Why procurement and legal teams still struggle to work as one
Despite the necessity of working together, legal and procurement teams often find themselves at odds. While both play a critical role in the business, their different priorities can create friction. Can technology bridge the gap and help them work together more effectively?
Procurement and legal teams have long struggled to collaborate effectively. A procurement team excitedly identifies a new supplier, only for legal to scrutinize contracts, regulatory compliance, and potential risks. The root cause of friction lies in each department's distinct goals. Procurement aims for speed, cost-efficiency, and optimal outcomes, while legal ensures regulatory adherence, risk mitigation, and contract fulfillment.
The issue is compounded by siloed systems, where each team relies on separate technology. This creates duplicated data entry, manual data updates, and a reliance on manual labor, with employees spending up to 65% of their time on non-value-adding tasks. According to data-cubed.com, inefficiencies due to process bottlenecks and poor communication cost organizations 20-30% of their operational expenses.
An emerging solution is agentic orchestration, a connective layer that bridges various systems and processes. This layer enables departments to maintain their current tools while enhancing coordination. Without changing existing systems, AI agents can streamline processes, automatically identifying required departments based on organizational policies and facilitating communication.
By connecting disparate systems and leveraging AI agents, organizations can improve collaboration, reduce redundant communication, and increase overall efficiency without the need to replace current tools.
Written by urgent.news from YourStory's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
