Analytics Melbourne

Procurement analytics is a vast subject that could be explored in many different ways. As this round-table is principally about learning from each other, we have developed a framework of questions that will act as a guide to this exploration. A number of sub-themes/topics/questions will arise out of your discussions, which should be captured in the minutes and added as agenda items for future sessions. 

Q1 What are the different purposes for using analytics?

• How well do we buy? –How good is the match between negotiated contracts, standard cost assumptions, and actual expenditure?
• What do we buy? – Specifications, quantities, maverick spend, demand management
• How well do our suppliers perform? – are we getting what we paid/contracted for?
• Others? Eg: What is our environmental footprint?

Q2.  What are we analysing and what are we trying to achieve? 

Applied to each of the above purposes for using analytics, what can we measure/analyse and why are we doing it? What are we aiming to achieve?

Q3. Where do we source the data?

• Data sources?
• Quality of data?
• How good does our data need to be?
• How do we cleanse it?

Q4. What comes first the data or the problem?

• Are we first identifying a potential issue and finding the data to support a case?
• Or are we crunching the data, hoping that something will reveal itself?
• What sort of insights could we be looking for?
• How do we find them?

The following questions are probably more generic (as opposed to being applied to specific purposes).

Q5.  What tools are available to help us?

• The analysts favourite – Excel!
• What tools are we likely to find within our existing erp systems?
• What dedicated spend analytics solutions are members aware of/using?

Q6. How do we present the data for maximum impact?

• Using the data to make a business case (not blind people with data)
• Who are our stakeholders and what do they need to know?
• How should we present the data – Data visualisation
• What data visualisation tools are available?