Crafting a Solid Baseline Without Historical Data: The EmpoweringCPO Way
What is Baseline? Baseline preparation is one of the most important phases during any Strategic Sourcing process.
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The primary objective of procurement data analytics is to facilitate data-driven decision-making. By leveraging data analytics, procurement organizations can eliminate guesswork and intuition, resulting in smarter choices that align with their strategic goals including sustainable procurement. In this way, data analytics serves as a cornerstone for procurement teams, empowering them to excel in an increasingly competitive and complex business environment.
We are committed to delivering exceptional value by catering to your specific needs at every stage of the procurement process. From the initial stages of strategic sourcing to ongoing category management, our data analytics services help you make well-informed decisions that result in cost optimization and improved supplier relationships. Our team of experts works closely with you to understand your unique challenges and develop customized solutions that align with your organization’s objectives.
Our procurement data analytics services provide a wide range of outputs designed to enhance your procurement operations. Some of these key outputs include:
1. Category data analysis for a comprehensive understanding of your spending patterns.
2. Cost escalation metrics to support RFP package preparation and for contract draft facilitation.
3. RFP pricing worksheets for structured vendor pricing comparisons.
4. Baseline preparation to evaluate new pricing against historical data.
5. Vendor pricing evaluation for informed decision-making and vendor ranking.
6. Cost modelling to understand cost drivers and support negotiation.
7. TCO analysis to evaluate non-pricing factors and determine the total cost of ownership.
8. Compliance models for effective contract management and adherence
By offering these customized outputs, we empower your procurement teams to drive strategic initiatives, optimize costs, and enhance overall business performance.
These key outputs and deliverables form the core of our procurement data analytics services, enabling your organization to make informed decisions, optimize costs, and achieve strategic procurement objectives.
– Combining analytics with procurement market intelligence to achieve a comprehensive view of categories
– Identifying trends, opportunities, and supplier risk assessment to drive more effective category management
– Empowering category managers with data-driven insights to make well-informed decisions
– Eliminating guesswork and enabling more strategic procurement choices
– Leveraging analytics to continually monitor and manage categories
– Adapting to market changes and optimizing procurement strategies
– Utilizing procurement data analytics to identify cost-saving opportunities
– Achieving long-term savings and value creation through informed decision-making and strategic supplier relationships
– Enabling ‘Apple to Apple’ comparisons by standardizing and analyzing vendor bids
– Simplifying vendor evaluation and selection, leading to more strategic partnerships
– Providing category managers with timely and actionable insights based on data analysis
– Facilitating data-driven adjustments and improvements to procurement strategies
– EmpoweringCPO distinguishes itself from other sourcing and procurement service providers by delivering customized, data-driven solutions tailored to each client’s unique needs
– Our commitment to innovation and excellence ensures that we stay ahead of the curve, providing superior services that drive tangible results for our clients
– Our team of qualified data scientists possesses advanced information management and analytical skills, as well as a deep understanding of business requirements
– Their expertise enables us to deliver unparalleled data-driven insights that empower procurement teams to make informed decisions and achieve strategic objectives
– At EmpoweringCPO, we leverage large data sets and diverse information sources to provide actionable insights that drive procurement success
– Our ability to navigate and analyze complex data enables us to uncover hidden opportunities, mitigate risks, and optimize procurement processes
By combining our unique capabilities with a steadfast commitment to client success, EmpoweringCPO delivers exceptional procurement data analytics services that help organizations achieve their strategic goals and enhance overall procurement performance.
Elevate your procurement organization to new heights by investing in our state-of-the-art procurement data analytics services. With our tailored solutions, you can make well-informed decisions, optimize procurement processes, and achieve significant cost savings. Choose EmpoweringCPO as your trusted partner and unleash the full potential of your procurement team, driving success and growth for your organization.
These are quite recently the absolute most normal inquiries we get inquired.
Procurement Data Analytics is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information and suggesting conclusions. Its main goal is to support decision-making during the strategic sourcing process as well as during the ongoing category management process.
Some of the major outputs are Category Data Analysis, Cost Escalation Metrics, RFP Pricing Worksheet, Baseline Preparation, Vendor Pricing Evaluation, Cost Model, TCO ANALYSIS, and Compliance Model.
The first step of the Strategic Sourcing process that EmpoweringCPO’s procurement data analytics can help with is Category Data Analysis, which involves understanding the spending across various business groups and geography and also data consolidation.
Cost Escalation Metrics are created through further understanding of the category and Market Research, which can be used as part of the RFP Package.
Based on an understanding of the historic spending and the pricing structure, historic data is prepared in a format to help compare and evaluate the new prices.
In addition to vendor pricing, it is also important to evaluate non-pricing qualitative factors. Furthermore, data analysis helps in understanding TCO for all proposals.
Compliance Model is usually the last stage of the Strategic Sourcing process and helps in the ongoing management of contracts, model is created so as to achieve compliance.
The benefits of Procurement Data & Spend Analytics include assisting category managers in taking informed decisions instead of relying on intuition, providing a better understanding of the category, ensuring ongoing and proactive management of category, providing regular insights to category managers based on reports, making vendor bids comparable on an ‘Apple to Apple’ basis, and maximizing savings achieved through the strategic sourcing process.
EmpoweringCPO has a qualified army of data scientists – specialists at identifying and extracting business value from structured and unstructured data. Their resources have advanced information management skills, analytical skills, and business expertise. As a result, this helps in understanding large data sets and leveraging new types of information from various sources.
EmpoweringCPO can help businesses in procurement analytics by providing customized procurement data analytics services and reports that are produced according to the client’s specific needs during the various stages of the process. Their services can assist in various stages of the Strategic Sourcing process, including category data analysis, cost escalation metrics, RFP pricing worksheet, baseline preparation, vendor pricing evaluation, cost model, TCO analysis, and compliance model. Additionally, their procurement analytics can help businesses maximize savings achieved through the strategic sourcing process, provide regular insights to category managers, and assist in ongoing and proactive management of categories.
What is Baseline? Baseline preparation is one of the most important phases during any Strategic Sourcing process.
A cartel is formed when businesses agree to act together for an anti-competitive purpose instead of competing against each other.
Spot Buying is for immediate, Ad-Hoc & one-off purchases. It’s estimated that around 40% of the company’s indirect spending is from spot buying.
Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:
As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:
The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.