Having visibility into your spend is critical for sourcing and effective category planning. However, does it provide a complete picture?
As per this article on CPOrising.com, the author of the article suggest that CPOs and procurement teams can go beyond managing and analyzing transactional data.
Next-generation spend analytics will integrate supplier performance and risk information with historical transactional data to present a truly holistic view of an enterprise’s spend and sourcing behaviors. It will take advantage of third-party information sources, such as local news media coverage, economic analyses and outlooks, and political analyses and collocate this information with related suppliers and categories to enrich an enterprise’s understanding of the risks. From there, CPOs and procurement teams can make better informed buying decisions, basing them not just on how much the enterprise saved last year by sourcing a commodity or several commodities from a given supplier, but on the economic or political outlook of the country where that supplier was located, their labor practices, how well they comply with national and international sourcing regulations, and so on.
Click on the link below to read the full article.