Finding the Missing Link: Avoiding Supply Chain Risk with Complete Visibility
I’ll get right to the point: lack of data, or more specifically, lack of accurate data can spell disaster for an organization. Most organizations today know in some way, shape or form that they need to understand their data, but what isn’t always as clear is how to best get there. The typical organization has a lot of data. And when you think about the complex supply chains that comprise so many global organizations, the amount of data is even greater. Each link of a supply chain produces key data that can be monitored to ensure the entire process is running efficiently as a whole. However, it’s impossible for organizations to make any sound decisions to prevent risk without a clear, complete and accurate picture of what’s actually happening—both within an organization and outside, in the industry more broadly.
Traditional spend analysis solutions can only collect data from a finite group of sources, like accounts payable (APs), open purchase orders (POs), invoices and suppliers, for example. Sure, collecting and analyzing data from these sources will tell part of the story, but is it enough? JAGGAER’s Spend Radar goes further to provide organizations with complete visibility into operations through analysis across all spend data sources. In fact, Spend Radar will accept any data element that an organization wants to analyze. Armed with key performance indicators, real-time commodity indexes, market trends, contracts and forecasts, organizations can be confident that they’re acting appropriately to avoid future supplier risk by identifying problems before they grow into larger issues. In short, they have a full, accurate picture of their entire supply chain.
For one JAGGAER client FMC Technologies, a $6.5B oil and gas industry company, access to industry and operational information is essential. FMC’s goal is to remain a zero-defect company with no deviations, a difficult task given its complex supply chain that spans the world. And while many organizations traditionally use spend analysis tools to support their sourcing activities and drive supplier rationalization, FMC implemented spend analysis to deepen relationships with their suppliers worldwide. Another unique aspect of FMC’s project: their data was fairly clean at the ERP level. The majority of organizations, however, are dealing with data from multiple sources. A spend analysis solutions that easily accepts data from many different data sources is critical.
With a greater focus on supplier performance and standardizing these relationships worldwide, quality, on-time delivery, forecasts and supplier risk information are just some of the metrics that FMC leverages to ensure they are acting on a single source of truth. Their ability to access all their data gives the organization the confidence that they are making the most informed decisions possible when it comes to their supply chain.
With an influx of Big Data all around us, shouldn’t organizations expect complete supply chain visibility from their SaaS procurement partners? We definitely think so.
How does your organization harness the power of Big Data? Join the conversation on Twitter at @JAGGAER.