Oracle Fusion ERP Analytics' newest pre-built procurement analytics features give businesses end-to-end access into all of their procurement operations.
Companies can use the data to find areas for improvement and have a better understanding of the overall procurement process. Key procurement indicators including spending by category and supplier, on-time delivery performance, and supplier compliance performance are provided by Oracle Fusion ERP Analytics.
Businesses can utilize this data to find possible cost-saving opportunities and enhance supplier performance. Additionally, the data help businesses better understand their spending and negotiate with suppliers for better prices.
Let’s take a look at the table of content that we’ll cover ahead:
- Procurement Analytics: What is it?
- Purpose of Procurement Analytics
- Chief Procurement Officer (CPOs)
- Built-in Analytics Capabilities for Meeting Procurement Needs
- Procurement Analytics with Oracle
- How Can Deskera Help in the Procurement Process?
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Procurement Analytics: What is it?
Procurement analytics is the process of using data and analytics to make better decisions about the procurement of goods and services.
It typically involves analyzing data from various sources such as purchase orders, invoices, contracts, supplier performance reports, and customer feedback. This data can then be used to identify trends, spot opportunities, and uncover inefficiencies in the procurement process.
By understanding the full picture, procurement analytics can help organizations make more informed decisions and optimize their procurement processes.
Purpose of Procurement Analytics
The ultimate goal of procurement analytics is to help organizations better understand the total cost of ownership (TCO) of the goods and services they procure, and to optimize their procurement process as a whole. This can include finding new ways to reduce costs, streamline processes, and boost supplier performance.
In simple words, it helps to improve the efficiency of the procurement process by analyzing procurement data to identify areas of inefficiency and areas of potential cost savings. This can include analyzing data on purchase orders, vendor performance, supplier contracts and more.
The insights gained from procurement analytics can also be used to improve compliance, ensure quality, and even predict future needs.
By leveraging data and analytics, organizations can gain a better understanding of their procurement process and become more competitive in the marketplace.
Some of the key objectives of procurement analytics are:
1. Identify areas of inefficiency in the procurement process.
2. Analyze supplier contracts and identify potential cost savings.
3. Analyze data on purchase orders to determine if there are any patterns in spending or areas where cost savings can be achieved.
4. Develop and implement strategies to reduce costs and improve efficiency.
5. Monitor vendor performance to ensure that suppliers are delivering quality products and services.
6. Analyze data on procurement trends to identify areas of potential growth and new opportunities.
7. Develop strategies to manage inventory levels and reduce waste.
8. Identify areas of potential risk and develop strategies to mitigate them.
Chief Procurement Officer (CPOs)
It is not unexpected that in the most recent Deloitte Global CPO survey, 38% of Chief Procurement Officers (CPOs) classified organizational silos as one of the top three circumstances that represent the "greatest risk" to their respective organizations.
Procurement leaders are responsible for overseeing the procurement process and ensuring that goods, services, and supplies are procured in a timely and cost-effective manner.
Furthermore, they are responsible for developing and implementing strategies to ensure that their organization is leveraging the best prices and services from vendors, negotiating contracts, and ensuring that goods and services are delivered on time and within budget. They must also ensure compliance with all applicable regulations, maintain supplier relationships, and monitor market trends.
To operate effectively in the face of quickly shifting markets, procurement specialists must now have access to cross-functional information throughout the whole organization. Business success is significantly impacted by how effectively the procurement team can rapidly and accurately connect supplier, purchasing, and financial data.
When it comes to procurement technology solutions, functions that merely help with purchasing are no longer enough. CPOs may have a greater understanding of internal and external capabilities with Oracle's most recent procurement analytics product, allowing businesses to shift course as necessary.
Built-in Analytics Capabilities for Meeting Procurement Needs
Procurement analytics can be used to track and measure the performance of the entire procurement process, from vendor selection and negotiation, to purchase order generation and delivery. This data can be used to identify areas of inefficiency and cost savings, as well as enable better planning and forecasting.
Specific capabilities of procurement analytics include:
This tool provides insights into how much an organization is spending on categories of goods and services, uncovering potential cost savings opportunities and informing strategic decisions.
Combine data from finance and procurement to get the latest information on how spending trends affect crucial financial Key Performance Indicators (KPIs).
By combining an examination of off-contract spending and historical pricing patterns, procurement professionals may more closely match business demands. Examine the potential cost savings opportunities by item and the discounts earned by category type. To support spending by supplier and item, have a look at purchasing overlaps across the entire enterprise.
Overview of Contract Expirations:
Procurement teams can now examine contract expirations by a range of parameters, including geography, business unit, and category, in addition to timely warnings 30, 60, or 90 days prior to contract expiration. Missing deadlines will be less frequent because of a thorough visual display of procurement contract expirations.
Qualifications and Output of Suppliers:
By keeping an eye on suppliers' performance in terms of product delivery and quality, you may minimize disruption and risk further downstream. Keep a tight eye on metrics like rejection and return rates for crucial products.
Furthermore, you may save downtime and lead time by having a constant, company-wide picture of the shipping and receipt status of purchased items. Identify opportunities for supplier variety, combine spend and supplier performance analysis with data like "items on agreement by supplier," and minimize problematic sourcing dependencies.
An Integrated View of Finance and Procurement at your Fingertips:
Keep your financial and procurement KPIs in sync automatically and in one place for analysis. The program's prebuilt data base eliminates the need for spreadsheet configuration.
