From automating decisions to redefining procurement talent, AlixPartners lays out why risk-takers lead the way.

The use of artificial intelligence (AI) in procurement is gaining traction with many organisations already looking at how the technology can improve processes. However, there’s scope to go beyond efficiency and instead focus on transforming value delivery. 

At DPW New York, we spoke to Amit Mahajan and Aaron Addicoat from AlixPartners, a management consultancy firm doing things a little differently. The organisation is advising its clients on how to implement AI to drive value, but it’s also using AI internally, too. 

“AlixPartners has a unique business model,” explains Addicoat. “We have a very senior model, very few junior resources. So now you imagine taking people with 10 or 15 years experience and now you equip them with AI… For us, it’s a huge unlock.”

This is about more than just productivity gains. AlixPartners focuses on using AI to transform the way procurement teams work, while crucially, maintaining the human touch.

How procurement professionals are using AI

With the support of technology, it’s possible to shift procurement from a cost-saving exercise to a potential revenue driver. Procurement teams are already looking for these opportunities, as Mahajan explains. “They’re starting to think about new ways of doing things,” he says. “It’s not just automation, but asking how do I leapfrog and do something differently?”

There are plenty of use cases where AI is helping with automation. This is a great place to start as it frees up human workers to do more valuable jobs that need a personal touch. “I have a client who’s using AI every day,” says Addicoat. “This allows them to review documents and contracts rapidly, to find key clauses and termination dates. They’re also using it in spend control processes to identify which things need to be reviewed more thoroughly.”

Many organisations are also using AI agentically to create their own bots. This gives teams a more accessible way to review information. “One example is a client who’s using AI for their business to help with acronyms,” says Addicoat. “They built it as an acronym tool to help break down the language barrier between different functions using different terms. This led to better engagement.”

This empowers employees across an organisation to be more autonomous while still getting the full picture. Agentic AI, especially, allows them to interact with information in a way that previously would’ve required specialist technical knowledge. Now, it’s possible to query information within a contract directly. 

“It’s about using agents and AI to look at anomalies within your procurement contracts,” explains Mahajan, “and be able to help the category analysts, the category specialists, and others to get more of those insights.”

While generative AI might be a hot topic, it’s not the only way to use the technology. In combining several sources of data and using AI to spot trends, it’s possible to create workflows tailored to the current environment. Addicoat explains: “We take a series of data inputs, such as weather patterns, lead times, contractual terms, inventory, and forecast. Then the AI generates the purchase order, queues it for review, and upon approval, places the order.”

This can help an organisation to place orders with the right supplier in the most timely fashion to avoid delays, and optimise for cost, for example. This fully automates the end-to-end process, using AI to interpret those important data signals.

While this is useful for procurement teams, it’s only the start. “Using AI in this way is really cool,” says Addicoat, “but what I found most fascinating is that you’re building a data model, and with AI layered into it, that over time can tell you how to optimise itself.”

This has huge implications for procurement teams looking to save money and drive revenue. “For example, it could tell us the commodity price at a certain point in time was low,” says Addicoat, “but because inventory capacity to hold resin was maxed out the client could only buy so much at that low price. So now investing in a new storage unit at a cost of a few hundred thousand dollars could, under the same scenario in the future, save millions of dollars..Data quality challenges

A roadblock that can stop procurement teams from fully embracing AI is a lack of quality data. With so many sources of information, often including paper-based documents, some might think it’s difficult to get the data AI needs to be truly useful.

“Don’t wait for everything to be perfect before you get started,” says Addicoat. 

This is a sentiment echoed by Mahajan: “Use AI to solve your data problem before solving your business problems.”

This requires a mindset shift. While AI can help cleanse, enrich, and structure existing unstructured data, it’s important to take the right approach. Shift from asking ‘what can we do with our data?’ to ‘what value do we need to create?’ and work backwards from there.

With this approach, the questions are less about the data and more about the business problem. This then allows you to use AI to work with the information you have to help answer those questions.

“Start with the value proposition in mind and work backwards,” explains Addicoat. “You can get data from anywhere — it has to serve a purpose.”

