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Unlocking the Potential of Data-Driven Procurement Teams with Actionable Insights

by Michelle Armstrong, Chief Relationship Officer

Pssst… The secret to unlocking the full potential of procurement lies in embracing the power of data. With a wealth of raw information at our fingertips, it’s crucial to transform this data into actionable insights that fuel informed decision-making. Learn how to satisfy your thirst for actionable procurement data by leveraging cutting-edge tools and strategies to turn raw information into valuable insights that propel your procurement operations to new heights. 

Rob Handfield, a distinguished professor of supply chain management, emphasizes that digital transformation in procurement is only possible with clean data. When discussing procurement data, we’re really talking about the importance of usable, clean data. 

Despite the vast amounts of data captured, only about 5% is analyzed. With the rapid growth of emerging technologies, we have more data than ever, yet we need more insight. So, how can we convert this information into intelligence? 

Visualizing a New World of Data 

Data visualization is a game-changer in making complex data more accessible and understandable. By presenting data in a visually engaging format, procurement teams can quickly identify patterns, trends, and relationships that might be concealed within raw data. Utilizing data visualization tools like interactive dashboards and detailed reports allows valuable insights to be easily communicated and understood, empowering teams to make data-driven decisions. 

Moreover, data visualization can help procurement professionals monitor key performance indicators (KPIs) in real-time, track supplier performance, and identify potential bottlenecks in the supply chain. By embracing this visual approach, organizations can transform their procurement processes and drive efficiency across the board. 

Collaborative Minds, United Goals 

To unlock the full potential of procurement data, it’s crucial to involve diverse perspectives and expertise. Cross-functional teams, composed of members from various departments, can work together to analyze data and develop innovative solutions. This collaborative approach enables organizations to leverage their employees’ unique skills and knowledge, fostering a culture of open communication and teamwork. 

By breaking down silos and encouraging collaboration, organizations can tap into the collective wisdom of their workforce and drive data-driven decision-making across the enterprise. This united effort leads to more effective procurement strategies and promotes a culture of continuous improvement and innovation. 

Embracing the Power of Predictive Analytics and Machine Learning 

The combination of predictive analytics and machine learning offers a powerful toolset for procurement teams to uncover hidden insights and make more informed decisions. By analyzing historical data, these advanced techniques can identify trends, forecast future outcomes, and recommend actions to optimize procurement processes. 

For instance, procurement teams can use predictive analytics to optimize inventory levels by identifying patterns in demand and adjusting stock levels accordingly. This ensures organizations balance carrying costs and stock availability, ultimately reducing waste and improving efficiency. 

Similarly, predictive analytics can help identify supplier risks by analyzing factors such as financial stability, delivery performance, and compliance. This enables procurement teams to proactively mitigate risks and maintain a resilient supply chain. 

Machine learning can further enhance procurement decision-making by continuously learning from data and refining its predictions over time. This allows organizations to uncover cost-saving opportunities, streamline processes, and stay ahead of the competition in an ever-evolving market landscape. 

Cultivating a Data-Driven Culture 

In her Procurement Magazine interview, Dawn Tiura explained that procurement should be the central hub of a successful enterprise with a culture of service-driven curiosity. This mindset should also extend to mining the gold within data. 

When Satya Nadella became Microsoft’s CEO in 2014, he emphasized creating a data culture to make better decisions based on quality data. Under his leadership, Microsoft has transformed into an organization that values data-driven decision-making, recognizing the immense potential of quality data to drive innovation, efficiency, and growth. 

So, does your organization have a data culture that includes your suppliers? 

To extract the most value from your data, involving stakeholders within and outside your enterprise is crucial. The procurement department must lead in fostering a data-driven culture, harnessing the potential of technologies like AI and blockchain. 

As a service provider, your success is my priority.  

By embracing diverse perspectives, leveraging data visualization, and harnessing advanced analytics, your organization can unlock the full potential of procurement data and drive meaningful business outcomes. 

