Shaz Khan is the CEO and co-founder of Vroozi, a digital procure-to-pay platform. With 25 years of experience in management consulting and software, Shaz previously founded Above Commerce and Ciena Solutions, and worked at Ernst & Young. He has led transformation projects for Fortune 1000 companies including Time Warner and Dow Chemical. Shaz holds dual B.A. degrees in Computer Science and Economics from UC Berkeley. Based in Los Angeles with his family, he enjoys playing metal guitar in his spare time.
Please tell us a little about your background and what led you to start Vroozi.
I fell into procurement by accident while at Ernst & Young. After getting SAP certified in Materials Management, I worked with companies like Disney on their procurement processes. That experience led me to start my own consulting firm, which eventually grew into Vroozi.
We built Vroozi because procurement systems were clunky and hard to use. We wanted something that worked the way people actually work, while still giving companies the control they need over spending.
Can you explain your concept of AI as a “productivity multiplier” for procurement teams?
AI isn’t about replacing people – it’s like having an incredibly efficient assistant. Take an IT director equipping ten new employees with laptops. The old way meant hours of logging into systems, comparing vendors and prices. With AI, they simply say what they need, and the system presents options for a quick yes or no. A half-day task becomes a 10-minute conversation.
During COVID, a mortuary services company used our system to generate purchase orders faster than competitors, putting them first in line for critical equipment. The goal isn’t cutting staff – it’s freeing your team from paperwork so they can focus on what humans do best.
How is the role of procurement professionals evolving?
Procurement folks are becoming data detectives who spot problems before they happen. When a manufacturer faces higher costs due to new import policies, the old approach was calling suppliers all day trying to negotiate. With AI-powered procurement, teams can instantly search thousands of suppliers worldwide and identify alternatives before production is affected.
You don’t need to become a programmer, but you do need to learn how to ask the right questions of these systems. It’s like having a superpower – seeing around corners in ways that were impossible just a few years ago.
You’ve outlined the “Three Cs” framework. How do these principles help procurement create value?
The Three Cs – Control, Consolidation, and Compliance – are a simple way to think about getting more from procurement.
Control means moving away from the “Wild West” of distributed corporate cards to clear purchasing channels that show you where money goes without slowing things down.
Consolidation brings everything together, cutting costs from as much as $250 per purchase order to under $15 – real money back to the bottom line.
Compliance makes following rules via the easiest path, not the hardest. One university now runs all non-payroll spending through a single system that people actually find easier to use.
Companies typically save up to 10% on indirect spend when they get this right. That’s when procurement stops being “that department that says no” and starts being a strategic partner.
What strategies can procurement teams use to build resilience against tariffs and trade disruptions?
These new tariffs have caught many companies flat-footed. Smart procurement teams are:
First, diversifying suppliers and understanding where their suppliers’ suppliers are located – those tier 2 or 3 relationships often hide the biggest vulnerabilities.
Second, taking a fresh look at local sourcing, using AI to identify nearby options where transportation costs might actually be advantageous.
Third, considering strategic hedging for critical materials, like Southwest Airlines did by locking in fuel prices during volatile markets.
Most importantly, developing “what-if” planning capabilities. The companies that succeed aren’t just reacting to problems – they’re using technology to have solutions ready before production gets affected.
How can procurement teams gain strategic recognition within organizations?
Procurement often gets stuck as the “out of sight, out of mind” department. The leaders breaking this pattern don’t wait for an invitation to the strategy table – they kick down the door with data executives can’t ignore.
During recent disruptions, teams that quickly modeled different scenarios with clear cost implications suddenly found themselves in strategy meetings they’d never been part of before.
The key is speaking the language of business, not procurement jargon. Executives care about market share and competitive advantage, not purchase order cycle times. When you connect procurement activities directly to those outcomes, people start paying attention.
Looking ahead, what major shifts do you anticipate in procurement operations?
First, procurement will shift from transaction processing to insight generation, spotting problems and opportunities earlier than competitors.
Second, procurement technology will become as intuitive as consumer apps, with everyone able to buy properly without special training.
Third, the most valuable professionals will combine relationship skills with data savvy, using AI to spot patterns while maintaining human connections with suppliers.
Fourth, routine purchasing will happen automatically, freeing up time for strategic work.
Finally, procurement will work more closely with other departments through shared data platforms, so everyone sees the same real-time information.
These changes won’t make procurement people obsolete – they’ll make them more valuable by letting them focus on what actually matters.
