Are you suffering the cost of bad supplier data?
Investing in cleansing your supplier data is expensive. But if you’ve spent any time trying to make decisions and pursue strategic goals without having data you can rely on, you know that bad data is costing your company money in more ways than one.
Bad supplier data leads to less-informed 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 supplier data is a time sink.
We all know the phrase “time is money.” Unusable data full of missing, outdated, or inaccurate supplier information takes time to rectify. 53% of supply chain managers spend more than 10% of their day looking for supplier information. 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 supplier data leads to a less diverse supply chain.
Without clear and accessible supplier diversity data, it’s nearly impossible to meet small and diverse spend targets.
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.
Level Up Your Supplier Data
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 unlock unlimited value within their organization.