The Ardent Partners analyst team attended the 2024 Ivalua NOW: Procurement Re-Imaged conference on May 22nd and 23rd in Miami. This event came on the heels of the company’s slightly larger EMEA conference held in Versailles, France, in March (our own Magnus Bergfors, VP of research, wrote about his attendance at the event). Ivalua is known for selecting unique venues for its user conferences and it didn’t disappoint in 2024.
In this first dispatch from the conference, we’ll detail one of the early keynote sessions titled “Accelerating Your Procurement Digital Transformation,” featuring Nick Traboulay, supply chain systems transformation principal for Leidos, who sat down for a discussion with Laura Smith, vice president of sales for Ivalua.
Nick Traboulay, Leidos
Data-Entry Redundancies and Administrative Burdens
Traboulay opened the session detailing how, as the company’s chief designer of its long-term roadmap, his team performed a review of current systems and processes to determine where automation could further remove administrative burdens. With more complex regulations and requirements entering his space, Traboulay needed to offload excess data entry and other administrative tasks for staff to focus on more strategic endeavors.
Like many procurement organizations, Traboulay says his department was viewed more as overhead than a strategic function, resulting in fewer opportunities to secure technology investments. As a result, the department utilized what little technologies were available within the enterprise, leading to several custom systems (multiple SharePoints, etc.). Compounding the issue was the inability for systems to share information, meaning data had to be re-entered throughout the procurement lifecycle process from the point of a purchase request to issuing POs and beyond.
Single-Data Model with a Dash of AI
Thus, Traboulay and his team wanted to identify new technologies to remove those data redundancies and achieve a single data model where all information is integrated and speaking to each other.
He described the approach Leidos took to achieve the maximum ROI of this initiative. When implementing new technologies in procurement, one might assume that demonstrating a solid ROI would be the most convincing factor. However, in this case, long-term benefits and strategic advantages often take precedence over immediate financial returns. Traboulay found that in his 15 years of experience, showcasing potential long-term benefits resonated more with stakeholders than traditional ROI metrics.
Driving Adoption and Overcoming Resistance
One of the significant challenges in implementing new systems is driving user adoption, explained Traboulay. People often cling to familiar systems and ways of working. To address this, the team began their communication campaigns early. Even before the project officially started, they initiated efforts to build excitement and anticipation. Regular blog posts, status updates at change meetings, and involving a broad range of participants in the testing phases were crucial. These steps, said Traboulay, made everyone feel included and informed, fostering a sense of ownership and enthusiasm for the new system.
Change Meetings and Implementation Phases
Change meetings also played a vital role in keeping the organization updated about new policies, practices, and tools. The implementation strategy was phased, explained Traboulay, beginning with supplier management and then moving through the procurement lifecycle. This methodical approach helped manage the complexity of the transition, assuring that each phase was thoroughly tested and adopted before moving on to the next.
Tailored Training for Different Learners
Recognizing that people learn differently was key to successful training and adoption. Traboulay said the team created diverse training materials, including video content and written guides. They produced both broad overview videos and short, specific clips to cater to different learning preferences. This comprehensive approach allowed users to learn in the way that suited them best.
Leveraging AI for Efficiency
AI proved transformational for Traboulay and his team. AI tools, particularly ChatGPT, played a significant role in content creation and communication. The use of AI for drafting emails, generating FAQs, and creating checklists saved substantial time and effort. These tools provided a foundation that could be quickly refined, speeding up the preparation and rollout processes.
Supplier Enablement and Communication
Supplier enablement was not overlooked during Traboulay’s initiative. A structured email campaign informed suppliers of upcoming changes and benefits, leveraging AI to draft communications efficiently. This proactive approach brought suppliers successfully into the fold, giving them the required preparation and support of the new system.
Exploring Additional AI Tools
While ChatGPT was instrumental to easing administrative burdens, Traboulay’s team took their AI integration further with AI tools like PlayHT for voice generation and Scribe for creating instructional content, thus helping to streamline the training process. These tools reduced the time required to produce high-quality training materials and made it easier to update and distribute content.
The Future of AI in Procurement
The potential of AI in procurement extends beyond communications. AI can help with contract summarization, email management, and prioritizing tasks. For instance, AI can alert executives to important approvals or summarize large volumes of emails to highlight critical tasks. As AI technology continues to evolve, its applications in procurement will likely expand, offering even greater efficiencies and insights. Procurement leaders looking to adopt AI should focus on balancing security with openness to innovation. Providing guidelines and training on safe AI usage is crucial — AI governance is as critical as the technology itself.
It’s also important to select technology partners who are committed to long-term relationships and continuous improvement. As Traboulay knew going in, investing in enterprise technology is a long-term commitment. Thoroughly understanding the function’s needs and choosing a partner dedicated to innovation and support is essential. The Leidos example highlights that successful AI adoption in procurement is about more than immediate ROI — it’s about strategic, long-term benefits and the willingness to embrace and effectively communicate change.
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Tagged in: AI, Artificial Intelligence, Chief Procurement Officer, CPO, generative AI, Ivalua Now, Procurement, Supplier Enablement, Technology
