The power of data-driven procurement

An insight into the future of data-driven procurements and how businesses are seeking to adopt data-driven approaches in their procurement practices.

- Sujatha Vishnuraj

Data-driven procurement is revolutionising supply chain and logistics operations in today’s fast-paced manufacturing landscape. Through advanced analytics, AI and machine learning, businesses can harness the power of data to optimise procurement processes, make informed decisions, and drive innovation in logistics management. In the world driven by data, the manufacturing industry is leveraging the power of information to transform its supply chain and logistics operations. “In the digital age, data is invaluable for success, especially in procurement. Shubhankar Chatterji, Chief Supply Chain Officer at Cummins India, emphasises the importance of data-driven decision-making. It involves collecting, analysing, and leveraging data to make informed choices, particularly in supply chain and logistics operations. Data-driven procurement allows for comprehensive cost analysis across the supply chain, identifying levers for optimisation. Advanced analytics tools evaluate scenarios, aiding sourcing decisions balancing cost, quality, and lead times. Integration of data sources helps identify risks and develop contingency plans. Real-time analytics detect disruptions for timely action, mitigating impacts on production and costs. Additionally, Total Cost of Ownership (TCO) Analysis uncovers spending patterns and costsaving opportunities.”

Leveraging data analytics in procurement offers multiple benefits, including cost savings through improved negotiation with suppliers and inventory optimisation, as well as enhanced efficiency through process streamlining and automation. Advanced technologies like AI and machine learning further optimise procurement by automating routine tasks and analysing large datasets to predict demand and optimize supplier relationships.