Bringing back the human touch

AI can free up procurement teams to focus on tasks that need more nuance and expertise. Using technology to automate workflows and make information more accessible has a huge impact on employee productivity. “It’s fundamentally transforming the way they work, the amount of work they can do, and the type of work they’re able to do,” says Addicoat.

There’s always the worry that with any new technology, the human element will be forgotten. “With every new advancement that comes in,” says Mahajan, “whether that was a steam engine or when computers came along, everybody wondered what they were going to do. But as humans, we always find ways to start doing higher-level work.”

This means that many professionals will find new ways of doing things. “Imagine all the mundane tasks you have to do in your daily job now,” Addicoat continues. “With these new ways of working, imagine the speed with which you can turn an idea into something real. All that time you free up allows you to go talk to people and build relationships that mean something.”

On the other side of things, the sheer volume of AI-generated content out there is going to drive people towards those more meaningful interactions. “You don’t know what to trust and what to believe anymore,” Addicoat says. “That’s going to lead to a resurgence in face-to-face content, being at the office, and being at events.”

AI’s impact on procurement talent

The talent landscape is changing. With technology playing a larger part than ever before, organisations don’t just need procurement professionals, they need adaptable, tech-savvy people. The nature of the job means that those in procurement need a wide range of skills. 

“We do everything,” says Addicoat, “legal, operations, supply chain, negotiation, analytics. Procurement professionals are generalists.” 

Tech plays into every element of that skillset, which means tech skills are becoming even more important for candidates applying for procurement roles. “Nobody goes to college thinking they’ll be a procurement professional,” says Mahajan, “but with AI and tech, that’s changing.”

With procurement often seen as a proving ground for leadership, embedding these tech-minded generalists could have a huge impact on the future. “We have a shortage of talent,” explains Addicoat. “But with more and more CEOs and COOs coming from procurement, that speaks volumes to what procurement does and the value it brings, as well as what the future holds.”

At AlixPartners, the passion for procurement is very clear with Addicoat saying: “There are only two kinds of people in the world: those who love procurement and those who don’t know it yet.”

Change is coming

With AI of all forms steadily gaining traction, procurement could change dramatically in the coming years. It’s the organisations that are willing to take risks and embrace change that will come out on top.

“AI has the potential to disrupt the whole management consulting world,” says Mahajan. “Firms focused on transformation will thrive.” 

With AI’s capabilities increasing rapidly, it’s difficult to predict what comes next. However, adaptability is key. “Hold onto your hat. In a year and a half, the world’s going to look very different,” concludes Addicoat.

  • AI in Procurement

We sat down with Abe Eshkenazi, CEO of ASCM, to dig into the organisation’s focus points, and how CHAINge is addressing supply chain’s needs

Tell me a bit about your background, and how you got into supply chain.

Early in my career, I spent quite a bit of time in operations and materials management. We didn’t call it supply chain back in the day – it went by a number of different terms. Not surprisingly, given my role within ASCM, I worked closely with supply chain professionals, not only to elevate the role of the supply chain professional, but to understand the impact that supply chain has on business and society. 

At ASCM, we’re focused on not only supporting that competent, capable individual, but ensuring that organisations are responsible in terms of using supply chain to really enable consumers and patients to get what they need at a reasonable price and reasonable time. This is what supply chain is about. My background combines that business management education and deep engagement with supply chain professionals. This gives me a strong appreciation for not only their challenges, but the opportunities the field faces today.

Tell me about the planning for CHAINge NA this year. What were you looking to achieve when putting ideas together?

Today, supply chain professionals are trying to balance efficiency with geographic diversity and political resilience. They’re trying to put those things together and identify what would make an individual do their job better and exchange that information with others. So our planning is centered around a key theme, which is: how do we equip supply chain professionals for what’s next? 

The systems that we built for speed and cost optimisation are under stress right now. They’re struggling under the weight of complexity, volatility, consumer demands, and all the disruptions that we’re facing today. We’re being called today to rethink not only how quickly and cheaply we can move things and get them to the consumer, but how responsibly, transparently, and resiliently we can operate today. Our hope is that the engagement part of the event enables individuals to exchange information and walk away with insights and actionable strategies that can be taken back to their organisations and implemented. We’re truly looking for that engagement from the attendees. This is an event for the attendees, by the attendees.

