Procurement Ops Digest Issue 6: The future of AI in procurement is here

Tonkean
Tonkean
October 8, 2024
August 6, 2024
15
min read
Procurement Ops Digest Issue 6: The future of AI in procurement is here

In this issue:

  • The future of AI and orchestration is here
  • How this enterprise procurement team cut cycle times in half
  • Latest industry news from the world of procurement
  • An interview with Michael van Keulen, CPO of Coupa Software
  • Tonkean release notes

For the last year and a half, vendors, thought leaders, and industry analysts have done much rhapsodic proselytizing about the potential of process orchestration and AI. 

What we’ve actually gotten out of AI and orchestration tools, however, are mostly chatbots that help users navigate siloed UIs and policy documents. Or AI that’s good at making movies and writing blogs and code, but not so good at doing the work we actually want AI to do for us—the bureaucratic, time-consuming busywork. 

And these tools haven’t moved the needle. Enterprise employees still spend too much of their time hacking through manual work—jumping between tabs, filling out forms, chasing stakeholders, learning how to navigate other teams’ preferred systems. 

We need AI that works for humans. That sits above—and works across—our existing policies and tools. That meets us where *we* work, and that actually does busy work for us. That fulfills AI’s initial promise to free US up to make the art, instead of doing art for us. 

Last month, we launched an AI-powered orchestration copilot that we designed to do precisely that. 

It’s called the Tonkean Enterprise Copilot

It’s a transformative AI and advanced orchestration solution that helps internal teams like procurement, legal, and IT anticipate employees’ needs, guide employees through requests, unify processes that span many different systems and departments, and automate manual steps. It empowers shared service teams to move at the speed of business and increase process adoption—all while eliminating the burdens of change management.

Another way of putting it: the Enterprise Copilot works behind the scenes to do everything employees want AI to do for them—the bureaucratic, back-office busywork—so they can focus more completely on creating unique, strategic value that drives the business forward. 

“Technology should work for humans, not force humans to work for it,” said Tonkean CEO and co-founder Sagi Eliyahu. “AI and orchestration have done much to help enterprises integrate their applications, better manage complex processes, and make concrete progress to this end. But software’s great enterprise promise, which is to elevate performance at scale by freeing employees to focus completely on work for which they’re uniquely suited, remains unfulfilled. The Enterprise Copilot works behind the scenes to give corporations what they need to finally make good on that promise.” 

Now, the response to the Copilot release has been absolutely incredible. Which we interpret as a testament to the simple fact that this is the sort of AI and orchestration tool the enterprise has been waiting for. 

And for good reason. A few days after we launched the Enterprise Copilot, CPO Strategy published a webinar and case study about what Alejandro Fernandez, Head of Global Procurement at Semrush, has been able to accomplish with Tonkean’s AI-powered orchestration tools. 

As Alejandro told us, “With the deployment of Tonkean’s new tools, we've taken our cycle time from 19 days to 10. We've dramatically reduced the time it takes to sift through all of these orders that are coming through via email, via Slack, and other web forms. It's created all of that efficiency, allowing our teams to do more with a lot less.”

You can watch and read Alejandro’s case study here, and read more about it below, in this month’s Procurement In the Field Feature. 

But first, the latest in procurement.

Latest in Procurement

If you have some insightful news or knowledge about the world of ops to share, let us know!

Procurement in the Field

“We’ve taken our cycle time from 19 days to 10…”

“We’ve dramatically reduced the time it takes to sift through all of these orders that are coming through via email, via Slack and other web forms…”

“Making sure that your P2P is natively talking to contract lifecycle management (CLM), that's just not something you can easily do… and that's something that Tonkean is doing for us…”

This is Alejandro Fernandez, Head of Global Procurement at Semrush. 

Earlier this summer, he sat down with CPOStrategy Magazine for an exclusive interview about how Semrush has used AI and orchestration to dramatically improve the performance of its procurement function. 

Here’s the executive summary.

  • The Problem: Inefficient intake experiences and long cycle times. Semrush needed a more efficient and seamless way to facilitate procurement intake across their existing enterprise systems, including Oracle, Ironclad, and their various messaging tools.
  • The Solution: Tonkean's AI-Powered Intake Orchestration. Semrush turned to Tonkean for help. They started leveraging Tonkean’s ability to connect with and orchestrate automated processes across their legacy systems. “Making sure that your P2P is natively talking to contract lifecycle management (CLM), that's just not something you can easily do and that's something that Tonkean is doing for us,” Alejandro Fernandez, Head of Global Procurement at Semrush, said.
  • The Results: The Semrush procurement team cut their cycle times in half—and now provides excellent internal experiences that meet employees where they are. “There are many use cases now where Tonkean is really facilitating how our new process operates, even if you're jumping back and forth between tools,” Alejandro told us. “I think that has been one of the biggest achievements along with the fact that with the redesign and the deployment of all these new tools, we've taken our cycle time from 19 days to 10. We've dramatically reduced the time it takes to sift through all of these orders that are coming through via email, via Slack, and other web forms. It's created all of that efficiency, allowing our teams to do more with a lot less. We're thrilled about having Tonkean in-house.”

