers visibility into our budget, so they know how much they have to spend, making it easier to stay within our annual budget.”

Amazon Business adds that it is focused on companies of all sizes.

“Amazon Business wants to transform how companies — whether a local hair salon, global corporation, school, non-profit, hospital, or government agency — shop for supplies through an unmatched selection, deep discounts, and smart capabilities,” a spokesperson says. “Using innovative technology, Amazon Business saves organizations time and money so they can focus their resources on what matters.”

Salomon adds, “We don’t just react to the biggest challenges our customers have shared with us; we get ahead of them with new technologies so our customers can use their resources to navigate the unexpected and continue expanding their business.”

Salomon, an Amazon veteran of more than 20 years, was appointed worldwide vice president of Amazon Business in March after Alexandre Gagnon left that position for a leave of absence. Amazon did not comment on the future plans of Gagnon, who still lists his Amazon Business position on his LinkedIn page.

Salomon’s most recent position at Amazon was vice president of sales, marketing and business development, Amazon Devices. Her other Amazon positions have included vice president of global logistics and delivery technology, and president of Endless.com. She joined Amazon in December 2023 as a senior finance manager following a finance manager position at Intel, according to her LinkedIn profile.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Now, it has updated how its technology integrates with the Salesforce Commerce Cloud ecommerce platform. The updates were designed to let online sellers using Salesforce Commerce Cloud connect with buyers who want to purchase products through their procurement or ERP software system.

TradeCentric, formerly known as PunchOut2Go, recently updated its TradeCentric for Salesforce B2B Commerce Lightning application available on the Salesforce AppExchange. Lightning is Salesforce’s app development platform. Salesforce says companies can “use Lightning functionality with the B2B Commerce license to build self-service stores and enable retailers, wholesalers, and distributors to purchase goods and services from your brand.”

TradeCentric says the updates “will enable Salesforce Commerce Cloud users to easily connect with B2B buyers on any leading procurement solution or ERP system to drive ecommerce sales.” It adds that TradeCentric for Salesforce B2B Commerce Lightning now supports shopping cart editing, active order protection, enhanced data, and Level 2 punchout for accessing more product details.

Moving ahead with connected commerce

Elizabeth Segovia, CEO, TradeCentric

“As we continue to collaboratively work with Salesforce, TradeCentric remains dedicated to innovation,” says TradeCentric CEO Elizabeth Segovia. “These recent enhancements are a testament to our commitment to providing cutting-edge B2B connected commerce solutions.”

Andy Peebler, vice president of product strategy and Ecosystem Commerce Cloud at Salesforce, says the new technology integration with TradeCentric addresses today’s market demand for aligned channel data.

“Modern B2B commerce requires seamless alignment between catalog data and procurement,” he says. “This integration with TradeCentric is helping make some of these features more plug-and-play for our customers. Together, we’re committed to simplifying processes and ensuring an unparalleled user experience.”

Following are more details up the updated TradeCentric for Salesforce B2B Commerce Lightning:

• Level 2 punchout: Buyers can access and view desired product details in Salesforce from their procurement system, ensuring a straightforward and user-friendly experience.
• Edit-cart support: Users can reactivate and edit their cart in Salesforce B2B Commerce by selecting the “Edit Cart” button within their procurement system.
• Enhanced data in Salesforce B2B Commerce:The connector supports suppliers seeking to integrate an invoice solution into their TradeCentric program, facilitating invoice enrichment from purchase orders.
• “Order Summary” display: Salesforce B2B Commerce now features the “Order Summary” on purchase orders generated by TradeCentric.

• Custom Data Retrieval: Custom data points from the product, cart, and cart item objects are retrievable alongside the buyer’s cart.

• Flexible punchout options: Merchants can decide if punchout updates buyer data immediately or if they prefer to keep existing data unchanged (for example, updating a saved phone number when a buyer Punches Out with a new one).

