Procurement Analysts assess the procurement function through data analysis. This analysis is conduction on the following functions:
1. Understanding and translation of customer needs and requirements
2. The selection of capable suppliers, to realize the cost-effective acquisition of vital raw materials
3. Study and influence factors impacting the Total Cost of Ownership such as quality, efficiencies, delays, stock-outs, obsolescence and carrying cost are heavily emphasized in the procurement discipline Procurement Analyst also performs critical Data Analytics functions.
Procurement Data Analytics has 3 aspects:
1. Descriptive Procurement Data Analytics: to collect data to provide insight on factors impacting supply chain dynamics. Supplier, production, logistics, procurement data is collected, understood, leveraged, and reported for the realization of supply chain efficiency.
Ex. A Procurement Professional conducts a Spend Profile Analysis, where understanding of her organization’s spending is leveraged to gain supply chain efficiencies.
2. Predictive Procurement Data Analytics: to make predictions from data, from factors impacting supply chain dynamics. This type of analysis is very helpful in understanding future price fluctuations and availability of commodities and critical inputs. Supply chain and procurement professionals can reduce the risk burden of their organizations by effectively utilizing this methodology.
Ex. A Procurement Professional conducts an assessment to determine the probability and confidence level of a Pandemic like COVID-19 will occur and how it will impact his/her supply chains.
3. Prescriptive Procurement Data Analytics: to make decisions to solve supply chain problems.
Ex. Decisions are made, and actions implement in response to example number 2 on COVID-19
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