Prescriptive AI in Procurement: Using Oracle AI to Recommend Optimal Supplier Decisions
DOI:
https://doi.org/10.63282/3050-9416.IJAIBDCMS-V2I1P108Keywords:
Prescriptive AI, Procurement Optimization, Oracle Adaptive Intelligent Apps, Supplier Recommendation, Dynamic DiscountingAbstract
The increased globalization of supply chains and procurement systems has contributed to the demand for more intelligent data-based decision-making by organizations. The paper presents the dynamics of the use of prescriptive Artificial Intelligence (AI) in purchasing and procurement using the Oracle Adaptive Intelligent Apps as the case study. In contrast to the traditional predictive systems that simply render predictions about the possible outcomes, prescriptive AI not only foresees the future but also advises what to do in order to receive the best results. Adaptive Intelligent Apps Oracle Fusion Cloud Procurement uses internal data to improve procurement performance and performance analytics in ERP and external market indicators to provide meaningful recommendations that guide actions like alternate supplier recommendation, real-time dynamic discount negotiation, and real-time compliance. The system architecture involves the combination of data intake, machine learning and a decision engine, which analyses supplier performance, risk profiles and procurement policies. With these capabilities, procurement teams are able to automate routine functions, shorten sourcing cycle times, and make situation-aware decisions. A case study which has been applied in the real-world arena of a global industrial enterprise reveals fundamental benefits that can be measured through positive changes in RFQ cycle times, as well as increased compliance rates and large amounts of cost reductions. Analysis indicates that a robust, technologically sound definition of prescriptive AI aligns with the future-proof demands of modern procurement, as well as Oracle's organisational strategy. This paper will contribute to the knowledge about how AI embedded in an ERP system promises to transform procurement, a predominantly reactive and transactional activity, into a proactive, strategic, value-driven, and resilient process
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