Generally, most organisations analyse only spend data. If you’re looking to leverage more value from your data, then you have to look beyond traditional data sources. For example, text analytics can help you gather insight about a supplier via social media. Social media data is an unexploited data source that can provide you with timely insights.
Nearly 80% of the data in an organisation is unstructured. Unstructured data includes everything from emails, text files, social media and more. Unstructured data is an untapped goldmine. Start by structuring and organising this data. Keep in mind that real-time data plays a crucial role in helping you monitor real-time strategies as well as tweak implementations in real-time to increase the chances of success.
Data analysis is a great tool to identify, track and predict changing customer requirements in real time. Additionally, it helps to improve customer service by making logistics more efficient, and eliminating costly errors.
This is one of the biggest tangible benefits of leveraging data analytics for procurement. In today’s highly competitive environment, supply chains face the constant pressure to be agile and more cost-effective. Data analytics can compare pricing and availability from suppliers in real-time, while also considering other ancillary factors like logistics costs and other variables. This helps procurement teams source the best quality products at the best prices in real time.
One of the biggest challenges facing procurement departments is that they are overwhelmed by the sheer volume and diversity of data available. They struggle to make sense of data, making it impossible to leverage it. Big data is a big opportunity for procurement. Don’t make it a challenge. Start by structuring data and identifying data points that offer true value.
Planning, design and execution are the three pillars of supply chain management. Data analytics is not just the forte of the procurement department. Get all departments involved starting from finance to sales. Every department should work on addressing the challenge, “how do I make the supply chain more efficient?” This is a must for a data-driven procurement approach.
Earlier, procurement was primarily seen as a process-drive approach. Today, it has emerged to be a data-driven activity. All procurement activities – sourcing, contracts, making purchase – have become data-driven. By having access to the right data insights, companies can take better decisions boosting the bottom line.
The future of procurement is data driven. The sooner your company moves to a data-backed approach, the better and more efficient is the entire process.