It’s also about making the contact and relationships that we all depend on. We’re all seeking opportunities and examples of organisations that have done it better or have responded easier to the challenges that we’re facing today. This provides individuals with an opportunity to engage. We had an opportunity to do this at our European event, after which attendees overwhelmingly indicated that the engagement part – the opportunity to exchange information learned from each other – was a key element of the event itself. We’re trying to replicate that, but with the amount of issues that the US is facing versus the rest of the world, the topics are going to be a little bit different here.

What are the core topics covered at CHAINge NA that you think are most helpful for supply chain professionals?

We need to take a temperature of the current environment, and not surprisingly, we structure the event around several core themes that we’re all facing today. First, resilient and agile supply chains. The adaptability that’s required today is unlike any time that we’ve ever faced. We’ve had disruptions before, and we’ve responded as an industry. Today, we’re continuing to respond, but the pressures on these individuals due to day-to-day uncertainty has created a very different environment.

The second core topic is emerging technologies. As the focus on resiliency and agility becomes much more critical, there are only a few ways to gather the data necessary to enable organisations to make informed decisions. Not surprisingly, AI, digital twins, and a whole host of scenario planning technology tools are a focus for a lot of organisations today. Digital transformation is happening in almost every organisation to shore up their visibility, their transparency, and their traceability.

Also, advancing sustainability practices. We can’t forget that at the end of the day, we still need to be sustainable as an industry. This has been a huge focus within supply chain. It’s taken a little bit of a backseat in the current environment, but organisations are still focused on ensuring that they are sustainable and ethical in their business practices. Lastly, no discussion can be had without understanding what the talent availability is, what their capabilities are, and whether we are ensuring that we do have the right talent.

How important is collaboration (accelerated by things like CHAINge) in supply chain, especially as the landscape becomes more complex?

In today’s environment, as we focus on visibility and on connecting all parts of our supply chain end-to-end, we understand the demand signals clearly so that we can address them appropriately. Collaboration is no longer optional – it’s essential. No single individual organisation can solve today’s challenges on their own, whether it’s navigating geopolitical tensions, managing risk in a global network, or even driving sustainability. The solutions demand cross-functional and industry collaboration. It used to be that the Chief Supply Chain Officer in the back room was only called upon when there was a crisis. Well, I think we’ve got enough crises today that we need to push that individual into the front office.

First, we need to enable them to use their voice at the table to advocate for appropriate supply chain practices, but also in combination with a wide range of other roles. These are the teams that are now addressing these issues. It’s no longer just a supply chain issue; it’s an organisational issue. It’s a societal issue that we now need to address, and there’s only one way to address that; that’s through collaboration within the organisation, as well as with your partners, your vendors, and your vendor’s vendor. This is a very dynamic environment today, and enabling organisations to have that complete visibility and connectivity is critical.

There’s been a lot of talk about a shortage of talent across supply chain; how big an issue is this, from your perspective? And how can it be overcome?

From our perspective, it’s one of the defining issues of our time. As supply chain has moved from the back office to the boardroom, so has the demand for skilled professionals. More often than not, supply chain people come out of finance or engineering. In today’s environment – a very diverse workforce – digital natives are coming into the workforce. They’re not only adaptable, but very comfortable with modern technology. It’s a little bit of a reverse from the leadership that we have in supply chain today, that may still be using that Excel spreadsheet on their systems. Supply chain has the demand for those skilled individuals.

To address this, we’re focused on a number of things. First, expanding the awareness of supply chain as a rewarding career path, which our salary and satisfaction surveys confirm. Secondly, talking openly about investing in ongoing professional development. We’ve been to a lot of conferences and whether we’re talking about AI, sustainability, or disruptions, at the end of the discussion, it always comes down to people. We should be talking about the people at the beginning of the discussion as opposed to the end of it. We need to create that opportunity for individuals to see that they can not only make a difference, but that their voice is heard and followed on within their organisation. That’s what we’re preparing supply chain professionals for. 

We need to provide an inclusive workplace that attracts and retains that diverse talent. As I indicated before, individuals coming into the workforce are digital natives. They’re very adept at AI and they’re more than willing to jump in with the technology. We need to enable them with problem solving, critical thinking, and experience on the job. I couldn’t be more excited about the individuals coming into the workforce today and the focus, and they’re able to change the world through supply chain.

