360° Data and Analytics
The catalog is the soul of Procurement
What really matters is the quality of your data!
As explained yesterday, the importance of data is vital in today’s competitive market. Let’s take a concrete example!
I worked with an amusement park company that bought flowers. When the flowers were purchased for the theme park, it was a direct material.
- When the flowers were purchased for headquarters to make the parking lot pretty, they were classified as indirect material.
- The marketplace in this case can correctly identify the category based on the context.
- The user searches based on the context (e.g. flowers for the parking lot) and the system presents the appropriate data.
Marketplaces also have the benefit of guided buying. In guided buying, the data has attributes that identify the specific product or service with a procurement objective – diversity spend, green spend, on-contract spend, etc.
Role of Marketplaces…
Marketplaces provide guided buying and good data!
Not only marketplaces offer added-value features, but they are at the heart of procurement.
The benefit of having the enriched data before the transaction is that employees can make their product decisions based on procurement objectives.
- Employees in this case have an influence on the objective. Is your current practice to tell employees after a quarter that the company didn’t meet diversity spend goals and they should do better next time?
- Or, do you let employees know as they are making purchases how it will impact the metrics?
The marketplace moves the data cleansing, normalization, and enrichment pre-transaction. Now, the real-time analytics (i.e. Artificial Intelligence) is based on the purified and enriched data.
Category managers will have confidence that the real-time statistics are accurate based on the cleansed and enriched data going into the process.
As an added bonus, employees can be better participants in driving procurement goals.
Are your marketplace-ready ?
Story to continue… Tomorrow 😉