Transforming food purchasing with advanced analytics in procurement
Today there is endless information available at near-real time. This can overwhelm food procurement teams and result in missed opportunities and poor decision-making.
It takes too long to collate the data into the insight needed to understand a commodity market and prepare for supplier negotiations. Using technology, including Robotic Process Automation (RPA), is one of the technologies with the greatest potential to transform food procurement teams right now.
The sources are so disparate and disorganised that the category buyer and procurement analyst is forced to focus on the top 5 or so food spends; the rest are often ignored. As a result significant savings are missed in the tail spend.
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Cost reduction remains the top priority for CPOs as they look to support growth in uncertain markets.
Missed opportunities in the tail spendFood category buyers and procurement teams in general spend lots of time and money on research and analysis of the limited items which comprise their core spend. As a result, the tail spend remains a largely untapped resource. If equal attention could be paid to all areas of spend, organisations would be able to realize significant cost savings.
New technologies needed to harness data-driven-insightsIntroducing modern digital technologies into procurement will improve purchasing performance and help to realize wider business goals. Analytical tools which allow procurement teams to increase their productivity and performance, whilst also realizing cost savings in supplier negotiations, are vital to the continued development of the procurement function.
People, processes and technology will determine future Improvements in procurement capabilities. Investment in each of these three areas will play a crucial role in the evolution of procurement performance.
"Food procurement has been largely left behind in the digital revolution. That needs to change."
What could digital transformation bring to procurement?
The Deloitte Global Chief Procurement Officer Survey, 2018, found that:
61% of procurement leaders delivered better year-on-year savings performance
33% of procurement leaders believe that their digital procurement strategy will enable them to deliver on their organisational objectives and value
Modern technology usage is low, with only 33% of procurement leaders using technologies such as predictive analytics and collaboration networks
51% of procurement leaders believe their teams do not have sufficient capabilities to deliver on their procurement strategy
17% of procurement leaders do not have a digital procurement strategy
Technologies such as Advanced Analytics and Robotic Process Automation are at the forefront of the procurement digital transformation.
Predictive strategic sourcing, automated transactional procurement and proactive supplier relationship management are just the start of this technological revolution.
Mintec is an independent global leader and trusted provider of advanced analytics tools, insights and pricing information for raw material costs. Our mission is to help our customers achieve significant savings by providing superior data, advanced analytics tools and data-driven insights.
Mintec has been providing market leading raw material price data and business intelligence tools to leading global procurement teams for more than 30 years. The original founders saw an opportunity to bring the data and tools to market to allow others to leverage the available information in ways that had never been done before.
Our new Insight-as-a-Service platform, Mintec Analytics, is the next stage of our evolution. At its heart, Mintec Analytics is a data integration platform. We have standardized and structured thousands of different data sets and made research much easier and faster for our clients. This can revolutionize procurement productivity by providing, in a matter of seconds, a quantity of information that would take a team of analysts many weeks to collate.
Mintec Analytics contains accurate, unrivalled content available to you at one push of a button to ensure you are prepared for your pricing negotiations.
The Mintec Analytics platform gives you access to raw materials, packaging, transportation and labour prices, in addition, to weather, drivers (including supply and demand), events, top producers and exporters, fundamentals and currency data. Graph and analyse the data to build and share your own dashboards, generate price alerts, cost models and much more.