How can supply chain professionals approach the challenge of ever-changing regulatory requirements?

Financial markets and supply chains do not like uncertainty. We like certain demand signals so we can ensure that our supplies are appropriately managed. Supply chain professionals need to have robust systems to monitor changes and provide that data, or the regulatory information and policy individuals reporting become significant. Among the concerns that we have is that more often than not, it’s become regulatory or policy and it becomes a checklist. Part of that concern is whether we’re really focused on really making a change, or focused just on those compliance checklists that often drive down to minimum effect.

Today, technology helps, but so does developing a culture of compliance and resiliency. Once again, collaboration matters, sharing best practices across industries, and enabling individuals to understand that there are ways to respond to the regulatory and the policy changes. 

What are some of the most exciting innovations happening in supply chain today?

I think the combination of the people and technology is what’s going to make an exponential difference. On the technology side, tools like advanced analytics, AI, and digital twins are transforming how we forecast, manage risk, and build resiliency. The real innovation is combining cutting edge technology with a highly skilled, adaptable workforce. I heard a fantastic quote the other day: ‘AI is not going to take your job; an individual using AI is going to take your job’. That’s where the focus is right now – enabling individuals to use technology to really leverage that and enable organisations to be much more responsive and agile, as they address demands.

  • Digital Supply Chain
  • Events
  • Host Perspectives

Nigel Greatorex, Global Industry Manager at ABB, on how digital technologies can support decarbonisation and net zero goals

Nigel Greatorex is the Global Industry Manager for Carbon Capture and Storage (CCS) at ABB Energy Industries. He explains how digital technologies can play a critical role in the transition to a low carbon world by enabling global emissions reductions. Furthermore, he highlights the role of CCS and how challenges can be overcome through digitalisation.

Meeting our global decarbonisation goals is arguably the most pressing challenge facing humanity. Moreover, solving this requires concerted global action. However, there is no silver bullet to the global warming crisis. The solution requires a mix of investment, legislation and, importantly, innovative digital technologies.

Decarbonisation digital technologies

It’s widely recognised decarbonisation is essential to achieving net zero emissions by 2050. Decarbonisation technology is becoming an increasingly important, rapidly growing market. It is especially relevant for heavy industries – such as chemicals, cement and steel. These account for 70 percent of industrial CO2 emissions; equal to approximately six billion tons annually.

CCS digital technologies are increasingly seen as key to helping industries decarbonise their operations. Reaching our net zero targets requires industry uptake of CCS to grow 120-fold by 2050, according to analysis from McKinsey & Company. Indeed, if successful, it could be responsible for reducing CO2 emissions from the industrial sector by 45 percent.

A Digital Twin solution

ABB and Pace CCS joined forces to deliver a digital twin solution. It reduces the cost of integrating CCS into new and existing industrial operations. Simulating the design stage and test scenarios to deliver proof of concept gives customers peace of mind. Indeed, system designs need to be fit for purpose. Also, it demonstrates the smooth transition into CCS operations. Additionally, the digital twin models the full value chain of a CCS system.

Read the full story here

  • Sustainability Technology

In early 2019, the Voluntary Health Insurance Scheme (VHIS) was introduced in Hong Kong by the Food and Health Bureau…

In early 2019, the Voluntary Health Insurance Scheme (VHIS) was introduced in Hong Kong by the Food and Health Bureau to regulate indemnity hospital insurance plans offered to individuals, with voluntary participation by insurance companies and consumers. The VHIS was designed as a means of encouraging and supporting customers to purchase private healthcare services and for Koh Yi Mien, Managing Director Health and Employee Benefits at AXA Hong Kong, this scheme represents a broader transformation of healthcare and insurance services. “Currently, the demand on healthcare in Hong Kong in the public sector is incredibly high with very long waiting times and waiting lists,” she explains. “As a result, people just aren’t getting timely access to treatment. The private sector in Hong Kong, which is world-class, has capacity. So, if we can rebalance and shift some of the elective work from public to private, it will free up more people to use the public service in a timely fashion.”

