IT, being one of the most expensive assets requires a Strategic type of Procurement, which poses several challenges but AI is helping companies overcome those challenges. Get detailed insights on IT Sourcing and Procurement issues and solutions: https://aavenir.com/tackling-issues-in-it-sourcing-and-procurement/

1. IT Sourcing and Procurement
Issues and Tackling them

2. Issues in IT Sourcing and Procurement
One of the biggest expense items on any financial statement
Highly strategic type of procurement
Difficulty Identifying cost drivers and opportunities in complex marketplaces
Difficulty Working with cross-functional project teams, stakeholders across different
departments

3. #1 Unclear Expectations - Hindrance in the
Growth & Scope of Technology Procurement
Issues in Procurement
● Communication gap. Incorrect analysis, and lack of required
knowledge
● Rising technology spending
● Outgrowing vendor base
Solution: An approach of continually reviewing and re-assessing and
identifying potential vendors
Role of AI in meeting in meeting Procurement Expectations
● Identification of shifts in global supply trends and increase visibility
● Provides data-driven insights to evaluate Vendor Performance
● Helps in sustaining long-term relationships with vendors.

4. #2 Complex Vendor Ecosystems
Issues in Vendor Management
● Presence of several clauses
● Risk of not being able to meet increasing demand
● Difficulty managing multiple vendors and their respective contracts
Solution: Categorize vendors based on performance using analytics
Role of AI in Vendor Management
● Provides Visibility, centralized repository, and intuitive dashboards.
● Provides automated notifications for upcoming key dates
● Facilitates collaboration with your vendors
● Pre-built templates and models, helps identify key terms, clauses,
and obligations of interest

5. #3 IT Asset Lifecycle Management
Issues in IT Asset Lifecycle Management
● Management of IT assets in decentralized manner
● Lack of visibility of assets
● Increased costs and security & compliance risks
Solution: Centralized and intelligent system that includes better contract
negotiation
Role of AI in IT Asset Lifecycle Management
● Improves license control and auditability
● Enables management of all IT assets with a centralized repository
● Allows users to link assets to users, teams, or any other record
● Identify contract language and review the most pertinent clauses
in the document

6. #4 PO and Invoice Management
Issues in IT Vendors Invoice Management
● Manual, time-consuming and error-prone entry of actual cost
● Lack of real-time visibility into the actual cost of a project
● Possibilities of missing expense lines cost against the project cost
Solution: Monitor progress and communicate status with stakeholders
Role of AI in IT Vendors Invoice Management
● Helps eliminate manual validations and inefficient follow-up calls
or long emails
● Facilitates execution of on-time payments with rules-driven
conditional approvals, complete audit logs, and alerts.

7. #5 Spend Analytics and Strategic Cost
optimization
Issues in IT Spend Analytics
● High cost per invoice
● Poor Vendor communication, delays, and unrealistic expectations
● Mounting demands
Solution: Approved vendor lists, easy report building, and proper catalog
management
Role of AI in Spend Analytics
● Helps deliver the contract to the right person at the right location,
notifying each signer
● Extracts actionable insights from spend analytics using ML and NLP.
● Discovers, interprets, and communicates meaningful patterns

8. Transform Technology Sourcing and Procurement
with AI-enabled Solutions on ServiceNow
Aavenir Source-to-Pay solutions on ServiceNow make
procurement more efficient, responsive, and agile by
helping in:
#1 Instant visibility into pending purchase requisitions,
sourcing requests, and negotiations
#2 Streamline your IT sourcing process with digitized
workflows
#3 Automate end-to-end IT sourcing and procurement
processes by eliminating the risk

9. Free Demo Session
Get a live demo of Aavenir Source to Pay solutions to know how Aavenir can address
your enterprise's unique business challenges and goals.
We provide live demonstration for following Aavenir S2P solutions:
● Contractflow - Contract Lifecycle Management on ServiceNow
● RFPflow - Request for Proposal Management on serviceNow
● Invoiceflow - Account Payable Automation on ServiceNow
● Obligationflow - Contractual Compliance Management on ServiceNow
Visit: https://aavenir.com/demo/

10. Get Free Resources
Watch Webinar
Automate Sourcing
using RFx
Calculate ROI of
CLM Solution
Test Drive
Contractflow
Contract Analytics with
Visual Dashboards
E-book - Digitize
Strategic Sourcing
Calculate ROI
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11. Delivering Future of Work
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