Why wait for future ProcureTech success when you can have it today?

I will open this morning’s post with the same words I used to close yesterday’s post and then explain why.

In my fall 2004 analyses of a study on the use of web-based applications I made the following observation:

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 it’s spend environment by relinquishing centralized functional control in favor of operational efficiencies originating on the front lines.  This is the cornerstone of agent-based modeling. – From Dangerous Supply Chain Myths Revisited (Part 6): Enablement of the Supply Management Organization – Balancing Capability with Control, Procurement Insights (August 20th, 2011)

TODAY’S YESTERDAY’S TAKEAWAY

As I had stated at the end of the above 2007 Procurement Insights post, “To sum it up in a simple sentence, and regardless of the application you currently use, you do not have to wait 10 years to effect immediate and beneficial change in your procurement practice!”

In 2025, I will say the same thing I did in 2004: you don’t have to wait until 2075 to effect “immediate and beneficial change in your procurement practice.” The best way to do that is to stop chasing the technology and start using it within the framework of a human-led, agent-based Metaprise model.

BACK TO TODAY’S POST

Blockchain-Powered Autonomous Procurement Systems: Definition and Impacts

Definition:
Blockchain-powered autonomous procurement systems integrate blockchain technology with IoT, quantum computing, and AI to create self-operating, secure, and transparent procurement ecosystems. These systems automate processes like supplier selection, contract execution, and payment via smart contracts, while leveraging decentralized networks and real-time data for decision-making.

Impact on Key Areas

1. Decentralized Procurement Networks

• Trustless Transactions: Blockchain eliminates intermediaries by enabling direct peer-to-peer interactions through smart contracts. For example, IBM’s Food Trust uses blockchain to track produce from farm to store, ensuring all parties access immutable records of transactions and product origins.
• Automated Governance: Smart contracts enforce terms autonomously (e.g., automatic payments upon delivery verification), reducing delays and disputes.
• Supplier Collaboration: Decentralized networks allow suppliers to join or exit dynamically, fostering agile partnerships. Walmart’s blockchain system tracks suppliers in real time, streamlining compliance.

Impact:

• Reduced Fraud: Tamper-proof records lower fraud risk.
• Faster Processes: Automated agreements cut procurement cycle times by up to 70%.

THE POINT OF CONTEXT

“Based on current technology trajectories, the emerging procurement technology likely to replace AI around 2045-2050 is blockchain-powered autonomous systems.”

Why must we wait until 2045-2050 to achieve the above-referenced results when we have already achieved them in a production environment in 2000?

Here were the 1998 to 2005 results for the DND:

1. Improve SLA performance from 51% to 97.3% in 3-months
2. Consistently reduce their MRO cost-of-goods by 23% year-over-year
3. How we reduced their FTE from 23 down to 3 in eighteen months

Here are two articles and a video, demonstrating that you can accomplish the same thing in 2025 and beyond:

• Post #1 – Dangerous Supply Chain Myths (Part 7)

• Post #2 – Are you chasing solutions or solving problems? (Part 1 of 3)

• Video #1 – Problem-Solving, Agent-Based Modelling And What A ProcureTech Demo Should Do

TODAY’S TAKEAWAY

Technology doesn’t make procurement work better; procurement makes technology work better!

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