How does your organization measure the contribution of procurement activity to the bottom line? Do you even include procurement when you think about overall profitability?
Controlling your cost of goods sold depends on your purchases of raw materials, but a lot more goes into it than just studying purchase requisitions and invoices. Important variables include how you time your purchases, whether you’re getting the product quality you’re paying for, and how you manage your historical relationship with your suppliers. Procurement managers using tools like spreadsheets and spend-analysis software understand the potential in those variables but can’t easily extract them from data sources..
With analytics, procurement managers can go beyond the realm of traditional spend analysis into areas like cost modeling, supplier risk/performance, and market intelligence to generate useful, precise insights that contribute to a company’s profitability.
By collecting data from disparate sources, procurement managers can weave internal and external information into a comprehensive picture of how materials come into production. The insights they find can help them not only control the cost of goods sold, but also mitigate risks in the supply chain. The long-term value of analytics extends to finding ways the organization can spend less on materials and open up new markets.
Some of the biggest supply chains use Alteryx to manage procurement, keep a handle on inventory management, and ensure up-time on equipment. By connecting your data and applying predictive analytics tools, you can optimize your supply chain analytics with Alteryx.