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Seth Catalli

A new report from technology research and advisory firm Gartner Inc. — “Predicts 2024: CPOs Adjust to Technology’s Impact on Procurement” — suggests that significant developments are on the horizon for AI in procurement.

Let’s see how.

According to Gartner, procurement is constantly evolving to address increasingly demanding requirements from the business that go well beyond cost savings. A key finding in the report is how technology, especially AI and automation, is starting to help.

Specifically, AI-based e-sourcing or autonomous sourcing solutions can increasingly take on the tasks and decision-making that traditionally would require experienced sourcing professionals to do.

This widening will allow organizations to effectively “consumerize” sourcing events. As a result, non-professional sourcing (i.e., line of business) staff can scope requirements, identify best-fit suppliers, and set up and run sourcing events. In effect, sourcing is becoming a skill, not a function.

How AI will play a bigger procurement roll

And it’s a skill that AI technology will massively support. According to Gartner, by 2026 virtual assistants and chatbots will gain traction, as 20% of organizations use them to handle internal and vendor interactions. By 2027, non-procurement specialists will execute 40% of sourcing events. By the same date, 50% of organizations will support supplier contract negotiations through AI-enabled contract risk analysis and redlining tools.

That makes sense, as interest in AI use cases for procurement has increased dramatically in 2023, by 17 times in 2023 versus 2022. This will result in a high number of AI pilots in 2024, the Gartner team predicts, as procurement functions embrace the power of this game-changing technology to increase their value across the wider business.

Technologies such as generative AI will take over most communication-focused tasks, forcing procurement staff to learn more hard technical skills to stay relevant. GenAI use cases will proliferate the full procurement process and have the potential to improve both speed and efficiency across the department.

Rest assured; procurement professionals will continue to be central decision-makers. According to the analysis, by 2029, 80% of human decisions will be augmented by GenAI. However, we will maintain our comparative advantages in human ingenuity, creativity and knowledge. The new thing GenAI adds is that it can generate new content, fill in missing information or even create sample outcomes or scenarios to situations that will ultimately play a supporting role in strategic decision-making.

Procurement pros will have to adapt to AI

As technology changes the nature of their work, procurement professionals will need to adapt. As AI becomes more prevalent in everyday operations, certain skills will be at a premium. Procurement organizations will want to rapidly automate repetitive tasks, such as PR approvals, internal and external communication, and supplier approvals, with virtual agents, enabling teams to focus on other areas.

And as the Gartner report highlights, the basis for all AI models is good data, so organizations need to cultivate those skills. From a tech skills point of view, identifying key data elements that drive decision-making will help ensure that the AI is factoring in the best data for what we want to use it for. But the human will also absolutely matter, Gartner says; procurement staff creativity will be even more valued than today, as AI’s weakness is understanding problems where there is no data or precedence.

What happens if procurement organizations choose not to adopt these strategies? Gartner’s message is clear: compared to their competitors, organizations that do not embrace AI technologies will find themselves at a cost and agility deficit.

Therefore, procurement leaders need to embrace all kinds of game-changing technology and develop closer and mutually supportive supplier relationships. They also need to start to think long-term and work to attract top talent, as skills such as critical thinking, delivering presentations and persuading stakeholders, will soon be in high demand.

By 2026, the report says, advanced proficiency in data and technology competencies will be as important as social and creative competencies (i.e., soft skills) for procurement staff.

You also need to keep your eyes on the prize: earning credibility in the C-Suite. To cite management  consultancy McKinsey, procurement leaders who demonstrate value to the enterprise can rapidly become full-fledged strategic partners to CEOs, CFOs and COOs.

That’s a great route to travel. On a final note, I’d like to highlight the practical applications of AI in procurement and the fact that real-world organizations are already using AI to make a procurement difference. UK telco giant BT, instead of just talking about GenAI, says GenAI is embedded into its sourcing platform and providing substantial value — driving double-digit cost savings across billions of pounds of annual spend.

That’s definitely a future I want a part of.

