Powering Procurement Through Source-To-Pay Data Analysis
ANALYZING PROCUREMENT DATA
Cutting edge Source-to-Pay solutions have enabled businesses of all sizes to increase their operational efficiency. With complex networks of procurement decisions, the capacity to analyze such data within single platform is invaluable. For Finance Executives, the potential impact on accuracy, speed, and economy of data analysis is massive. Here we explain how to leverage the analytical power of Source-to-Pay solution to facilitate cost-effective and actionable insights.
First, it is essential to identify the data to be analyzed. Source-to-Pay solutions allow for access to vast array of procurement data sources, including financial records, invoices, vendor channels, and contracts. It is important to collect data from the most complete range of sources for optimal analysis. Executives should set clear objectives for the data analysis, taking care to understand the metric that the undertaking is designed to measure.
Next, ensure that the data is cleansed, blended, and fit properly for analysis. This is perhaps the most important step in the process, as it involves understanding the potential impact of outliers and other data anomalies. It is worth taking into account the environment surrounding the data — temporal and spatial fluctuations, political, cultural, and legal contexts — in order to attain an accurate picture of the data.
There are then primary types of analytics that can be completed, to pursue deeper insights. Descriptive analytics allow data to be transformed into digestible, informative visualizations such as bar or line graphs. This can be used to illustrate key trends or differences between datasets. Predictive analytics can use established information to make educated guesses about the future, such as forecasting prices or predicting demand. Finally, prescriptive analytics draw on both descriptive and predictive modeling to formulate clear and actionable outcomes.
In addition, Source-to-Pay solutions offer options for data mining across multiple datasets, in order to generate meaningful suggestions for greater visibility and cost savings. This involves data segmentation, pattern recognition, and the ability to identify correlations between datasets in order to identify previously hidden relationships.
Ultimately, Source-to-Pay platform provides an immensely powerful and valuable tool for analyzing procurement data. By understanding and systematically utilizing the features of such platform, Business Executives can rely on streamlined processes and reliable reporting to inform decision-making. Armed with the insights derived from powerful platform, Executives can target cost savings and opportunities, ensuring resourceful and ultimately profitable enterprise.
