Why Procurement loves Data Analytics

Why Procurement loves Data Analytics

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Data management for procurement is hard, there’s no easy way around it.

Otherwise, we’d all be doing it.

It’s no secret that digital transformation is shaping the future of the enterprise, with evident cost savings, improved efficiency and new innovations being implemented in the market by large corporates.

Sievo’s eBook highlights how Data is Procurement’s new best friend, where the bond will soon be unbreakable as they work together in harmony, complementing each other’s function.

‘The procurement software market is forecasted to grow 10.2% (CAGR) between 2020 and 2025.’
Research and Markets

The projected growth of the procuretech solutions market is lucrative, where multiple offerings are recording mass funding and partnerships. IT and procurement are connected by data – it can’t be tackled alone!

Digital is the way forward for companies, where digital tools are helping them to get more value from their data, operations, and even people. Smart data, digital, analytics and procuretech solutions are aiding their efforts to work on Sustainability; Finance; Supply Chain visibility; Supplier performance and diversity; and more!

‘Data is messy and it’s everywhere.’

Procurement data analytics is tricky, facing a plethora of challenges:

  1. Poor data quality/dirty data
  2. Complex and labour-intensive cleansing and classification processes
  3. Leaders without data-driven mindsets
  4. Unrealistic expectations, unclear goals, and misplaced priorities
  5. Using the wrong tools or not knowing which ones to use
  6. Limited analytical capabilities
  7. Lack of skills and user competence
  8. Fear of losing relevance or control of data
  9. Procurement data analysis as a one-time effort
Why procurement needs data and analytics

It’s not a matter of if companies will implement digital solutions, but when. Despite the challenges, they can be tackled.

It pays to invest. Over time, companies see a return on their investment through enhanced productivity and value creation activities, where data starts to prove itself to be an enabler, providing the right insights for teams to act on and pursue winning opportunities. When implementing the right digital solutions, it encourages collaboration between teams thus creating a functional, connected data ecosystem.

Whilst AI hasn’t taken over all of our jobs just yet, it for sure streamlines processes and creates successful data-driven leadership. Paired with your team’s expertise, product knowledge, insights and skills, procurement has the potential to become unstoppable.

Key Takeaways
  • It pays to invest
  • Provide training and support throughout the implementation process
  • Monitor performance and communication between the users – is the technology working?
  • Think about your team –is this technology really benefitting the people using it?

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