Gugulethu Hughes

Companies are rapidly integrating generative AI into procurement and sourcing decisions. The promise is obvious. AI can read thousands of pages of supplier proposals faster than any human team, summarize technical requirements in seconds, and create the appearance of consistency and objectivity in evaluation. But there is an important distinction managers are starting to overlook. The same AI system that performs extremely well at identifying whether a supplier meets minimum requirements may perform much less reliably when judging which supplier is truly better. Recent research published in the Journal of Business Logistics examined this issue by comparing how large language models evaluated supplier bids against evaluations completed by experienced procurement professionals. It analyzed 123 supplier proposals tied to 31 public procurement projects conducted by the State of Ohio between 2023 and 2024. The projects involved complex IT services contracts, many containing large, text-heavy bid packages requiring evaluative judgment rather than simple arithmetic comparisons. The researchers tested three reasoning-oriented AI models: OpenAI o3, Grok-3-Mini, and DeepSeek R1. They then compared their evaluations against human procurement scores. The findings revealed a surprisingly clear pattern. AI performed well when evaluating compliance signals. These are signals tied to baseline qualifications and technical requirements. Does…

In a rapidly evolving global supply chain landscape, SAP’s David Vallejo believes the most exciting innovations are happening in planning—and that the industry is entering a fundamentally new era. At the Gartner Supply Chain Planning Summit 2025 in Denver, Vallejo, who leads global product marketing for SAP’s supply chain portfolio, joined Scott Luton to discuss how planning is transforming, why data now sits at the center of competitiveness, and what SAP is doing to help organizations make faster, more confident decisions.   A Shift From ERP-Centric to Data-Centric Vallejo described his team’s role as one that constantly scans the market—identifying trends, customer expectations, and the problems companies will need to solve next. Those insights help shape new innovations across the SAP ecosystem. He noted that SAP has moved decisively from an ERP-centric worldview to a data-centric one. This shift is essential, he argued, because the biggest advantage in modern planning lies in having the right data—clean, connected, contextualized, and ready to drive decisions. As Vallejo put it, “It’s all about the data that I need to make better planning decisions.”   Planning Models Are No Longer Static Reflecting on how planning has evolved since he entered the field two decades…