Dynamics 365
Power Platform
Dynamics
Cloud & Productivity
Procurement Agent
Keep suppliers on schedule without living in your inbox
The Procurement Agent is an AI agent built into Dynamics 365 Supply Chain Management. It helps buyers follow up on unconfirmed and delayed purchase orders, analyzes supplier responses, and identifies requested changes for review. Its impact analysis capabilities can also evaluate how supported purchase order changes could affect inventory, production, and customer deliveries before buyers approve them.
Business challenge
When supplier delays create bigger supply chain problems
Buyers spend hours each week checking which purchase orders are still unconfirmed and emailing suppliers for updates. When replies arrive, someone has to read them, find the right order, and key in the new dates or quantities. Meanwhile, a single late delivery can quietly put production runs and customer orders at risk.
Constant chasing
Buyers send the same reminder emails repeatedly to get suppliers to confirm orders or explain delays.
Re-keying supplier updates
New dates and quantities sit in email threads until someone has time to update the purchase order manually.
Hidden ripple effects
It can be difficult to see how one supplier change affects other orders until the problem reaches production or the customer.
Features
From supplier responses to actionable procurement insights
The Procurement Agent helps reduce the manual work involved in supplier communications and purchase order management. It uses information from Dynamics 365 Supply Chain Management to generate follow-up emails, analyze supported supplier responses, and evaluate the downstream impact of certain purchase order changes. Buyers remain responsible for reviewing and approving proposed updates.
Follow up with suppliers automatically
Instead of manually reviewing purchase order lists and writing reminder emails, purchasing teams can use the agent to prepare follow-ups for suppliers. Each email includes relevant purchase order information, helping buyers request confirmations and delivery updates more efficiently.
The agent can:
- Identify purchase orders that remain unconfirmed or have passed their expected delivery dates
- Generate personalized follow-up emails using purchase order information
- Adjust email wording based on the purchasing situation and configured instructions
- Prepare emails for buyer review or send them automatically when autonomous sending is enabled
Turn supplier updates into actionable insights
When suppliers respond, the Procurement Agent analyzes supported emails, identifies related purchase orders, and extracts relevant information for buyers to review. For supported change requests, its impact analysis capabilities can also evaluate potential effects on downstream inventory, production, and customer orders.
Impact analysis can operate independently of supplier communications, allowing buyers and planners to evaluate supported changes received through vendor collaboration or entered as manual simulations.
With the agent, buyers can:
- Review supplier responses classified as confirmations, change requests, or rejections
- Compare existing purchase order information with supported supplier-requested changes
- Analyze downstream impacts from delayed confirmed delivery dates, quantity decreases, and cancellations
- Review proposed updates and apply approved changes through supported purchasing workflows
Spend less time chasing suppliers
Rand Group can help you configure the Procurement Agent around your purchasing processes, from identifying which suppliers and purchase orders to monitor to establishing email automation and approval workflows. We'll also help you evaluate impact analysis capabilities so your team can make more informed purchasing decisions.
How it works
A day in the life of a purchase order
The Procurement Agent supports purchasing teams by automating supplier follow-ups, interpreting supported communications, and evaluating potential impacts from purchase order changes. Buyers remain involved in reviewing and approving the updates that affect their operations.
Spot orders that need attention
The agent identifies purchase orders that suppliers have not confirmed or that have passed their expected delivery dates, based on configured settings.
Reach out to suppliers
The agent generates follow-up emails using purchase order details. Depending on the configuration, buyers can review and send these messages or allow the agent to send them automatically.
Read the replies
When suppliers respond, the agent analyzes supported emails, identifies the relevant purchase orders, and extracts information such as confirmations or requested changes.
Check the impact
For supported changes, including delayed confirmed delivery dates, reduced quantities, and cancellations, impact analysis evaluates how the proposed update could affect downstream operations. Buyers and planners can also simulate supported purchase order changes independently of supplier communications.
Update the order
Buyers review the supplier’s response, proposed changes, and any available impact analysis results before deciding whether to apply an update to the purchase order.
Compatibility & requirements
Getting started with the Procurement Agent
The Procurement Agent is available with Dynamics 365 Supply Chain Management as a production-ready preview. Its capabilities consume Copilot Credits, and Supply Chain Management Premium includes 1,000 credits per licensed user each month. Organizations can configure supplier communications, impact analysis, or both, depending on their requirements. Rand Group can help prepare your environment, connect the necessary components, and test supported capabilities before enabling automated workflows.
