Category management data cubes are a major tool in the procurement toolbox to help make informed decisions in support of overall strategy. We take a look at the areas you can improve with the help of good structured data sets and informed analysis.

Identify Opportunities for Savings

Insight

Data analysis can provide context, background and highlight what the data means for your industry, organization or category.

Data Cube

Using a multi-layered approach to data provides further enrichment, validating and contextualizing opportunities

Group Spend

Leverage spend effectively by consolidating business unit, regional or country spend

Contract Leverage

Identify areas where spend can be aggregated or conversely where supply chains can be effectively dis-aggregated

Supplier Relationship Management

Power

Suppliers generally have the upper hand in relationships as they know more than the buyer. Access to data can even this relationship leading to more balanced conversations

Negotiation

Knowing the numbers and the facts strengthens the buyers hand in negotiations

Supplier Strategy

Data can support the design and implementation of supplier management strategies

Risk Management

Category Risk

Identify and manage risks associated with particular category

Supply Risk

Identify key supplier dependencies and put in mitigation plans

Contract Risk

Identify and manage key contract clauses through effective use of SLA’s and KPI’s

Maverick Spend

Address spend outside of approved suppliers

Legal Compliance

Use data to support regulatory requirements or considerations

Improve Processes

Improve

Improve organizational visibility.

Awareness

Improve flows of information and goods

Full Picture

Facilitate informed decision making at every level of the business

Savings Validation

Confirmation

Confirm savings identified and delivered to the business through empirical evidence against an agreed baseline

Forecast

Provide better estimate of future performance with useful information for budgeting cycles

Total Cost of Ownership

Identify further savings driven by total cost of ownership principals

Benchmarking

Price

Making sure your suppliers are not walking up prices through comparisons against alternative suppliers.  It is important here to make sure you make accurate comparisons on a like-for-like basis

Policy

Review internal policies against wider industry standards or specific competitor organisations

Process

Review your operational processes against the wider market

Key Success Factors

Key to implementing a great data management strategy is to know your data. It should be cleansed so it is accurate, reliable and most importantly relevant. If you don’t put good quality data in then don’t expect too much from the output. It is often useful to combine internal and external data for best results.

Aim to measure constantly and report frequently to an established and engaged stakeholder group. There are some great visualization tools in the market which make working with data a more engaging experience. We use Tableau and Power BI but there are many other alternatives available.

If you would like us to help you build your category management data cube then please

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