Visible expenditure data – maximum procurement value
Visible supply data provided UK tax assessment office HM Revenue and Cust oms (HMRC), a platform for transforming its procurement function into a strategic role achieving maximum value, says David Thomas, Commercial Director (CPO) of the UK government department.
Thomas credits data visibility as being the cornerstone of any procurement transformation.
“If you want to generate cost savings in every cost category, you need to govern every point of the spend, which requires data visibility,” he notes.
Data drives effectiveness
"No reliable spend data means no reliable supplier information"
“Few organisations have complete and ready access into their complete spending and supplier data on a regular basis,” notes Jason Busch, Editor of Spendmatters.com.
Furthermore, organisations use specialised solutions that only take a batch or periodic approach to Spend Analysis activities, says Busch.
Organisations looking to embrace a sustainable approach to spend analysis that delivers savings and returns year-over-year need to build visibility into their supplier data, explains Busch.
Data visibility improves an organisation’s responsiveness to its supply base and promotes real time compliance management.
“Within three weeks HMRC can know if non-compliance is occurring,” says Thomas.
Thomas advises that procurement departments press for real-time data. “If you don’t know what you spend with whom in real time then you cannot be doing a good job.”
Similarly, data visibility can help Procurement departments in their battle to be recognised at board level, notes Thomas.
“Visible data is powerful in the boardroom. Once the board knows just how powerful, it gives a great opportunity to raise the profile, quite correctly, of the procurement profession.”