News -

Analytics… Procurement’s new Best Friend.

ata-driven decision-making is the next frontier of business management systems.

Procurement is no exception from this fact.

Analytics has topped the list for “technologies to make the biggest impact in the next two years” in — both — the 2017 & 2018 Deloitte CPO (Chief Procurement Officer) Survey.

For analytics to make the wide-sweeping impact that they are capable of, procurement-related data — of course — must be reliable. Procurement professionals have begun to understand the importance of storing and compiling data in scalable solutions. Without an effort on the side of procurement teams to store data-sets habitually, analytics aren’t really a possibility.

When data is stored in an agile and scalable manner (preferably utilizing cloud-based solutions) there is a lot more room to play with that data.

But, let’s take a step back…

Before you and your analytics can start skipping down the sidewalk — holding hands and humming along to “Don’t Worry Be Happy” by Bob McFerrin — you’re going to have to take the steps necessary to ensure the quality of your procurement-related data sets.

45% of CPOs in 2018 believe that the “quality of data” is one of the main barriers to the application of technological solutions into procurement.

To ensure quality, data cleansing needs to be a focus. Obtaining quality data is typically an effort — contingent upon — the collaboration of several parties. Working from the assumption that suppliers have produced some of your procurement team’s supplier-related data, the accuracy of underlying data isn’t always 100%.

For this reason, stakeholders may not always share the same enthusiasm, of a procurement team, to start utilizing data as a means to make purchasing decisions. In fact, 30% of CPOs in the 2018 CPO Survey listed “limited senior stakeholder endorsement and prioritization”, an as a main barrier to the effective application of digital technology in procurement (Deloitte 2018).

While there are no absolutes in business… you can be damn sure analytics are going to play a big role in the future of procurement, and supply chain management at large.

Tell that to your senior stakeholders…

READ THE FULL ARTICLE HERE

Topics

  • Finance

Categories

  • procurement
  • analytics
  • data
  • trends
  • sustainability
  • supply chain
  • supply chain management
  • business

Contacts

Sam Jenks

Press contact Communications Lead Communications and Marketing 0703644132

Related content

The Beauty of the SaaS business model.

The days of glacial traditional on-premise software models, and their implementation teams, are long past due. SaaS offers customers capabilities that are unmatched by the likes of traditional software.

Procurement 2.0 — Procurement, with a higher purpose.

​Procurement 2.0 offers a shift away from the traditional portrait of cost-driven and siloed procurement.

The Future of the Chief Procurement Officer… Is already here.

As procurement continues to change within its strategies, activities and technologies, the same shift is occurring to the definition of the function. Procurement teams aren’t what they once were, and they probably won’t ever be that traditional ideal again.

8 Supply Chain Trends changing your Business in 2018!

In an ever-changing business landscape, it's not always so easy to stay ahead of the trends! Don't you sweat it, Kodiak Rating has got it covered. Download the eBook for free, today, and gain the knowledge you need to stay one step ahead of the coming disruption!

Is your Hospital treating you with Expired Products?

Shocking results from the survey of surgical staff and hospital supply chain management operators revealed the true inadequacy of SCM systems in place. Whether this is an issue of financial troubles, or just a mere lack of technological solutions, a change must be made to ensure the safety of current and future patients.

5 Key Focuses for Boosting a Digital Procurement Strategy

Procurement has entered an age of innovation, and along with this evolution has come new disruptions in digital procurement. Getting a handle on a digital procurement strategy is a tall task, but a necessary one nonetheless.

Global Apparel Brands focus on Supply Chain optimization to enhance brand value.

In order to close the gap of competitiveness, brands vying for that number one spot as the top global apparel brand – Adidas, H&M and Zara – are working heavily with supply chain optimization.