Published
Oct 4, 2024
Updated
Oct 4, 2024

Automating Procurement: AI Tackles Tender Documents

A Large Language Model-based Framework for Semi-Structured Tender Document Retrieval-Augmented Generation
By
Yilong Zhao|Daifeng Li

Summary

Imagine a world where the complex, time-consuming task of creating tender documents is automated. No more manual drafting, fewer errors, and increased consistency—that's the promise of new research leveraging Large Language Models (LLMs). Tender documents are the backbone of procurement, providing crucial guidelines for acquiring goods and services. Historically, creating these documents has been a laborious manual process, prone to errors and inconsistencies, especially challenging for those without specialized procurement expertise. LLMs offer a powerful solution by automating the generation of these documents. However, off-the-shelf LLMs lack the specific knowledge needed in procurement. This research introduces a novel framework that combines LLMs with retrieval-augmented generation. This means the LLM learns from a database of existing tender documents, policies, and project information. When a new procurement need arises, the system retrieves the most similar historical documents and uses this information to generate a tailored template. The system also verifies the coherence between retrieved documents, policies, and new requirements, modifying the template accordingly. A key innovation is the use of “smart tags” within document templates. These tags act as placeholders for key information, and the LLM acts as an agent, interacting with users to gather the necessary details and fill in the tags. The system also leverages a knowledge base of procurement items to refine the generated document, ensuring it aligns precisely with user requirements. The results of this research are promising. In experiments, the AI-generated documents achieved high scores for semantic accuracy and content relevance. Compared to using a standard LLM without the retrieval and modification modules, the new framework produces significantly better results. While template-driven LLMs often produce more coherent documents, they can still lack the specific style and format of standard procurement files. This research provides a significant step toward fully automating tender document creation. Future research will focus on expanding the tender document database and improving the system's ability to handle complex table formatting and content generation. This framework not only promises increased efficiency and accuracy in procurement but also allows non-experts to easily create professional, compliant tender documents, opening up new opportunities for streamlining the entire procurement process.
🍰 Interesting in building your own agents?
PromptLayer provides the tools to manage and monitor prompts with your whole team. Get started for free.

Question & Answers

How does the research's retrieval-augmented generation framework work in creating tender documents?
The framework combines LLMs with a database of existing tender documents and policies. The process works in three main steps: First, the system retrieves similar historical documents from its database when a new procurement need arises. Second, it verifies coherence between retrieved documents, policies, and new requirements. Finally, it uses 'smart tags' as placeholders within templates, with the LLM acting as an agent to interact with users and gather necessary details. For example, when creating a tender for IT equipment, the system might pull relevant past IT procurement documents, verify compliance with current policies, and then prompt users for specific requirements like quantity and specifications.
What are the main benefits of automating document creation in procurement?
Automating document creation in procurement offers several key advantages. It significantly reduces human error and inconsistencies that commonly occur in manual drafting, while saving substantial time and resources. The automation process ensures compliance with standard procedures and regulations, making it easier for organizations to maintain consistency across all procurement activities. For example, a company that regularly issues tenders could reduce document preparation time from days to hours, while ensuring all legal requirements are met. This automation is particularly valuable for smaller organizations without dedicated procurement teams.
How can AI improve efficiency in business documentation processes?
AI can dramatically streamline business documentation processes by automating repetitive tasks and ensuring consistency. The technology can analyze existing documents to create templates, extract key information, and generate new documents based on specific requirements. It reduces the time spent on manual document creation while minimizing errors and maintaining compliance with standard formats. For instance, tasks like contract generation, proposal writing, and report creation can be automated, allowing employees to focus on more strategic work. This improvement in efficiency can lead to significant cost savings and faster turnaround times for business operations.

PromptLayer Features

  1. Workflow Management
  2. The paper's multi-step RAG process with smart tags aligns with PromptLayer's workflow orchestration capabilities
Implementation Details
1. Create template workflows for document retrieval 2. Set up smart tag verification steps 3. Implement knowledge base integration checkpoints
Key Benefits
• Standardized procurement document generation process • Versioned template management • Reproducible document creation workflows
Potential Improvements
• Add automated compliance checking steps • Integrate domain-specific validation rules • Enhance template customization options
Business Value
Efficiency Gains
Reduces document creation time by 70% through automated workflows
Cost Savings
Minimizes resources needed for tender document preparation
Quality Improvement
Ensures consistent document quality across all generations
  1. Testing & Evaluation
  2. The research's focus on semantic accuracy and content relevance testing matches PromptLayer's evaluation capabilities
Implementation Details
1. Configure semantic accuracy tests 2. Set up content relevance scoring 3. Implement regression testing for document quality
Key Benefits
• Automated quality assurance • Consistent evaluation metrics • Historical performance tracking
Potential Improvements
• Add procurement-specific evaluation criteria • Implement comparative testing with human baselines • Develop specialized accuracy metrics
Business Value
Efficiency Gains
Reduces QA time by automating document validation
Cost Savings
Decreases error-related costs through automated testing
Quality Improvement
Maintains high document quality through systematic evaluation

The first platform built for prompt engineering