Author: Peter Cooper

We have all been there. Someone mentions AI in procurement and suddenly the room fills with buzzwords, vague promises of “efficiency gains” and someone referencing ChatGPT like it’s the messiah of supply chain optimisation.

But let’s take a step back.

Has AI really arrived in procurement or are we just slapping the AI label onto dashboards and calling it success?

AI: Beyond the Buzzwords?

Let’s be honest, AI in procurement often sounds more like science fiction than strategy.

We hear big promises:  “predictive sourcing”, “automated negotiations”, “supplier matchmaking”, but in practice, it’s usually a chatbot that can’t quite spell “framework agreement.”

The truth? Real transformation doesn’t need a 30-slide pitch deck. It just needs to save time, reduce admin and make life a bit less… procurement-y.

Let’s Talk About What AI Actually Does

At BuyingStation we are fans of the right AI and believe the implications for saving time and making better informed decisions are turning into reality, but AI is not a silver bullet. We built a robust procurement platform first and then introduced AI features where they made a real difference.

Right now that difference is in giving people back time when they are writing quotations and tenders.

BuyingStation’s AI helps users speed up the process of compiling a quotation or tender document – you can always switch it off if you’re not ready for it.

No magic tricks. No corporate smoke and mirrors.  Just a lot less Ctrl+C / Ctrl+V.

Is it flashy? Not particularly.
Is it useful? Massively.

Less Manual, More Momentum

The value of AI isn’t just in what it does, it’s in what it frees you up to do.

Instead of burning hours manually entering tender details, our users can shift their focus to what really matters:  supporting the company’s budtgets – saving money, building & maintaining supplier strategy, managing stakeholder engagement, cost control and finishing work on time!

It’s not transformation with fireworks, it’s transformation with purpose.

So… Are We Part of the Hype?

We admit, we built a platform and included some AI.

But we did it the way most people actually do it: build something that works, then make it better. We didn’t throw AI into every corner, we added it where it truly counts.

And right now, it’s making a measurable difference in how procurement teams manage their quote and tender workload:  Get more done with the limited resources you have available, such as writing tenders and quotations.

What’s coming?

Whilst it is not good enough yet to be relied upon, the ability to lighten the load is growing stronger by the day.

Reading Documents:  finding relevant, pertinent information that will inform stakeholders, Finance and Procurement of risks, opportunities and valuable insight so that more value is derived from the value chain of the business.  However, even the GenAI companies themselves acknowledge there is a shortfall; Screens publicly declared a 97.5% GenAI accuracy (versus human assuming ideal conditions (see article on artificiallawyer.com).

The question to consider: “Is 2.5% inaccuracy when reading contracts a risk worth taking?”

For most finance, procurement and legal teams, the answer is “no”.

Consciously allowing inaccuracy into procurement means you are putting risk back into supply chain and that has a direct impact on budget forecasting as well as compliance and legal risk.

Sprintlaw’s article in April 2025 highlights the value for low risk document handling and explains the importance of keeping qualified lawyers involved for ensuring up to date legal knowledge and bespoke or more complicated documents.

Final Thought: Transformation Doesn’t Have to Be Loud

Sometimes, real progress looks less like a revolution and more like a well-placed shortcut.

AI in procurement is not about replacing people or reinventing the wheel, it’s about shaving hours off your day, reducing mistakes and giving you back the headspace to be strategic.

And if that’s hype, well, we are okay with that.

Want to see it in action?

Join us for a live demonstration of BuyingStation, AI features and all. We will even show you how much time you could save before your next tender closes.

Click here to register!

In light of recent reports indicating that the UK economy experienced zero growth between July and September 2024 (see the BBC UK Economy Zero Growth) , organisations are increasingly seeking strategies to enhance efficiency and maintain competitiveness. One such strategy gaining prominence is Managed Procurement Services (MPS).

Understanding Managed Procurement Services

Managed procurement involves partnering or, in some cases, outsourcing some of an organisation’s procurement functions to specialised third-party providers and use of Procurement Software. This could just be the ‘busy stuff’ that stops you focusing on the critical projects – projects under a spend threshold or large volumes of contract renewals.

“The combination of Procurement Practitioners (experts) and a Sourcing 2 Contract (S2C) software platform to handle tasks ranging from supplier selection and negotiation to contract management and risk assessment, allows your team to focus on their core operations.”

