In a trade company, procurement serve as an important role. The existence of procurement departments is to help enterprises solve the problem of material supply, reduce costs, improve efficiency. In the past procurement, every thing manpower. However, in the digital era, Artificial Intelligence (AI) infiltrates every aspect of businesses, including procurement. This article will talk about how to use AI to improve the procurement efficienc.

1. Intelligent Procurement Process Management
AI can improve procurement efficiency . From demand forecasting, supplier management, procurement planning, order execution to inventory management, AI provides support. For example, machine learning algorithms can analyze historical procurement data to predict future demands, making demand forecasting more accurate. At the same time, AI can automatically process and analyze large amounts of supplier data, helping you find the most suitable suppliers and continuously monitor and evaluate their performance.

2. Supplier Collaboration and Communication
AI also has significant potential in supplier collaboration and communication. For instance, using chatbots, you can engage in real-time communication with suppliers, swiftly addressing various issues. Furthermore, by analyzing historical transaction data and market changes, AI helps you predict collaboration opportunities and risks.

3.Procurement data analysis and decision support
AI has significant advantages in analyzing procurement data and making decision. Traditional methods of data analysis often require a lot of manual or semi-manual data processing. However, AI can automatically process and analyze large amounts of data, helping you quickly understand market trends and supplier performance. At the same time, AI can transform complex data into easy-to-understand charts and reports through data mining and visualization techniques, which leads to better decision-making.

4.Automated procurement execution
Automated procurement execution is another major application of AI in the procurement field. Through machine learning and automation technologies, companies can achieve automatic execution of purchase orders. This not only greatly improves procurement efficiency, but reduces human errors and fraudulent activities. In addition, automated procurement execution can automatically adjust procurement strategies and order quantities, based on the company's business needs and market changes.

5.Predictive maintenance and supply chain optimization
AI also has great potential in predictive maintenance and supply chain optimization. By analyzing equipment operation data and historical maintenance records, AI helps you predict possible equipment failures and maintenance needs in advance, thus taking measures to reduce downtime and maintenance costs. At the same time, AI can continuously optimize and improve the supply chain through optimization algorithms, which can improve the efficiency of the supply chain.

Reference：Xu Yinzhou, Li Danqi, Gong Siying (2020) A preliminary study on the combination of artificial intelligence and enterprise management innovation. Business Economics Research. 10, 113-116

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