• spend transparency is mostly looking backwards - do you have any predictive /foward looking looking tools as well?

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  • Katalin Brennan

    13/11/2018 05:09PM

    Indeed, many spend measures deal with past data. The issue with predictive and prescriptive analytical tools so far (and there are many on the market) is that they rely on good data (which is another can of worms) for their algorithm and take some time to dial in. Many seasoned procurement pros can do the projection on the fly based on knowledge of market conditions, supplier status, company changes, and many other factors that would have to be programmed into any forward looking tool. So, until the predictive tools 'get smarter' than any one of a number of forecasting models, humans will use such tools as one input source in their decision making.

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  • Brad Blonkvist

    28/11/2018 04:21PM

    Budget data; special project/initiatives in discussion; changes to goals/corporate direction. Your procurement organization needs to understand what is coming next from its key stakeholders in HR, IT, Finance, Manufacturing, etc. Getting in front of supplier discussions related to new initiatives is the single greatest forward-looking spend visibility. More so than all the category industry reports available, knowing what is changing in our spend profile in the next 6-24 months is the visibility you need. The historical spend then just paints the picture of how the new requirements are going to be different from the past.

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