Sourcing and Procurement in the Age of AI: Key Insights from Our March Roundtable

🔍 The New Era of Supplier Visibility and Transparency

As global trade dynamics continue to evolve, supplier transparency is more critical than ever. The conversation underscored the importance of understanding tier 2 and tier 3 suppliers to assess true tariff exposure and mitigate potential supply chain disruptions.

AI-Driven Supplier Transparency 

One participant, Head of Supply Chain Functional Excellence, highlighted how AI and data analytics are helping his company narrow down high-risk areas impacted by tariffs. By using tools like Sayari, his company is gaining deeper insights into supplier networks beyond immediate tier 1 partners. However, he emphasized that manual supplier conversations remain essential in uncovering blind spots that technology alone can’t identify.

“Transparency is key—AI can highlight potential risks, but you still need to talk to suppliers one-on-one to truly understand their sourcing patterns,” he explained.

Data-Driven Supplier Analysis

A Senior Director of Inventory discussed the company’s focus on diversifying vendor bases to minimize tariff exposure. With a direct-to-manufacturer sourcing model, his company is using AI to analyze pricing, tariff impacts, and supplier diversification options. He stressed that vendor negotiations are an ongoing process, with AI helping to identify opportunities for cost mitigation.

💡 AI Applications in Strategic Sourcing and Scenario Modeling

AI is transforming strategic sourcing by enabling organizations to simulate complex scenarios, optimize procurement decisions, and improve supply chain resilience.

Scenario Modeling and Tariff Impact Analysis 

A participating Chief Supply Chain Officer shared his company’s experience with scenario modeling to quantify tariff exposure. Using AI, his company is simulating multiple outcomes to evaluate whether to absorb, pass on, or mitigate tariff impacts. This approach enables the company to model pricing elasticity and explore the potential of using tariffs as a go-to-market opportunity.

“We’re constantly running models to predict the impact of tariffs on our trucks. It’s about understanding where the risks lie and making data-driven decisions to protect our margins,” he noted.

Dual Sourcing and Supplier Prioritization

Scott Parkinson, former VP of Procurement at Metal Sales, emphasized the importance of dual sourcing to mitigate risk. He advised maintaining consistent business with secondary suppliers to ensure priority treatment when switching suppliers becomes necessary.

“Dual sourcing is critical, but you can’t wait until a tariff hits. Build supplier relationships now so that when you need to shift sourcing, you’re at the front of the line,” Scott advised.

📊 Navigating Tariffs and Regulatory Complexity with AI

Tariffs, trade restrictions, and regulatory requirements are reshaping sourcing and procurement decisions. Leaders emphasized that AI-driven modeling and supplier intelligence are critical for navigating these complexities.

Tariff Diversification and Supplier Shifts

A participating Director of Procurement shared how his company is using business intelligence and AI to track commodity price fluctuations and evaluate sourcing diversification options. His company is also sourcing new packaging solutions to mitigate tariffs on goods from China, demonstrating the need for continuous scenario planning.

Quality Control and Vendor Compliance

A participating SVP of Supply Chain Operations highlighted the quality control challenges that arise when negotiating tariff offsets with suppliers. He warned that vendors often compromise on materials and specifications to absorb costs, which can erode product quality and impact customer satisfaction.

🚀 The Role of Agentic AI in Procurement Automation

A significant portion of the Roundtable focused on agentic AI and its impact on procurement automation. AI-powered agents are increasingly taking over sourcing tasks, with companies leveraging AI to automate supplier selection, negotiation, and decision-making.

AI-Powered Sourcing Automation at Keelvar

Alan Holland, CEO of Keelvar, discussed how agentic AI is transforming procurement operations. Keelvar’s AI-powered sourcing agents are now managing 71% of sourcing events autonomously, with that number expected to hit 90% by year-end.

“We’re moving toward a world where AI agents handle most sourcing events, freeing up procurement teams to focus on strategic oversight and continuous improvement,” Alan noted.

AI-Driven Supplier Risk Analysis at Solid Intel

Meg Reiss, CEO of Solid Intel, highlighted the use of AI pipelines to assess supplier risk by integrating open-source intelligence and data sources. Solid Intel’s approach combines base data with AI-driven fact-checking to ensure supply chain transparency and compliance.

🎯 Key Takeaways for Sourcing and Procurement Leaders

As sourcing and procurement evolve in the age of AI, key takeaways from the March Roundtable include:

Leverage AI for Supplier Transparency: AI can illuminate risks hidden in tier 2 and tier 3 supplier networks, enabling more informed decisions.

Model Multiple Scenarios to Mitigate Tariff Impact: Scenario modeling helps quantify the potential outcomes of absorbing, passing on, or mitigating tariff costs.

Embrace Agentic AI for Procurement Automation: AI agents are transforming procurement operations by automating supplier selection, negotiation, and compliance monitoring.

Build Supplier Resilience Through Diversification: Dual sourcing and supplier prioritization ensure supply chain agility during disruptions.

🔮 Final Thoughts: Preparing for AI-Driven Procurement Transformation

The future of sourcing and procurement will be defined by AI-powered transparency, resilience, and agility. Companies that invest in scenario modeling, supplier intelligence, and agentic AI will be better positioned to navigate geopolitical volatility and drive cost efficiencies.

“AI isn’t just about efficiency—it’s about building resilient, future-proof supply chains that can adapt to an unpredictable world.”