Evolution of Spend Analysis and the Rise of Big Data: Part 3
Moving on, let’s talk about the benefits of big data analysis and how spend analytics can be leveraged for big data.
- Benefits of Big Data and its analysis
Big data analytics are changing fast. Interpretation of big data creates knowledge and enables greater transparency and improvement.
Another advantage of analysis of big data is that it helps align the supply chain and logistics, along with the technology, to global business needs. This strong linkage helps companies better understand their supply chain parties, e. g., suppliers, manufacturers and customers.
Big data analysis extracts the relevant and appropriate action plans and makes real-time changes. It also assists in their implementation when faced with constraints.
- Leveraging Spend Analysis for Big Data
Management of spend big data calls for an automated spend data management system. These systems are software applications that obtain spend data from a number of sources, like purchase orders, invoices etc. The data is classified according to the product category, supplier and data users. Spend analysis can accurately classify about 80% of the spend data records in the first attempt alone.
Accurate spend data enables the managers to get factual information and direction for sourcing and development of business strategies.
Advanced analytics permit inferences from granular data. Inferences transform data into knowledge, which results in greater process transparency and improvements. It turns data into actionable intelligence.
In the next blog we will explore the common constraints that organizations face while implementing spend technology. Stay with us!
For further reading, click on the download button below to access the whitepaper “The Evolution of Spend Analysis and the Rise of Big Data”