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TYS Podcast S2E3 – Unlocking the Power of Master Data Management

In the ever-evolving landscape of business operations, one concept stands out as the cornerstone of success: master data management (MDM). Recently, Trust Your Supplier (TYS) hosted a thought-provoking episode of the TYS Podcast, delving deep into the intricacies of MDM, financial information, compliance, and data privacy. This enlightening discussion shed light on the challenges and opportunities facing businesses today and provided invaluable insights for industry professionals. 

The conversation kicked off with an exploration of the “core theater” essential for operational success, encompassing individuals, suppliers, transportation, and data privacy. Participants emphasized the critical importance of maintaining master data governance throughout the supply chain lifecycle, citing real-world examples of companies teetering on the brink of bankruptcy due to lapses in data management. This sobering revelation underscored the profound implications of master data on individual businesses and entire supply chains, making it a non-negotiable aspect of organizational strategy. 

As the discussion unfolded, participants turned their attention to recent trends and innovations in financial information provision and MDM. They highlighted the adoption of technology for financial crime prevention and the challenges posed by the quality of customer and third-party data. The consensus was clear: high-quality, accurate, and complete information is paramount for enhancing customer experiences and detecting suspicious behavior, making MDM indispensable for achieving business objectives and ensuring compliance. 

The conversation then shifted gears to address the complexities of monitoring and verifying data across different jurisdictions, particularly in light of evolving compliance regulations. Participants stressed the need for globally sourced, accurate, and consistent data to support robust risk assessment and compliance efforts. The impact of mergers and acquisitions on MDM and compliance was also explored, with a focus on identifying beneficial owners and understanding complex family structures. 

A particularly poignant moment in the discussion arose when the intersection of data privacy regulations like GDPR with compliance requirements was examined. Participants acknowledged the conflicting nature of Know Your Customer (KYC) and GDPR regulations, highlighting the need for companies to navigate these regulations effectively while safeguarding sensitive information. 

Further insights were shared on the challenges of continuous auditing of information and the importance of monitoring data changes. Participants underscored the necessity of providers offering robust monitoring capabilities and event-driven updates, emphasizing the role of compliance officers in reviewing critical changes. 

The conversation culminated in a discussion on the transformative role of AI and machine learning in automating manual processes and ensuring data quality. Participants stressed the importance of high-quality data as the foundation for AI applications and the need for data cleansing to avoid exacerbating existing problems. 

In conclusion, the episode provided invaluable insights into the challenges and opportunities in MDM, compliance, and data privacy. It underscored the critical role of accurate and high-quality data in driving business success and ensuring regulatory compliance. As businesses navigate the complexities of today’s landscape, embracing robust MDM practices and leveraging innovative technologies will be key to staying ahead of the curve. Trust Your Supplier continues to lead the conversation in thought leadership, empowering industry professionals to navigate the ever-changing business landscape with confidence and agility. 

April Harrison Blog, Data Privacy & Security, Podcast, Risk & Compliance, Supplier Information Management 0 Comments , , , , ,

The Hidden Environmental Cost of Financial Laundering as a Service (FLaaS)

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In the digital age, the “as a Service” model has revolutionized how we access technology, from software to infrastructure, making it easier and more efficient for businesses and consumers alike. However, this model’s darker iteration, Financial Laundering as a Service (FLaaS), poses significant challenges not just to the global financial system but also to environmental sustainability efforts, particularly in managing Greenhouse Gas (GHG) emissions. While the connection between financial laundering and environmental degradation might not be immediately obvious, the ripple effects of FLaaS can undermine global efforts to combat climate change in several ways. 

Diverting Crucial Resources
The fight against FLaaS requires substantial financial, technological, and human resources. Governments and businesses must invest heavily in detecting, preventing, and prosecuting financial laundering activities. These resources could otherwise be allocated to renewable energy projects, conservation efforts, and the development of low-carbon technologies. The diversion of such resources compromises the effectiveness of GHG management initiatives, delaying progress in the transition to a sustainable and low-carbon economy. 