Yi Mien also points to a global drive for greater transparency, accountability, use of data and technology as well as promoting customer choice as key drivers of change in the insurance space. “It’s no longer a case of simply providing reimbursement to people when they need treatment,” she says. “It’s about being the patient’s partner throughout their whole life so that when they need healthcare, whenever and wherever they are, we are there to help and support them in their times of need.” 

The modern-day insurance customer is very different from the customer of the past. We live in times of greater access to information through the advent of social media and the increasing influence of the Internet and this has resulted in insurance customers being more knowledgeable about their conditions and asking more questions of their doctors than ever before. As a result, the balance between the customer and the healthcare provider is becoming more equitable. “Customers and patients, as a result, are becoming more demanding,” says Yi Mien. “Gone are the traditional ideas that doctor knows best. It’s not uncommon for patients to see their doctor with a list of demands, while expecting to be serviced.”

Running parallel to becoming more knowledgeable and demanding is the use of smartphones and how it has created a culture of service in an instant. When customers purchase etiquettes or use banking services, they expect the ability to be able to access and complete these transactions and services via their smartphone devices. Fewer and fewer people are accessing physical bank branches and the healthcare insurance sector, despite being still very traditional, is feeling the effects of this instant demand. “Healthcare is a very traditional sector sure, but asking patients or customers to book weeks in advance and telling them they don’t really have any choice is becoming increasingly unacceptable and so healthcare becomes a commodity,” says Mie Koh. “They, like any other customer, vote with their feet and want 24/7 access to quality healthcare without waiting directly from us as the insurer.”

The informed customer and patient have also transformed the relationship between customer and doctor. It is no longer a bilateral relationship and the entire healthcare ecosystem works to provide services from prevention right through to treatment. The result? Insurers like AXA work with customers before they are sick and encourage them to maintain their health, but they also work with clients during their illness and even afterwards AXA will continue to treat them in their rehabilitation. “During their healthcare journey, customers want some handholding in order to navigate the very complex healthcare system, to make sure they get the right healthcare provider, doctor and hospitals that are best for them in their time of need,” says Yi Mien. “This can only happen if we are using digital so that it becomes more real time.”

AXA has been embracing technology for a number of years to be able to serve and effectively work with its customers. It achieves this by starting with the definition of a product, because the product sets the rules. Yi Mien highlights that the rules would often be how AXA would spell out the terms and conditions, the provisions, but these rules also set the customer expectations. Throughout late 2018 and 2019, AXA has invested in digital to enable its customers to buy online, service online, claim online and check-up online. The company also launched a servicing app called Emma, a ‘digital companion’ that enables even faster service. Yi Mien describes this app as a true “health companion”. She is also keen to highlight that the technology is only part of the story. AXA has built a vast medical network with some of the leading hospitals and doctors and customers simply having to log into their companion app to be able to access this network at the touch of a button. “All they need to show is their digital card, their e-card, and with the QR code, the provider just scans it. All of the data is downloaded and all they need to do is sign, get their treatment, and then when they discharge, just sign that they have received the treatment and off they go,” she says. “The hospital will bill AXA directly so there’s no out of pocket. The data is also transmitted to AXA which means that we have more comprehensive and more reliable data.”

Comprehensive and reliable data is crucial to the technology journey of AXA, but it is also integral to the customer journey. With a customer’s entire electronic medical records stored effectively and securely, as Yi Mien notes, why would they go anywhere else? The data that an insurer handles is often complex in nature, but this data is processed through artificial intelligence, with AI being used to process claims more effectively and interpret the information to allow AXA to create rules and algorithms to better serve its customers. AXA also utilises AI through its companion app Emma. “Emma is our chatbot,” explains Yi Mien. “Emma has been built up based on a multitude of Q&As that our customer services team have recorded and collected over many months and years. As we continue to build, and more people use Emma, then the quality of the responses she has in her arsenal will improve.” In the first two months of operations, Emma recorded an accuracy level of 50%. Yi Mien firmly believes that as more people engage with Emma and as a result, the chatbot will evolve and become more of a real-time navigator that can direct customers across the whole ecosystem.