About the author

Seth Catalli is the chief revenue officer at Globality Inc., a provider AI-powered technology applications designed to improve procurement and sourcing systems.

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Elizabeth Segovia, CEO, TradeCentric

Segovia is a former executive at information technology companies Lenovo and IBM. She also served at ecommerce services provider ChannelAdvisor (now owned by CommerceHub). Her path eventually led to TradeCentric in 2023 when she joined as its senior-most executive.

TradeCentric specializes in providing connected commerce technology. It seeks to enable buyers to access their suppliers’ ecommerce sites from within their e-procurement software. That’s done by letting customers shop for products with real-time inventory and pricing information. However, it can simultaneously be necessary to abide by companies’ individual spend management policies.

To operate, connected commerce involves such related systems as purchase order automation and invoice automation. In doing so, the technology provides companies with visibility into the entire “procure-to-pay” process.

Speaking with Digital Commerce 360, Segovia shared her insights on trends in connected commerce. She also addressed TradeCentric’s future course in supporting it. In her eyes, businesses should benefit from accessing and using real-time data on commerce transactions and customer behavior. Her comments were lightly edited and condensed from the recent interview.

Interview with Elizabeth Segovia

Digital Commerce 360: Beth, with your executive background in technology, manufacturing and ecommerce from your prior roles at Lenovo, IBM and ecommerce marketplace facilitator ChannelAdvisor, what excited you about joining TradeCentric as CEO?

Elizabeth Segovia: It’s interesting that you asked that question because TradeCentric is honestly like the perfect pull-together of my background. I grew my career in manufacturing hardware and engineering roles, so I did a lot of work around manufacturing procurement and the procure-to-pay process. And I spent a good chunk of my career really building buyer experiences for large customers, so I have a lot of understanding of what it means to serve buyers, and how they buy from you, and making that efficient and better.

At ChannelAdvisor, I learned all the things about how ecommerce businesses grow, how they transact, digitizing and transforming their commerce programs. We spent most of our time on B2C — but there were emerging B2B marketplaces — and really started to think about B2B.

This TradeCentric role really pulls all of that together and is exciting because it pulls together all of that manufacturing and procurement background and gives me an opportunity to focus on B2B. That’s super exciting.

DC360: How well are companies in general grasping the value of B2B connected commerce, with integrated ecommerce and procurement systems backed by in-depth operational data and performance analytics?

Segovia: It’s a really interesting time. It’s a nascent space. We see some real trailblazers making a lot of headway, and then we see a lot of other companies that need help and guidance and expertise to get them started or get them moving faster in the right direction.

We’re certainly seeing some faster adoption right now, and more prospects are engaging us to ask questions. And we’re seeing people with really large commerce programs who want to turn those programs over to an integrated, dedicated connected commerce program. Those are great companies to work with because their programs are already significant and they’re expanding.

But we probably see more companies on the other side, where they have been reacting to buyers’ requests. They may have 10 or 15 buyers they’re working with in a connected commerce way, and they’re starting to see results.

They’re starting to say, “Hey, these buyers are stickier. We’re seeing revenue growth. We’re seeing efficiencies on our side, and our buyers are happy we’re offering the connected service.” So they’re starting to understand there’s an opportunity here to differentiate.

DC360: There are companies seeing good results from connected commerce. Do they tend to be particular types of businesses or in particular industries?

Segovia: That was one of the questions I asked early on here. There’s not really a concentration. But there are some areas of industry where we see higher adoption rates. The life sciences industry has a pretty interesting adoption rate, and a lot of university systems procure in this way, doing more connected commerce.

In a recent survey of B2B companies, however, 61% of respondents said that more of their buyers were asking for connected commerce integration to be connected directly into their procurement system. But only about 35% of companies are doing something to meet that demand.

Yet I think everybody really wants an improved purchase experience and everybody is facing macroeconomic pressure and looking for ways to cut costs and get more efficient, so I think these solutions are industry-agnostic.

