Artificial intelligence (AI) and machine learning tools have become indispensable to fuel procurement and sourcing efforts at the Atlanta-based global beverage leader, according to Brett Fultz, director of global analysis, global procurement and supply chain at Coca-Cola. For any company that manufactures or sells goods, buying and sourcing are integral functions of supply chain management. Sourcing, an early stage of the buying process, is about identifying and assessing potential suppliers of goods or services, negotiating terms, and selecting vendors. Procurement, however, goes further, and is about getting supplies and payment from suppliers who compete for business by submitting bids and negotiating contracts. But challenges abound in a supply chain landscape full of constraints and risks - from issues related to the COVID-19 pandemic and the war in Ukraine to climate change.

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According to 2020 report from MHI and Deloitte, 12%of supply chain professionals said that their businesses are currently using artificial intelligence (AI) in their operations, with 60% expecting to be doing so in the next five years. These figures are likely to inflate following coronavirus, as supply chains come to rely more heavily on AI for damage control and digital transformation. So, what does this mean for AI in the supply chain? When it comes to the supply chain, digital transformation brings value by creating a more dynamic response between the procurement departments of suppliers and manufacturers. In this pandemic age, it is certainly time to look at digital transformation and Industry 4.0 to ensure you remain a competitive, efficient, and productive business. Ultimately, the dream scenario would be a real-time connected supply chain that can aid you in understanding your production status.

The primary task of procurement is to ensure security of supply by providing the necessary goods at the right time and in the right place. Exactly four factors influence supply security, such an important aspect for company growth and success: supplier, country, material and politics. Supplier: The suppliers are the direct interface of the procurement department and here the economic situation, the logistics chains but also the commissioned subcontractors influence the security of supply. Country: There are very few companies left that do not contract at least part of their procurement volume outside Germany. The economic but also political situation in a country, as well as the working conditions or natural disasters there, can jeopardize a seamless supply. Materials: In the area of materials, we cannot avoid the issue of resource scarcity.