Big Data Is Changing How Businesses Deal With Supply and Demand

Big data is changing just about everything in the business world. While this concept is nothing new, the full potential has only recently been understood–and companies across the world are looking for ways to incorporate it into their model.

According to IBM, approximately 2.5 quintillion bytes of data are created every day. Even more, 90 percent of the total data available was produced in the last few years.

Advancements in technology give businesses the ability to track and quantify every interaction, transaction, or any other point of engagement in microscopic detail.

The very nature of supply and demand is based around the hunt of greater efficiencies and the most optimal routes for purchasing operations. This is perhaps the area of business that stands to gain the most from big data.

With this in mind, here’s how purchasing is evolving and affecting organizations’ ability to sell their products as when demand goes up.

Let data make decisions for you.

Before we had data at our disposal, decisions were made based on emotions or gut feelings. As a result, the rationale for each choice might now look murky in hindsight.

Nowadays, nearly every decision can be backed up with hard numbers. Managers are able to make educated judgments, and they can justify their moves with proven results–past or present.

In terms of global procurement, experts are able to use reliable forms of predictive analysis to calculate demand in order to provide adequate resources as they are needed. If used correctly, these data-driven insights can do wonders to cut down on wasted time and resources so each and every dollar is used to the greatest extent.

In terms of global procurement, experts are able to use reliable forms of predictive analysis to calculate demand in order to provide adequate resources as they are needed. If used correctly, these data-driven insights can do wonders to cut down on wasted time and resources so each and every dollar is used to the greatest extent.

Predictive analysis models are great for showing all kinds of data on previous behavior to help inform decisions. Managers can create accurate roadmaps to help guide their efforts in the right direction by mining all necessary metrics in real-time and A/B testing the digital touchpoints where customers interact with them.

Put your expenses under the microscope.

Every organization has some form of “spend data” to analyze. “Spend” refers to operational costs across business functions such as planning and budgeting, inventory management, product development, and compliance.

For large, global enterprises, this data can run into millions of transactions. Analyzing it can help procurement managers identify spend patterns by category, vendor, region, and more. It can uncover opportunities to drive bottom-line savings and more value from their procurement spend. Data analytics can help managers analyze extremely large volumes of spend data much more efficiently and accurately.

However, many businesses use different tools and software for various sourcing and procurement processes, due to which there is no single source of data. Unfortunately, this can easily lead to confusion and levels of disconnect with the big picture.

For this reason, it’s necessary to invest in unified procurement technology. SMART by GEP, for instance, is a platform that integrates all sourcing and procurement processes, helps in effective enterprise-wide spend analysis, and provides real-time insights into cost-saving initiatives.

While analyzing each metric in relation to compliance tracking, contract intelligence, sourcing, field testing, and more, managers will discover incredible opportunities to drive savings across the board.

At the end of the day, every thriving business needs to consider the ROI in each decision it makes. The best way to keep this number at a healthy level is to monitor its spend down to the nickels and dimes.

Love your vendors, but don’t woo them.

The ” Age of the Customer” is here and booming. Many consumers now expect businesses to seamlessly meet every aspect of every need without hesitation.

When incorporating big data, both suppliers and procurement clientele stand to benefit. For instance, suppliers can glean valuable, data-driven insights to allocate resources more accurately and better formulate logistical strategies.

Present-day inventory management programs based machine learning can order your supplies or raw material in optimum amounts, at the right times. This eliminates the need for negotiation and follow-ups with vendors or manufacturers every time you need to stack up.

In the old days, client relationships were the life and blood of marketing and sales teams. Now, with the help of big data, these departments are no longer solely tasked with conducting manual research to achieve effective results for clients.

In a sense, big data makes the whole idea of managing professional relationships much easier as the margin for error is significantly diminished and all the tools are there to establish a high level of accuracy.

When looking at the impact of changes in supply and demand on businesses, analyzing data-driven results will not only make processes run smoother, it will save money in the long-run. It’s becoming overtly clear the common action is to work smarter, not harder.