DC360: How does TradeCentric’s Business Intelligence Portal help buyers and sellers better manage procurement operations and operate more efficiently?

Segovia: The Business Intelligence Portal enables companies to see their real-time transactions and troubleshoot the transactions to make sure document transfers don’t fail. The portal also allows them to see insights they need to manage trading partner relationships, such as that a buyer tends to buy on Tuesdays or that a buyer’s purchasing volume has changed significantly.

Companies are using this data on a daily basis to manage their business. They want actionable insights and proactive alerts and monitoring.

They say, “Don’t just tell me there’s an issue; tell me what I can do about it.”

We’ll be delivering more capability through our intelligence portal as we go through 2024.

DC360: What are some of the performance metrics companies are realizing from connected commerce?

Segovia: We did a study last year with research firm Hobson & Co. and found an 80% reduction in time spent on purchase order management and a 75% reduction in time on automating invoices and doing invoice error resolution, and a 20% increase in revenue. There was also a 30% improvement in accounts receivable outstanding, collecting faster because purchase orders and invoices are matching.

DC360: How does AI fit into connected commerce trends?

Segovia: We can’t really talk about technology transformation now without talking about AI. We’ve got a lot of projects underway in our 2024 roadmap. Regarding some of the insights we talked about regarding detecting trends and behaviors in your customer data — we want to give access to more of those insights and help customers analyze their data quicker, leveraging things like natural language queries. And using ChatGPT and other ways to interact with customers, we can get to and resolve their issues faster.

Those are the sort of low-hanging fruit opportunities that we’ll be pursuing this year. But there’s more to come.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Companies across various industries plan to increase procurement technology spending next year to improve their efficiency and agility in managing procurement across their global supply chains, Amazon Business says in its 2024 State of Procurement Report, released this week.

The report, featuring data and analysis from an international survey of over 3,000 procurement professionals, notes that 98% of respondents said they were planning investments over the next few years in analytics and insights tools, automation, and artificial intelligence.

“Following a year of focusing on reducing costs, procurement leaders are now planning to use the funds they saved to invest in approaches to optimize their procurement processes and allow them to operate more strategically, with the efficiency and complexity of procurement listed as the top challenge they’re currently facing,” Amazon says.

“We are entering a new era of smart business buying where senior leaders are understanding the impact procurement can have on efficiency and overall company success,” says Alexandre Gagnon, vice president of Amazon Business Worldwide.

Amazon says the report compiled and analyzes insights from 3,108 procurement professionals at organizations involved in government, financial services, hospitality and food service, health care services, manufacturing, medical and pharma, retail, technology, and telecom industries. Survey respondents represented the United States, the U.K., France, Germany, Italy, Spain and Japan.

Aster Angagaw, vice president, head of public, commercial and strategic sector, Amazon Business

Aster Angagaw, Amazon Business vice president and head of the public, commercial and strategic sector, says procurement professionals are zeroing in on several critical areas, including speed in procuring products and agility in dealing with sudden needs to find new products, sources and shipping routes.

She notes that many companies have a procurement processing system set a certain way and following a particular process. When unexpected changes occur, she adds, “your ability to respond quickly and flexibly becomes really challenging.”

But she asserts that with business analytics and other AI-powered technology applications, procurement pros can more quickly identify product sources and manage expedited deliveries.

“This whole idea of smart business buying is being able to use the digital automation, digital transformation, AI and machine learning to create this opportunity for efficiency, flexibility and agility,” Angagaw says.

She adds that AI and other new technology applications can help procurement managers fulfill corporate goals of procuring products from a diverse group of suppliers known for following sustainable, environmentally friendly, and good governance practices.

But the study found that while 81% of respondents said their companies have mandates for purchasing from certified sellers, including, sustainable, local, or minority-owned businesses, 85% said they needed help finding such suppliers.