#ProcurementData #DataDrivenCulture #DataVisualization #Collaboration #PredictiveAnalytics #MachineLearning #DigitalTransformation #EmpowerProcurement #FutureOfProcurement 

April Harrison Blog, Diversity 0 Comments , ,

How To Avoid The Non-Compliance Speed Trap (What’s the Opposite of Cynical?) – Part 2

by Nick Picone, Trust Your Supplier VP of Advisory Practice

In my last post, I shared my thoughts on the coming regulatory headwinds and potential financial implications that all companies that lack efficient and effective supplier management capabilities will eventually face.

Today, I want to share insights from conversations I’ve had with leaders across the supply chain, procurement, and compliance officers at the various conferences I’ve attended with my team over the last three months.

Risk is Increasing

Nearly every discussion I had involved an extraordinary level of intellectual curiosity about what my company TYS does and what I saw in my day-to-day role as we partner with companies across the globe on their risk and compliance transformation initiatives.

I explained that nearly everyone understands they lack the comprehensive visibility across their supplier base to effectively manage risk and compliance at scale. I also shared a reasonably bold opinion that many companies I am meeting with face the increased risk of a supply chain extinction-level event due to a perfect storm across their small and middle-tier suppliers.

Some people challenged my position – which you expect – or mentioned that the level of risk I was referring to did not apply to their company which I was also willing to debate. The good news is that nearly all were interested in understanding why I thought the way I did and what I was looking at or seeing that shaped my view.

I explained that small and medium-tier suppliers are most at risk from this “perfect storm” we all face. It is especially important to recognize that these small and medium-tier suppliers could also be strategic and to understand the risk most companies face today by only focusing on their top-tier suppliers due to cost and complexity issues. In other words, companies generally have very little clarity into the situation beyond the first-tier suppliers until it’s too late.

Pre-COVID Survival

Before the pandemic and the world-changing events of the past few years, many small to medium-sized companies were practically on life support, and continued to exist because of favorable lending standards and the abnormally low cost of capital over the previous fourteen-year period. These historically low rates and easier access to credit provided a lifeline to businesses, particularly small and middle-tier suppliers who barely made it and primarily relied on regional banks to provide access to capital.

The Perfect Storm

Today, the problems we face as a society are well known. We find ourselves in a new environment; the optimal operating conditions of the past have quickly eroded and created the previously alluded to perfect storm characterized by exploding interest rates, tightening lending standards (especially across regional banks), inflation, geopolitical risk, and shortages across the supply chain. These events, taking place concurrently, are creating the most challenging financial climate – and operating environment for business – in at least fifty years. As a result, there is a dramatic increase in the risk of a significant shock to the global financial system that begins with regional banks and will ultimately impact companies and consumers.

Supporting Data

It may seem bold to suggest that many – okay, a significant portion of a company’s supply base may not be in business in 18 months. I realize that it is impossible to predict the future. Still, it is possible to see around corners, especially when you have complete visibility over your supplier base and access to instant real-time intelligence.

For example, let me share several “sobering” present-day statistics that will illustrate just how much stress your small and middle-tier suppliers are under – particularly diverse suppliers.

A record number of small businesses folded during the pandemic, and African American businesses were unfortunately “the hardest hit” with a drop of 41%, followed by a 32% decline in Latino-owned businesses.” As a point of comparison, the decrease in white-owned businesses was 17%.

Those numbers are hard to accept for some, which is understandable because they surprise many.

The Opposite of Cynical – Clarity

I understand technically, the opposite of cynicism is optimism. However, for anyone to become optimistic – which I am, by the way – I believe you need a clear line of sight to understand your current reality – where you are, where you want to go, and what you must overcome to get there.

However, you can only achieve your goals with a solid and stable supply base that includes your small and medium-tier suppliers.

