5 Practical Ways you can use Chat GPT as a Procurement Professional

Tried, Tested, and only the start of what is possible

Hey, Procurement Legends - I’ve avoided this topic because I didn’t want you to think I was doing stuff for the clicks. But the immediate hype has died down, so I wanted to give you some insights into this.

1 - Sending Emails when a Supplier sends you a [invoice]

This use case is wide and could work with just about any software app that Zapier integrates with that you use.

The use case is this: When you receive a new invoice, create an email to let the Supplier know when your payment windows are. Or it could send them an email with a link to your FAQs around payment or anything you want.

Why is this important?

By creating an email to let the Supplier know when your payment windows are, you can avoid any misunderstandings or delays in payment. This will help maintain a good relationship with your supplier and ensure timely payment of invoices.

And create an email draft ready for your review before sending.

How: Create a Workflow in Zapier like this (I’ve included an image below):

Finance Software such as Xero - Zap - OpenAI Prompt Generated to create this email - Zap - Gmail (create email draft but don’t send).

There’s so much you can do utilising no-code solutions to automate much of what you’re doing. The best bit: it’s easy to use and affordable.

Zapier is an incredible application that connects apps together without you having to worry about coding anything with their APIs.

2 - Analyse large datasets

Procurement professionals often deal with large datasets.

With Chat GPT, you can upload these datasets as structured plain text data and ask it to share spend for a particular month or a category (of course, this is table stakes in Procurement Tech such as Gatekeeper).

By analysing these large datasets, you can identify trends or patterns that may interest your company.

This is incredible as you may find it picks up on stuff that you’ve not yet considered.

3 - Summaries (my favourite use case)

I take a lot of notes. These might be meeting notes, a paper, or a book on supply chain.

Sometimes, I find it difficult to summarise my notes on a matter mainly because it can be time-consuming.

That's where Chat GPT comes in. I can ask Chat GPT to summarise these notes for me. This saves me a lot of time and effort.

PS. Don’t ask it to summarise anything you consider to be confidential or commercially sensitive. Common sense prevails here, and you can redact.

PSS. I now use NotionAI to do this within my Notion Second Brain. Make sure you sign up for Notion and use this platform.

Personal Knowledge Management for Procurement Professionals

4 - Email Copy

Crafting an email to a supplier about a performance issue can be challenging. But with Chat GPT, you can get it to suggest some email copy.

This can help you communicate your message clearly and effectively.

Not much else needs to be said on this except that you want to give adequate insights into the issue (without disclosing confidential or commercially sensitive data). One way around this could be to create a hypothetical supplier and similar issue and manually replace those email sections.

5 - Interview Practice

Preparing for an interview can be nerve-wracking, especially if you are not familiar with the industry or role. With Chat GPT, you can ask it to help you prep for the interview. You can even get it to act like the interviewer and score your response. This can help you identify areas where you need to improve and increase your chances of getting the job.

So, as you can see, you can use Chat GPT as a Procurement Professional in many practical ways. By utilising its capabilities, you can save time, increase efficiency, and improve your performance.

6 - Creating Internal Documents

Creating templated documents is a great use case. I’ve done this for Procurement Policies simply by giving it some clear prompts.

Here’s an output it created for me, which is a great starting point:

[COMPANY NAME]

1. Procurement Policy

   1. Purpose

2. This Procurement Policy outlines the procedures and guidelines for purchasing goods and services at [Company Name]. The policy aims to ensure effective and efficient procurement practices, mitigate risks, and promote compliance with relevant laws and regulations.

   1. Scope

3. This policy applies to all employees of [Company Name] involved in the procurement of goods and services.

   1. Procurement Thresholds and Methods

4. a. Purchases under £500

   • These purchases can be made using a company credit card.

   • Approval from the employee's direct manager is required.

5. b. Purchases between £500 and £25,000

   • A Purchase Order (PO) must be issued.

   • Contract Terms must be agreed upon.

   • Approval from the employee's direct manager and the Finance Department is required.

6. c. Purchases over £25,000

   • The sourcing process must be followed.

   • A Purchase Order (PO) must be issued.

   • Contract Terms must be agreed upon.

   • Approval from the employee's direct manager, the Finance Department, and the Procurement Team is required.

   1. Sourcing Process

7. The sourcing process is applicable to purchases over £25,000 and software purchases of any value. The process includes the following steps:

8. a. Identify the need and define specifications. b. Conduct market research. c. Develop a sourcing strategy. d. Identify potential suppliers. e. Obtain and evaluate bids. f. Negotiate contracts. g. Award contracts. h. Manage supplier relationships.

   1. Software Purchases

9. All software purchases, regardless of value, must go through the sourcing process and adhere to the company's IT and cybersecurity policies.

   1. Contingent Labour Purchases

10. All contingent labour purchases must be made using the company's contract terms, which include provisions for confidentiality, intellectual property rights, and data protection.

    1. Supplier Selection and Due Diligence

11. Employees must follow ethical and transparent practices in the selection of suppliers. Due diligence should be conducted on potential suppliers, considering factors such as financial stability, quality of goods and services, delivery times, and compliance with laws and regulations.

    1. Conflict of Interest

12. Employees involved in the procurement process must disclose any potential conflicts of interest and refrain from participating in decisions where a conflict may exist.

    1. Record Keeping and Reporting

13. Employees must maintain accurate and complete records of all procurement activities, including approvals, quotes, contracts, and invoices. Regular reporting on procurement activities should be provided to the Finance Department and senior management.

    1. Policy Compliance

14. Failure to comply with this Procurement Policy may result in disciplinary action, up to and including termination of employment. Employees are encouraged to report any suspected violations of this policy to their direct manager or the Human Resources Department.

    1. Policy Review

15. This Procurement Policy will be reviewed and updated periodically to ensure its continued effectiveness and alignment with the company's objectives and applicable laws and regulations.

Have you used Chat GPT to assist your Procurement role yet?

For full disclosure, I'm a Notion Partner, so when you sign up with my link, you also help support me and my content!"