Managing and Measuring Procurement Data for a Better Future

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The procurement field is constantly evolving, and to stay ahead of the curve, procurement leaders need to focus on data. Collecting and strategically using data can help companies become more diverse and inclusive, reduce their carbon emissions, and accomplish other goals.

However, many procurement leaders struggle with managing and measuring procurement data.

This article will explore why this is such an important task and how procurement leaders can overcome any challenges they face.

Building Better Data Systems in Procurement

To manage procurement data effectively, companies need to have a strong data system in place. This system should be able to collect data from all areas of the procurement process and store it in a central location.

A good data management system consists of multiple elements. First, it should have a means of inputting and contextualizing data from multiple sources. This could include supplier intelligence data, carbon emissions reports, IoT sensor readings, and cost savings data.

The data system should be able to organize this data in a way that makes it easy to find and use for each department within the business. This has been a significant challenge, traditionally. Thankfully, there are now multiple solutions available that make this process faster and more streamlined.

The system should also have built-in reporting capabilities. This way, procurement leaders can track their progress and identify any areas that need improvement.

Finally, the system should be accessible to all members of the procurement team. This type of data democratization ensures everyone can contribute data and use it to make better decisions.

Establishing Standardized Data Protocols

Procurement leaders should create protocols and processes for using this data. By doing this, they will be able to ensure the data is used consistently and effectively.

One of the first steps in creating these protocols is to establish who owns which data sets. This will ensure each team member knows where to go when they need specific information.

Procurement leaders should also set up guidelines for how often data should be updated and in what format it should be presented. This will ensure the data is always accurate and up-to-date.

Finally, procurement leaders need to establish a process for decision-making. This way, they can be sure that all decisions are made using the most up-to-date and accurate data.

Leveraging Procurement Data to Tackle Challenges

Once a company has a strong data system and a robust set of processes in place, it can start to use its procurement data to tackle some of the biggest challenges they face.

For example, many companies are now using procurement data to help them achieve their sustainability goals. By tracking their carbon emissions and other environmental impact metrics, they can make better decisions about which suppliers to use and what products to purchase.

Procurement data is also being used to help companies become more diverse and inclusive. By tracking supplier diversity metrics, procurement leaders can identify areas where they need to make changes.

Getting the Procurement Data House in Order

In the future, procurement data will only become more important. As the field continues to evolve, procurement leaders need to focus on collecting and strategically using data.

By building strong data systems and establishing standardized protocols, procurement leaders can be better prepared to tackle the challenges of the future.

To learn more about getting your company's data house in order, don't miss the next ProcureCon East conference event. It will occur from September 12th to 14th, 2022, at the Omni Orlando Resort at ChampionsGate in Florida.

Download the agenda today.