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September 2011 | Angeline Albert
of procurement managers admit their spend data is poor and they are unable to
measure its quality – even though 95 per cent of the information is key to
achieving their goals.
said the unsatisfactory data is a barrier to accurate and reliable purchasing
processes and is hampering their ability to make savings, according the Spend Management survey published this
week by DataFlux, which surveyed 110
UK procurement managers between June and August.
95 per cent said data quality was crucial to achieving their procurement
objectives, 50 per cent felt their data was of low quality or couldn’t measure
its standard. “Having high-quality data to make procurement decisions is so
fundamentally important that 50 per cent is a worrying figure,” said a DataFlux
survey reported data problems hinder more than a third (37 per cent) of the
responding buyers from realising savings and efficiencies that spend management
some 53 per cent of respondents don’t currently categorise the things they buy
with international materials classification standards. This means they have no
insight into the economies of scale of certain things they purchase.
spokesman said: “Only by assigning unique identifying codes can you identify
data and make savings. By not by classifying by international standards, buyers
are missing a trick and losing out on savings when they could be spotting
opportunities to consolidate orders.”
Rickard, business development director, EMEA at DataFlux, said: “It’s
concerning to see that in these times of essential cost reduction more isn’t
being done to reduce procurement waste across British industry.
maintaining accurate information on who is buying what, when and for how much,
you can conduct powerful analysis, which can result in more efficient
consolidated ordering and ultimately improve the bottom line.”