Data is a key driver of procurement’s value. When it’s improperly used and organized, though, it can work against you.
Your procurement data is holding you back if it’s not supporting a sustainable supply chain, for starters. If you can’t see it, you can’t manage risk, sustainability, compliance and a host of other factors. So, the ugly truth: your procurement data is holding you back, is something every procurement department and agency needs to address decisively.
If your data game isn’t up to par, you’re not alone. A surprising number of organizations have the same problem. It’s even more surprising when you consider what they’ve spent to bring their technological systems up to date.
Updating spend analytics.
The KISS rule (keep it simple, stupid) has been around for awhile, but so have traditional spend analytics. These are too often ineffective, as they fail to encompass the intricacies of procurement and its many challenges.
Not being “procurement smart”, traditional systems aren’t adapted to the sector, relying heavily on automated categorization. They’re easily thrown by deviations from their norms embodied in factors like human error, compliance issues and data fragmentation, as it’s streamed into multiple systems which should be harmonized to be effective.
Analyzing the analysis sounds like a lot of work (and we’re not going to lie – it is), but it’s well worth doing the heavy lifting to have access to sound data that reflects reality.
A spend analytics system tailored to the direct needs of procurement is simplified. Distilled down to a series of categories which more properly reflect the requirements of the sector, there is less to manage, even if you need to get there by the long route. In the end, it’s worth it.
Your best sets of eyes.
Refining your data game should involve your most highly skilled procurement team members. They can identify categories in upgraded systems which should take precedence (as they add value). For example, data connected to auditing around compliance is an imperative.
Working with data from the old system, your best people can further refine spend analytics, making them less unwieldy and more readily intelligible to better serve the projects of cost reduction and profitability.
Procurement is a complex world. Supply chains which are not transparent and readily visible in your data are a liability you can’t afford. Rolling up the sleeves of your most skilled professionals to reform your data is a ticket to added value that makes your procurement process more effective and much more attractive to potential clients and investors.
CenterPoint Group – supporting the bottom line.
As a trusted procurement advisor for 10 years, CenterPoint is a member-based procurement solution that brings companies exceptional cost reductions on everyday purchases.
From corporate vehicle fleets, to cell phones, to janitorial and office supplies, we leverage a pool of member resources to bring you material savings.