What is big data? Well, according to Wikipedia “ “Big data” is a field that treats ways to analyse, systematically extract information from, or otherwise deal with data sets that are too large or complex to be dealt with by traditional data-processingapplication software.
For simplicity’s sake, we can say it is an innovative way of looking at traditional data manipulation. It is often thought of as a buzzword used by marketing on advertising copy, but when utilised correctly it can have a huge impact on a company’s future.
Traditionally, procurement has always kept its data unstructured, and sitting in scanned documents, email inboxes and spreadsheets, digitising this data and successfully harnessing and utilising it by companies can lead to management making quick, informed and profitable decisions and seeing its impact on the business in real-time, while at the same time thinking about what the business is going to look like in the coming months and years.
So how can we use these analytics to optimise procurement?
- Forecast Market Trends
- Risk Management
- Driving collaboration
Forecast Marketing Trends
Big data can provide a look into leading indicators and metrics, letting procurement teams build a picture of potential scenarios within their industry, which could be a huge advantage for the electronics industry that is changing all the time!
Through Big Data, businesses can reduce a lot of risk, with greater access to both historical and real-time data on their supply base- putting the procurement team in control and giving them the means to profile the more critical suppliers.
Big Data can be used to drive collaboration, it has the power to completely transform procurement by taking them from a reactive function that rely on manual data to an action led team that can become the epicentre of decision making through access to big data analytics and using predictive analytics to ensure future steps are in the right direction.
Suppliers have a huge impact on a business’s growth if managed well with utmost importance given to supplier compliance. Access to real-time data will help procurement team to take swift and actionable decisions- helping the company and its suppliers stay compliant.
Supply chain organisations can use Big Data analytics to generate more accurate demand forecasts and get better forward visibility of potential supply disruptions. Through analytics companies can streamline their procurement processes and make it more action oriented rather than just a reactive function.
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