The article also emphasizes the role of geographic segmentation in identifying regional cost differences and fluctuations, which can be critical in making informed decisions and reducing costs effectively. The author concludes by advocating for a holistic and scalable approach to improving data quality, including training employees on its importance and implementing structures that prioritize data quality in procurement strategy.
Key takeaways:
- Procurement teams can deliver strategic cost reductions by negotiating better deals with suppliers, using tools like cost models, sourcing events and volume-based discounts.
- Common data quality issues in procurement include inconsistencies in unit of measure and item descriptions, which can lead to missed cost-saving opportunities.
- Geographic segmentation can help procurement teams identify regional cost differences and fluctuations, enabling them to negotiate better deals and reduce costs effectively.
- Improving data quality is a crucial cost-reduction opportunity for procurement teams. This can be achieved through a holistic and scalable approach, including regular audits of procurement data and training employees on the importance of data quality.