How CPG companies can leverage procurement intelligenceMay 17, 2018
The most difficult questions in an industry can be answered by data-driven insights that require enhanced procurement intelligence. The correct analysis of data can help companies make decisions in order to combat challenges that are a part and parcel of industries, day in and day out. If data is mishandled, it can lead to more issues and problems for the company. What is required is a balance between effective use of data, valuable insights and right kind of intelligence all together that Protaiga, which researches, analyses and addresses the procurement needs of businesses in today’s intelligence age, has been at the forefront of innovative solutions in procurement.
While tech side is taken care of by tools that come in handy in cleansing and organising data, talent side is rich in specialists who have in-depth and extensive sector experience and understanding. This enables businesses to make better buy decisions, make informed budgeting plans and hedging strategies that are beneficial for the company’s goals.
Availability of real-time information helps companies prepare themselves for the change, look for alternative suppliers in order to minimise potential impact on its bottom-line and help enter into contract re-negotiations.
Here is a case-in-point: Consumer Packaged Goods (CPG) companies rely heavily on real-time information on procurement costs of items which also includes direct ingredients categories such as sugars, fats, flour, dairy, colours, emulsifiers and flavours. If the CPG companies get access to this information on an integrated platform, they will be well-positioned to gain as the category managers get complete visibility about price outlook, supplier risk, supply-demand, innovations, industry updates, cost inputs and their implications, all simultaneously in real-time.
The CPGs are only going to benefit more from these contextual intelligences that help companies to improve and enhance procurement efficiency and make better sourcing decisions.
For example, in order to understand and gain higher visibility in global spend data and identify saving opportunities for a spirits manufacturer, procurement leaders can go for cleansing and categorisation of spend data and identify opportunities for the company to save costs.
Though much information could be available to procurement teams in the CPG sector, they still need real-time, actionable information with insights to make it easier for companies to take significant decisions and edge out competition.