The study noted the following percentages of respondents using technology applications:

• 62% – Procurement analytics or reporting tools.
• 54% – Automation of manual procurement processes.
• 51% – Digital or online invoices.
• 47% – AI-driven optimization of purchasing decisions.
• 41% – Voice technology.

The study also noted the following percentages of respondents identifying their top areas for investment:

• 36% – Technology or tools to be more efficient.
• 35% – Mitigating procurement risks amid economic or geopolitical challenges.
• 33% – Setting or meeting goals for ESG of buying from certain types of suppliers.
• 30% – Decentralizing purchasing so buyers can purchase more easily for their teams.
• 29% – Integrating more closely with other parts of an organization.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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The move is timely. It puts the global software company into a broad market push to help businesses facing supply chain challenges capitalize on AI advantages in procurement and supply chain activities. SAP provides widely used business operations software.

“GenAI is being embraced and adopted at a rapid scale, including in procurement,” says Jeffrey Rajamani, a senior analyst at Forrester Research. He covers procurement and sourcing technology and strategy. “It’s good to see that SAP has joined the bandwagon in bringing GenAI innovations in spend management. Sourcing and procurement functions in organizations are being disrupted, as the C-suite is tasking them with more strategic imperatives.”

SAP announced at its Connect Live event in Vienna, Austria, this week that it will soon make available procurement software applications embedded with GenAI to help procurement professionals.

The new SAP GenAI applications will help to:

• More quickly build comprehensive product categories through SAP Ariba Category Management.
• Improve spend management to identify cost-saving opportunities and more efficient purchasing practices through the SAP Spend Control Tower application.
• Expedite how they assess the risk of dealing with new suppliers through SAP Ariba Sourcing, SAP Ariba Contracts and SAP Ariba Buying software as AI helps to uncover suppliers’ reputations related to product quality and delivery service.
• More quickly identify new suppliers that meet their purchasing requirements related to product specifications and other criteria through SAP Ariba Sourcing. SAP recently integrated Ariba Sourcing with Scoutbee Discovery, an AI-powered supplier search application.

Christian Klein, CEO, SAP SE

Last month, SAP announced its release of Joule, a natural-language, generative AI tool it describes as a GenAI copilot. SAP will embed it into its applications for:

• Supply chains
• Procurement
• Customer experience
• Human resources
• Finance

SAP says Joule is designed for “quickly sorting through and contextualizing data from multiple systems to surface smarter insights.”

Joule has almost 300 million enterprise users around the world working regularly with cloud solutions from SAP, says SAP CEO Christian Klein.

And it “has the power to redefine the way businesses — and the people who power them — work,” Klein says.

SAP has room to grow with AI applications

When it launched Joule, SAP noted how a company might use it to check the cause of a sales decline.

“Imagine, for example, a manufacturer asking Joule for help understanding sales performance better. Joule can identify underperforming regions, link to other data sets to reveal a supply chain issue, and automatically connect to the supply chain system to offer potential fixes for the manufacturer’s review.”

Rajamani says SAP is off to a good start with AI-powered send management, which Forrester refers to as “supplier value management” or SVM. But he suggests it has room to grow with AI.

“While SAP seems to have addressed the supplier discovery, spend analytics, risk management and expense management parts of SVM, there are other areas where I think the demand for AI/GenAI has exploded exponentially: contract life cycle management and procure-to-pay,” he says. “It would be good for SAP to think through these important components, too, such as a GenAI bot to negotiate contracts.” (Procure-to-pay software manages and records commerce activity from the point a buyer begins the procurement process through payment.)

SAP conducted its Connect Live event Oct. 9 to 11. It did not immediately return a request for additional comments about its AI plans.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Emily Newton

Integrating a supply chain with a maintenance, repair and operations program requires dedicated effort and critical skills. People who excel in this role must have strong digital capabilities and be open to using various technologies — including emerging ones.

Here are four top skills that will set people in this industry apart from their peers and ensure success in their careers.

