How to select the best AI tools for supply chain optimization

It’s no longer a question whether you should use AI tools for supply chain optimization. The question is now: which ones should you use? Here are some things to look for in supply chain automation tools to get what you want out of them. (Hint: You first need to know really well what it is that you want.) 

AI tools have made their way into supply chain management in general, and its different parts, including procurement and purchase order automation. Here are some key factors to consider as you look through the multitude of options available, wondering which solution to invest in.

1. Identify your supply chain challenges

First, we need to take a step back. Before evaluating AI tools, identify the specific pain points in your supply chain. Because to find the right tool, you need to know what you’re looking for.

Are you struggling with demand forecasting? 

Do you face inefficiencies in procurement and purchase order processing? 

Is supplier management your primary challenge?

Do you want to be able to scale your negotiation capabilities?

Understanding your needs is key so that you can focus on AI solutions tailored to your business.

If your procurement process is prone to delays and errors, procurement AI agents inside a tool like Zingflow can help by streamlining purchase order approvals, supplier communication, and many more everyday procurement tasks.

2. Look for AI-driven automation capabilities

AI tools should automate repetitive tasks, and some essential automation capabilities to look for (again – depending on your needs) include:

• Procurement automation for tasks like purchase order generation, approvals, and supplier negotiations.
• Invoice processing to match invoices with purchase orders and flag discrepancies.
• Supply chain visibility for real-time tracking of inventory levels and order status.
• Predictive analytics to forecast demand and optimize procurement planning.

Zingflow’s AI agents, for instance, can speed up multiple purchase order workflows, reducing your team’s manual input.

3. Evaluate data integration and compatibility

You’re most likely going to introduce an AI solution into an existing ecosystem of software tools your business uses. So seamless integration with them is key if you don’t want to make it more work with excessive customizations or manual data entry. 

The new tool should integrate with your existing supply chain management systems, such as ERP and procurement software.

Pay special attention to aspects such as:

• API compatibility 
• Cloud-based accessibility 
• Scalability 

4. Assess AI decision-making and insights

A good AI tool doesn’t just automate tasks – it can analyze information and provide valuable insights for decision-making. 

Look for features that offer:

• Supplier risk assessment to identify potential supply chain disruptions.
• Cost optimization insights, with recommendations and cost-saving strategies based on historical data.
• Performance analytics to measure supplier reliability and efficiency.

Also, look for tools that use AI and are trained specifically for sourcing, supplier management, and other aspects of supply chain management (just like Zingflow does).

5. Focus on ease of use and user experience

Even the most advanced AI tool can become ineffective if your team finds it difficult to use (in the worst-case scenario, they won’t want to use it at all and will prefer to stick to spreadsheets and manual work). 

A user-friendly interface, intuitive dashboards, and customizable workflows are what you’re looking for. Not necessarily complicated onboarding and employee training that takes days.

Also, you can start small, and automate different parts of your supply chain step by step, making introducing AI automation much more manageable.

With Zingflow, you can start instantly in your browser, with zero setup other than uploading your files for the procurement AI agents to use and learn from. 

6. Double-check compliance and security features

Your AI supply chain automation tool must comply with industry regulations and data security standards to protect sensitive information. You don’t want to share sensitive financial and personal data with anyone on the internet. 

So, pay attention to features such as:

• Data encryption
• Audit trails
• Regulatory compliance

7. Evaluate customer support and vendor reliability

We probably don’t need to tell you that reliable customer support is really important, right?l Before choosing a vendor, consider these things:

• Customer service availability, such as 24/7 support vs. limited hours, available contact channels, etc.
• Training resources: tutorials, webinars, and dedicated account managers that help with onboarding and troubleshooting.
• Customer reviews and case studies for real-life experiences of other customers.
• A customized demo to help you see the value you can get from the tool.

At Zingflow, we offer dedicated support and continuous updates. And even though getting started with Zinglow is really simple, we can still guide you through it if you need assistance.

8. Calculate ROI and cost-effectiveness

Speaking of value, go into your search for an AI supply chain management tool with some KPIs in mind, including the desired ROI. What do you want to gain exactly by introducing the software?

A cost-effective AI solution should help you, among others:

• Reduce operational costs.
• Improve procurement efficiency.
• Enhance supplier relationships and risk management.
• Improve team morale (which is also directly tied to efficiency.)

And speaking of team morale, using Zingflow is actually fun, too. Your team members essentially get their own virtual assistants in the form of procurement AI agents that help them organize tasks based on what’s currently needed and even send out emails to suppliers, saving them tons of time in the process.

The bottom line

The number of available AI tools for supply chain optimization and procurement automation is only bound to grow even more in the coming months and years. So, selecting the right one might quickly become overwhelming. 

Our recommendation is to start simple and carefully define your business’s needs, so that finding the right tool doesn’t seem like an impossible task. 

And if you’d like to see what you can do with Zingflow, sign up for a free demo and ask us anything.