Alejandro’s story surfaces many key themes we’ve been tracking at Tonkean, including how important genuine, holistic integration is to orchestration—how AI and orchestration must sit above and interact with ALL your organization’s tech, policies, and people—as well as what putting people first with technology really looks like… and what’s possible when you do. 

We’re thrilled to now host the article and interview on the Tonkean site. 

Read the case study and watch the webinar here. (10 minutes)

Tell us about clever solutions and success stories you want your procurement peers to know about for future newsletters!

Modern Business Operations

Michael V. is the CPO of Coupa Software. As you read above, he was recently featured on the cover story of Procurement Magazine. He’s a big deal! 

He also knows a thing or two about leveraging innovative technology to drive change in procurement.

Recently, he joined Tonkean co-founder and CEO Sagi Eliyahu for a wide-ranging discussion about precisely that.

"Technology enables you to go from where you're operating today, to where you *could* be operating," Michael says. "What's the art of possible?"

Key Takeaways:

(1:05) Leveraging automation can significantly increase procurement efficiency.

(3:45) Data analytics are critical in making smarter procurement decisions.

(7:20) Building resilient supply chains helps withstand disruptions.

(11:30) Enhancing supplier relationships through innovative technologies.

(15:10) Strategic procurement is vital for driving business value.

(18:40) Advanced technologies empower procurement teams to achieve more.

(22:05) Sustainable procurement practices impact overall business strategy.

Listen to the episode here

Subscribe to the Modern Business Operations podcast on Apple Podcasts, Spotify, YouTube, or wherever you get your podcasts.

Maestro's Minutes

Here’s everything we did in the most recent Tonkean release notes:

Module Builder

We've increased the maximum archival period for items, from three to seven years. This update supports customers with requirements for extended audit trails. You can configure module item archival periods in the module settings.

Custom Item Interfaces and Workspace Apps

  • Quick link to interface builder from module builder - A new link to the interface builder directly from the module builder makes it easy to make quick edits or updates to the interface you're working on within the module workflow. You can find this Edit interface link interface intake sequence step panels, such as Send Item Interface.

  • Update fields directly in the Update Status action - This enhancement allows you to perform an inline field update in the same way you could previously update the item status. By selecting the Change Fields button (previously the Update Status button), you can update the item status and specify fields to update at that point in the workflow. This new capability makes updating field values at specific points in the workflow much more intuitive and avoids the need for additional dedicated logic.

  • Descriptions for radio button options - In addition to the values set in a dropdown field displayed as radio buttons (in an interface or form), you can now add descriptions for each value. These descriptions display directly below the main value and are included in searches.
    To add descriptions to dropdown field values, simply include the description after the value, wrapped in three back ticks (for example, ```value description```).

  • Set a default column width for the Line Item widget - This update enables users to set default minimum and maximum percentage values for the width of specified field columns in the Line Items widget, ensuring the data in the table is clearly visible.
  • Disable reply in threads in the Comments widget - Users can now disable thread replies in the Comments widget. This update solves the problem of being unable to communicate with an external data source that doesn't support reply threads (like Jira, for example) in the Comments widget. When replies are disabled, all comments are added to the interface as individual messages.

  • Order comments in the Comments widget from oldest to newest - In addition to the default sorting of newest to oldest, users can now sort comments in the Comments widget from oldest to newest, placing the newest comment at the bottom of the widget.

  • New icons - We've added the "Untitled" icons from the Figma library to provide a streamlined, modern option in the icon picker.

Board Management

You can now update the search prompt text on the Tonkean homepage and display a homepage title if not using a homepage cover logo. This update provides users with another level of customization for their homepage.

Enterprise Components

You can now integrate with Cvent, the event planning and management software, with your Tonkean solutions.

Additionally, we've enhanced the following data sources:

  • Amazon S3 - You can now perform a single collect from multiple S3 buckets.
  • Ironclad - You can now collect SCIM users from your Ironclad instance.
  • LawVu - We've added the Status field to the Matter entity.
  • Oracle - We've added the Inventory Organizations and Locations entities.
  • Origami Risk - You can now specify the length of time after which Tonkean collects Origami Risk entities. Contact Tonkean Support to set this up.
  • Sage Intacct - We've added the entities Inventory Transaction Definition and Bin, and the Create an Inventory Transaction action.
  • SharePoint Online - We've added support for index file content for the following file types: DOCX, XLSX, PDF, PPTX, CSV, and TXT.

Bug Fixes

  • Some Microsoft Outlook integrations were failing to collect messages without a created time.
  • Data retention settings weren't showing for all entities.
  • Some users were unable to update the text color in an interface.
  • An error was not displaying for comments more than 1,000 characters in the Comments widget.
  • The thank you message at the end of an intake sequence was failing to load.
  • Some users were unable to search for icons when creating a new workspace app page.
  • When changing a trigger type from Wait to Field Changed in the middle of a module workflow, the flow was failing.

That’s it! Thanks for checking out Ops Digest! If you’d like to learn more about who Tonkean is or what we do, we have a few different kinds of trials that you can sign up for. They walk users through our most powerful solutions, including Legal intake, Customer onboarding, Employee onboarding, and Email inbox automation. Sign up for one here!

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