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Big data in procurement

Explore why big data analytics is becoming a key role in helping procurement and supply professionals make good decisions

Why big data analytics in procurement matters

Big data in procurement plays a key role in helping procurement and supply professionals make good decisions. Big data means analysing and using information of extreme size and complexity. Procurement produces huge amounts of data across the whole supply chain, through different systems, operations, and geographical locations. Big data in procurement helps to identify trends and patterns within procurement activities, that will help you spot opportunities, risks and help to drive value throughout the whole organisation. Here are just a few ways in which big data analytics can help your procurement activities.

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Internal data examples

Internal data is information and data gathered through your organisation and operations. Internal data is often much more reliable, compared to external sources, as internal data comes directly from the organisation. However, even though internal data is often more accurate, it only provides limited coverage as the data just represents the organisation only. The types of internal data that could be collected are listed below.

  • Purchase records
  • Sales records
  • Sales reports and annual reports
  • Marketing data
  • HR data
 

External data examples

External data is data that is stored outside of your organisation and published by external agencies. External data is not always accurate, and you’ll have think carefully about the source it is coming from. It’s usually best to get verification of the data before you use it within your organisation or if you’re using it to make decisions. However, external data provides great coverage of the data and can be a valuable resource when used. The types of external data are listed below.

  • Trade journals
  • Annual reports of companies
  • Surveys conducted by the press
  • Census reports
 

What is procurement?

Procurement involves the buying of goods and services that enables an organisation to operate their supply chains, in a profitable and ethical manner. Explore deeper into how procurement is defined, the role it plays and a how a career in procurement can benefit you.

Procurement strategy key themes

Procurement process Procurement policies Direct - Indirect Socially responsible procurement
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