CHICAGO--(BUSINESS WIRE)--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.
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.