Procurement Trends of 2021 – The Focus on Better Data

Everywhere you look today, procurement trends seem to focus on data. But not just any data—better data.

To be clear, this is not some new trend rooted in 2021 but has rather been a quest of procurement forever. It’s just that it is starting to feel like we might be getting somewhere now, and that’s exciting stuff.

So, what’s the big deal about data? Let’s discuss.

Why Do Organizations Make so Much Data?

The main reason companies place such a high premium on collecting data is that it enables them to better handle what the consumer wants.

For instance, data can help companies better understand how a consumer behaves online (think analytics), can aid the company in defining overall demographics, and even act as a tool in identifying how the company can improve the overall customer experience. Put simply, data is king, and it helps companies figure out what exactly they need to do to rule.

The Value of Data to Procurement

Procurement analytics is key to high-performing procurement teams, as it allows them to do a multitude of things, including the imperative activity of avoiding gaps in supply chain. Slowly but surely, organizations are getting the help they need with their data through AI, ML, and classification efforts, but if you ask most CPOs today, they will tell you that there’s still a long way to go.

So, where do we need to go exactly? In the direction of better data.

2021’s Focus on Better Data

To stay at the top of their game, organizations know that data is a huge deciding factor regarding who survives and thrives. That explains why 2021 saw an influx of companies focused on better data across the board.

It’s been such a huge trend that the 2021 Deloitte Global Chief Procurement Officer Survey, reported that leading CPOs: “Prioritize data, both internal (master data capture and consumption) and external (market intelligence), to make fact-based decisions from predictive analytics that reveal hidden opportunities and emerging risks.”

The Value of Data in 2022

Data was crucial in 2021, and as we move through 2022, the value of data will only increase. Why? Procurement data and analytics will be the essential ingredient that allows us to future-proof our supply chains and bring more strategic value to our brands.

But don’t just take our word for it; procurement expert Susan Walsh wrote an article about the importance of procurement data (and keeping it up to date and clean). Spoiler alert: Keeping appropriate and up-to-date tabs can save you money.

So, let’s have a small recap: Utilizing procurement analytics simply describes the process of collecting and analyzing procurement data to glean actionable insights that will help your company make the best-informed business decisions. Such data could be sourced from numerous avenues and could include ERPs, classifying data to standard or use-case-specific taxonomies, and displaying data in a visualization dashboard or within business intelligence tools.

Whatever way you choose to use this data, having access to it can only improve your company and help support wise decision-making in 2022 and beyond.