The Direction of Procurement Analytics
This month, we have focused our attention on the Evolving World of Procurement Analytics. Did you see our first blog in the series? Click here to check it out! We studied how connectivity and The Internet of Things has totally changed our world. As those trillions of connected objects and devices generate daily data by the gigabyte, what do we do with it? How do we manage the sheer volume of all this information? Is this just a giga-headache or a giga-chance? For Procurement, opportunity knocks … and the time to answer is now.
Data is the new basis of competitive advantage and companies that successfully harness this latent power quickly become leaders of the pack.
Procurement Analytics Today
Procurement analysis has come a long way in the last few years. Sourcing teams have focused on automating processes and fully integrating workflow with ERP systems data. The Procurement function has elevated and developed supplier information, spend analysis tools, cost modelling, and basic market intelligence to improve results and have a greater impact on corporate goals. All that information is then integrated into dashboards and trackers. While these are great first steps … it is all static, historical and reactive. Despite all those advancements, it still sometimes feels like we are driving blindfolded. Wouldn’t it be great if all that data was in a heads-up display where you could see it while you were driving? Even better if the data guided you to your destination?
Can This Be Done?
The data transparency problem can be solved. There is plenty of data available … but it is often “stored” in inaccessible, silo-ed legacy systems. Even if these separated data repositories are combined, most procurement teams do not have visibility into the massive data volume, cannot blend in other information resources and have no way to model potential outcomes (predictive analysis applied) in order to surface strategic opportunities. The illustration below shows how the old can become new, improved and much more effective.
Procurement Analytics Tomorrow
More and more data is being generated from ever expanding sources, allowing companies to have real-time data analysis at the ready to enable faster decision making and accelerated efficiency and effectiveness. This literally changes months into hours.
Advanced Analytics should start with your legacy IT data, cleanse it and blend in information from a wide range of sources. The results are enriched and analyzed using proprietary algorithms to identify unexpected data correlations and patterns that then enable you to visualize and act upon strategic opportunities to grow revenue and cut costs.
Interested in learning more about Advanced Analytics and practical applications for your business? We can help! Click here.