In a recent survey by Deloitte, 65% of procurement professionals believe that data-driven decisions are crucial for achieving procurement excellence. Yet many organizations continue to struggle with executing strategies to achieve these goals.

Procurement organizations are implementing profound transformations due to the rapidly changing business landscape; constant fluctuations in consumer demand, faster technological evolution, and frequent disruptions are no longer the exception. However, transformation efforts come with challenges, particularly in data management.

One of the underlying problems facing procurement professionals today is the vast amount of data generated throughout the procurement process. From supplier information and pricing data to market trends and performance metrics, procurement teams are inundated and often overwhelmed by the amount of data available.  

This data is dispersed across multiple systems and formats, making accessing, analyzing, and deriving meaningful and actionable insights difficult. Furthermore, the quality of this data is often compromised, leading to inaccuracies, inconsistencies, and inefficiencies in data-driven decisions.

It is no longer about having the right data at the right time. We need the right data at the point in time when it has the most impact on our decisions. According to research by The Hackett Group, poor data quality costs organizations an average of $9.7 million annually in missed savings opportunities and increased operational expenses.

So why is data quality essential? Because data drives everything, data underpins every aspect of the procurement process, from identifying cost-saving opportunities and mitigating risks to optimizing supplier relationships and enhancing operational efficiency.

High-quality data enables procurement professionals to make informed decisions, mitigate risks, and drive strategic value for their organizations. By improving data quality, procurement teams can unlock additional benefits, such as enhanced supplier performance, reduced process end-to-end cycle times, and strengthened compliance.

With advanced analytics and artificial intelligence, high-quality data lays the foundation for predictive and prescriptive insights that can further optimize procurement processes and drive continuous improvement.

In summary, in today's data-driven world, data quality is no longer a nice to have; it is a critical component of procurement success. By addressing the underlying problems of data management and prioritizing data quality initiatives within the Transformations, the organizations can empower their procurement teams to become real value creators, drive strategic impact, and deliver tangible results.

By MELISSA DREW

Keywords: Big Data, Digital Transformation, Procurement