Advanced analytics exceeds standard business intelligence (BI) using state-of-the-art technology and tools to create data asset information and real-time statistics. These diagnostic analyses help businesses predict market trends, optimize global supply chains, to make quicker, strategic decisions to pursue financial opportunities.
Analytic techniques include data mining, eSourcing software, semantic analysis, complex event processing, predictive modeling, and other business data examinations. Read on to better understand of advanced analytics, their benefits, and how they will improve your sourcing outcomes.
Examples of Advanced Analytics
The type of advanced analytics you choose helps drive change enabling a business to pinpoint specific problems that hinder progress. Here are some types to consider:
CPO Cockpit: Chief procurement officers acquire goods and services and use workflow management systems to meet a company’s organizational goals while reducing costs and increasing profit. A well-designed sourcing dashboard helps the CPO move projects ahead and view all events in one place using graphs, charts, and tags as guides/alerts.
Cognitive Sourcing: CPOs use AI technology to prioritize information and negotiate strategically with vendors and suppliers. Cognitive sourcing enables supply chain managers to pursue opportunities, avoid risks and digitally transform the procurement process.
Smart Sensing Value Finder: Smart sensors track inventory, machinery, and materials to keep tabs on their location and condition. Smart sensing value finder technology helps business owners predict usage trends, increase efficiency, and optimize eSourcing.
How To Use Advanced Analytics
Businesses use advanced analytics to gain crucial insights by capturing, analyzing data, and making changes. They look closely at how they operate their business and find ways to improve efficiency by analyzing rather than guessing why sourcing processes break down.
The major goals are to minimize total landed costs and pinpoint trends. This helps strategic decision-making in advance of market swings to manage supply and demand fluctuations.
Advanced analytics evaluates suppliers’ strengths, weaknesses, and performances to improve the procurement process when properly implemented.
In the long term, businesses can expect to improve sourcing outcomes by predicting buying behavior and improving the acquisition of raw materials and inventory.
Here are other significant benefits to consider:
- Minimize total landed costs
- See the big picture at a glance
- Establish metrics to determine product quality and longevity
- Improve the planning process
- Create custom models to find supply chain solutions
- Match tools and applications with business needs
- Expedite deliveries to customers
- Lowers costs and oversee production
- Improve transparency of end-to-end supply chains
- Refine ability to forecast customer demand
Benefits of Predictive Analytics
As procurement teams increasingly depend on data-driven information, advanced analytics becomes their go-to source for detailed information to help them make informed decisions.
This detailed, relevant data creates savings opportunities while streamlining and prioritizing sourcing events. At the same time, analytics encourage competitive bidding and buying/selling auctions while mitigating risk and fraud.
Advanced analytics inspire insights, augment business development, and transform data into usable information to make predictions and decisions.
Overall, analytics allows procurement personnel to optimize data and select the best awards possible, share data with team members to focus on essential projects, and/or improve business operations across the board.
Advanced analytics takes minimal time to implement, improves accuracy, and helps achieve rapid ROI in less time while requiring minimal support.
Interested in how advanced analytics can improve your sourcing? Contact Simfoni eSourcing today.