Summary In the contemporary business environment, digital procurement is becoming increasingly popular and sought after by businesses around the world. The relationships …
Using procurement analytics across different procurement functions
Do you want to be among the 57% of businesses that see better decision-making based on analytics and data-based insights? Read on and find out how.
The importance of procurement analytics
The main objective of analytics in procurement is to help ease the procurement process and make informed decisions, minimise costs, optimise supplier bonds, and mitigate supply chain risks.
With it, a business can get a hold of:
Spend analytics
Data and information on spending analytics will allow a business to oversee overspending, underutilisation, and misallocation of resources. Spending analytics provides useful insights and the ability to identify cost drivers, supplier performance, and compliance.
Cost optimisation
Analytics will give oversight on how, where, and when businesses can save, budget, and optimise finances to reflect present and future operational procedures. Costs borne by a business depend on competition, error correction, demand, supply, and economic conditions.
Supplier performance
The usage of analytics in procurement allows a business to judge their suppliers based on quality, quantity, delivery, pricing, and communication. This paves the way for negotiation, the building of better supplier bonds, and the elimination of inefficiencies.
Risk mitigation
Analytics in procurement allows businesses to respond to risks before they occur. Automation streamlines processes and pushes transparency and visibility and this reduces disruption and hassles in the long run—while also maintaining quality and consistency.
Contract analysis
Analytics feed into data and ensure the best breakdown of information for decision-making and evaluation in procurement. This is important when it comes to the stakeholders a business interacts with, as it can have a massive effect on management functions and quality.
Demand forecasting
Demand plays a vast part in decision-making. Having these analytics is likely to compile facts and figures on demand and supply, which can help with prioritising costs and liquidity, managing inventory, identifying stages in the product life cycle, and discounting.
What can be done with analytics in procurement?
Analytics is a crucial component for making and backing up decisions. It supports a business in saving and improving performance and processes—enabling them to make strategies, find alternatives, and provide solutions.
With analytics, informed decisions can be made for:
Establishing a pathway for objective achievement
This is likely to give a sense of direction, which will prompt motivation and a realistic objective setting within the organisation.
Measuring for solvency, financing, and budgeting
Layouts for how an organisation can be run during a set period where the state of cash solvency and expense drift can be decided.
Monitoring and managing stakeholders effectively
This can deliver timeliness, quality, and accountability to resolve misunderstandings in procurement—streamlining processes.
Providing valuable insights for marketing efforts
This unlocks a new yield of data to base decisions on, meet stakeholder needs, and unleash uniqueness for a higher advantage.
Get assistance from Kronos Group to align and enhance your procurement process
Kronos Group is a consultancy for procurement transformation and excellence across Europe and beyond—with experience in analysing, monitoring, assisting, implementing proven-to-work strategies, and recommending technologies to achieve your business and procurement objectives.
Unleash your business’s hidden potential and get a hold of procurement analytics for a better today and tomorrow in the world of business.
Irrespective of the size of your business, the nature of your business, or competition and economic conditions, our all-in-one procurement consulting services can address all your concerns. Get in touch with us today to reap the benefits of procurement consulting and analytics, a treasuring tool that can add and create value to your procurement function.
Fighting the effects of inflation with sourcing and procurement consultants
Stay up-to-date on the latest insights on procurement, finance, and project management.
Summary Strategic procurement has become a necessity in today’s business world and organisations try to remain competitive. Having the right procurement strategies …
Summary The world of consulting has been undergoing a massive transformation and management consulting jobs are experiencing the impacts of these changes. …
FAQ
No, procurement analytics go beyond just procurement. Analytics in procurement offers integrity, connectivity and transparency, which can benefit the entire organisation, from marketing to finance to operations, research, and development.
There are four types of analytics in procurement that can be used to make and aid decision-making. They are:
- Diagnostic Analytics: Quantitative data based on the past procurement processes
- Descriptive Analytics: Qualitative data based on the past procurement processes
- Predictive Analytics: Data used to forecast future procurement processes
- Prescriptive Analytics: Data based on contingent future events that could affect procurement processes.
