Where Spend Analysis Meets the Supply Chain: Putting Big Data in a Procurement Context
Good performance management approaches have to rest on good data – data that is indisputably referenced by business units, corporate leadership, and suppliers alike. The spend analytics field has matured to the point where leading solutions can process complex data sets from a broad range of ERP solutions and provide consolidated dashboards and reports with drilldown to the lowest-detail levels within hours of designated close time. By contrast, SPM (supplier performance management) often involves manual work such as entering information in balanced scorecards, making timely reports difficult.
This paper explores how FMC Technologies, a large oil & gas firm, was able to to shift the paradigm of spend analysis to supplier performance management.