Undermining Regulatory Frameworks
Financial laundering is often linked with environmental crimes, such as illegal logging, wildlife trafficking, and unregulated mining. These activities directly contribute to GHG emissions and are driven by the profitability enabled by laundering illicit proceeds. FLaaS, by facilitating easier and more accessible financial laundering, can exacerbate these environmental crimes. It undermines regulatory efforts aimed at promoting sustainability and holding businesses accountable for their environmental impact, making it more challenging to enforce laws designed to reduce GHG emissions. 

Impact on Corporate Governance and Investment
The involvement of any business in FLaaS, directly or indirectly, can lead to significant reputational damage. This undermines corporate social responsibility (CSR) efforts, including commitments to environmental sustainability and GHG emission reductions. Furthermore, the opaque nature of financial flows resulting from FLaaS can lead to investments in industries with high GHG emissions, rather than in clean energy and green technologies. Strengthening anti-money laundering (AML) measures can redirect investments toward sustainable initiatives, promoting environmental stewardship and reducing GHG emissions. 

Economic Stability and Environmental Policy
A stable and transparent financial system is foundational to effective environmental governance and the implementation of GHG management policies. Financial laundering, particularly through FLaaS, threatens this stability, potentially corrupting the political processes essential for environmental policy-making. The destabilizing effect of laundered money can impede the allocation of public funds to critical environmental projects and weaken international cooperation on climate change mitigation. 

The Path Forward
Combating FLaaS is not just a financial imperative but an environmental necessity. Strengthening AML measures, enhancing international cooperation, and fostering transparency in financial transactions can mitigate the adverse effects of FLaaS. By ensuring that financial systems are not exploited for laundering activities, we can secure the resources and stability needed to address GHG emissions effectively. Investments can be channelled into sustainable industries, driving innovation in green technologies, and supporting the global transition to a low-carbon economy. 

Trust Your Supplier (TYS) stands as a critical tool in the arsenal against the environmental degradation exacerbated by FLaaS. By leveraging blockchain technology, TYS provides a secure and transparent platform for managing supplier information, ensuring that data integrity is maintained across the supply chain. This level of transparency is vital in identifying and mitigating the risks associated with suppliers that may be involved in environmental crimes or lack proper compliance with environmental regulations. Through comprehensive MDM capabilities, TYS allows companies to maintain an accurate and up-to-date repository of supplier data, including their environmental compliance records. This data can be instrumental in making informed decisions about which suppliers to engage with, prioritizing those that adhere to sustainable practices and contribute positively to GHG management efforts. 

TYS’s robust risk and compliance monitoring features enable businesses to proactively assess and manage the environmental risks associated with their suppliers. By setting criteria for compliance with environmental standards, TYS can help flag suppliers that fall short of these benchmarks, allowing businesses to take corrective action before any reputational or regulatory consequences arise. This is particularly relevant in industries prone to high GHG emissions, where selecting environmentally responsible suppliers can significantly contribute to a company’s overall sustainability goals. 

In the battle against FLaaS and its indirect facilitation of environmental harm, Trust Your Supplier emerges as a potent solution to ensure that businesses do not inadvertently support activities contributing to GHG emissions. By fostering a more transparent, compliant, and sustainable supply chain, TYS not only aids in the fight against financial crimes but also aligns with global efforts to mitigate climate change. This dual function underscores the importance of integrating advanced supplier management tools like TYS in strategic efforts to secure a sustainable future, making it clear that the fight against financial laundering is inextricably linked with the broader struggle for environmental sustainability. 

April Harrison Blog, Financial, Risk Management, Value Engineering 0 Comments , , , , ,

Shielding the Financial Frontline

Master Data Governance and Continuous Monitoring in the Battle Against FLaaS

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

The digital age has ushered in unparalleled opportunities for the banking and insurance sectors, driving innovation and customer convenience to new heights. However, this transformation has also opened the door to sophisticated financial crimes, notably Financial Laundering as a Service (FLaaS). This emerging threat utilizes the digital world’s complexity to obscure illicit financial flows, posing significant risks to the integrity and stability of financial institutions and insurance companies. Addressing this challenge requires more than traditional measures; it demands a strategic approach centered around master data governance and continuous monitoring.

