We assist you in your purchase and sale of goods and services in this region. Again, we do research, data support and operation follow-up on issues related to your business (such as company, brand, sector, product).
Sources of Procurement Data
Procurement organizations often face the challenge of heterogenous data landscapes. As many businesses are formed from more than one business unit, financial processes may vary on a regional or international basis or across businesses. Increasingly, procurement analysts are starting to leverage data from outside of their own procurement organizations, combining the most valuable aspects of internal and external data.
We assist you in your purchase and sale of goods and services in this region. Again, we do research, data support and operation follow-up on issues related to your business (such as company, brand, sector, product).
Procurement Analytics Demystified
Comprehensive guide showing how procurement data can be extracted, refined and analyzed for insights and more business value.
A comprehensive guide for procurement analytics – including definitions, examples and best practices.
Because every procurement organization has the interest to analyze and manage spend, a broad field of solutions has emerged to cater to different needs and maturity levels. You can imagine the change as four different generations of solutions.
Generation 1 (1990 – 2000): analysis done in Microsoft Excel by consultants or business analysts largely focused on past spend analysis.
Generation 2 (2000 – 2010): desktop spend analysis software bought under license with data hosted on-premise or within the company firewall.
Generation 3 (2010 – 2015): browser-based spend analytics dashboards providing business intelligence level visualizations and usability. Licensed or bought as Software-as-a-Service.
Generation 4 (2015 – today): AI-powered, automated procurement analytics solutions combining many data sources. Encrypted and hosted on the cloud. Bought as Software-as-a-Service.
Even today, different generations of procurement analysis solutions co-exist to meet the needs of different types of businesses. Some procurement organizations retain their Excel-based reporting, while other organizations may continue to use their self-built or configured business intelligence solutions long into the new decade. Some procurement organizations can skip entire generations through the process of digitization, if the procurement leadership has a clear mandate to drive data-driven transformation.
Why is analytics so important for procurement?
A common misconception is that analytics in procurement only relates to spend analysis. In reality, analytics touches all activities from strategic sourcing to category management and procure-to-pay processes. Here are just some key reasons why analytics in important across different procurement functions.
Analytics in category management
When effectively used, analytics give category managers superpowers. Procurement analytics allows category managers to identify savings opportunities, segment and prioritize suppliers, address supply risk opportunities and facilitate innovation.
Analytics in strategic sourcing
The best business strategies are informed by data. In strategic sourcing, analytics helps identify the best times and areas to run sourcing events and requests for proposal. It can identify which suppliers to include in sourcing projects and provide rich information into supplier’s quality and risk positions.
Analytics in contract management
Analytics provide value across contract lifecycle management. It can alert when contracts need to be renegotiated, or provide data for supplier negotiations. What’s more, analytics can identify maverick spend to help compliance and improve contract coverage.
Analytics in procure-to-pay
Procurement analytics can also provide much value in the transactional side of procurement. With analytics, you can measure purchase order cycles and improve payment terms. You can evaluate payment accuracy, discover rebate opportunities, identify mistaken payment and reduce fraud.
Source : https://sievo.com/resources/procurement-analytics-demystified#types-of-procurement-analytics
