Jorge Koszeg

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…

Special Guest Blog Post written by Dyci Sfregola   Why planning, procurement, and leadership must move beyond coordination theater Collaboration is one of the most overused (and misunderstood) words in both modern supply chain and construction management. Everyone claims to value it. Few organizations design their operating models to make it work. In a recent conversation, Scott Luton sat down with Dyci Sfregola, author of Next Level Construction Management, to unpack what real collaboration looks like in practice; and why so many well-intentioned efforts fail to deliver measurable results.   What “True” Collaborative Planning Really Means According to Sfregola, real collaboration isn’t about more meetings or more dashboards. It’s about working together to create one plan, one set of assumptions, and real tradeoff analysis – – all owned collectively across functions. That includes finance, commercial, marketing, manufacturing, planning, and procurement all working from the same reality. Capacity, labor, cash flow, and constraints are visible. Decisions are documented. Actions actually change what happens next. The most common failure? Confusing information sharing with alignment. Teams often circulate data and emails and call it alignment, but no one in the room has clear decision rights – – or the authority to commit resources…