Supply chains are becoming more and more complex with rapidly changing product configuration, unforeseen supply disruptions, and marketplace fluctuations. These complexities makes it difficult for procurement organizations to find the most efficient way to deploy their constrained resources. Consequently, companies can truly transform Procurement Organizations into strategic functions by providing them support with advanced procurement data analytics competencies.
What is Procurement Data Analytics?
Procurement Data Analytics is a process of inspecting, cleaning, transforming and modeling data with the goal of highlighting useful information and suggesting conclusions. Its main goal is to support decision making during strategic sourcing process as well as during the ongoing category management process.
EmpoweringCPO’s customized procurement data analytics services and reports are produced according to client’s specific needs during the various stages of the process. Some of the major outputs are as follows:
Category Data Analysis
This is the first step of Strategic Sourcing process
and involves understanding the spend across various business groups and geography and also data consolidation
Cost Escalation Metrics
Through further understanding of the category and Market Research, Cost Escalation Metrics is created which can be used as part of the RFP Package
RFP Pricing Worksheet
This involves identifying and creating components of the prices so as to structure the pricing worksheet to be used as part of the RFP package
Based on understanding of the historic spend and the pricing structure, historic data is prepared in a format to help compare and evaluate the new prices
Vendor Pricing Evaluation
The Pricing data collected from the RFP response is required to be collated and analyzed so as to understand vendor ranking and make appropriate decision
In addition to understanding cost drivers, Cost Modeling also helps in negotiation process
In addition to vendor pricing it is also important to evaluate non-pricing qualitative factors. Furthermore, data analysis helps in understanding TCO for all proposals
This is usually the last stage of Strategic Sourcing process and helps in ongoing management of contract, model is created so as to achieve compliance.
Benefits & Application of Procurement Data & Spend Analytics:
- Assist Category Managers take informed decision instead of relying on intuition
- In addition with Market Intelligence, provides better understanding of the category
- Ensure ongoing and proactive management of category
- Provide regular insights to category managers based on reports
- Make vendor bids comparable on ‘Apple to Apple’ basis
- Finally maximizes savings achieved through strategic sourcing process
EmpoweringCPO Procurement Services & Capabilities:
EmpoweringCPO is way ahead of other sourcing and procurement services companies. We have qualified army of data scientists – specialist at identifying and extracting business value from structured and unstructured data. Our resources have advanced information management skills, analytical skills and business expertise. As a result this helps in understanding large data sets and leverage new types of information from various sources.