A data-driven approach
TECHNOLOGY
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“Google prefers to diversify its suppliers as much as possible , selectively working with only those who can provide innovative products that will work for them ”
— ALEX SARIC , Chief Marketing Officer , Ivalua times of crisis , other customers will likely be prioritised , increasing risk of supply shortages . Similarly , suppliers are more likely to share precious IP that can create a competitive advantage with more profitable and hence important customers . Organisations must look beyond cost to foster innovation from their supply chain .
A data-driven approach
This is where smart procurement technology can help . Using cloud-based data aggregation and analytics , organisations can uncover a treasure trove of potential innovation within their supply chain , which can give procurement leaders a huge influence on the company ’ s bottom line and product roadmap . Suppliers possess deep industry expertise and can introduce creative ideas to improve the end-product .
This can lead to an increased potential in profitability for both companies as they work together to achieve their business objectives . Rolls Royce is a famous example of this , by collaborating with more than 18,000 suppliers and racking up a total spend of over £ 7bn each year , the company leveraged its suppliers ’ knowledge of engine technology to become a key innovative force in a wide range of markets from aerospace to maritime .
OCTOBER 2018