Unexpected disruptive forces can dramatically alter the existing market status quo. The consumer goods industry is one such example that is on a constant roller coaster ride of disruption for multiple reasons, especially when it comes to the procurement and demand value chain.
Hence, more stress is given to timely identification of such disruptive forces before they occur by deriving procurement intelligence using the right set of tools and technology.
As mentioned earlier, Consumer Goods companies mostly need a 360-degree overview of the procurement channel using the right technology set. The reason being, this particular sector is highly susceptible to changes. The chief procurement officers of CG companies have changed their perspective when hiring a new set of suppliers and sourcing vendors. Nearly 91% of CPOs agree that procurement must be more agile to respond quickly to market changes, wherein 65% of them expect more visibility in the supply chain that should extend beyond the Tier 1 suppliers.
However, cost savings remain a top priority with at least 78% of procurement leaders.
Even though automated procurement systems can very well address most of the needs and expectations of CGs, the smooth transition of the traditional approaches to implementing changes is ridden with many errors.
And the sole responsibility lies in poor data capture and other issues.
The entire landscape is rife with many roadblocks, a few of which are mentioned below:
Siloed data captured in different formats and inconsistent data mapping often fail to obtain actionable insights when needed on time.
Missing connections between internal and external insights make identifying and executing opportunities cumbersome. This restricts data visibility.
Traditional procurement systems fail to offer the necessary intelligence and insights, especially procurement transactions. On top of that, execution silos, delays in information flow, and the lack of a feedback loop make execution unachievable.
Varying stakeholders within the procurement and supply chain network have different and varied role-specific objectives, thus complicating matters further.
End-to-end visibility into the supply chain and procurement cycle has become the need of the hour. The stakeholders and CPOs have realized that the next way forward is to leverage advanced analytics solution that delivers procurement intelligence.
This new technology doesn’t replace the legacy system; instead, it complements existing tools and technology already in place.
An effective spend visibility and analytics solution functions as a complement to CGs’ existing technology component with:
Procurement intelligence can help transform your business. Hence, a platform like TradeEdge can award the CG companies a 360-degree view of the entire demand-supply chain and take necessary measures based on procurement intelligence. This simple and user-friendly interface actionizes and amplifies procurement outcomes and yields great business results, from 5% additional savings, 50% enhanced visibility from curated insights, 25% higher productivity, and 20% leakage avoidance through periodic monitoring of internal and external risks.
As mentioned earlier, procurement intelligence is needed to predict timely anomalies such as changes in demand, procurement, supply chains, and so on before they become a major hindrance. However, the traditional approaches to capturing such data provided minimal actionable insights, resulting in significant disruptions.