1. Artificial Intelligence

Artificial intelligence has rapidly emerged as a notable technology, particularly as people grapple with item shortages and demand fluctuations. However, anyone who currently works with MRO-integrated supply chains or plans to soon should get some AI skills under their belt and progressively work to improve their competencies.

Predictive algorithms help professionals know which supplies to order and when, greatly reducing the chances of stockouts. Executives are also realizing AI is essential to their operations, which suggests they should see it as an in-demand skill when hiring new team members.

A 2023 poll of C-suite members found that 90% were using AI to achieve better operational resilience. Additionally, 88% depended on it for supply chain enhancements. The potential uses span from interacting with a chatbot to place an order to getting predictions from algorithms about when specific products will sell out or start to run low.

2. Data Analytics

Data analytics skills are also proving essential. Professionals in these roles use them to evaluate the sensor data associated with a piece of equipment or estimate when the current stock of a vital component will be depleted. Knowing how to use data analytics platforms is increasingly important as the number of products moving through supply chains rises.

For example, during a single year, the supply chain for technology brand Lenovo included 2,000 suppliers working to deliver more than 130 million devices. An MRO-integrated supply chain specialist might use a data analytics tool to determine the most reliable suppliers according to their performance across several key performance indicators.

Even if someone doesn’t have strong data analytics skills, they can set a goal to gradually improve in that area. Besides making them more of an asset to their employers, this plan could increase job satisfaction by providing a well-defined career path and growth opportunities. Notably, a 2023 survey found that 84% of employees said clear career paths strengthened their commitments to employers.

3. Cloud Computing

Many leading industrial apps run in the cloud. Authorized users can access them from anywhere, making it easy to check statistics, communicate with stakeholders and more. People also use the cloud to store paperwork or streamline its distribution, such as to approve repairs on specific pieces of equipment or keep track of when maintenance occurred.

Another handy thing about cloud computing platforms is they support remote working arrangements. Even if someone doesn’t work from home all the time, it’s increasingly likely they will eventually. One 2023 survey of Americans found they spend 27% of their workdays at home on average.

Cloud computing tools have some similarities, but people must also learn to work with brand-specific features. It’s helpful for those working with MRO-integrated supply chains to dedicate themselves to learning the ins and outs of cloud software. That might mean using built-in help guides or signing up for provider-offered online courses.

People who grow their skills might spend time mentoring peers or encouraging colleagues to embrace the organizational changes that cloud computing products often bring. This enables employees to become crucial parties that show others how these apps can improve their workflows.

4. Project Management

A continuing commitment to digital skill growth will also put MRO supply chain professionals ahead of their peers. Roles increasingly include time spent with various internet-connected tools and platforms, and many suppliers and distributors prefer digital-only transactions.

Digital project management tools simplify tracking what responsibilities people must handle and when. They also enable smoother communication between various stakeholders, allowing people to comment, upload images or documents, and assign subtasks to other parties.

Once people improve their cloud computing skills, they’ll likely find significant similarities associated with using project management tools. That’s because most of them work in the cloud to make it easier for people to get things done in on- and off-site locations.

Commit to Ongoing Growth

These four skills are among the most necessary in today’s fast-paced and digital-centric world. Anyone involved with MRO-integrated supply chains should stay aware of emerging technologies that could become more prominent in their industry.

Some companies are experimenting with augmented reality to support workflows and improve training. Others use mobile robots to carry supplies around distribution centers and other large facilities. People should pay attention to what’s new in their companies and the industry and be ready to capitalize on new learning opportunities. That will help them prepare for whatever’s ahead while setting good examples for others, bringing their company to the forefront.

About the author

Emily Newton is an industrial writer reporting on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Christopher Shutts, CEO, Logik.io

The company will expand its market strategy with $16 million in a Series A funding round, Logik.io announced today.

“Many B2B companies struggle to deliver the low-touch consumerized experiences customers demand today,” co-founder and CEO Christopher Shutts said. “But the businesses who are leading their industries understand that no matter how complex your products are, buyers seek out businesses who make it simple to find, configure, and augment purchases across any channel.”

