Boeing's AI-Driven Procurement: Tackling Tail Spend Efficiently

Published Date: 25/07/2024

Aircraft manufacturer Boeing leverages artificial intelligence to gain control over its tail spend, bringing procurement spending into the light.

In large organizations like Boeing, managing tail spend is a monumental task. Technologies like artificial intelligence and autonomous sourcing platforms are helping companies like Boeing bring their uncontrolled spend under control. Tiffany Andrews, senior manager at Boeing's Indirect Procurement Center of Excellence, explained that the company lacked a clear understanding of its transactional procurements. To address this, Boeing opted for Fairmarkit, a global autonomous sourcing platform that utilizes generative AI to analyze spending trends and provide actionable insights.

Andrews compared the platform to a runner who consistently purchases a favorite brand of clothing. The system tracks spending habits and provides alternatives, enabling informed strategic conversations with leadership. Erin McFarlane, vice president of operations at Fairmarkit, highlighted the benefits of automating routine procurement tasks, allowing employees to focus on more interesting and value-added work. This approach also improves employee retention, as younger workers expect meaningful and exciting work.

Boeing has successfully rolled out the Fairmarkit platform globally, gaining more insight and control over its spending in distant locales. The platform has also helped the company meet its diversity goals by automating processes and ensuring that diverse suppliers are invited to participate in procurement events.

By leveraging AI-powered procurement, companies like Boeing can bring their tail spend under control, improving transparency, efficiency, and overall business performance.

Boeing is a leading aircraft manufacturer with a global presence. Fairmarkit is a global autonomous sourcing platform that utilizes generative AI to analyze spending trends and provide actionable insights. Fairmarkit is a global autonomous sourcing platform that helps companies like Boeing optimize their procurement processes.

FAQS:

Q  What is tail spend, and why is it a challenge for large organizations?

A  Tail spend refers to the uncontrolled spending on indirect goods and services. It is a challenge for large organizations because they often lack visibility and control over these transactions.

Q  How does Fairmarkit's AI-powered platform help companies like Boeing manage their tail spend?

A  Fairmarkit's platform utilizes generative AI to analyze spending trends, providing actionable insights and enabling companies to make informed procurement decisions.

Q  What are the benefits of automating routine procurement tasks?

A  Automating routine tasks allows employees to focus on more interesting and value-added work, improving employee retention and overall business performance.

Q  How does Fairmarkit's platform support diversity goals?

A  The platform automates processes, ensuring that diverse suppliers are invited to participate in procurement events, and helps companies meet their diversity goals.

Q  What is the future of procurement, and how will AI-powered platforms like Fairmarkit shape it?

A  The future of procurement will be characterized by increased automation, transparency, and efficiency, with AI-powered platforms like Fairmarkit playing a key role in shaping this future." "Q: What is tail spend, and why is it a challenge for large organizations?

A: Tail spend refers to the uncontrolled spending on indirect goods and services. It is a challenge for large organizations because they often lack visibility and control over these transactions.

Q: How does Fairmarkit's AI-powered platform help companies like Boeing manage their tail spend?

A: Fairmarkit's platform utilizes generative AI to analyze spending trends, providing actionable insights and enabling companies to make informed procurement decisions.

Q: What are the benefits of automating routine procurement tasks?

A: Automating routine tasks allows employees to focus on more interesting and value-added work, improving employee retention and overall business performance.

Q: How does Fairmarkit's platform support diversity goals?

A: The platform automates processes, ensuring that diverse suppliers are invited to participate in procurement events, and helps companies meet their diversity goals.

Q: What is the future of procurement, and how will AI-powered platforms like Fairmarkit shape it?

A: The future of procurement will be characterized by increased automation, transparency, and efficiency, with AI-powered platforms like Fairmarkit playing a key role in shaping this future.

More Topics :