Data is more available today than ever as a result of technology advancements (i.e. faster computers, mobile & handheld devices). Therefore, for businesses to succeed, they must be able to identify, capture, analyze and manage the slew of data that they are regularly being confronted with.
Likewise, Management of Data and Analysis (Data Analytics) is critical for building a sustainable procurement process and a robust supply chain. This ultimately leads to efficiency and cost effective process or standards.
So, why should the procurement and supply chain organization embrace data analytics?
The reasons include but not limited to the following:
- It harmonizes all the components of the Supply chain (i.e. Demand Planning, Procurement, Operations etc.)
- It provides a centralized source of truth for data and information
- It enables the organization to make informed decisions
- It minimizes wastes when properly and effectively utilized
- It is an effective tool for managing change in an organization
The next question is – how do we implement data analytics?
The steps required for implementing a robust procurement & supplier chain data analytics include, but not limited to the following:
- The stakeholders must address the What, the Why and the When data attributes and criteria questions
- Define Data strategy (i.e. Tools Selection and Methodology)
- Define metrics, map metrics to quantifiable & measurable process transactions
- Execute the Data strategy
I’ll be sharing more on building the analytics capability at Marathon Oil during IBF’s Business Planning & Forecasting: Best Practices Conference w/ Leadership Forum
October 26-29, 2014 – Orlando Florida USA
Hope to see you there!
Advanced Senior Business Analyst
Marathon Oil Corp.