Market Overview

Data Quality and Governance Biggest Challenges for Procurement Teams, According to New Research Report

Share:





Despite having access to more information and analytics than ever
before, poor data quality is crippling procurement performance,
according to the First
Annual Procurement Data Governance Survey
, released today by BravoSolution,
the leading global strategic procurement solution provider, and North
Carolina State's Supply Chain Resource Cooperative

(SCRC)
. This study is first in a series of research projects
designed to uncover the current and future state of data governance
within the procurement function and the role good governance plays in
advanced analytics.

"The report highlights the importance of data quality and governance
mechanisms that organizations can put in place to achieve value," said
Robert Handfield, executive director of SCRC at North Carolina State
University. "The results of the First Annual Procurement Data Governance
Survey emphasize that for organizations seeking to harness the power of
analytics, investment in data governance is a foundational requirement
for procurement."

BravoSolution and SCRC surveyed 70 procurement leaders and found that
for almost two-thirds of organizations, bad data quality is the primary
cause for less than optimum procurement decisions. The research also
showed that although poor data is a significant industry issue, only 20
percent of organizations are currently implementing an improvement
program. This revelation closely follows findings from Deloitte's
2017 CPO Survey
, which found quality of data to be the biggest
barrier to effective application of digital technology for 49 percent of
CPOs surveyed.

"Procurement is no exception to the big data movement. Advanced
analytics is the key to unlocking procurement performance. They provide
the only way to gain true strategic insights that create the business
case for action and leads to supply initiatives that capture
opportunities for reduced cost and increased value," said Andrea Brody,
chief marketing officer at BravoSolution. "Data should drive, not
inhibit, confident decision-making. If procurement teams can't rely on
what the numbers show, it makes digital strategy and transformation
virtually impossible."

When asked to rank data quality priorities, 58 percent of respondents
said accuracy was the biggest concern, followed by valid data (18
percent), complete data (11 percent), unique data (11 percent) and
timely data (11 percent). "The industry can't afford to ignore data
governance. The insight offered by clean, quality data directly
correlates to more business opportunities. Organizations that fail to
prioritize data governance and digitization on the procurement agenda
will continue to leave value on the table," added Brody.

The full research paper can be accessed here: How
Governance of Data and Technology Drive the Intelligence Spectrum in
Supply Chain and Procurement
.

About the Supply Chain Resource Cooperative

The Supply Chain Resource Cooperative (scm.ncsu.edu) is a unique,
industry-university partnership dedicated to advancing the supply chain
industry and the professionalism of its practitioners. Based in the
Poole College of Management at NC State University in North Carolina's
dynamic Research Triangle, the SCRC provides support, services and
programs to benefit three overlapping constituent groups: supply chain
management students, Poole College of Management SCM faculty, and
corporate partners from diverse businesses and industries. The SCRC also
serves as a thought leader in the increasingly complex and competitive
supply chain industry, documenting and disseminating new supply chain
management knowledge to help companies, practitioners and students.

About BravoSolution

BravoSolution is a leading global strategic procurement solution
provider. Our procurement technology platform and practitioner
experience help more than 650 companies and 150,000 procurement
professionals in over 70 countries unlock the power of procurement to
drive financial performance, build procurement organizational
excellence, manage risk, and influence innovation. BravoSolution's
approach to strategic procurement consistently delivers business
outcomes to enable customers to outperform their market. BravoSolution
has direct operations in 18 offices located in 12 countries across 4
continents, employing more than 650+ procurement experts. To learn more,
see http://bravosolution.com.

View Comments and Join the Discussion!