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
Data analysis can provide context, background and highlight what the data means for your industry, organization or category.
Using a multi-layered approach to data provides further enrichment, validating and contextualizing opportunities
Leverage spend effectively by consolidating business unit, regional or country spend
Identify areas where spend can be aggregated or conversely where supply chains can be effectively dis-aggregated
Supplier Relationship Management
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
Knowing the numbers and the facts strengthens the buyers hand in negotiations
Data can support the design and implementation of supplier management strategies
Identify and manage risks associated with particular category
Identify key supplier dependencies and put in mitigation plans
Identify and manage key contract clauses through effective use of SLA’s and KPI’s
Address spend outside of approved suppliers
Use data to support regulatory requirements or considerations
Improve organizational visibility.
Improve flows of information and goods
Facilitate informed decision making at every level of the business
Confirm savings identified and delivered to the business through empirical evidence against an agreed baseline
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
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
Review internal policies against wider industry standards or specific competitor organisations
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