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Procurement look to be on the brink of a huge upswing in the adoption of advanced analytics. According to a recent assessment by The Hackett Group, mainstream adoption is expected to more than triple before the end of the decade. We can expect to see companies embrace technologies for building market intelligence, analyzing spend, and scorecarding bids from suppliers. Many teams, however, have their work cut out for them if they expect to effectively implement these technologies in the near future. Hackett points to the talent gap as a particularly large obstacle. Without the necessary mix of data savvy, creativity, and agility, Procurement won't see these tools reach their full potential.
The Doctor concludes his four-part series on Procurement analytics by providing his suggestions for how companies of all sizes can go about introducing analytics to their operations. Even companies that think their sourcing and reporting platform is meeting their needs can afford to augment their solution with new technologies. How can companies determine whether these augmentations are truly current generation? The Doctor outlines a brief 'sniff test' to conduct an assessment. Testing includes exercising the solution on at least three months of purchasing history and mapping out a new taxonomy for comparative purposes. He concludes by reminding readers that these assessments won't take much time, but they'll certainly put your team closer to cost savings and maximum efficiency.
Taras Berezowsky, Spend Matters, 4/13/2018
The situation is still developing, but its clear big changes are on the way for trade relations between the United States and China. Billions in potential tariffs could mean major risks in direct spend for Procurement teams in countless industries. A thorough assessment of current and potential risks is necessary for companies looking to survive whatever changes are on their way. It's the perfect time to start introducing true supply chain optimization to build strategic advantages. Companies without a dedicated approach to spend analytics, supplier relationship management, and risk forecasting will find it particularly challenging to maintain their operations as the trade war escalates.