Today’s procurement professionals must become adept in the handling of Big Data, as advised by the procurement news site The Strategic Sourcerer.
With procurement teams facing rising demands to become ever-more strategic in their undertakings, access to accurate real-time data has become increasingly important. Few professionals can make truly informed decisions today about strategic sourcing, category management or tail spend management without it. Real-time data not only promotes better decision-making, but it also yields a competitive advantage and helps improve supply relationship management, too.
Expert opinion is currently forecasting major changes in the supply relationship management space, for example, due to the advent of Big Data tech. The current professional consensus is that this technology will greatly enhance procurement’s value-creating endeavours and help it move to a new level in its strategic evolution.
However, most commercial enterprises and organisations still have a good deal of distance to cover before they can grasp Big Data’s full potential to add value. Even so, it’s never too early to begin thinking about what this potential would look like when it’s realised.
The benefits of Big Data that stand on that fast-approaching horizon we mentioned include:
- Spend Analytics
Few would dispute that this area is bread and butter for procurement professionals. Big Data is set to transform it, yielding immeasurably more detailed analysis and richer data sets. At the same time, it will enable faster and more readily actionable insights.
- Supply Relationship Management
Everyone in the field knows that this vital function is both challenging and extremely time-consuming. Big Data can accelerate the whole process by harvesting a wealth of data (including non-conformance reports and customer complaints) and storing it in a readily accessible form.
- Predictive Analytics
Procurement pros seeking to innovate strategically need look no further than Big Data’s predictive analytics capabilities. It has the power to forecast the direction of specific markets, giving procurement pros the ability to make smart decisions and achieve world-class status for their organisation.
Big Data is coming to procurement: it’s time to embrace it.
Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.