Rethinking Procurement

 

Procurement relies on both parties – a retailer or distributor and their suppliers – operating along a set of mutually understood terms and criteria. Without the insight offered by data there’s no real metric to determine which suppliers are offering your business the greatest reliability and value or, indeed, which suppliers might be falling short.

As it stands, the retail sector requires significantly improved risk management of their suppliers.  A KPMG survey indicated that 67% of businesses ranked the ability of their procurement strategy to negotiate risk at ‘foundation’ maturity. The number of businesses ranking themselves as having a ‘highly secure’ procurement infrastructure? A startling 0%.[1]

Electronic connectivity offers immediate benefits in efficiency during the ordering process, but analytics drives supplier efficiency at all stages. For businesses involved in the agriculture sector, this means a chance to set and adhere to specific protocols and monitor them closely. This could be anything from provision of advanced shipment notes for warehousing efficiency to ensuring deliveries are delivered on time, in full and without damage.

Analytics delivers insight for procurement, even across a range of suppliers. This allows agribusinesses to adopt practices that have benefited consumer-focused businesses for some time and, ultimately, improve supply management.

Procurement Insight in Action

Takealot Online (through their website Takealot.com) are the leading ecommerce website in South Africa, processing over 2.9 million transactions in the 2017-2018 financial year. As a fast-growing business with an equally expanding roster of suppliers, Takealot approached Proagrica for a data connectivity solution to deliver improved supplier management.

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“Are all your suppliers doing what you ask of them?” asks Iain Lennon, Director of Product Management at Proagrica. “Data analytics allow better accountability and a collaborative approach to management with both buyer and supplier having visibility of performance for constructive conversations on improvement and optimization.”

Data insight and analytics can transform agribusiness procurement for the better, improving supply management for a secure source of supply, reduced errors and stock-outs, efficient operational practices and best-in-class cost.

Does your agribusiness extract all possible value from its data? Rethink what’s possible. Read the free full report on the untapped value present in your business’ data.

 

[1] KPMG, “The Power of Procurement”, 2012 https://assets.kpmg/content/dam/kpmg/pdf/2012/07/the-power-of-procurement-a-global-survey-of-procurement-functions.pdf

 

Contact us today to find how your business can benefit