What are liquid networks?
February 2025 – A Liquid Network is a dynamic, decentralized, and adaptable system where ideas, information, and resources flow freely between interconnected participants, fostering innovation and collaboration. The term is often associated with networks that enable rapid knowledge-sharing, adaptability, and creative breakthroughs.
September 2005 – “It is my position that a true centralization of procurement objectives requires a decentralized architecture that is based on the real-world operating attributes of all transactional stakeholders starting at the local or regional level. In other words, your organization gains control of its spend environment by relinquishing centralized functional control in favor of operational efficiencies on the front lines. This is the cornerstone of agent-based modeling.”
What impact do liquid networks have on procurement and ProcureTech?
February 2025 – Liquid networks—dynamic, decentralized, and highly adaptable systems—are reshaping procurement and ProcureTech by enhancing supplier collaboration, innovation, and agility.
🔮 The Future: Procurement as a “Living” Network
Liquid networks are pushing procurement towards real-time, AI-driven, and automated ecosystems where:
✅ Supplier discovery is instant and dynamic.
✅ Procurement workflows are automated using AI & smart contracts.
✅ Supply chain risk management is proactive and data-driven.
✅ Collaboration happens across decentralized, blockchain-backed networks.
December 1998 – If you have been following me or this blog for any amount of time, you will know that my Aha moment occurred in 1998. If you have yet to grow weary of watching my Max Headroom talking video, here is the link to what I think is still very much a well-spent 13-minute video: Problem-Solving, Agent-Based Modelling, and What A ProcureTech Demo Should Do.
Unlike 1998, when acceptance of my theory of strand commonality and the utilization of human-led agents to develop a procurement platform for the Department of National Defence MRO needs was somewhat limited, it seems that the work that was done back then has aged quite nicely per the diagram below:
What is the relationship between Liquid Networks and ProcureTech AI?
February 2025 – Liquid Networks and ProcureTech AI share a deep connection in how they transform procurement into a fluid, dynamic, and data-driven process.
December 1998 to August 2003 – Throughout the research period (which was partly funded by the Government of Canada’s Scientific Research and Experimental Development – SR&ED program), we consistently looked for ways in which a buyer could reliably procure commodities on a real-time basis outside of the confines of a centrally negotiated contract. To do this effectively, the buyer must simultaneously engage critical stakeholders such as suppliers, courier companies and customs brokers, e.g., the Metaprise.
Given that off-contract procurement was at epidemic levels (which negatively impacted the buying organization and an increasingly skeptical supply base), it was essential to lessen rather than increase the purchasing cycle time. This cycle compression was a critical component in that we wanted to eliminate the compliance issues that had plagued so many initiatives (as it still does today).
In August 2003, the new technology successfully went live in a production environment for the DND. In this test case, the public sector organization realized a year-over-year 23% cost of goods savings for seven consecutive years while simultaneously reducing the number of buyers required to manage the contract to 3 from an original 23. Delivery performance and product quality also improved dramatically.
TODAY’S TAKEAWAY—Liquidity has a bottom-line impact in procurement, as in finance, albeit through different processes. The savings derived from procurement extend well beyond buying for less or negotiating a lower price. In short, liquidity in procurement is about streamlining processes and efficiencies to deliver optimal outcomes with fewer resources.
Achieving optimal results requires using a human-led, agent-based development and implementation model. This was true in 1998, 2005, and 2025, and it will be true again in 2225.
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Procurement Insights
Why are liquid networks in procurement important to understand?
Posted on February 14, 2025
0
What are liquid networks?
February 2025 – A Liquid Network is a dynamic, decentralized, and adaptable system where ideas, information, and resources flow freely between interconnected participants, fostering innovation and collaboration. The term is often associated with networks that enable rapid knowledge-sharing, adaptability, and creative breakthroughs.
September 2005 – “It is my position that a true centralization of procurement objectives requires a decentralized architecture that is based on the real-world operating attributes of all transactional stakeholders starting at the local or regional level. In other words, your organization gains control of its spend environment by relinquishing centralized functional control in favor of operational efficiencies on the front lines. This is the cornerstone of agent-based modeling.”
What impact do liquid networks have on procurement and ProcureTech?
February 2025 – Liquid networks—dynamic, decentralized, and highly adaptable systems—are reshaping procurement and ProcureTech by enhancing supplier collaboration, innovation, and agility.
🔮 The Future: Procurement as a “Living” Network
Liquid networks are pushing procurement towards real-time, AI-driven, and automated ecosystems where:
✅ Supplier discovery is instant and dynamic.
✅ Procurement workflows are automated using AI & smart contracts.
✅ Supply chain risk management is proactive and data-driven.
✅ Collaboration happens across decentralized, blockchain-backed networks.
December 1998 – If you have been following me or this blog for any amount of time, you will know that my Aha moment occurred in 1998. If you have yet to grow weary of watching my Max Headroom talking video, here is the link to what I think is still very much a well-spent 13-minute video: Problem-Solving, Agent-Based Modelling, and What A ProcureTech Demo Should Do.
Unlike 1998, when acceptance of my theory of strand commonality and the utilization of human-led agents to develop a procurement platform for the Department of National Defence MRO needs was somewhat limited, it seems that the work that was done back then has aged quite nicely per the diagram below:
What is the relationship between Liquid Networks and ProcureTech AI?
February 2025 – Liquid Networks and ProcureTech AI share a deep connection in how they transform procurement into a fluid, dynamic, and data-driven process.
December 1998 to August 2003 – Throughout the research period (which was partly funded by the Government of Canada’s Scientific Research and Experimental Development – SR&ED program), we consistently looked for ways in which a buyer could reliably procure commodities on a real-time basis outside of the confines of a centrally negotiated contract. To do this effectively, the buyer must simultaneously engage critical stakeholders such as suppliers, courier companies and customs brokers, e.g., the Metaprise.
Given that off-contract procurement was at epidemic levels (which negatively impacted the buying organization and an increasingly skeptical supply base), it was essential to lessen rather than increase the purchasing cycle time. This cycle compression was a critical component in that we wanted to eliminate the compliance issues that had plagued so many initiatives (as it still does today).
In August 2003, the new technology successfully went live in a production environment for the DND. In this test case, the public sector organization realized a year-over-year 23% cost of goods savings for seven consecutive years while simultaneously reducing the number of buyers required to manage the contract to 3 from an original 23. Delivery performance and product quality also improved dramatically.
TODAY’S TAKEAWAY—Liquidity has a bottom-line impact in procurement, as in finance, albeit through different processes. The savings derived from procurement extend well beyond buying for less or negotiating a lower price. In short, liquidity in procurement is about streamlining processes and efficiencies to deliver optimal outcomes with fewer resources.
Achieving optimal results requires using a human-led, agent-based development and implementation model. This was true in 1998, 2005, and 2025, and it will be true again in 2225.
30
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