Making AI Work for Procurement and Supplier Relationships

Overview

Procurement teams are facing rising complexity, heavier supplier dependency, and tighter capacity than ever. AI can help ease that pressure, but only when it is applied in a practical, grounded way.

Our AI Garage helps teams understand what is possible, test ideas quickly using real scenarios, and build capability through hands on learning. No complexity, no long programmes, just clear value delivered at pace.

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Why focus on AI now?

SRM Technology Readiness

Based on the latest State of Flux 2025 Benchmark.

  • 87% rely on office tools or no tools to manage supplier actions and projects
  • Only 10% of Leaders have technology to prioritise value and innovation
  • 75% view SRM technology mainly as a single place to store supplier information

What this means:

Most organisations are still operating without the digital foundations needed to scale supplier performance or co-innovation.

SRM Technology Readiness

Based on research done by Pascal d'Arc.
  • 28% have not started using AI at all, often because they lack clarity on where it fits
  • 61% have experimented with small AI pilots, but these early tests remain isolated and have not scaled across categories, processes, or supplier groups
  • Only 11% have successfully embedded AI into daily operations

What this means:

AI is still in the experimentation phase for most teams. The gap is readiness, not technology.

What Leading Organisations Achieve

Based on Hackett World-Class Metrics.

  • 81% more self-service transactions than peers
  • 59% less savings leakage from maverick buying
  • <50% of time spent on transactional activities
  • 1.5x higher customer satisfaction for delivering superior business value

What this means:

Leaders who modernise early unlock capacity, control, agility, and influence. AI has the potential to double down on these advantages, but only with the right foundations.

1. Foundational Discovery
Finding your AI opportunities
Identify high impact, low risk use cases based on your data, processes, and supplier relationships.
 
2. Applied Innovation
Proving the concept
Build and test a working prototype using real scenarios, so teams can see the impact immediately and learn by doing.
 
3. Transformation Enablement
Scaling change and outcomes
Turn successful prototypes into operational AI capability with integration, governance, and change support.
 
4. Ad hoc and Custom AI Projects
Tailored solutions for unique needs
Some organisations have specific challenges or ambitions that fall outside a standard roadmap. We support bespoke AI projects that address specialised requirements, complex data environments, or advanced supplier management scenarios.
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Who You'll Be Working With

Alan Day - State of Flux

Alan Day

Founder and CEO of State of Flux, recognised for global leadership in SRM, capability building, and transformation. Focuses on how technology supports stronger supplier relationships and sustainable value.

AI Garage - Pascal dArc

Pascal d'Arc

Digital innovation leader with two decades of experience applying AI and emerging technologies into procurement and supply chain. Known for practical, rapid prototyping that helps teams learn fast and build capability.

 Ready to explore what AI can do for your procurement team?
 

State_of_Flux

T: +44 (0)20 7842 0600
E: enquiries@stateofflux.co.uk

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