Furthermore, accounting procedures can be optimized by understanding the root causes of invoice holds and DPO metrics. Accelerate supplier payments to take advantage of early payment discounts.
Due to the ease with which they may combine analysis of financial and procurement variables, procurement professionals have multiple paths to profitability when looking at invoice price variance (IPV) by supplier or off-contract spending by category.
Easily track trends in agreement consumption and leakage to better understand the needs of the business in terms of purchasing. Make strategies for combining suppliers to receive volume discounts. By receiving detailed information into agreement use by item and supplier, buyers may optimize purchasing across all business divisions.
Cycle Timings from Source to Settlement:
Reduce cycle times by keeping an eye on prebuilt KPIs to find the root causes of process bottlenecks. By looking at cycle times for both the finance and the procurement processes, organizations can pinpoint the main reason for operational inefficiencies. For instance: Do permission delays inhibit strategic purchases?
Developed Key Performance Indicators (KPIs):
This software comes with a sizable library of built-in KPIs and indicators that are based on best practices. Business leaders may track organizational development with only one mouse click thanks to the automatic populating of key procurement KPIs with company data.
Users can also specify additional KPIs based on specific departmental requirements. It includes more than 200 KPIs, dashboards, and reports that are already designed and cover everything from receipts to purchase orders.
Data may be easily integrated using "drag-and-drop" across a variety of internal and external sources using Oracle Fusion ERP procurement analytics, which was designed primarily for business users. For instance, include corporate social responsibility (CSR) data in supplier analysis to safeguard a brand's reputation.
Procurement Analytics with Oracle
Oracle's most latest set of procurement analytics gives organizations the adaptability to react to changing circumstances. Executives may easily identify areas where the procure-to-pay process might be more effective while minimizing interruptions thanks to Oracle Fusion ERP Analytics.
This prebuilt, cloud-native analytics solution reduces the need for time-consuming data modification in finance and procurement. Users can get full visibility into company expenditure and procurement performance through integrations with Oracle Cloud apps and ready-to-use KPIs.
Business employees can easily operate the appealing user interface, and a semantic backdrop layer makes it simple to broaden procurement analysis with external data sources.
As with all Fusion Analytics Warehouse modules, Oracle's procurement analytics capabilities connect several data sources for the user, facilitating faster cross-functional analysis.
When combined with Oracle Procurement Cloud's products, these features give procurement teams the resources they need to transform company processes through strategic sourcing.
Explore this interactive product tour for few minutes to learn more about the value of prebuilt analytics for procurement professionals.
How Can Deskera Help in the Procurement Process?
A business has to keep track and record of accounting books, inventory, and overall management of procurement. This can become difficult when done manually. This is why it is wise and vital to invest in software to make journal entries, maintain inventory records, and generally carrying out the procurement process smoothly.
In other benefits, Deskera also provides software solutions for HR, attendance, payroll management, inventory management, and customer relationship management. Deskera People lets your employees mark and see their attendance, apply for a day off, and also claim expenses with just one click online among a lot of features.
Deskera ERP is a comprehensive system that allows you to maintain inventory, manage suppliers, and track supply chain activity in real-time, as well as streamline a variety of other corporate operations.
Deskera ERP and MRP system can help you:
- Manage Production Plans
- Maintain Bill of Materials
- Generate Detailed Reports
- Create a custom Dashboard
Deskera Books enables you to manage your accounts and finances more effectively. Maintain sound accounting practices by automating accounting operations such as billing, invoicing, and payment processing.
Deskera CRM is a strong solution that manages your sales and assists you in closing agreements quickly. It not only allows you to do critical duties such as lead generation via email, but it also provides you with a comprehensive view of your sales funnel.
Deskera People is a simple tool for taking control of your human resource management functions. The technology not only speeds up payroll processing but also allows you to manage all other activities such as overtime, benefits, bonuses, training programs, and much more. This is your chance to grow your business, increase earnings, and improve the efficiency of the entire production process.
We've arrived at the last section of this guide. Let's have a look at some of the most important points to remember:
- Procurement analytics is the process of using data and analytics to make better decisions about the procurement of goods and services.
- It typically involves analyzing data from various sources such as purchase orders, invoices, contracts, supplier performance reports, and customer feedback.
- The ultimate goal of procurement analytics is to help organizations better understand the total cost of ownership (TCO) of the goods and services they procure, and to optimize their procurement process as a whole.
- This can include finding new ways to reduce costs, streamline processes, and boost supplier performance.
- Procurement leaders are responsible for overseeing the procurement process and ensuring that goods, services, and supplies are procured in a timely and cost-effective manner.
- Procurement analytics can be used to track and measure the performance of the entire procurement process, from vendor selection and negotiation, to purchase order generation and delivery.
- This data can be used to identify areas of inefficiency and cost savings, as well as enable better planning and forecasting.
- Keep your financial and procurement KPIs in sync automatically and in one place for analysis. The program's prebuilt data base eliminates the need for spreadsheet configuration. Accounting procedures can be optimized by understanding the root causes of invoice holds and DPO metrics.
- Reduce cycle times by keeping an eye on prebuilt KPIs to find the root causes of process bottlenecks. By looking at cycle times for both the finance and the procurement processes, organizations can pinpoint the main reason for operational inefficiencies.