Surely you've seen the commercials about IBM's newest employee. Equipped with the powers of advanced, predictive analytics, Watson is capable of much more than winning at Jeopardy. As a series of commercials has attested, the powerful cognitive tool can diagnose problems - with equipment, machinery, processes, etc. - before they arise.
Obviously, Watson's potential applications for Procurement professionals are enticing and seemingly limitless. Senior Consultant Michael Croasdale joins the Source One Podcast to take a closer look at what Watson's highly-advanced analyses could mean for MRO Strategic Sourcing.
"Spot buys," he says "are currently among the biggest challenges facing buyers in the MRO space." These unplanned, one-off purchases are typically made in response to breakdowns. Inefficient as spot purchasing may prove, it's typically looked like the only option for Procurement professionals looking to get their warehouses and facilities back on track.
Croasdale suggests, however, that Watson's predictive capabilities could soon provide for a more effective method of spot purchasing. Predicting breakdowns before they actually occur, Watson should empower Procurement professionals within the space to make these emergency purchases without paying an inflated price for rush delivery.
That's just the beginning. Croasdale closes the conversation by suggesting that Watson could soon automate the entire MRO sourcing process. Once Watson's predictive analytics have identified the need for a replacement, the tool could sync with purchase order automation to secure it.
Listen to the full episode today for more thoughts on the future of MRO Procurement. If you like what you hear, don't forget to subscribe to the Source One Podcast on iTunes.