The Growing Threat of FLaaS
Understanding FLaaS: Financial Laundering as a Service represents a sinister evolution of money laundering, exploiting digital platforms to clean dirty money. By offering laundering services as a package, FLaaS operators provide criminals with anonymity and operational ease, complicating the task of tracking and combating these activities for financial bodies.

Impact on Banking and Insurance Markets: The banking and insurance sectors, integral to the global financial ecosystem, are particularly vulnerable to FLaaS. The potential for regulatory penalties, reputational damage, and financial losses from FLaaS activities is immense. The intricate nature of these markets, combined with the volume of transactions, creates numerous blind spots that FLaaS exploits.

Master Data Governance: A Shield Against FLaaS
Defining Master Data Governance: Master data governance refers to the management and oversight of an organization’s critical data to ensure accuracy, consistency, and security. In the context of combating FLaaS, it serves as a foundation for integrity and transparency across financial transactions and relationships.

Role in Combating FLaaS: By implementing robust master data governance, banks and insurance companies can significantly enhance their ability to detect and prevent money laundering activities. This approach ensures that all transactional data is accurate and traceable, making it more difficult for FLaaS operations to succeed.

Continuous Monitoring: The Watchful Eye
The Need for Continuous Monitoring: Given the dynamic nature of FLaaS, static security measures are insufficient. Continuous monitoring provides real-time oversight of transactions and activities, enabling the early detection of suspicious patterns that may indicate money laundering.

Benefits for the Financial Sector: Continuous monitoring, supported by advanced analytics and AI, allows for the automatic identification of anomalies in transaction data. This capability is crucial for maintaining compliance with evolving regulatory requirements and protecting against the reputational risks associated with FLaaS.

Conclusion
The battle against Financial Laundering as a Service is complex and ongoing. For the banking and insurance sectors, the stakes are high, with the integrity of the financial system and the trust of customers in the balance. Master data governance and continuous monitoring emerge as essential weapons in this fight, offering a path to safeguard operations and ensure compliance. As the landscape of financial crime continues to evolve, so too must the strategies to combat it. Embracing these advanced measures is not just a regulatory necessity; it is a strategic imperative for survival and success in the digital age.

April Harrison Blog, Financial, Risk Management, Value Engineering 0 Comments , , , , ,

Bridging Gaps in Collaboration & Data to Achieve Compliance

In the dynamic landscape of digital procurement, the recent DPW Amsterdam 2023 conference featured a thought-provoking panel discussion hosted by Michelle Armstrong, the Global VP of Value Solutions for Trust Your Supplier (TYS). With participants including Diarmuid O’Donoghue, Head of Digital Procurement Garage at BT Sourced, and Dr. Elouise Epstein, a Partner at Kearney, the discussion provided valuable insights into the evolving realm of procurement and the role of blockchain in its future. 

Trust Your Supplier (TYS), a patented information network built with IBM Hyperledger blockchain was designed for digital identity verification of suppliers. The platform focuses on fostering collaboration among strategic partners to enhance information reliability and reduce supply chain risks. 

Here are the discussion points and key takeaways from the session recording: 

The Value of Digital Identity
Emphasizing the significance of digital identity, Michelle highlights the growing importance of synergizing information among augmented providers. She underscores the relevance of such collaboration in the context of emerging regulations like the supply chain due diligence and ESG (Environmental, Social, and Governance) requirements. 

Insights from Diarmuid O’Donoghue on BT Sourced
Diarmuid provides valuable insights into BT Sourced, a separate procurement entity based in Dublin, Ireland, supporting BT’s diverse needs. The organization’s mission revolves around leveraging technology for a better future, with a strong focus on diversity, digital innovation, and predictive analytics. 

The Significance of “BT Sourced”
Diarmuid explains the rationale behind the choice of “BT Sourced” as opposed to “procurement.” He highlighted how the name aligns seamlessly with their mission, incorporating both digital and human aspects. 