In the global discussion around AI, the topic of transparency is often a key point of debate. With governments around the world shining a spotlight on exactly what data is collected and how it is used, AXA ensures that it maintains an open and transparent dialogue with its customers. As customers engage with Emma and the companion app, they can at any time request their transcripts. Should they choose to speak with a human adviser, all calls are recorded and again they can access those recordings should they wish. Not only is this an example of AXA complying with global governing laws, it also highlights that the customer is at the very heart of every decision it makes and it maintains this as it continues to implement new technologies. “If you look at banking as an example, we all are so used to accessing our bank accounts at any time, be it through our phones or online,” says Yi Mien. “If we want to speak to someone, we can. If we want to go into a branch, we can. I believe this is the way to go with insurance as well. We make it easy for our customers to contact us. We are doing everything we can to allow that.”

“Healthcare is quite personal, so we are doing what we can to allow customers to speak to people, should they not wish to use our chatbot. These are very personal journeys and digital is still in its early days, so we really have to provide different avenues and channels for our customers to contact us.”

As Yi Mien notes, AXA designs its customer journey by starting at the product and going through all the way to treatment. The company makes every decision with the customer’s perspective in mind. As a doctor by trade, Yi Mien sees that all new products are designed by doctors because they understand how the patients move throughout the whole healthcare ecosystem. When AXA designs new products, it does not operate within a vacuum. It has a customer insight group, where around 1,000 customers operate as a real-time focus group in which AXA can test its products with. “When I think about future products, we will test with this group of people and get feedback to see whether we are aligned with the current customer need. So, it’s not just technology per se, but actually meets a customer’s needs,” she says. “One other area to make sure that we are doing the right thing, because technology also costs money, is to make sure that we are very robust in what we do. AXA is unique in that we sell life insurance, health insurance, employee benefits, and we also have P&C. So, being a multi-line insurer, we have the opportunity of having one approach and cross-selling across the business lines, which is a fantastic opportunity. We can only do that through technology.”

Over the course of her career, Yi Mien has been a champion of the transformative effect of technology in becoming a greater enabler for healthcare and healthcare insurance providers around the world. One area in particular that is close to her heart is the mental health space. In Hong Kong, the waiting time to see a psychologist is close to two years and if patients were to seek private care, it is an expensive solution. “Look at a country like Hong Kong, or Australia, they are so vast that there just aren’t enough practitioners to cover the breadth of the geography. Digital is the solution,” she says. “Digital enables people to seek, support and care at the time that is most convenient for them.”

“In the past two to three years, there has been a proliferation of digital tools. Recent studies have shown that digital tools are as good as, if not better, than in-person therapy because customers prefer to talk to a robot rather than face-to-face because they feel that the robot is not judging them.”

Another example that Yi Mien highlights is in the UK, where a VR program has been developed by programmers that is therapy through gameification. The treatment is consistent every time and because of its mobile platform, it is accessible. “We can provide it where you work,” she says. “That’s just one example as to how we can destigmatise mental health through technology.”

AXA operates within a broad healthcare ecosystem, an ecosystem made up of partners, providers and doctors and Yi Mien stresses that in the future of insurance, it will be impossible for insurers to control the ecosystem. “I don’t foresee a future where that happens,” she says. “Partnerships are incredibly important. Things are moving so fast there’s no way we can catch up alone. We need to have partners, collaborators, who are working together to ensure we are at the top of our game and at the forefront of innovation.”

“Over the course of our lives, so many different things can happen and so people will need better care and support. By having a collection of data that represents our customer’s needs we are able to push or suggest services that better meet those needs. In order for us to do that, we need to have players collaborate in the ecosystem. It’s imperative.”

As AXA continues this digital growth journey, the next few years will be defined by improving the agility of the digital companion in order to improve the interaction with customers. AXA will also be looking at developing a digital marketplace in which customers can go shopping within an AXA owned digital platform. For Yi Mien, though, the future is clear for AXA and in order to be successful, she feels it’s down to one thing. “AXA has a clear digital strategy for sure, where it will transform its digital system and build new IT infrastructure to transform the customer experience,” she says. “But the technology is only one part of the story.”

“Unless we can transform the customer experience to deliver a service they truly value, then technology doesn’t do anything. It’s important to recognise that technology is enabling us to transform healthcare, to make it easier, faster, and cheaper for people to receive care. That means in the long-term, sustainable healthcare and health services, which fits into sustainable insurance.”