Benefits of Managed Procurement

1. Cost Savings and Efficiency: Specialised providers leverage their expertise and established supplier networks to secure goods and services at optimal prices, leading to significant cost reductions. Streamlined procurement processes also enhance operational efficiency. When the economy growth stagnates, this is a great way to find budget for critical investment.
2. Access to Expertise: Working with an MPS company is a great way to access procurement specialists with deep market knowledge and advanced tools, facilitating informed decision-making and strategic sourcing.
3. Risk Management: Effective MPS includes identifying and mitigating risks associated with supplier relationships, compliance, market volatility and contract management (including those deadly auto-renewals), thereby ensuring supply chain resilience. When you have tens, hundreds or thousands of suppliers and contracts, this is, arguably, the most critical value to your organisation.
4. Scalability: MPS can adapt to a company’s changing needs, providing flexibility to scale operations up or down in response to market conditions.
5. Enhanced Transparency: A well managed and governed procurement process offers improved visibility into spending patterns and supplier performance, promoting accountability and informed strategic planning.
6. Speed of Implementation: There is no faster way to access the savings and expertise than working with an MPS partner. They will, typically, have qualified and experienced experts ready to deploy to start positively impacting your organisation almost immediately. Normally, this means the returns from Procurement are recognised sooner than recruiting, deploying and building a larger internal procurement function.

Implementing Managed Procurement

To fully realise these benefits, businesses should select a Managed Procurement Provider that aligns with their specific needs and objectives. Key considerations include the provider’s industry experience, technological capabilities, and commitment to transparency and ethical practices.

Sourcing 2 Contract (S2C) Software

“You wouldn’t run finance without accounting software; so why would you run supply chain and procurement on a spreadsheet and emails?” – Anonymous CFO

The tricky part about managing supply chain is admitting just how big the task is and realising that managing hundreds or thousands of suppliers and their contracts is daunting and, frankly, impossible. There are some great experts out there doing the research for you, like James Meads with his Mid Market Tech Map.

As the UK economy faces challenges and an uncertain Q1 in 2025, crossing your fingers and hoping for a better economy is not a viable strategy; however, addressing a powerful procurement plan is the right strategy. Using procurement software and MPS offers a viable pathway for organisations to enhance efficiency, reduce costs, and build resilience, positioning them for sustained success in a competitive landscape.

Benefits of the Right S2C Procurement Software

1. Reduced Cost – the right S2C SaaS platform can significantly lower your costs for managing the supply chain from sourcing the right supplier to managing contracts. Do your research and you can find the right software for less than £20 per day.
2. Contract Management – all contracts in one place. Never lose a copy of a contract ever again and, critically, never get hit by an auto-renewal clause that over commits your organisation to unnecessary or exorbitant spend.
3. Risk Mitigation – ensure compliance with regulation and help achieve ISO, Cyber Essentials and other accreditations by securely managing your suppliers and their contracts in one place.
4. Save Time – Pareto’s law stipulates that 80% of the outcomes come from 20% of the causes, or in this case: you will want to spend 80% of your time focussing on your top 20% of suppliers and other critical direct procurement. Let a software platform take the strain on the rest.
5. Stakeholder Management – from CXOs to budget & operational owners and your end clients, an effective S2C platform demonstrates control and clarity giving confidence that you are working with the right suppliers in the right way.

Action / ‘TO DO’ List:

• Review the ROI for Managed Procurement Services (usually 2 or 3 times greater return versus hiring a for a larger procurement department) + the reduced spend as a result of implementation.
• Review the market for MPS companies – avoid the gainshare providers who take their fee from the savings made on critical projects, it motivates the wrong behaviour and increases risk for your organisation.
• Investigate S2C SaaS Platforms – there is a large number of platforms on the market all covering a range of functions and levels of proactivity. Find one that is easy to implement so that you can deploy and maintain yourself if you don’t want to pay someone to help, has straightforward pricing (many are modular and can quickly add up) and can be used by procurement and non-procurement professionals. ProcurementSoftware.site is a great help.

Novo-K and Buyingstation

Novo-K’s Managed Procurement Services and our BuyingStation platform should be part of your consideration. Our S2C platform is £649 per month for up to 50 users and gives you access to all the modules – no hidden costs. Our team of expert procurement professionals are delivering projects daily for clients measured against the outcomes we deliver. If you would like help with your existing procurement function or have no idea where to begin please get in touch, we can quickly assess and give you options to transform or support your procurement aspiration and initiatives.