Analysing all the data you collect within your business can help you to optimise every department and improve relationships with your vendors.
As a business leader in today’s market, there’s no doubt your company manages Big Data. The real challenge is whether you’re using the data to leverage new customers and optimise your business. With numerous information streams coming from online sources and social media, you need to utilise and understand Big Data and how to use it to your business’s advantage.
The business world is being transformed by Big Data. While the idea has been around for years, businesses have only recently realised its full potential. This is why you should integrate Big Data into your business:
Make informed decisions
Before the existence of Big Data, critical decisions were made using emotions, on how someone’s ‘gut’ felt about it. This created challenges for up-and-coming managers as they couldn’t quantify the decision and so couldn’t repeat the success or avoid the losses. Today, you can clearly see the link to data and financials collected with each choice, which allows your junior managers to follow your reasoning and understand why the company is moving in that direction.
Experts can now use predictive analysis when calculating demand, to forecast what resources your business will need. These business insights reduce lost time and assets, to ensure you’re optimising your purchases.
Thoroughly analyse your expenses
Your business, like any other, will have “spend data” accumulated from all your business costs within various operational functions. The challenge comes in when you have a large, even global business; these transactions can run into millions of line items. Efficiently analysing your spend data can assist your procurement managers to recognise spend patterns within categories. This analysis can reveal opportunities to improve your bottom-line and added value from procurement spend.
However, numerous businesses require a multitude of systems and processes for sourcing and procurement processes, which result in multiple sources of data. This is why your business should incorporate unified procurement technology, which can integrate all sourcing and procurement systems. This technology and these processes can help you understand how your business is spending, while offering real time insights into saving opportunities. All team members in your business should keep return on investment top-of-mind when making every purchase. To keep your enterprise in the black, monitor expenses to every single list item.
Optimise your relationship with your vendors
When incorporating Big Data you can address customer expectations by seamlessly meeting every need. Both suppliers and procurement clients can profit from your use of Big Data. For example, suppliers can gather usable, data-derived insights which they can use to assign resources accurately and better formulate logistical strategies.
Current inventory management programmes could order supplies in optimal amounts, when you required, without the negotiating and following up with vendors.
Data-driven results will make the processes of supply and demand run smoother, and it will save you capital in the long-term. Use the technology to work smarter instead of harder.