Economic Cooperative Systems

May 10, 2024

Economic Cooperative Systems #

I am reflecting on the potential of AI and what has to be build.

I am taking a procurement process as the baseline for a cooperative system. The perspective of the buying model:

1. Identifying Needs: The whole process starts with a need. This need can be identified by a model itself recognizing that it might not be the best to solve the problem itself.
2. Supplier Research and Selection: reach out to a marketplace / exchange and fin potential suppliers based on something like a request for Proposal/Quotation (RFP/RFQ). The offered prices in conjunction with a vendor self assessed confidence for a response are received as a bid in the exchange.
3. Approval / PO issuance: The buying model can now pick it’s supplier based on it’s configuration of price & quality. (There might be more than one quality metric.)
4. Assign the task to the model identified.
5. Receipt and Inspection: the buying model can now assess the quality of the response or might leave this assessment to the user.
6. Payment: a payment can be disputed if the response is of a objective quality below a certain measure. (There might be quality assurance / audit models within the system to ensure orderly conduct of business.) If the objective measures are ok, a payment has to be made. Feedback can be given, that yields future decisions, blacklisting of models etc.
7. Keeping and Audit: Given experience, there must be a record for each transaction with all it’s parameters. This allows for further
8. Performance Review and Relationship Management: The supplier’s performance is reviewed, and feedback is provided. This step also involves maintaining and managing the relationship with the supplier for future transactions.and auditing.

It is easy to derive the vendor perspective from the above.