February 19, 2016 | Written by: Alex Zhong
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Last week on the IBM Commerce blog, we provided a brief overview of the newly released research report Procurement Analytics: Enabling the Journey to Value. Today, we provide a further preview by outlining 5 key findings from the report.
Procurement Analytics: Enabling the Journey to Value, as a follow up to the global IBM IBV CPO Study, examined how leading companies are driving procurement transformation and leveraging technology. Procurement Analytics is based on in-depth interviews with more than 24 leading Chief Procurement Officers (CPOs) at Fortune 1000 and Global 2000 companies, all of whom had more than twenty years’ experience in procurement. The report was developed by Dr. Robert Handfield, the Director of the Supply Chain Resource Cooperative and author of the The Procurement Value Proposition.
The examination of these 25 leading procurement organizations revealed that:
- Analytics is becoming an essential procurement capability: As companies continue to expand operations globally and supply chain and compliance complexity grows, analytical capabilities and the insights gained from analytics will be increasingly important, and necessary, in procurement organizations.
- Analytics drives procurement transformation: Although levels of procurement and analytics maturity can evolve over time, analytics plays a key role in enabling the change and transformation that occurs.
- Analytics super charges collaboration: Supplier and internal collaboration is becoming increasingly important to procurement success; yet, efforts to engage with suppliers and internal stakeholders are often impeded by a lack of credibility, due to a lack of metrics and data. Procurement organizations that master analytics achieve greater internal and supplier collaboration, thus greater success.
- Analytics has impact at any stage of procurement maturity: Analytics is important during any stage of procurement transformation or maturity. Insights can be gained even in the absence of perfect data or perfect systems.
- Advanced analytics benefits from integrated procurement solutions: Advanced analytics in the form of predictive capability is the most highly evolved form of procurement analytics. Real-time and predictive analytics programs are more successful for companies with integrated procurement and supplier management solutions.
The full report includes details on how analytics can help drive procurement transformation and success—and recommended strategies for creating a successful advanced procurement analytics program. Learn more about the Procurement Analytics report by viewing this SlideShare presentation or download a copy of the report here. Build a solid foundation for analytic insights and intelligence across global spend, contracts and suppliers with IBM Procurement Solutions.