Together, we’ll put these pieces in place:
- Dynamics 365 Supply Chain Management version 10.0.44 or later for supplier communications, or version 10.0.48 with the required build and updates for impact analysis
- Required Copilot components, feature settings, and Power Platform configurations
- A dedicated agent identity with appropriate security permissions
- Email integration and synchronized personal or shared mailboxes for supplier communications
- Vendor records with current contact information and configured purchasing workflows
- Sufficient Copilot Credits, with an Azure subscription linked to your environment if you choose pay-as-you-go billing
Why partner with Rand Group?
Your procurement process, mapped first
We start by understanding how your buyers communicate with suppliers and manage purchase order changes. From there, we help configure the agent’s supplier communications, email settings, and supported impact analysis capabilities to align with your purchasing workflows.
A partnership that continues after launch
With more than 20 years of experience helping organizations improve their business systems, Rand Group provides support beyond implementation. We can help your team evaluate the agent’s results, refine configurations, and expand automation as new capabilities become available.
Consultants across North America
With offices across the United States and Canada, our consultants help organizations implement and optimize Dynamics 365 Supply Chain Management. We also train purchasing teams to review AI-generated communications, evaluate supplier changes, and interpret impact analysis results.
Supply chain expertise with proven results
As a Microsoft Solutions Partner recognized among ERP Global Insights’ Top 100 VARs, Rand Group brings experience implementing Dynamics 365 Supply Chain Management. We also develop custom AI agents, allowing us to help organizations determine when Microsoft’s Procurement Agent meets their needs and when a tailored solution may provide additional value.
Frequently Asked Questions (FAQs)
What is the Procurement Agent in Dynamics 365 Supply Chain Management?
The Procurement Agent is a Microsoft AI agent built into Dynamics 365 Supply Chain Management. It helps automate supplier communications, analyze purchase order responses, and evaluate the downstream impact of supported purchase order changes. Buyers can use these capabilities to reduce administrative work and make more informed purchasing decisions.
Is the Procurement Agent the same as the Supplier Communications Agent?
The Supplier Communications Agent refers to the supplier communication capabilities now presented within Microsoft’s broader Procurement Agent offering. The Procurement Agent also includes impact analysis, which helps buyers assess the downstream effects of supported purchase order changes. Organizations can enable supplier communications, impact analysis, or both, depending on their requirements.
Does the agent send emails to suppliers on its own?
Yes, but only when automatic sending is enabled by an administrator. By default, the agent generates follow-up email drafts for buyers to review, edit, and send. Organizations can enable automatic sending after testing the agent’s output and confirming that the generated messages meet their requirements. When automatic sending is enabled, Microsoft requires an email footer disclosing that the message was created with AI assistance.
How is the Procurement Agent priced?
The Procurement Agent consumes Copilot Credits based on the activities it performs. Supplier communications have a fixed cost per run plus variable costs based on the number of emails generated, emails analyzed, and attachments processed. Impact analysis also has a fixed cost per run, with variable costs based on the number of purchase order line changes evaluated. Dynamics 365 Supply Chain Management Premium includes 1,000 Copilot Credits per licensed user each month. Additional credits can be purchased through prepaid capacity or pay-as-you-go billing through Azure.
For more information, see our breakdown of how Microsoft Copilot Credits work, including usage, costs, and limits.
What is impact analysis?
Impact analysis helps buyers understand how supported purchase order changes could affect inventory, production schedules, and customer deliveries. It automatically evaluates certain supplier-requested changes, including delayed confirmed delivery dates, quantity reductions, and cancellations. Buyers and planners can also simulate supported changes to understand potential downstream effects before updating purchase orders. Impact analysis can operate independently of supplier communications and supports relevant changes received through vendor collaboration.
Which supplier emails does the agent read?
The Procurement Agent processes supplier emails from mailboxes connected and configured for the agent. Organizations can specify whether it monitors communications from all vendors or only selected vendors. The agent uses configured vendor information and email addresses to identify relevant messages and associate supported communications with purchase orders.
Is the Procurement Agent generally available?
Not yet. Microsoft currently offers the Procurement Agent as a production-ready preview, meaning organizations can use supported capabilities in production environments while Microsoft continues developing the agent. Preview features remain subject to change and applicable preview terms. Rand Group can help organizations test and configure the agent before deployment.
Can Rand Group customize the Procurement Agent?
Microsoft develops and maintains the Procurement Agent, but organizations can configure supported settings, including supplier selection, follow-up rules, email preferences, and purchasing workflows. Rand Group can help configure these capabilities around your organization’s requirements. For needs that extend beyond the standard agent’s functionality, we can also evaluate and develop custom AI solutions tailored to your procurement processes.