Logik.io’s clients include Keysight Technologies and Club Car

Logik says its Commerce Logic Engine technology is designed to help B2B buyers find and configure complex products and services from manufacturers, SaaS software providers and service companies. Logik’s customer base includes electric testing equipment manufacturer Keysight Technologies and Club Car, a maker of golf carts and utility vehicles.

The $16 million funding was led by Emergence Capital and joined by ServiceNow Ventures and Salesforce Ventures. Logik.io has now raised a total $26 million since Shutts and Logik.io chairman Godard Abel co-founded the company in 2021. Santi Subotovsky, general partner at Emergence Capital, will join the Logik.io board.

Prior to Logik.io, Shutts and Abel co-founded BigMachines, a configure-price-quote software provider they sold in 2013 to Oracle Corp., which renamed it Oracle CPQ.

Abel also developed Steelbrick, a CPQ software firm now part of Salesforce Inc. In addition, Abel is co-founder and CEO of G2.com, an AI- and ChatGTP-backed online information resource for business software.

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The survey, which polled 500 small business decision-makers in the United States in March, found that 61% of respondents will look for ways to reduce the costs associated with B2B purchases over the coming year. In addition, 61% of respondents say staying within budget is a priority.

Todd Heimes, director and general manager, Amazon Business Worldwide

“Small and medium-sized business owners say concerns about how inflation and a possible recession will affect their business are keeping them up them at night,” says Todd Heimes, director and general manager, Amazon Business Worldwide.

63% of small business decision-makers polled listed high inflation as the top challenge, while 39% cited a possible recession, and 30% cited supply chain disruptions, the survey found. Respondents could list more than one concern.

88% of respondents said the ability to easily find items is a key factor in growing their businesses long-term, while 91% cited the ability to find items within their price range.

“Even the smallest businesses are looking to find more efficient ways to purchase,” Heimes says.

Procuring products faster to boost growth

In addition, buyers at small businesses are seeking ways to make the purchasing process more efficient, helping them find and purchase what they need faster and more easily to spur their companies’ long-term growth, according to the survey.

The survey asked 500 small-business decision-makers in the U.S. about their online purchasing patterns, the challenges and opportunities impacting purchasing processes, and the broader landscape for small businesses. All respondents were 18 years or older, work in purchasing at a business making $25 million or less in annual revenue. 61% of respondents worked full-time, 7% part-time, and 32% were self-employed.

Amazon Business produced the poll with marketing agency Walker Sands; data collection was conducted via online market research vendor Rep Data between March 20 and 27.

Heimes points to Amazon Business’ use of artificial intelligence and machine learning technology as two ways the marketplace is helping small businesses purchase more efficiently and quickly find products within their price range.

“We are constantly adding greater product selection through Amazon Business Sellers to provide the most relevant selection for small and mid-sized business buyer’s needs,” he says. “We are also increasing the number of products with business-specific pricing and quantity discounts.”

“Subscriptions are another way for small and mid-sized businesses to receive discounts,” Heimes adds.

In addition to providing features through its marketplace that aid small businesses’ operations, Amazon Business is also providing grants to help small businesses grow.

Small-business grants program

This month, Amazon Business is making more than $250,000 in grants available to eligible small businesses that purchase through its marketplace and have less than $1 million in annual revenue.

Amazon Business will select one grand-prize winner and a group of finalists and semifinalists to receive the grants and other perks such as Business Prime memberships and Amazon devices. Applications are due by May 21; winners will be announced July 17.

In 2022, Virtual X Kitchen, a food service business that serves customers exclusively by delivery and pick-up based on phone and online ordering, was a 2022 grant finalist. The College Park, Maryland-based ghost kitchen received $20,000 which it earmarked to create a sustainable restaurant model for urban areas by maximizing kitchen space for multiple owners to share, streamline the ordering process, and raise awareness of its brand.

Peter Lucas is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy.

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