How guided buying and virtual assistants can simplify procurement processes

Do you know this too? Actually, you just wanted to quickly order supplies for your printer cartridges. But thanks to the confusing catalog and the new requirements for selecting suppliers, it's taking forever again...

Placing orders for a company in compliance with the guidelines is not always easy and can cost a lot of time and nerves. And in the end, it also costs money, since the working time of the employees must also be remunerated and lengthy ordering processes also drive up the transaction costs.

In this blog post you will learn:

• What makes it difficult for employees to process orders?
• What is Guided Buying?
• What are chatbots?
• How does Guided Buying work with a chatbot?
• What are the advantages of Guided Buying with chatbots?

Employees outside the purchasing department often find it difficult to place orders. They often have to often have to search through a large number of very extensive and not always user-friendly online catalogs to find the desired item. In addition, they often do not know how to create a BANF in accordance with the guidelines.

This repeatedly leads to frustration and often also to expensive free text orders, which then have to be processed by the purchasing department. Or the employees buy directly past the purchasing department. This so-called Maverick Buying then leads to higher costs and other negative consequences for the company.

But buyers also have to deal with the requirements of supplier selection and ordering processes time and again. Complex and extensive regulations and guidelines must be observed in order to meet compliance requirements.

Memorizing all aspects, framework agreements and exceptional cases by heart and to always observe them correctly when placing an order is simply not possible for employees. Looking up regulations and manuals takes far too much time.

A personal assistant would be needed to help these employees. Someone who makes it easier for them to navigate these catalogs and even has the right answer to questions about supply chain law.

Of course, it is not possible to hire a real, human assistant for every employee. But that is not even necessary. Instead, companies can resort to guided buying through chatbots:

Guided Buying is an assistance function that enables users to purchase efficiently and conveniently. Requesters and purchasers do not need to read instructions before the ordering process, but automatically adhere to the procurement guidelines defined in the company.

E-procurement platforms, for example, can be used for this assistance function. These promise to simplify the ordering process, but basically employees are confronted with yet another complicated task. Here, too, they first have to learn how to use the platform and there is still no contact person to answer any questions. This is much easier with chatbots:

Chatbots are dialog systems that enable users to communicate with a bot in natural language. There are rule-based chatbots and smart chatbots that can understand and answer users' questions and intentions with the help of machine learning.

However, the capabilities of intelligent chatbots go far beyond simply answering individual questions: they can guide users through complex processes, retrieve information and store it in databases.

The fact that the exchange with a chatbot takes place in a dialogue, an ordering process can take place like a conversation with an experienced colleague:

The employees contact the chatbot and tell it what they want to order. The chatbot then uses various questions to obtain the necessary information. For example, it asks about the order quantity, the desired delivery date and other requirements that need to be met when placing the order. 

If different versions or suppliers are stored in the system for a product, the chatbot can make a comparison for the employees. However, it is also possible for the chatbot to display the company's preferred products and suppliers to users first. It can also suggest bundles or kits. This ensures that compatible products are ordered.

In some cases, it is less important from which supplier the product is supplied, but rather whether a certain quantity can be made available on a certain date.

Here, the chatbot can automatically send a request to the suppliers and check the availability of the product. As soon as the information is available, the purchasing department is informed and the employees can place the order.

If a step is not clear, the chatbot can explain it and provide assistance. Of course, users may ask a question that is not relevant to the order itself. For example, what the status of another order is. The chatbot can answer such questions and then guide the user back to the previous process.

During the ordering process, the chatbot ensures that regulations and guidelines are adhered to. For example, if employees want to order an item that has not been approved, the chatbot points this out. If possible, the chatbot suggests alternatives so that the order can be processed without further delay. If there is no alternative for the desired item, the chatbot contacts the person who can give approval.

This would also be the case if the desired order exceeds the maximum order value. The chatbot contacts the responsible person and, as soon as the approval has been given, can carry out the order independently. In this case, the requesters receive an order confirmation by email from the chatbot. If the approval is rejected, the requesters are also informed by the chatbot.

It is also possible to interrupt an order process and resume it later. This may be because the employees have to attend a meeting or because they want to consult with their supervisor. When users resume the conversation, the chatbot can access the old conversation history and pick up where it left off. The chatbot can also send a reminder if an order has not yet been completed.

This is possible because the chatbot can assign individual people to their individual employee accounts. At the start of a conversation, the chatbot asks the user to log in. This allows the chatbot to access all orders already placed by the person and other stored information as well as old conversation histories and use them to interact with the employees.

By using virtual assistants, employees can process orders without the involvement of Procurement. The fact that the purchasing department only has to be involved in individual cases relieves the burden on purchasers and gives them more time for other activities. It is much easier for the purchasers themselves to place orders in accordance with guidelines and contracts, as the chatbot helps them to apply the complex rules and regulations.

For internationally operating companies, the use of chatbots opens up the possibility of further accelerating processes. Chatbots are available around the clock and enable the seamless exchange of information. Different office hours are no longer a problem.

The acceptance of a guided buying solution is directly related to its user-friendliness. Chatbots can be operated completely without prior knowledge and, unlike e-procurement platforms, can respond individually to users. This makes them particularly suitable for guided buying.

How many routine tasks are handed over to virtual assistants and the degree of automation of ordering processes can be individually adapted to the needs and wishes of companies. This ensures that, on the one hand, employees are optimally supported and, on the other, that they can fully utilize their strengths. After all, people are still best at negotiating contracts with tact and building supplier relationships based on trust.

Would you like to know what an ordering process with a chatbot looks like in detail? Then get our whitepaper "Guided Buying - How Chatbots Can Prevent Maverick Buying".

Are you curious and want to know what other areas of application there are for virtual assistants in procurement? Then get our whitepaper "Smart chatbots in procurement":