This post is based on material from the Spend Matters research brief, Changing Roles of Procurement Leaders - The Analytical CPO. Registration is required to access this document – but free access to the content has been underwritten by BravoSolution until December 2013.
In the previous installment, we explored how the data landscape for procurement is changing, including many new information types.
But it’s important to note that there’s also been a growth in the depth of the information that is available – not just the number of sources. Whereas we might have had some basic spend analysis data from our own organization ten or twenty years ago, the explosion in processing power has enabled far greater detail to be produced and more complex analysis to be carried out.
In that example, we can now obtain line-item detail from P2P systems or from purchasing card expenditure. The data can be cut and analyzed in different ways by business unit, location, and supplier. All of this enables us to extract real information and use it to identify issues and opportunities. The options can appear endless.
But, fortunately, we can analyze it better...
Going back a few years, in some cases we might have had the data available in raw form but not had the tools to address it. Market-informed or collaborative sourcing is an example. It was always possible to ask suppliers for very complex tender responses, but until the last decade, the tools and computing power were simply not available to carry out serious analysis of the responses with reasonable cost and timescale. So fortunately for us, as the quantity and nature of data available has exploded, and the technology available to help us analyze it has also developed rapidly.
Read the full Spend Matters Research brief: Changing Roles of Procurement Leaders - The Analytical CPO (free, registration required). Temporary access to this material is underwritten by BravoSolution until December 2013).