In an increasingly data-driven marketplace, marketing procurement teams need actionable data and insights in order to remain competitive. In this article, we cover the top benefits to utilising a data driven procurement approach that will help your business to leverage greater results across the board.
No matter the size of your organisation, the ultimate goal for every business is to gain a larger market share while achieving a healthier bottom line. If there was any one asset available to all organisations that has the power to see this goal through, it’s data. In the 21st century, one could liken data to a goldmine; it’s the single most important (and FREE) asset that all organisations possess. However, not all businesses have pieced together just how powerful data as a tool can be.
In an increasingly data-driven marketplace, marketing procurement teams need actionable data and insights in order to remain competitive. Becoming a data-driven procurement organisation means using both internal and external supply chain data to gain a decisive competitive advantage; putting a sizable distance between your company and its rivals.
As the old adage goes, ‘knowledge is power’; and this couldn’t be more true for those in procurement leadership positions today. Having access to decisive data empowers them to maintain extensive insight into performance results, while also providing transparency into each stage of the supply chain.
The final result?
Those in procurement and marketing management are able to make more informed decisions, reduce costs, increase efficiency and more easily pivot and adapt to ever changing market conditions. In order for businesses to continue to grow and increase profitability, it is essential that all procurement is a data driven process.
Not sure where to start? Throughout this article, we cover the top benefits to utilising a data driven procurement approach that will help your business marketing team leverage greater results across the board.
What is data driven procurement?
To really simplify it, data driven procurement can be defined as an approach to procurement by which data is gathered and analysed as the centre piece to all decision making.
This is important because today’s technology can process huge amounts of data. For example, data used for marketing procurement is collected from a number of internal and external sources, including procurement, marketing, finance, business and social media, to name a few. Analysing this data results in actionable insights that procurement managers and specialists can use to make informed growth decisions.
However, despite having this actionable data readily available, a recent survey carried out by Deloitte found that many business leaders don’t use data to help in making critical decisions. It’s likely that these findings come as a result of reluctance to adopting a digital business model, however, the benefits of leveraging data to form a procurement strategy are irrefutable.
Benefits of data driven procurement in marketing
All-encompassing cost saving
A good marketing procurement software solution should provide users with automated spend analysis reports. These reports allow you to see where money is being spent by providing insights into various metrics. These reports will also tell you how much return on investment you are receiving.
Additionally, when using marketing procurement software tools, you should also have the ability to set up automated workflows in the system your organisation uses. These workflows can automate purchase order approvals based on predetermined business rules which is helpful as it reduces the procurement cycle and eliminates wasted spend ensuring that businesses receive the best cost savings possible.
Improve supply chain management
2022 will be a challenging year for marketing procurement and their supply chains. The key to building strong supplier relationships lies in the ability to collaborate, negotiate and manage compliance. In addition to indirectly saving your business money, using an online marketing procurement solution should also provide you with transparency across all stages of the supply chain. This visibility will help you in ensuring that every touchpoint along the supply chain remains strong, and if anything does go awry, you’ll know how to resolve it straight away.
Stronger internal and external collaboration
Marketing procurement teams touch every part of a business and work across all departments assisting them achieve their goals, while supporting the overall objectives of the organisation.
Using a streamlined, end-to-end process for marketing procurement, where all parties involved in the project have access, means that spend can be strategically forecasted, allowing departments get the best ROI possible, while enforcing compliance and reducing wasted spend.
Simplified procurement process
When compared to a data-driven approach, traditional procurement methods (email and spreadsheet) tend to waste a lot of time, energy and resources. By shifting to an online data-driven solution, these processes are streamlined. For example, by using automation, teams can reduce the number of steps required in a process (eg, approval processes) without having to worry about compliance issues or exposure to unnecessary risks.
When businesses choose to take a data-driven approach to procurement, costs drop, efficiency improves and small issues (such as unauthorised spend) become obsolete.
Collection of the right data
While collecting as much Big Data as possible may sound like a good idea, to get actionable insights that create a competitive advantage, information needs to focus on both quality and quantity.
Not only does a data-driven procurement process help in the collection of data, it also helps marketing procurement professionals to identify challenges (such as indirect spend management) that need addressing, collect and distribute information to create knowledge models to help in analysis and strategic planning, and analyse existing information.
Using software to gather relevant information from internal and external resources helps in collecting data that is most useful to your business, thus helping to reduce costs, boost efficiency and streamline supply chain.
In a world where data is just as valuable as gold, not efficiently using the data that your organisation produces daily is arguably the biggest waste of available resources. Forming procurement strategies for marketing without leveraging all of the tools available to you simply isn’t logical. For as long as we have access to intelligent procurement tools, we must use the actionable insights they provide in order to make informed decisions and effective strategies.
While the thought of undergoing procurement digital transformation may seem daunting, it’s easier than you think, and beats the dead weight of excess risk, increased costs and high spend.
If you’re in the market for procurement software that enables you to capture and retain your procurement data, Sourceit can help! Acting as your partner in marketing services, our technology will help your buyers to choose the right suppliers and deliver you real savings with every transaction. Interested in knowing more? Head to our website and see how you can reduce marketing costs by 14% or more, or drop us an email at firstname.lastname@example.org