Volume 18 No 7 (2020)
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Automating Procurement Processes with Machine Learning in ERP
JAYAPAL REDDY VUMMADI
Abstract
The increasing complexity and demand for efficiency in business operations have driven organizations
to explore automated solutions for their procurement processes. Machine learning (ML), integrated
with Enterprise Resource Planning (ERP) systems, is a promising approach for automating
procurement workflows, optimizing decision-making, and enhancing operational efficiency. This
research explores the use of machine learning algorithms within ERP frameworks to streamline
procurement tasks such as supplier selection, demand forecasting, order processing, and inventory
management. By leveraging historical data, predictive analytics, and intelligent decision-making
systems, organizations can reduce costs, minimize errors, and ensure more accurate procurement
outcomes. The study presents a comprehensive approach to automating procurement processes using
machine learning within ERP systems. A robust methodology is designed to explore the capabilities of
various ML algorithms in predicting procurement needs and enhancing decision-making through datadriven insights. The effectiveness of these techniques is assessed using case studies from industryleading organizations. Furthermore, the research includes an evaluation of the challenges involved in
integrating ML with ERP systems, the impact of automation on procurement performance, and the
mitigation strategies to overcome these hurdles. Through empirical analysis and comparison with
traditional procurement methods, this paper demonstrates the potential benefits of ML-enabled
procurement automation, including enhanced accuracy, reduced operational costs, and improved
supplier relationship management. By comparing historical data and case study results, the research
provides a detailed examination of how machine learning can transform procurement processes in
modern organizations.
Keywords
Machine Learning, ERP Systems, Procurement Automation, Predictive Modeling, Supplier Selection, Inventory Management, Demand Forecasting
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