In the latest episode of the Contract Heroes Podcast, Samah Mahdi Abdulla, an industry veteran with over 15 years of experience in logistics and supply chain management, joined us to discuss how AI and robotics are reshaping procurement. Currently serving as a procurement lead at a multinational fast-moving consumer goods (FMCG) firm, Samah has witnessed the tremendous impact of digital transformation firsthand. Cutting-edge technologies have the potential to dramatically increase operational efficiency and free up time for professionals to focus on higher-value, strategic tasks. However, many procurement leaders still have questions: What are the realistic benefits of AI automation for supply chain management? How do we overcome the roadblocks to adoption and implementation? AI and advanced robotics have been in the headlines repeatedly over the last few months. If you’ve seen this and wondered what it all means for procurement, this podcast is a must-listen! Let’s get into it.
Meet Samah Mahdi Abdulla: A Procurement Expert
Samah Mahdi Abdulla has dedicated years to mastering the intricacies of procurement, possesses a master’s degree in Logistics, and holds an MCIPS Level 6 certification. Passionate about guiding the next generation of supply chain professionals, she is also a board member at the School of Logistics and Maritime Studies at Bahrain Polytechnic, where she bridges the gap between industry and academia. Throughout her career, she has led strategic sourcing initiatives throughout the Middle East-North Africa (NEMA) region, driven cost optimization strategies for brands like IKEA, and monitored air, land, and sea compliance for multinational firms such as Expeditors International. Through both her corporate work and educational contributions, Samah champions innovative approaches that transform traditional procurement processes and deliver measurable business value in increasingly complex supply chains.
The AI Revolution: How Intelligent Systems Are Automating The Supply Chain
AI is everywhere, but what is it doing for procurement? Samah answered this question by highlighting how AI-powered applications enhance procurement decision-making through advanced data analysis. Predictive forecasting systems are helping businesses avoid stocking issues and anticipate resource demands for warehousing, vehicles, and containers. Intelligent solutions can integrate information from multiple sources—including sales history, promotional calendars, seasonal trends, and even weather patterns—and generate highly accurate forecasts for each SKU across different regions.
These platforms can predict with remarkable precision exactly how many pallets are needed each week, how many trucks are required for shipments, and when additional warehouse space is necessary. Armed with the insights they need to make the right decisions, procurement professionals can reduce inventory costs, improve perfect fulfillment rates, and focus more on high-level strategy.
Automating Supplier Performance Tracking
To truly understand the practical effects of AI on the future of procurement, we asked Samah for a real-world example of a task that AI can effectively automate to increase supply chain efficiency. She shared that AI is a key feature of modern supplier performance management (SPM) software. Traditionally, companies have tracked supplier performance management manually by typing various data points into Excel spreadsheets. This is incredibly slow and time-consuming. It’s also highly prone to error and leaves your procurement team stuck on data entry tasks. Advanced SPM software automatically tracks supplier performance metrics like on-time-in-full (OTIF) rates, delivery accuracy, quality compliance, and response times. This gives companies an accurate way to measure supplier performance so that they can determine the best firms to partner with. She pointed out that this leads to better delivery times, reduced costs, and improved negotiations.
The Role of Robotics In Procurement’s Digital Transformation
Robotics and AI are closely related but are different technologies. Samah stressed that both advancements are key parts of the digitalization wave that’s happening right now. However, it’s essential to differentiate between the two technologies. She explained that AI involves the automation of the intellectual side of logistics, enhancing the software programs and applications that businesses use to manage supply chain processes. However, robotics involve the physical automation of processes like picking and transportation. For instance, automated guided vehicles (AGVs) could be used instead of human-run forklifts. Drones and self-driving cars could be used to deliver products, reducing the need for drivers. These developments are likely to significantly reduce costs in the coming years.
The Key To A Smooth Integration of AI and Robotics
Digital transformation is a change. Change is almost never easy, especially for well-established organizations. Samah underlined the fact that overcoming this resistance is absolutely essential for the effective adoption of technologies like AI and robotics. She described a four-step process where change advocates and procurement leaders:
- Assess the current system and reveal its gaps
- Define the vision of what advanced tools could do for the organization
- Secure stakeholder buy-in, including IT, executives, and suppliers
- Design a phased rollout
- Train users
Samah then shared a real-world story from her current firm, which is working to install a new supplier relationship management (SRM) system. It functions as an AI-powered portal that provides a single source of truth for suppliers and internal stakeholders alike. This ensures that data is never lost and removes the need to go into separate emails and spreadsheets. She described how her team is working to achieve a smooth transition by following the steps outlined above.
Short-Term Challenges To Full Implementation of AI and Robotics
As we rounded out our discussion, we took off our optimistic glasses for a second to focus on the real-world challenges impacting the adoption of these technologies. Again, Samah returned to the problem of resistance to change. She pointed out that the biggest difficulty is not the tools, it’s usually the people. People become accustomed to their traditional processes. They get into a comfort zone, and they don’t want change. To overcome this, she recommended that businesses focus on creating a culture of innovation. She also discussed the importance of carefully crafted communication to ensure that everyone understands the benefits of these solutions.
Another issue Samah runs into is implementation cost. Although these systems can unlock incredible efficiencies, companies still have to pay for the robots, the self-driving trucks, or AI software. Procurement needs to develop a convincing business case to justify those upfront costs.
Finally, many businesses struggle with data quality. AI platforms are only as good as their training data. If you feed them inaccurate or poorly formatted information, the systems will not be able to provide the features you need.
Samah’s Vision of Procurement’s Future
At the conclusion of our conversation with Samah, we asked her to share her vision of the future of procurement. She made one thing abundantly clear: the next era of procurement lies in embracing digital transformation through AI and robotics. She described a potential world where warehouses are entirely autonomous. A new kind of procurement where efficiency is king, with robots operating 24/7, handling picking tasks and moving pallets as necessary, while self-driving vehicles and drones deliver packages to customers quickly and efficiently. The journey towards this digital future isn’t without obstacles, but by focusing on stakeholder engagement, careful implementation, and addressing human challenges, organizations can harness the full potential of these new technologies. This episode of Contract Heroes was brought to you by Koho Consulting, your trusted partner in optimizing contract lifecycle management solutions.
