You may have spent enough time in procurement while dealing with MRO data. With this, you may be eerily familiar with the wall of vagueness you have to peer at when looking at procurement data that goes beyond invoices and other consolidated data. The problem is so severe that Deloitte, through their Annual Global Chief Procurement Professionals Survey, concluded that up to 65% of procurement professionals might not enjoy data visibility beyond what they glean from their tier-one suppliers.
This blindness results in a situation where you can't make the most of your data to push for cost savings and even look to conditions such as compliance and risk. To solve problems related to MRO data collection, it's best to look at them if we're to find workable solutions. Even then, you'll need procurement advisers with data-driven solutions to help make sense of what's in front of you.
Laying Bare the MRO Problems
As a procurement professional, you may have encountered some challenges that hamper your data collection and analysis efforts. However, we have made it a point to put a name to these problems and come up with solutions. You may be dealing with a situation where there are rapid increases in availability and the number of data sources.
The knock-on effect accelerates the complexity required to manage this data and perform the necessary analytics. The other more common problem is the heavy reliance on legacy procurement systems. Today, you're operating in a fast-paced environment that struggles with churning out and keeping tabs on the relevant data. Any attempts to make this data actionable become an exercise in futility.
What's even more interesting is that with the increasing pace of technological developments, it becomes demanding to keep up with the different forms of data. You're hastening to learn a system and put it to use. However, the data enthusiasts come up with a new one. This pace means everyone involved in the commodities chain is always on different levels of technological advancements.
The technological advancements with data analytics spiral down further into increased complexities. It's requiring your IT systems to be flexible and agile. This is a problem as most systems are designed to be jacks of all trades. These issues combine to result in a situation where you can't even make a proper budget, calculate your savings, or even evaluate supplies you're interested in.
Importance of Having the Right Data
Relying on a system that punches through the data visibility wall denotes that you can gain valuable insights into your operation in addition to enabling you to craft game-changing strategies. For one, you can enjoy cost savings as the automated spend analysis reporting of the software gives you valuable purchasing insights.
The importance of data as a decision-making tool can neither be understated nor underrated. Although leaning on your gut has always seemed like the way to go, you know how terrible such decisions can be. Instead, data can provide you with immense benefits to help you inch forward, even when the tide is against you.
For instance, you can come up with confident resolutions since data is both logical and concrete. You just have to ensure the collection process is untainted. Additionally, with data insights, the decisions you reach become proactive rather than reactionary. You're able to peer into the future and make the right moves.
You can start working on your operational efficiency with the data you gather. The insights you acquire will show you exactly where the problem is and what you can do to overcome it. Even if you fancy an efficient process, there is always room to improve.
Need Help With Your Procurement Data Management?
Data is essential, but it can act like a virtual marsh when navigating through it. Commodity categories like MRO can be challenging to manage due to the many items to purchase. Even if you know how to tackle the problem, it's still not easy to consistently collect, sanitize, and manage the said data.
Rather than waste resources trying to make something of the data you collect, we at CenterPoint have the means and expertise necessary to manage all this for you. The best part is, it's for free! Contact us today.
Find out what your CenterPoint team can do for you today!
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The information contained in this article is intended for general information purposes only and is based on information available as of the initial date of publication. No representation is made that the information or references are complete or remain current. This article is not a substitute for review of current applicable government regulations, industry standards, or other standards specific to your business and/or activities and should not be construed as legal advice or opinion. Readers with specific questions should refer to the applicable standards or consult with an attorney.