AI as a Game Changer in Strategic Sourcing:
The case of Agro-processors and agri-based FMCGs in Africa
Africa’s supply chain activities are facing a difficult period as they deal with inflation, geopolitical uncertainty, and global supply chain constraints. Soaring external spending is putting severe strain on many corporations’ profit margins. Implementing a well-integrated procurement system and implementing consistent methods to fulfill a company’s strategic goals is a difficult phenomenon. Navigating digital procurement processes in order to achieve supply-chain resilience remains a challenge.
Technology is increasingly becoming a crucial enabler in automation of procurement and strategic sourcing in agri-based fast-moving consumer goods (FMCGs) and agro-processors. The application of technology in sourcing has resulted in considerable gains in efficiency, cost reduction, and quality control. However, the majority of companies in Sub-Saharan Africa continue to experience difficulties in establishing automated procurement systems. The absence of infrastructure, a lack of digital awareness, and the high expenses of technology adoption are major roadblocks to the successful application of the vice. Nonetheless, automation’s potential benefits make it a desirable field for investment and research.
Farmz2u’s goal is building an operational engine for growers, buyers, and suppliers in the agricultural eco system. One such engine is the Enterprise Resource Platform that is using AI to help buyers automate their procurement processes while also positioning itself as a strategic sourcing partner for these buyers. Farmz2u is collaborating with various key players in the value chain both in Nigeria and Kenya to automate procurement for FMCGs and agro-processors, as summarized below.
The use of digital platforms for procurement is a major technology that is becoming increasingly popular in agri-based FMCGs and agro-processors. These platforms enable centralized, automated raw material sourcing, decreasing the need for manual operations and paperwork. Organizations may simply manage supplier relationships, track orders, and assess performance with the help of these systems.
Farmz2u’s ERP solution employs Artificial Intelligence and Machine Learning capabilities to help agri-based FMCGs and agro-processors improve efficiency, cut costs, make educated procurement decisions, and improve quality control in their sourcing operations. As technology evolves, these organizations will most certainly continue to look for new ways to use it to enable them remain competitive in an unpredictable dynamic market.