Dr. Eloise Epstein’s Perspective on Procurement Marketing
Dr. Elouise Epstein echoes the sentiment of rebranding procurement, emphasizing the need to move beyond jargon and make it more accessible to the broader business community. Her perspective sheds light on the importance of effective communication in fostering collaboration. 

Blockchain’s Role in Decision Making
Diarmuid emphasizes the pivotal role of blockchain in ensuring security, privacy, and traceability throughout the procurement process. He highlights how blockchain contributes to building trust and accountability, crucial elements in the decision-making process. 

Supplier Adoption and Digital Identity  
Michelle delves into the challenges of getting suppliers to adopt new strategies and digital native blockchain technologies. She acknowledges BT’s success in convincing internal teams, external suppliers, and partners to embrace the process. 

Key Takeaways

  • The importance of having a unified vision and strategy to prevent technology from overshadowing goals. 
  • BT Sourced’s ambition to become the most digitally skilled global procurement company with a focus on self-service, customer experience, and quick data access. 
  • Eloise Epstein’s critique of the complexity suppliers face in transacting with organizations and the need for simplifying supplier experience management. 
  • Diarmuid O’Donoghue’s confidence in the future of the digital wallet concept for suppliers, empowering them to control and share data. 
  • Michelle’s vision of a future where suppliers possess a portable wallet with continuously updated information on ESG, cybersecurity, and more. 

Collaboration and Challenges in Procurement
Michelle praises the trend of digital garages and highlights the importance of a unified digital identity for suppliers. Diarmuid discusses BT’s digital strategy, mentioning a recent digital week that fostered collaboration with vendors. 

Key Insights

  • The significance of collaboration within digital garages, emphasizing the need for one set of Digital Service Orchestration (DSO) standards. 
  • BT’s digital week as a platform for collaboration with vendors, generating positive energy for potential partnerships and integrations. 
  • The value of competitors and vertical industries collaborating, aligning compliance and due diligence efforts for a streamlined approach. 
  • Dr Eloise Epstein’s emphasis on upskilling people, especially in digital competency, and the encouragement to prioritize human elements alongside AI. 
  • Audience questions touching on convincing suppliers to adopt blockchain, ensuring interoperability among vendors in different industries, and the importance of open dialogue and collaboration. 

Conclusion
The DPW Amsterdam 2023 panel discussion provided a rich tapestry of insights into the evolving landscape of digital procurement. From the role of blockchain in decision-making to the challenges of supplier adoption and the importance of collaboration within digital garages, the discussion highlighted the need for a unified approach, innovative solutions, and a human-centric perspective in the ever-evolving world of procurement.  

As organizations continue to navigate the complexities of digital transformation, these insights serve as valuable guideposts for the future of procurement excellence. 

Want to learn more? Let’s talk!

 *** 

Trust Your Supplier (TYS) is a Small, Minority and Woman owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to effectively manage suppliers and mitigate risks.  

April Harrison Blog, Events, Risk & Compliance, Telecom, Value Engineering 0 Comments , , ,

Elevate Your Master Data

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In today’s fast-paced, data-driven world, organizations are increasingly relying on accurate and reliable data to make informed decisions, ensure compliance, and optimize operational efficiency. Among the most critical forms of data for any business is supplier information, which plays a pivotal role in procurement, risk management, and overall operational excellence. That’s where Trust Your Supplier (TYS) comes into the picture, revolutionizing how organizations manage their supplier data. In this blog, we’ll explore how TYS can help you take your master data governance to the next level. 

The Foundation of Trust: Transparency Through Blockchain 

One of the key challenges in managing supplier data has always been ensuring its accuracy and integrity. Discrepancies in supplier information can lead to costly errors, delays, and compliance issues. Trust Your Supplier leverages cutting-edge blockchain technology to address this challenge. 

Transparency: TYS creates a transparent and tamper-proof ledger of supplier information on the blockchain. This means that once data is recorded, it cannot be altered or deleted without leaving a trace. Say goodbye to data discrepancies and hello to data accuracy. With TYS, you can trust that the information you have is the most up-to-date and reliable. 

