New advanced technologies and approaches are being used and are needed by organisations to solve complex improvement problems, achieve breakthrough integration of company processes, explore new kinds of data, and automate real-time decisions. Big data, disruptive technology, and business cost pressures are a present fact. Turning structured and unstructured data into business intelligence (BI) is an opportunity for procurement leaders to enhance value for their organisation across the entire supply chain.
Business intelligence and analytics are part of the advanced approach which can assist and develop strategic procurement excellence. Procurement professionals today need to have effective capabilities in analytics and business intelligence to deal with the massive sets of data and extract valuable information to achieve their company goals. Many improvement initiatives in organisations realise that to achieve their goals of increasing value they must integrate the process of strategic procurement with new capabilities of business intelligence and new extensive types of data.
Best practice in the strategic procurement process as discribed in the graphic below has three components—sourcing, purchasing, and supplier management. Within each component the elements and sub-processes for each are aligned with the organisational strategy.
Procurement professionals who recognise and comprehend the power of business intelligence and advanced analytics in developing supply strategies will advance themselves in their career to develop and apply capabilities in business intelligence methods, tools, and technology. The Lean Sigma Institute has a unique offering and knowledge that integrates lean six sigma methdologies with technology with strategi procurement processes to help your organisation identify and realise significant value returns.