According to Deloitte’s most recent Global CPO Survey, 74 percent of top procurement leaders consider cost reduction to be their top priority as they look to sustain business growth in a slowing market. In this data driven age, procurement intelligence not only sustains cost optimization opportunities but also enables procurement organizations to play a strategic role. Yet only 32 percent* of category managers currently maintain comprehensive category intelligence documents.
Today, data is not only collected and analyzed at rapid frequency but also is constantly referenced for predictive analysis. While it’s essential for procurement teams to use real-time flow of insights to shape and inform the entire decision-making process, they may often encounter multiple challenges, including:
Understanding the best-case and worst-case scenarios with actionable market intelligence can help strategic procurement specialists predict, analyze and manage risk with a reasonable degree of certainty. In the Brexit case, market intelligence reports could have helped evaluate the micro and macro implications on sourcing, import and export of goods, real estate, staffing and labor, currency, commodities and more.
Setting up a reliable market intelligence program requires expertise in multiple fields, and often involves intensive primary and secondary research. While this can no doubt be analyzed in-house, there may be greater value in partnering with niche ‘finger on the pulse’ procurement intelligence companies who specialize in procurement category intelligence across diverse industries as it would save time, effort and cost.
While generic category intelligence is widely available in the alleyways of the internet, it’s not always easy to locate relevant, reliable and specific intelligence that would fit the buyer’s sourcing context. This is where the services of a third-party procurement intelligence company might be of value – especially if this company regularly gathers data and context from a wide variety of sources such as suppliers, industry experts, journals, and also buyers. As a procurement leader looking for the right partner to support your organization, consider the following capabilities:
The right procurement intelligence partner will provide buyers with up-to minute, tailored insights about various market-related and spend-related areas. These verified and expert insights will help sourcing managers to make the right ‘buy or no buy’ decisions – and this would ensure the procurement organization to stay ahead of competitive forces and manage core processes more effectively. Are you ready to create business advantage with the help of procurement intelligence?
 The Deloitte Global CPO Survey 2016. Procurement: at a digital tipping point?. * CEB
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