Data Accuracy: The Cornerstone of Informed Decision-Making 

Accurate master data is not just nice to have; it’s a necessity. TYS ensures that your supplier data is not only up-to-date but also reliable. This empowers your organization to make informed decisions confidently. With trustworthy supplier data, you can negotiate better contracts, forecast with accuracy, and optimize your procurement processes. 

Efficiency: Streamlined Supplier Management 

Managing supplier data can be a time-consuming and manual process, often bogged down by paperwork and data entry. TYS is designed to streamline supplier onboarding, automate processes, and reduce the need for manual data entry. This, in turn, allows your team to focus on what really matters – building and nurturing strategic supplier relationships. By automating administrative tasks, you can optimize your procurement operations and dedicate more time to enhancing supplier collaboration. 

Compliance: Your Path to Regulatory Adherence 

Master data governance and compliance are intrinsically linked. Ensuring that your supplier data aligns with regulatory requirements is paramount to avoid legal issues and financial penalties. TYS helps you meet these regulatory requirements with ease. By maintaining an accurate and tamper-proof ledger of supplier data, you can mitigate risks more effectively and ensure that your organization remains compliant with ever-evolving regulations. 

Join the Ranks of Data-Driven Organizations 

Trust Your Supplier is more than just a tool; it’s a revolution in master data governance. It empowers organizations to redefine how they manage their supplier data, providing transparency, data accuracy, efficiency, and compliance. By leveraging TYS, you can unlock the full potential of your supplier management processes and drive your organization forward in an increasingly competitive business landscape. 

Are you ready to elevate your master data governance? Join the ranks of forward-thinking organizations that have embraced Trust Your Supplier and discovered how it can transform your supplier data management. Say goodbye to data discrepancies and hello to data accuracy, efficiency, and compliance with TYS!  Let’s Talk

#TrustYourSupplier #MasterDataGovernance #DataAccuracy #Blockchain #SupplierManagement #Compliance 

Trust Your Supplier isn’t just a solution; it’s a fundamental shift in how businesses manage their supplier data. With its foundation in blockchain technology, it provides the transparency, accuracy, efficiency, and compliance needed in today’s data-driven business landscape. Don’t miss the opportunity to elevate your master data governance – trust in Trust Your Supplier. 

April Harrison Blog, Value Engineering 0 Comments , ,

The Evolution of Supplier Management (Part 2)

Winning the Tomorrow War, Today

by Gary Storr, General Manager

In Part 1, I talked about how this will be the first time your AI technology capability will – through Supplier Digital Identity, “put your organization ahead of future industry demands.”

I then emphasized the importance of “laying a universally consumable digital supplier identity foundation” today to achieve an unprecedented level of “supplier trust…and a single version of the truth.”

Let’s revisit the following graphic from the first post to understand the bridge or path to getting to trust and a single version of the truth.

 

If you take a step back to reflect on the above, it is hard to argue with the validity of the key points or theme. In short, moving to the “future state” that is Supplier Digital Identity sounds good.

But what does it mean, e.g., the future state of Supplier Digital Identity in the here and now? How do you leverage AI to get there? And what tangible benefits will it deliver? To put it another way, what good is my telling you about Eden and how great it is and then not showing you the way to get there?

It Isn’t About The Technology

As a service provider with what I believe is the most amazing technology in the industry, you will be surprised by what I am about to say.

Getting to that single version of truth and supplier insight is about something other than the technology. It is about the expertise behind that technology. To be clear, when I say expertise, I am not just talking about a deep understanding of how the technology works. I am talking about the knowledge and anticipation of the expected and unexpected external disruptions we face in a dynamic and complex world and how to leverage said technology to determine the appropriate response.

For example, the organizations with whom we work are consistently talking about:

  • Concern about the supplier data they house being accurate and current to ensure they have the latest view on that, supplier’s qualifications, credentials, performance, et cetera.
  • The flurry of the evolution of rules, standards, and requirements – that are much more diverse than they’ve ever been.
  • Adoption, cycle time reduction, and administration are “hugely important.”
  • Increasing awareness of the importance of “authoritative data.”

The above are only a few examples of where companies want and need to go to arrive at that future state of optimal supplier management capability. To reach this state of capability, you must look beyond the technology to assess your service provider’s ability to address these points and many others.

