Data has become the lifeblood of business. Much like ice-cold gelato on a summer’s day, leaders just can’t get enough of it.
The challenge, as we all well know, is finding the right data, at the right time, and applying it to the right situations to elevate both the quality and impact of decision-making.
But as a senior procurement performance manager at one FMCG company shared during a recent Data and Digital Strategy Cohort call, procurement could overcome this challenge by looking to both external and internal sources.
Explaining how the function had created a data hub to pool information from numerous data providers, she gave the example of how procurement had asked HR for accurate data on labour costs. Given the HR function uses market indicators to inform strategic decision-making, it wouldn’t make sense for procurement to waste time and energy gathering the same information.
Although many HR professionals may be reluctant to share sensitive information outside of the function, the procurement performance manager told the group that procurement overcame this barrier by demonstrating the value it could offer – not least in future price negotiations for HR-related services – and the power in applying this data in numerous ways to different business problems.
While this is just one example of information sharing, it begs the question: are purchasing teams overlooking the possibility that the data they need to inform strategic decision-making already exists within the organisation, siloed away in a different function? Do colleagues in treasury, HR, finance, R&D or commercial hold a vital piece of the puzzle that could help to elevate procurement performance?
This is, of course, a two-way street: data challenges are in no way unique to CPOs and their teams. Colleagues throughout the business have the same thirst for timely, accurate information. And with its unique access to information upstream in the value chain, procurement is well placed to help inform decision-making across the business. It could even be a valuable bargaining chip when it comes to accessing the information you need.
We talk a lot about the importance of “connecting the dots” when it comes to procurement data. But taking time to think about this as a business challenge, rather than one that applies solely to procurement, could prove hugely valuable for everyone.
I&D Impact Awards: entries now open
Entries are now open for the I&D Impact Awards 2025, which recognise exceptional achievements in Diversity, Equity and Inclusion. With many procurement teams working to develop outstanding supplier diversity schemes that help create a more inclusive and equitable world, the awards are an important opportunity to celebrate the power businesses have to make a difference.
Visit the website to discover more and enter.
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