Organizations are increasingly adopting digital procurement solutions to harness previously inaccessible or unstructured data, aiming to gain better oversight and control over expenditures. However, despite advancements, a substantial gap remains in leveraging this data effectively.
Key findings include:
- A study by Harvard Business Review Analytic Services (HRB-AS) revealed that only 54% of organizations capture total spend data.
- Deloitte’s 2023 Global Chief Procurement Officer Survey highlighted that top-performing procurement teams benefit most from advanced analytics, emphasizing the need for predictive and proactive decision-making.
- While digital transformation is prominent, many organizations underutilize the wealth of new data. Gartner suggests that investments often prioritize foundational technologies over advanced analytics.
To optimize procurement data utilization, organizations are advised to:
- Gain Comprehensive Spend Visibility: Analytics dashboards offer real-time insights into expenditure patterns, aiding strategic decision-making. Pacifica Companies utilized this approach to enhance budgeting and identify savings.
- Automate Processes: Machine learning aids in automating tasks like competitive bidding and reconciliation. AI-driven tools, like those from Amazon Business, enhance product discovery and reduce costs.
- Implement Spend Controls: Guided buying and spend controls streamline purchases, ensuring alignment with organizational goals. For instance, Amazon Business’ Budget Management tool streamlined the purchasing process for Seminole County Public School district.
- Optimize Supplier Relationships: Analytics-driven insights aid in selecting and managing suppliers effectively. Pacifica Senior Living centralized its supplier base, enhancing efficiency and leveraging its purchasing power.
In conclusion, while digital solutions have expanded procurement data availability, organizations must employ advanced analytics to transform this data into actionable insights, enabling smarter procurement decisions.
Inspired by: How to get more value from digital procurement data | Supply Chain Dive
