Research & Development

How data strategy is revolutionizing shopping?

Oct 18, 2019 | 468 views

Thanks to the advances made by digital transformation, especially the analytics and data strategy tools, the Procurement area today can play a strategic role in the organization and in its digitization strategy.

Most executives are already familiar with terms such as big data and advanced analytics and their ability to leverage the decision-making process, helping companies generate new insights and act collaboratively internally.

In the case of the purchasing area, professionals with access to relevant supplier data, cost structures, availability of inputs and other key price information are much better placed to make better deals, adapting, almost instantaneously, their planning or seeking alternative suppliers in cases where cuts are needed.

These technologies can even help suppliers improve their service levels by identifying faster problems and their cause more accurately.

In this scenario, it is clear that many purchasing managers have already become aware of the ability of new technologies to make trading work more efficient. However, before so many companies willing to be part of the "shopping 4.0" scenario, how to identify which technologies will actually make a difference in the procurement process?

The tools that make it possible to create a data strategy are those that should generate greater value for organizations, especially when considering the intense data flow that already exists between companies and their partners and the various challenges to analyze and extract the correct insights information.

Scanning the shopping area is only the first step

The term Compras 4.0 is used to name an era in which the purchasing department adds technology to its strategies in order to make its processes more efficient. This includes a range of technologies to automate the traditional manual tasks of this area, such as contract management.

However, beyond digitizing and automating processes, the trend is for the purchasing area to gain insight through data from outside the business to make better decisions in its trading processes, playing a much more strategic role in increasing competitiveness from the company.

These solutions will result in better analytics to understand suppliers, markets and customers and predict market trends - for this, however, it will be critical to have the right technologies to analyze this information, ensuring that all opportunities offered to the company through data are maximized, leading to more efficient negotiations.

Data strategy applications for the purchasing area bring benefits such as greater efficiency per transaction, greater insight for better trading results, and risk reduction through more accurate forecasts.