Thaweesakdhi Suvagondha 

Supplemental material for EP 2.4: Non-personal Purchaser on my YouTube Channel.

A non-personal purchaser refers to an automated system, often powered by artificial intelligence (AI) or machine learning, that assists in or executes purchasing decisions without direct human intervention. These systems, such as procurement bots, automated bidding systems, or AI-driven purchasing tools, analyze supplier data, pricing, inventory, and contract terms to make purchasing decisions based on predefined criteria like price, quality, or delivery time. Non-personal purchasers are common in e-commerce platforms, supply chain management, and automated procurement systems.

1. Management of Non-Personal Purchasers:

• Procurement and IT Teams: The responsibility for managing non-personal purchasers falls under both procurement departments and IT teams. Procurement teams define the criteria the system follows, while IT teams ensure the system runs smoothly.

• Monitoring Performance: Like non-personal sales tools, non-personal purchasers should be monitored for performance. Key performance indicators (KPIs) might include order accuracy, cost savings, fulfillment rates, and supplier performance.

• Error Handling and Escalation: It’s essential to have human oversight for handling exceptions or complex purchasing decisions that the system may not be equipped to handle.

2. Development of Non-Personal Purchasers:

• Rule-Based or AI Models: The development of a non-personal purchaser involves setting up a rules-based system or utilizing AI models to make autonomous purchasing decisions. For instance, the system could be programmed to reorder materials when stock reaches a certain level or choose the most cost-effective supplier based on specific criteria.

• Customization: The system must be developed to align with the company’s specific procurement policies, supplier contracts, and product needs. This can involve customizing the algorithms to meet different purchasing conditions, such as supplier lead times or quality standards.

• Integration with Other Systems: Non-personal purchasers must integrate with inventory management, supply chain systems, and accounting platforms to ensure smooth procurement processes.

3. Training Non-Personal Purchasers:

• Data-Driven Learning: If the purchaser is AI-driven, it needs to be trained on historical purchasing data, supplier performance, contract terms, and product specifications. Over time, the system improves its purchasing decisions based on feedback and new data inputs.

• Refinement of Rules/Models: For rule-based systems, periodic updates may be necessary as purchasing strategies or market conditions change. For AI-based systems, regular training on new data ensures they remain effective and continue learning from outcomes.

• Human Oversight for Complex Purchases: Even with non-personal purchasers, there will be situations that require human oversight—particularly for large, complex, or strategic purchases. Procurement teams may provide feedback to refine the AI’s decision-making capabilities.

Key Responsibilities:

• Procurement Managers: Define the criteria, rules, and thresholds that the non-personal purchaser will follow.

• IT/AI Development Teams: Handle the technical setup, algorithm development, and integration of the non-personal purchaser with other systems.

• Data Scientists: For AI-driven systems, data scientists oversee the training of the AI to improve its decision-making capabilities.

• Supply Chain and Finance Teams: Oversee the integration of the purchasing process with inventory and financial management systems.

In essence, non-personal purchasers operate autonomously, but they still require human oversight and ongoing training or refinement to ensure they are making decisions aligned with the organization’s purchasing strategies.

This blog is adapted from a video on the YouTube channel, AI Paths. Be sure to check it out for more insights into how AI is shaping the future of sales!

Be sure to check it out for more insights into how AI is shaping the future of sales!