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Intelligent purchasing: How artificial intelligence can redefine the purchasing function

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  • Allal-Chérif, Oihab
  • Simón-Moya, Virginia
  • Ballester, Antonio Carlos Cuenca

Abstract

Artificial intelligence (AI) can affect all of a company’s functions, not least the purchasing department. In addition to automating and optimizing existing processes, AI opens up new opportunities for purchasers to undertake new, strategic, collaborative, enduring missions. AI enables complex, strategic decision-making in an unpredictable, hostile environment. This article analyzes to what extent AI can improve the performance of the purchasing department. First, a review is undertaken of how AI is used in purchasing. Thereafter, the research follows an exploratory, inductive, and qualitative approach based on a multiple case study of the following technologies: (1) the Synertrade automated international purchasing system; (2) the Silex matching system; (3) SAP Ariba decision support; (4) Jaggaer supplier relations management; and (5) the Ideapoke collaborative ideation and innovative project management platform. The present study’s contributions lie in its redefinition of the purchasing function, of the purchaser’s role, of supplier relationship management policy, and of interdepartmental collaboration, involving, for example, Marketing and R&D.

Suggested Citation

  • Allal-Chérif, Oihab & Simón-Moya, Virginia & Ballester, Antonio Carlos Cuenca, 2021. "Intelligent purchasing: How artificial intelligence can redefine the purchasing function," Journal of Business Research, Elsevier, vol. 124(C), pages 69-76.
    • Handle: RePEc:eee:jbrese:v:124:y:2021:i:c:p:69-76
    DOI: 10.1016/j.jbusres.2020.11.050
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    Cited by:

    1. Sylvie Crouzet, 2022. "Train your buyers in the hidden cost method! For a purchasing cost that incorporates evaluation of the impact of purchasing-related dysfunctions [Formez vos acheteurs à la méthode des coûts-perform," Post-Print hal-04223281, HAL.
    2. Spreitzenbarth, Jan & Stuckenschmidt, Heiner & Bode, Christoph, 2021. "The state of artificial intelligence: Procurement versus sales and marketing," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Ringle, Christian M. & Blecker, Thorsten (ed.), Adapting to the Future: How Digitalization Shapes Sustainable Logistics and Resilient Supply Chain Management. Proceedings of the Hamburg Internationa, volume 31, pages 223-243, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Allal-Chérif, Oihab & Guijarro-Garcia, María & Ulrich, Klaus, 2022. "Fostering sustainable growth in aeronautics: Open social innovation, multifunctional team management, and collaborative governance," Technological Forecasting and Social Change, Elsevier, vol. 174(C).

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