Investing in your data seems expensive, and your stakeholders are wondering, “Is it even worth it?” But if you’ve spent any time trying to use your data, you know that bad data is costing your company money in more ways than one.
Bad data leads to less-educated decisions.
Data exists to inform decisions, giving procurement leaders the information they need to select suppliers and partners. Fifty-nine percent of supply chain leaders recognize that having staff analyze data leads to better decisions and allows their business to stay competitive. But, 68% of those leaders say their data is not clean or actionable.
If you don’t have good data, it’s difficult to get the type of insight you can take action on, and you’re more likely to make a poor decision. As anyone who’s watched a horror movie knows, if you don’t know what’s in your back seat, you’re bound to start driving into the woods with an unwanted passenger. Data innovators, however, are three times more likely to report their company makes better, faster decisions than competitors.
Bad data makes things take longer.
The phrase “time is money” is often attributed to Benjamin Franklin’s 1748 essay “Advice to a Young Tradesman.” Literary historians have found similar concepts in much earlier writings, including Plutarch’s Lives written in the first century CE. Whenever the proverb originated, it’s a colloquial phrase that is part of our social consciousness. And, it’s a basic concept of business.
Incorrect or dirty data full of missing, outdated, or inaccurate supplier information takes time to rectify. 53% of supply chain managers spend more than 10% of their day looking for data. When you’re trying to keep a supply chain moving at a brisk pace, that time costs money—in both the number of sourcing events and employee productivity. Organizations with a focus on using data better remove an average of 4.85% from their annual operating costs.
Bad data leads to less supplier diversity.
Without clear and accessible supplier diversity data, it’s difficult to achieve strong Tier One and Tier Two supplier diversity. And yet, working with diverse suppliers enhances a company’s bottom line and reputation. Not working with diverse suppliers can cost more, as diverse suppliers are often smaller, more innovative suppliers who can offer better prices and service levels.
An increasingly socially-aware consumer base that places a high value on diversity means visible commitments to diversity matter to brand reputation and sales. One study found that of those aware of UPS’s supplier diversity initiatives were 86% more likely to use UPS’s services than those unaware of their commitment to supplier diversity.
The world, and the procurement industry, are becoming increasingly digital. Having a strong data foundation is critical to achieving digital transformation and making the best use of emerging technologies to stay competitive and meet, or exceed, organizational demands.
Without data being automated, validated, and flowing within digital cloud systems in a way that ensures it’s accurate, trusted, and useful, it’s challenging to capitalize on your investment. Tealbook’s mission is to help procurement functions achieve digital transformation and build a strong data foundation so they can accomplish full value to their organization, with good, clean data.