Procurement Information Architecture Part 3: Analytics

In the first part of this series, I discussed the importance of procurement developing a high-level information architecture that creates a living blueprint for the needed information and supporting applications that procurement buys (or builds). This is not a detailed IT technical architecture, but rather, a picture of the application components needed to support a well-functioning procurement organization. Keep in mind that this is not just a listing of typical process-centric modules provided by application vendors (e.g., eRFx, eRequisitioning, Supplier Measurement). Such a blueprint can take many forms, but in this Spend Matters PRO research series, we’ll use a simple depiction shown in Figure 1.

In Part 2 of this research series, we discussed the importance of a coherent supplier portal framework that grants suppliers secure and personalized access to various content and applications. Significantly, it’s ‘merely’ a way to manage a single virtual supplier extranet – and presenting a ‘single face to the supplier’. It’s analogous to CRM-like functionality and we’ll discuss this idea and the internal portal intranet aspect of this in future research. But for now, let’s focus on analytics.

Supply Analytics is the Scope – Not Just Procurement Analytics

Since procurement, the department, is responsible for supply management (or spend management if you like), the process, the proper scope for analytics is to help answer the right questionssurrounding the optimal management of ‘supply’ (i.e., a contract, supplier, commodity, category, or the entire supply base and extended inbound value chain).

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