7 Ways AI is Transforming RFP Automation in Procurement
The dreaded three letters: RFP. Dreaded if you still have a manual process, or even automation that’s still inefficient (yes, it’s possible). From compiling lengthy documents to chasing supplier responses and manually comparing proposals, procurement teams have a lot on their plates. Here’s how AI, and procurement AI agents specifically, can help clean those plates up and automate the RFP process.
Manual RFP processes are inefficient – that’s hardly any news
Errors creep in, deadlines slip, and valuable time is wasted on administrative work instead of strategic decision-making. No data-driven insights often means suboptimal supplier choices. And this, in turn, results in higher costs or supply chain risks.
You might know all of the above (or some of it.) You might also know that this can be changed (quite easily, actually) with the help of AI and an RFP automation tool. No more sifting through mountains of paperwork and endless email threads.
Here are some ways this can happen.
7 ways an AI-powered RFP automation tool will change your procurement process
1. Automate supplier discovery and vetting
Sometimes, finding the right suppliers might seem like looking for a needle in a haystack. Sometimes it just takes time – that you probably don’t have. A valid reason to get an RFP automation tool like Zingflow.
Procurement AI agents can scan databases to identify potential suppliers that align with your specific criteria. They can evaluate supplier credentials, past performance, and compliance records, so that only the most suitable candidates make it to your shortlist.
This not only speeds up the supplier discovery phase but also enhances the quality of supplier partnerships later on.
2. Communicate with suppliers more efficiently
Emailing back and forth to ask for additional information or follow up on relevant details is one of the most time-consuming elements in the RFP process. Unless you have a procurement AI agent as your assistant.
An AI agent can send initial inquiries, follow-up emails, and confirmations. They can even automatically generate an RFX and send it out to the right supplier.
Worried an AI agent will make a mistake or write something inappropriate? You can always check the generated email before it gets sent, giving you control over the communication. And since it’s AI, it’s going to learn over time, becoming more and more accurate.
Here’s how procurement AI agents generate and send RFXs in Zingflow.
3. Evaluate proposals quicker
Comparing offers and evaluating proposals is not only time-consuming (again), but also can be biased – as anything people do. Unless you ask a procurement AI agent to do it. Then it gets efficient and more objective, making sure you’re not blind to any details or seemingly unimportant differences.
The AI agent can score and rank submissions, listing all the important elements, strengths, and weaknesses. And no, an RFP automation tool won’t make the decision for you, but it can significantly cut the time for you to do it by giving you all the important information. In Zingflow, the AI agent will also automatically email the supplier in response.
4. Negotiate better
Procurement AI agents can also help your procurement team negotiate the terms more efficiently. The software will automate email creation, including specifications, prices, compliance, return policies, and any criteria you find important.
The best thing about this is that you can negotiate multiple contracts at once, without increasing the number of people working on it (and without overburdening your existing procurement team.) All you need is an efficient procurement AI agent that does the job of multiple people supporting your team.
5. Make accurate decisions with predictive analytics
AI doesn’t just process data. It’s also great at providing insights, and is commonly used for predictive analytics. Using historical data and market trends, procurement AI agents can predict outcomes such as supplier reliability, potential risks, and cost fluctuations.
Again, this is really helpful to human procurement experts who can make more informed decisions, anticipate changes, and plan procurement much more strategically.
6. Automate contract generation
Once you select a supplier, generative AI in the form of a procurement AI agent can support you in drafting and managing contracts (and basically, any documents that are needed in the process) based on the specifics of the RFP and the agreed terms.
AI agents can also monitor contract milestones and alert teams about upcoming renewals or compliance requirements. It’s literally like having an assistant that is always up to date with what’s going on in all RFX processes.
7. Organize your RFX tasks in the blink of an eye (literally)
This might be a pretty simple feature of an RFP automation tool, but it can make a significant difference in the time a procurement expert has to spend on their tasks. And that’s getting your procurement AI agent to list all the tasks for the day based on what’s currently going on in all the existing RFX processes.
Who hasn’t sent an offer yet? Which offers are incomplete? Who should you follow up with about outstanding details? Who hasn’t sent a confirmation? Or who has but the agreed details don’t match?
Anything that needs to be done, your procurement AI agent can list – and automate for you.
Get an RFP automation tool powered by AI (and some procurement magic)
The RFP (or, more broadly, RFX) process can be more efficient. Period. There really is no need to stick to manual processes when AI is readily available and getting more and more accessible, with lower learning curves.
If you’d like to see what you can automate in your RFP process using Zingflow and its procurement AI agents, give us a shout and sign up for a demo. We’ll walk you through all the things AI agents can make easier for you and your procurement team.