The two questions you now must ask – and be able to answer, how stable and resilient is your value chain beyond your tier-one suppliers? How do you really know?

April Harrison Blog, Risk & Compliance 0 Comments ,

Unveiling the Hidden Force Behind Trust Your Supplier’s Flawless SOC Compliance

Within the perpetually transforming sphere of technology and cybersecurity, it’s rare for a person’s influence to be so deeply felt, particularly when their role primarily occurs behind the scenes. Ravinder (Ravi) Sabhikhi, a Compliance Security Consultant (CSC) for Trust Your Supplier (TYS), is one such individual. Having maintained the company’s SOC compliance with no exceptions for three consecutive years, Ravi’s dedication and expertise have been instrumental in ensuring the highest security and data privacy standards for Trust Your Supplier’s clients. 

A Rich Background in Technology and Business Development

Being awarded Employee of the Month at Trust Your Supplier in June 2023 highlights Ravi’s impressive repertoire of extensive experience and diverse skillset. His expertise has been refined through an illustrious background in cloud solutions, IoT solutions, advanced analytics, system solutions application deployment, technology planning, business development, and more across prominent organizations. 

Ravi’s journey began when he moved from India to the United States after high school, with limited English skills. Despite the challenges he faced, Ravi persevered with the support of exceptional mentors and a remarkable work ethic. He pursued his education while working in the evenings, ultimately obtaining an undergraduate degree in computer science, a master’s in computer studies, and an MBA—all while employed. His determination and hard work allowed him to realize his own American Dream. 

During his tenure as a Distinguished Engineer at IBM, Ravi collaborated with industry leaders on the strategy, architecture, and development of cutting-edge solutions using state-of-the-art technology. His significant contributions to both the company and the industry are evident, as are his multiple patents that demonstrate his credibility and expertise. 

At Tata Consultancy Services, Ravi served as the Innovation Lead in the pharmaceutical industry, where he analyzed emerging technologies and trends to enhance operational efficiency and reduce costs. As the Vice President of Sales and Channel Strategy, he revitalized sales with a focus on the banking and financial sectors, further showcasing his ability to deliver results and create a business impact for customers. 

Ravi’s international experience is equally impressive, having worked with clients worldwide and demonstrating a keen understanding of diverse cultural communication. This global exposure has undoubtedly contributed to his proven track record in relationship-building and problem-solving. 

Trust Your Supplier’s Unwavering Commitment to Security and Compliance

Under Ravi’s vigilant supervision, Trust Your Supplier has consistently completed the TYPE 2 SOC 1 and TYPE 2 SOC 2 audits without exceptions, reflecting our unwavering commitment to client information security and data privacy. This annual accomplishment serves as evidence of the rigorous standards and initiatives that make TYS a dependable partner to our clients. 

Ravi’s expertise in security is further emphasized by his understanding of the intrinsic link between blockchain technology and security. A secure environment and comprehensive training have become ingrained in TYS’s DNA, ensuring the highest level of protection for their clients’ data. 

Outside of his professional life, Ravi cherishes time with his family, including his wife of 44 years (!), two children, and various hobbies such as walking, exercising, and playing racquetball. His positive attitude and dedication to his work make every day enjoyable as he collaborates with nearly every department within the company on various projects and activities. 

With Ravi continuing to excel in his role, TYS clients can rest assured that their sensitive data is in the hands of a skilled and dedicated professional committed to upholding the highest security and compliance standards. 

To learn more about Trust Your Supplier’s dedication to data security and ongoing commitment to SOC compliance, visit https://trustyoursupplier.com/resources/data-security/. 

