BI for buying and procurement:
More success through better purchasing planning

Purchasing and procurement are among the corporate areas in which the use of Business Intelligence solutions often enables particularly effective savings and optimisation.

However, the prerequisite for realising this potential is reliable and comprehensibly prepared information on demand..

Business intelligence tools create the necessary data basis by creating transparency about processes, prices, purchase quantities and conditions as well as supplier relationships.

By replacing manual processes for data collection and input, they save time and reduce the susceptibility to errors. They also enable the adjustment of planning in real time. In a uniform environment, it is possible to view data from different locations and departments.

Information on conditions and quality of suppliers can be automatically transferred from different previous systems and analysed.

Where data on suppliers’ price, quality, reliability and service used to be often outdated and often based on subjective estimates.

BI solutions provide up-to-date, fact-based information that provides departmental and company management with a reliable basis for making purchasing and procurement decisions.

Some references

How does optimised merchandise planning with a powerful Business Intelligence solution work in practice?

Find out in our  success story, how our long-standing customer Zalando has sustainably improved its category planning.

Today, purchasing and procurement can and must do much more than simply placing purchase orders.

Companies are now increasingly recognising the importance of strategic purchasing as a means of managing auxiliary materials and supplies appropriately and achieving cost savings in increasingly competitive procurement markets.

Increasingly complex supply chains and procurement mechanisms, shorter product life cycles and the ever faster implementation of technical information present purchasing departments with a number of different challenges.

The key to performance optimisation and the best possible decisions in purchasing and procurement is therefore the availability of transparent, uniform, up-to-date data.

BI solutions for purchasing are able to provide such data on reliability, quality and price from suppliers quickly and reliably.

They therefore not only enable better decisions to be made in the short term when awarding contracts, but also long-term, strategic purchasing and supplier management.

Reliable purchase planning

  • merchandise planning
  • Assortment Planning
  • Scenarios/simulations
  • Flexibility in planning
  • Optimised demand planning
  • Linking of production and purchasing planning

Strategic purchasing

  • Reliable long-term planning despite volatile procurement markets
  • Identification of critical products in purchasing
  • Identification of savings potential
  • Risk Management
  • category management

Effective purchasing controlling

  • Transparency along the supply chain
  • supply chain controlling
  • non-cumulative key figures, non-cumulative range of coverage
  • Target/actual deviations
  • Portfolio Analysis
  • Objective supplier performance analysis

Data aggregation and integration

  • Single Point of Truth
  • Consolidation of existing supplier data in a single platform
  • Integration of data from different previous systems
  • Data integration from different locations
  • Restriction of authorisations down to the lowest aggregation level
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Advanced Analytics

  • Self-service analysis
  • Comparative analysisand deviations from target values
  • predictive analytics
  • Avoiding bottlenecks through data-based forecasting
  • More flexibility through less complexity
  • Optimisation of order quantities

Reporting and dashboarding

  • KPIs for purchasing, middle management and board
  • Visualisation of the most important key figures
  • Quantitative indicators
  • Qualitative key figures
  • Reducing the administrative burden

The advantages of BI in purchasing

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Accelerated purchasing processes, from the determination of requirements to payment
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Optimisation of supplier control and conditions management
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Identification of savings potential in strategic purchasing
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Key figure-driven evaluation of process efficiency and value contribution
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Better procurement planning and procurement analysis

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