Big data, often thought as a buzzword, can’t be ignored by procurement professionals anymore. In a new study conducted by the panel at SpendEdge, the team discovered that big data will soon change the way new applications are developed, redefine the concept of information services, and improve existing procurement functions. Its ability to help businesses better understand and predict market trends, spending, consumer behavior and supply chain needs in real-time will completely change the way businesses devise strategies to become market leaders. However, the true power of big data in procurement lies in its ability to combine historical data and customer insights and consolidate relevant information from multiple streams onto single dashboards to help sourcing and procurement professionals make informed decisions.
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4 Key Benefits of Big Data in Procurement
Benefits of big data in procurement #1: Improves supply chain traceability
Data produced from different online channels has increased significantly over the last few years. However, the ability to trace products across the entire supply chain has become a reality with the aid of big data analytics. Insights obtained from the application of big data in procurement will create opportunities to boost procurement productivity and reduce costs and risks. CPOs can take a progressive, forward-looking viewpoint rather than making reactive decisions based on fiscal data.
Benefits of big data in procurement #2: Informed sourcing and procurement decisions
Companies often face challenges when it comes to analyzing and presenting large data sets in a meaningful way. With big data analytics, companies can easily perform spend analysis based on quantitative and qualitative data points and improve their sourcing process. They can also gain more contextual information by transforming unstructured data available in the form of contracts, emails, and spreadsheets into meaningful and accurate datasets.
Benefits of big data in procurement #3: Improve supplier relationships and new business models
Big data analytics has the potential to change volume based purchasing programs to value based programs. Suppliers who provide a better experience and add more value to the organization, apart from delivering products will be preferred. This also means that supplier relationships will be more transparent than ever before! Not only this, decisions such as where to source and where to operate will become less significant because of the optimization that is possible in Industry 4.0 due to big data. The era of Industry 4.0 will be marked by a mutation in business models and relationships.
Inability to keep up with the changing market trends and developments can impact companies negatively. Stay a step ahead by requesting a free demo of our procurement platform and gain exclusive market insights from procurement experts.
Benefits of big data in procurement #4: Risk management
Big data analytics allows businesses to predict supply disruptions accurately. Be it raw material prices, commodity shortages, or potential natural disasters, organizations can easily identify risks and better manage them. Another benefit of big data in procurement is its ability to improve fraud detection and prevention capabilities. The myriad applications of big data in procurement will help companies to crunch large data sets and detect possible frauds and compliance issues.