What data does AI need for procurement?
Procurement deployments of AsscherAi rely on data from specific systems, including the purchase order table and supplier contracts, to provide relevant responses, and missing systems can lead to incomplete or inaccurate answers, requiring clear definitions and data quality control to ensure accurate analysis.
In practice, a procurement deployment of AsscherAi does not simply answer questions about an organisation's purchasing activity, but instead relies on the data from specific systems, including the purchase order table, supplier contracts and terms, invoice history, and category structure, to provide accurate and relevant responses. The purchase order table, for example, contains information about the goods or services purchased, the supplier, and the price, which is essential for answering questions about procurement activity.
The systems that procurement deployments depend on
The purchase order table is a critical system for a procurement deployment of AsscherAi, as it contains the details of all purchases made by the organisation. This includes the date of the purchase, the supplier, the goods or services purchased, and the price. The supplier contracts and terms system is also essential, as it contains information about the agreements in place with each supplier, including the terms and conditions of the contract. The invoice history system provides a record of all invoices received from suppliers, which can be used to verify the accuracy of the purchase order table. The category structure system is used to organise the goods and services purchased into categories, which can be used to analyse procurement activity.
A category manager, for example, may use AsscherAi to compare the prices of different suppliers for a particular category of goods, such as office supplies. To do this, the category manager would need to access the purchase order table, supplier contracts and terms system, and invoice history system, to get a complete picture of the organisation's procurement activity for that category.
What a missing system does to an answer
If one of the critical systems is missing, the answers provided by AsscherAi may be incomplete or inaccurate. For example, if the invoice history system is not available, AsscherAi may not be able to verify the accuracy of the purchase order table, which could lead to incorrect conclusions about procurement activity. Most people assume that a missing system is simply a matter of gaps in the data, but they are wrong - a missing system can fundamentally change the nature of the answers provided.
A shift supervisor, for example, may use AsscherAi to check the maintenance log for a particular piece of equipment, but if the maintenance log is not linked to the purchase order table, the supervisor may not be able to determine when the equipment was last serviced or when it is due for maintenance. This could lead to delays or equipment failures, which could have significant consequences for the organisation.
The definitions that must be agreed
For a procurement deployment of AsscherAi to be successful, there must be agreement on the definitions of key terms, such as "supplier" and "category". These definitions must be consistent across all systems, including the purchase order table, supplier contracts and terms system, and category structure system. If the definitions are not agreed, the answers provided by AsscherAi may be inconsistent or inaccurate.
For example, if the definition of "supplier" is not agreed, AsscherAi may include or exclude certain suppliers from the analysis, which could lead to incorrect conclusions about procurement activity. To avoid this, the organisation must establish clear definitions of key terms and ensure that they are consistently applied across all systems. This can be done by establishing clear procedures and protocols for data management and analysis.
Quality problems that only surface later
Quality problems with the data in the critical systems may not be apparent at first, but can surface later when AsscherAi is used to answer questions about procurement activity. For example, if the purchase order table contains errors or inconsistencies, AsscherAi may provide incorrect answers, which could lead to incorrect decisions about procurement activity. These quality problems can be difficult to detect, as they may only become apparent when the data is used in a particular way.
To avoid these quality problems, the organisation must establish clear procedures for data quality control and ensure that the data in the critical systems is accurate and consistent. This can involve regular audits and checks of the data, as well as procedures for correcting errors and inconsistencies.
When AsscherAi is the wrong choice
AsscherAi is not the right choice for every organisation, and there are certain situations where it may not be the best solution. For example, if the organisation has very simple procurement needs, or if the data is not well-structured or well-maintained, AsscherAi may not be able to provide accurate or relevant answers. In these situations, other solutions, such as manual analysis or reporting, may be more effective.
Frequently asked questions
What data does AsscherAi need for procurement analysis?
AsscherAi requires data from purchase orders, supplier contracts, and category structures to provide accurate and relevant responses.
How does a missing system affect AsscherAi's answers?
A missing system can lead to incomplete or inaccurate answers, as AsscherAi relies on data from multiple systems to provide comprehensive insights.
Why are clear definitions important for AsscherAi deployments?
Clear definitions ensure consistency across systems, preventing incorrect conclusions and ensuring accurate analysis of procurement activity.
How can quality problems with data be addressed?
Regular audits, checks, and procedures for correcting errors and inconsistencies can help ensure data quality and accuracy in AsscherAi's critical systems.