The Right Captain For The Right Vessel

You have to have a partner who will have the same vision as you do.

For example, if a partner is “established” in older technology, or if a partner doesn’t understand the regulatory compliance landscape worldwide, or doesn’t have some insights into particular industries that you’re in, you can be guided off course.

It’s a little bit like the analogy that there’s a difference between a sailboat and an oil tanker. You have to hire the right captain for the sailboat and hire a different captain for the oil tanker.

If you prefer something a little less nautical, In Good To Great, Jim Collins said – and I paraphrase “You have to have the right people in the right seats on the right bus.” What success ultimately comes down to is having the right service provider partner with the right expertise doing the right things!

If you do, you will successfully transition from the emerging standards of today to the necessary future state of Supplier Digital Identity and its competitive edge.

April Harrison Blog, Digital Transformation, Supplier Information Management 1 Comment ,

The Evolution of Supplier Management (Part 1)

Successfully Addressing Today’s Needs While Preparing for Tomorrow’s Challenges

by Gary Storr, General Manager

“How do we overlay today’s needs with tomorrow’s needs and build a bridge that organizations can invest in today and be ready for tomorrow?”

During a recent interview, I gave the above response to the question “Where is supplier management technology now, and what it will look like in the future?” It is seemingly a straightforward question. But underlying its simplicity is the complexity of building and proactively managing dynamic and interconnected supply networks in a volatile global marketplace.

Now one might think that as a solution provider, my focus would be on the technology part of the equation. Even though emerging AI technology is the main event when it comes to supplier management, you must look beyond it to the experience and expertise behind it.

Think about it for a moment. ESG investing began in the 1960s as “socially responsible investing, with investors excluding stocks or entire industries from their portfolios.” The industries on the no-investment list included tobacco companies and any businesses deemed to be supporting the apartheid regime in South Africa.

Now ponder this fact – ESG reporting did not begin until 2004 under the UN “Who Cares Wins” banner. Here we are in 2023, and it is only recently that things like carbon emissions, ESG, and global compliance have become emerging mainstream regulatory concerns.

The above “timeline” raises two essential questions:

  • Why are companies now scrambling to comply with new legislative requirements and proposed future ones when we saw this train coming as far back as the 1960s?
  • Regarding future regulations, e.g., ESG, what will the reporting (and technology) requirements be next year or decade? By the way, if you want a glimpse into what is on the compliance horizon, check out the following ESG Regulations link.

From my standpoint and experience, we need to do two things so that we don’t continue to play catch-up with known and unknown compliance realities. In today’s post, I will tell you the two things you need to do to stop chasing compliance and start mastering (and benefiting) from it.

First, A History Timeline Review

 

Regarding the evolution of supplier management platforms, the old saying “if you can’t measure it, you can’t manage it” tells a notable story.

In the above graphic, you will note how we have progressed from a “blind trust” qualification process to where we are today – somewhere between email and spreadsheets and corporate web portals.

As your service provider, you will be happy to know that we are on the leading edge of the emerging standard: enterprise supplier networks. I will get into what this emerging standard is shortly.

That said, we have also created an overlay between today’s and tomorrow’s supplier management needs. Why is this important?

It is important because instead of implementing technology to catch up with emerging requirements, we are also creating a seamless bridge to put you out front of the proverbial curve to address not yet known future requirements. If you think about it, this will be the first time that your AI technology capability will – through supplier digital identity, put your organization ahead of future industry demands. 

The Here And Now

In Part 2 of this series, I will get into the specifics of supplier digital identity. However, we can’t take our eyes off the immediate challenges you face in managing your present-day supplier network, including the importance of:

  • Reliable supplier data
  • Digital supplier discovery
  • Minimized administration
  • 3rd party verifications

Through this immediate capability, you will meet today’s demands while laying a universally consumable digital supplier identity foundation that will create unprecedented supplier trust and a single version of the truth.

Up Next: The Evolution of Supplier Management (Part 2) – Winning The Tomorrow War, Today

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

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 , ,

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 ,