Leveraging Procurement Analytics for Data Storytelling

Adopting this method showcases how the modern procurement team has transitioned from a functional role to a strategic one, thereby establishing procurement as a vital contributor to organizational achievements.

What exactly is procurement analytics?

Procurement analytics involves the organized examination of data on an organization’s purchasing activities, supplier performance, and current market trends. The data stored securely in the cloud can offer insights that enable organizations to cut costs, improve existing procurement procedures, and effectively address potential risks.

Here are some key areas where procurement analytics can deliver value:

• Expense analysis – Identify opportunities for cost savings, recognize spending trends, and classify expenditures accurately.
• Carbon footprint assessment – Enhance your sustainability efforts by gaining visibility into supplier data by measuring, reporting on, and understanding Scope 3 emissions.
• Supplier evaluation – Strengthen relationships with suppliers by assessing their quality standards, reliability levels, and delivery performance.
• Understanding market trends – Gain a perspective on market dynamics, emerging trends, and price fluctuations to support purchasing decisions.
• Managing risks – Stay ahead of risks related to supplier relationships, market changes, and geopolitical factors. 

The importance of data storytelling in procurement

Data storytelling merges data analysis into a narrative to be clearly communicated and understood by all stakeholders. As procurement processes transition to digital platforms, mastering the art of data storytelling becomes crucial. 

Procurement experts have the opportunity to position themselves as strategic thinkers, shaping business strategy through data-driven insights and contributing to areas like market expansions, supply chain enhancements, and contract negotiations. This demonstrates the importance of their role in managing various aspects of the business.

Spotting inefficiencies opens doors to cost-saving opportunities supported by clear fact patterns easily visualized with the data. Identifying risks promptly allows for measures to safeguard the organizational interests. 

Analyzing market trends can help drive innovation efforts, such as discovering new technologies or exploring alternative suppliers. Sharing insights that align procurement objectives with those of finance, operations, and marketing teams can also enhance collaboration across departments.

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Starting the journey of data storytelling in procurement

Utilizing procurement analytics offers access to a wealth of valuable data. However, transforming this data into a captivating narrative is the real test. 

Here is a brief guide on initiating data storytelling in procurement:

• Understanding your stakeholders: Before crafting your story, it is essential to identify the stakeholders – whether they be procurement professionals, department heads, or executives – to tailor the narrative to their interests and business needs.
• Crafting your message: Before structuring your story, have a set of messages and key findings derived from the data. This ensures that everyone stays engaged from start to finish. Consider the desired outcomes of your story and plan for actions or strategic decisions.
• Presenting findings visually: Gone are the days when Excel spreadsheets were the means of presenting data. Data visualization plays a role in compelling communication by highlighting trends, comparing, and pinpointing anomalies. Present your data using graphs, charts, dashboards, and visuals to facilitate understanding and processing.
• Insightful presentation: Presenting data findings without context can quickly lead to confusion. When crafting a narrative, it is essential to consider factors that may impact the data, understand the reasons behind trends, and assess how the findings align with broader business objectives.
• Mapping out the next steps: While data findings and trends can be intriguing on their own, they risk becoming irrelevant without steps. Ensuring your data story transitions into recommendations or calls to action is crucial.

Storytelling helps DFDS make data-driven decisions

Unit4 Source to Contract by Scanmarket helps DFDS, one of Northern Europe’s largest forwarding and logistics companies, leverage procurement analytics for data storytelling, enabling data-driven decisions that enhance procurement processes and organizational performance. 

The platform helps DFDS uncover cost-saving opportunities, optimize spending patterns, and ensure compliance by automating procurement activities and providing robust spend analysis. 

Integrating these analytics tools facilitates better supplier relationship management and more effective contract handling, leading to greater procurement operations transparency, efficiency, and control. 

This data-driven approach supports DFDS in making informed strategic decisions, improving overall operational efficiency and cost-effectiveness.

Empowering procurement professionals

Integrating procurement analytics with data storytelling can transform procurement professionals from operational executors into strategic advisors. Leveraging data to craft stories can empower procurement teams to reveal insights, facilitate decision-making, and support their organizations in generating tangible value for upcoming business triumphs.

How Unit4 Source-to-contract by Scanmarket can help your organization tell better data stories with procurement analytics

Unit4 Source-to-contract by Scanmarket offers a centralized platform for procurement analytics, consolidating data from various sources. Its automated data import ensures real-time updates and accuracy. 

The platform provides customizable dashboards, interactive reports, and advanced analytics for trend forecasting and proactive issue identification. Intuitive visualizations like charts and heat maps make complex data easier to understand for better decision-making.

Unit4 Source-to-contract by Scanmarket facilitates collaboration by providing tools for sharing insights and reports, enabling data-driven decisions and effective communication of procurement performance. It offers strategic insights, continuous performance monitoring, and scalability to optimize procurement processes and drive informed decision-making.

You can find out more about Unit4 Source-to-contract by Scanmarket procurement analytics here, and you can view our full suite of integrated solutions here.