In the inventory control space, knowledge about how much
inventory is on hand and how much must be ordered has
been automated for quite some time. These programs, however, are glorified calculators.
What if inventory control software started to learn macro and
micro business trends, salesperson performances, etc., and
then blend that data together to maintain inventory? Many
in the construction industry have a watchful eye on Amazon
Supply (i.e., their patent on “predictive shipment,” which aims
to ship your next package before you even buy it). 11
And finally, in the payables performance and procurement
space, dynamic discounting platforms are really starting to
gain steam. These platforms use algorithms and artificial
intelligence to dynamically enable buying companies to take
advantage of early payment discounts from suppliers.
ARTIFICIAL INTELLIGENCE TO MANAGE RISKS
Managing the risk of contractor default or nonpayment is
important to CFMs, who manage the risk of contractor default
downstream through prequalification practices, and manage
upstream risks by preserving security and lien rights.
Historically, technology offerings in this area have been glorified databases. Prequalification software helps CFMs make
decisions by enabling them to organize all of the relevant
data and proceed through established checklists. Security
rights software, to the extent that it existed, enabled CFMs
to keep track of lien deadlines and requirements.
Machines, however, are extraordinarily capable of taking a
lot of data and drawing relevant conclusions. CFMs should
expect their prequalification software to leverage artificial
Building your business
requires the right tools
Rehmann’s dedicated team of professionals has the seasoned wisdom
and industry experience you need to prosper in construction
today. From analyzing your indirect costing system to evaluating
performance-based incentive compensation, our comprehensive
services are designed with your success in mind. Just think of us as the
world’s best-dressed toolbox.
Andrew Rose, CPA