What is procurement analytics?
The tool which supports the improvement strategies. It shines the spotlight on the company’s expenditure spent, how where and on what and also by introducing the competitive external market data which supports category and sourcing strategies.
The advanced procurement analytics supports the transformation of procurement tactical to strategic function. This transformation helped procurement in positioning itself as a value creating organization with faster access to better leverage the data.
The procurement analytics should have a clear focus on the company’s goals and objectives.
It is important to determine the procurement analytics needs like the vendors data. A process to ensure that effective evaluation criteria is applied to analyze the efficiency and effectiveness of the vendors’ performance related to timely deliveries, perfect order and supplying the required quality and quantity.
By developing advanced analytical competencies, procurement can make a transformation to a strategic function.