April Harrison Blog, Spotlight 0 Comments

When It Comes To Data, Failing To Plan Is Planning To Fail

by Sai Nidamarty, TYS Cofounder & CEO

Data knowing is a significant and intimidating problem that almost all organizations face, yet they need the data culture and cycles to do something about it. Beyond focusing solely on the consequences of bad or missing supplier data, we have convened a panel of industry experts and thought leaders to closely examine the data challenge from the following three critical points: 1. Data consequence 2. Data culture 3. Centralized planning & supplier oversight data framework. – Supplier Data: What You Don’t Know Can (And Will) Hurt You

The above link is to a webinar on which I was a panel member with Tom Redman and Greg Tennyson. From its title, you can see that we were talking about the importance of data.

Of course, data being important is not a new revelation. Nor is it a subject that hasn’t received significant attention in the media. However, despite its ubiquitous presence, many organizations still need help turning their vast amount of raw data into actionable knowledge. The question is, why? Of even greater importance than the why is how do we fix it – how do we convert our data currency into tangible returns?

During this panel, we answer this latter question.

Data “Street Cred”

Tom Redman and Greg Tennyson are recognized industry thought leaders. Tom, who graduated from Florida State University in 1980 with a PhD, Statistics and worked with AT&T Bell until 1995, when he started his company “The Data Doc,” has written extensively, including a compelling article on data for the Harvard Business Review.

Greg has a procurement pedigree going back to the late 1990s with companies like Oracle, SalesForce, and Coupa. As for me, my experience dates as far back as the early 1990s in the positions of software engineering and program management with IBM.

In short, individually and collectively, we have a deep understanding of not only technology but data as well.

Based on the above, you must know that the panel discussion would be uniquely insightful because we weren’t tackling the data question from a conceptual or theoretical basis. What this means is that during the 60 minutes, we didn’t just talk about the challenges with data but what you can do “about” getting the most from your data using my 3-Point Supplier Data Plan.

The 3-Point Supplier Data Plan

“Partner, Mitigate, Comply is at the heart of the 3-Point centralized planning & supplier oversight data framework. Going forward, I will call it the 3-Point Supplier Data Plan.” – Sai Nidamarty

So, what is the 3-Point Supplier Data Plan?

During the panel, Tom, Greg, and I discussed at length the specifics of the 3-Point plan, including how you can introduce it to your organization. By the way, you can use this 3-Point link to access the on-demand recording of the session.

In the meantime, at a high level, here is a quick overview or outline of the supplier data plan:

Point #1 – Partner

  • Enterprise data drawn from many data sources are generally inconsistent, incomplete, and unreliable for decision-making. Partnering & investing with automated tools to onboard, manage and monitor a single source of truth for the entire supplier base
  • Enhance authenticity and provenance, creating a data culture with a single source of truth
  • Collaborating with suppliers for the exchange of information
  • Establish relationships with comprehensive 3rd party data providers in monitoring supplier risk in real-time; take appropriate actions to mitigate

Point #2 – Mitigate

  • Data and transactions MUST be transparent with an immutable audit trail
  • Simple, quick discovery of qualified, trusted suppliers
  • Nearly touchless supplier onboarding – A faster turnaround of query resolution and proactive alerts enabling better & timely strategy realignment
  • Monitoring risk is now at least equal to monitoring spend & margins for procurement organizations
  • Governance of data management throughout the supply chain
  • Integrate with a range of immutable ledger technologies

Point # 3 – Comply

  • Maintain control of authenticity throughout the supply chain – enhancing supply chain visibility and risk.
  • Comply with regulative reporting and compliance regulations (SCDDA, Diversity/human rights laws, insurance)
  • Meeting internal objectives on compliance (e.g. ESG)
  • The continued evolution of a globally compliant supplier base
  • Blockchain uses digital signatures, data encryption, and cryptographic function to protect the integrity of the data.

Once again, I invite you to use the above links to access the on-demand version of the webinar.

I would also suggest that you stay connected with us, as we are planning to do a special live – open mic Q&A session, where we will specifically discuss the 3-Point Supplier Data Plan in much greater detail. Follow us on LinkedIn or Twitter for updates.

April Harrison Blog, Digital Transformation, Supplier Information Management 0 Comments ,
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