Savings, Risk and Value have always been part of the procurement equation. And following the mantra: ‘What gets measured, gets done’, savings is what most procurement organisations are measured against and focus on. But suppliers are also increasingly seen as strategic sources of innovation. For the future competitiveness of company, working with the best suppliers and getting access to the best ideas in product categories where this matters, is essential.
We have developed very detailed metrics to measure (landed) savings. And despite the efforts put into this, we are still discussing whether reported savings are real savings. For the value side of the equation, we are struggling even more. This is because value is a combination of two aspects. The first is about harder metrics like innovation rates, resources dedicated to innovation and how innovations are contributing to increased market share. The second is about softer aspects like being ‘customer of choice’, the quality of innovation ideas and processes and positive and negative sentiments that impact day-to-day collaborations between individuals at both sides.
Interestingly Big Data has a role to play in improving all dimensions of the value equa-tion for Procurement. If we call it Spend Transparency it is the first essential step in developing Sourcing Strategies. But there are many more strategic sourcing questions that Big Data has the potential to provide answers to. Whether it has to do with measuring supplier and customer sentiment, real-time tracking of progress of projects against contracts, identifying trends in commodities ahead of competition or identifying early indicators for supply risk.
It is with this promise in mind, that Wouter Crul has initiated the ‘Big Data drives value in Procurement’ program. The program will focus on developing and executing small and pragmatic proof-of-concepts in collaboration between industry and academia. In parallel a framework will be developed for Data Driven Sourcing incorporating procurement processes, systems and people.
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If you are interested in joining this project please contact email@example.com for further details.