Advanced procurement analytics provides businesses with insights that aid companies in prudent decision-making and help them understand the behaviors of business stakeholders, market dynamics, purchasing trends, and better vendor and team management, negotiation tactics, and purchasing strategy. These derived insights can also be used to brace future procurement decisions and drive value for the whole organization.
Moreover, today procurement managers need to assess their real position on the analytics value chain, to get a true picture of where they truly stand. Once they gain clarity on this, actions can be taken to move ahead based on the level of maturity.
Working Capital Optimization
Procurement analytics helps optimize the working capital of an organization. It also helps in curtailing spends over budget by comparing the purchase order value or the budget with the actual invoicing.
Procurement analytics enables organizations to identify the price variance of a similar product/service by division or geography. It also helps analyze price fluctuations to assess whether the cause – increase in spending for an SKU or category or per unit cost reduction.
Procurement analytics helps organizations identify any variance from the agreed KPIs and defined processes. Typically, these cannot be avoided completely but can be controlled as they always come with a higher price point and procurement analytics identifies spends from non- preferred and unapproved suppliers. It also aids in fraud detection by analyzing factors like spend near approval limits and large spend without a point of sales.
Procurement analytics helps organizations understand the existing supplier base’s performance and identify opportunities to integrate with them further by using more global contracts and secure better pricing.
Procurement analytics also helps analyze the geography or division that has a high supplier base built up over the years. It aids in leveraging the geographic reach of existing suppliers to secure global competitive rates.
Quantzig combines deep domain expertise, analytical capabilities, and technical know-how to deliver incisive insights that help achieve procurement excellence.
We connect you directly with procurement analytics experts who leverage smart insights to tackle your unique business challenges.
The main challenge for businesses today is having access to data but not being able to infuse insights into their procurement strategies.
Request a free proposal to learn how our procurement analytics solutions can help you tackle this challenge.
Our Latest Articles
The main aim of artificial intelligence in medicine is to mimic human cognitive actions which is directly or indirectly bringing pioneer changes in the field of healthcare. Artificial intelligence in healthcare simplifies the processes of healthcare organizations as...
Out-of-stock scenarios are a huge setback for retailers globally. When it comes to dealing with seasonal products with a short shelf life, this issue and the associated costs for retailers are exceptionally high. A detailed analysis of the reasons behind frequent...
In 2020, we witnessed rapid changes in workplace structures and business processes amid the pandemic outbreak. Advanced HR analytics solutions proved their potential amid the uncertainties by playing a crucial role in helping businesses understand and engage with a...