Beyond Cost Savings
and Efficiency:
It is no secret that the consumer goods (CG) industry has been disrupted, especially when it comes to the supply chain. Markets are changing faster than ever; consumer demand is constantly fluctuating and CGs are tasked with sourcing from a growing roster of suppliers to keep up. Rather than aim for just cost savings and increased efficiencies, what if businesses could take this opportunity to gather the right intelligence to yield a 360-degree view into this new future?
DIFFERENT STAKEHOLDERS, DIFFERENT OBJECTIVES
Complicating matters, varying stakeholders within the procurement ecosystem have role-specific objectives:
HURDLES ALONG THE WAY
At the same time, the source-to-pay (S2P) landscape is rife with roadblocks.
A Modern Approach to Procurement Intelligence
Contrary to what some CGs may believe, a legacy system or group of systems isn’t effective enough to tackle common procurement challenges and address strategic objectives. CGs need end-to-end visibility of their procurement cycle, provided by an advanced analytics solution that delivers procurement intelligence and the right tools to create the right strategies. With this technology, CGs can:
A Complement to Legacy Systems
An effective spend visibility and analytics solution does not replace a legacy system or systems. Rather, it functions as a complement to CGs’ existing technology component with:
Improving PROCUREMENT OUTCOMES
EdgeVerve’s “TradeEdge Procurement Intelligence” technology solution actionizes and amplifies procurement outcomes, yielding:
Defining organization-level procurement strategies
of CPOs agree that procurement must become more agile to respond to market changes
Procurement organizations’ list of priorities is varied and extensive:
Define organization-level procurement strategy
Monitor procurement organization’s performance
Align category strategy to business goals
Manage supplier relationships
Ensure timely product availability
Implement efficient sourcing strategies
Optimize pricing
Improve supplier performance
Manage data
Recognize all data patterns and anomalies
Identify savings opportunities
Run efficient contracting process
Ensure contract compliance
Avoid contract leakages
Supplier stakeholders: Seamless collaboration with buyers
Buyer stakeholders: Smooth B2C buying experience
Data silos spark snafus
Analytics silos, missing connections between internal and external insights, and the cumbersome nature of identifying and executing opportunities limit data visibility. “Information overload” in some cases, coupled with lack of guided analysis, compound the problem.
Execution not easily executed
Aggregate and consolidate huge volumes of data from multiple available sources
Artificial intelligence (AI) and other advanced technologies to convert copious volumes of data present across multiple systems to a comprehensive 360-degree view of procurement data
Data ingestion, cleansing, normalization, and classification
AI-driven insights (spend, market, category, contract, and supplier) and opportunity management (automated opportunity identification, opportunity assessment, and project management)
Intelligent digital procurement, cognitive procurement, recommendations across the value chain, intelligent routing for buying channels, and sourcing project management
…leading to:
additional savings from properly identified opportunities, savings on software subscriptions, and leveraging benchmarks/
best practices
Visit www.edgeverve.com/contact
to learn how procurement intelligence can help transform your business and ensure your success.
Procurement organizations continue to grapple with disparate, siloed data from various systems and of different types and formats. The end result: Gathering all the data needed to obtain actionable insights, in the appropriate form, remains a challenge. Data quality issues and inconsistent data mapping to spend categories further complicates matters.
Visibility? What visibility?
Existing procurement systems offer a rigid user experience, and necessary intelligence and insights are often absent when procurement transactions are completed. Execution silos, delays in information flow, and the lack of a feedback loop also make execution a difficult process.
The Key to Confronting Complexity in a Disrupted Consumer Goods World
Understanding supplier performance
Assessing competitors and adjusting strategies accordingly
Understanding key supplier risks
Monitoring the overall performance of the procurement organization and improving its efficiency and fiscal health
Identifying ongoing opportunities for delivering on procurement organization goals
Setting and meeting or exceeding industry, category, and segment benchmarks
Setting and adhering to best practices for key initiatives
of procurement leaders want improved visibility that extends beyond their Tier 1 suppliers
of procurement leaders consider cost reduction their top priority
91
78
65
%
%
%
Procurement Manager Aims
Data Analyst Aims
Category Manager Aims
Contract Manager Aims
Sourcing Expert Aims
Other Stakeholder Aims
Better understand how spend is distributed across different vendors
Have an organization-level view of contracts and compare it with the transactions
Get role-specific data points and information, as well as KPI-oriented strategies to protect the business and ensure competitive pricing
Experience game-changing productivity through intelligent recommendations, and detailed analytics
“Smart alerts” and intelligent identification of data anomalies before they pose significant risk
A centralized repository for contracts with critical terms and obligations captured
Smart strategies based not only on spend data, but also on external information — e.g., news and risks associated with the supplier (financial, environmental, reputation, sustainability, etc. ) — and insights on industry and market trends
Automated algorithms to extract relevant supplier news that may have an impact on the organization
Automated recommendations to increase savings, optimize spend, and reduce risks
Suppliers’ risk score assessed based on external and internal data points
Ways to measure, track, and identify procurement goals
Seamless collaboration with different parties and stakeholders across the procurement network
2
enhanced visibility from curated insights, ready-to-consume analysis, expert analysis, spend classification, and data cleansing/harmonization
higher productivity from access to timely, real-time, proactive market insights; ability to leverage S&P expertise, real-time requests, and forecasting
leakage avoidance (increased compliance) through periodic monitoring of internal and external risks, KPIs/goals, alerts/notifications, and adherence to contract terms
5%
50%
25%
20%
INTELLIGENCE HUB
DIGITAL HUB
DATA HUB
1
Sources:
1 External research conducted by EdgeVerve
2 Internal EdgeVerve data
DATA HUB
INTELLIGENCE HUB
DIGITAL HUB
The promise of procurement intelligence awaits.
It’s not just about keeping up anymore. Read on to find out the key to thriving in a disrupted consumer goods world.
What if CGs could also:
Gain more actionable insights?
Priorities and More Priorities
The role and priorities of the traditional CPO have changed.
Quickly collaborate on and resolve procurement issues
Track supplier performance?
Pinpoint potential risks?
Identify contract leakages?