{"id":105202,"date":"2024-09-27T08:10:35","date_gmt":"2024-09-27T06:10:35","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=105202"},"modified":"2025-01-27T06:49:00","modified_gmt":"2025-01-27T05:49:00","slug":"advanced-analytics","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/advanced-analytics-unlocking-procurements-future\/","title":{"rendered":"Unlocking Procurement&#8217;s Future"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>In today\u2019s fast-paced procurement environment, Advanced Analytics and Generative AI are becoming essential tools for staying competitive. These technologies help organizations move beyond traditional, manual processes by delivering faster insights, enabling data-driven decision-making, and automatically identifying cost-saving opportunities.<\/p>\n<p>From increasing transparency in spend analytics to automating RFx processes and streamlining supplier negotiations, AI and advanced analytics offer significant enhancements that drive efficiency and value creation across the entire procurement lifecycle.<\/p><\/div>\n<div class=\"col-lg-6\"><p>This is the focus of our &#8220;Procurement Let&#8217;s Get Real&#8221; video series, where we take a deep dive into these transformative technologies and explore practical examples of how they can be applied to solve real-world procurement challenges. Whether you&#8217;re looking to enhance your digital transformation or stay ahead in competitive markets, this series will guide you through the steps to unlock the full potential of AI and advanced analytics in procurement.<\/p><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p>&nbsp;<\/p>\n<h3><span style=\"color: #a0d60a;\"><strong>(1\/3)<\/strong><\/span> Why are analytics and AI crucial competitive factors in procurement?<\/h3><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/ydyNVbwDFYw?si=ixgIs00faKrQwDBC\" width=\"100%\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/><\/div>\n<div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<div class=\"bp-module-info-wrapper\">\n<div class=\"icon-boxes  \" data-moduleID=\"105206\" is=\"summary-box\">\n    <div class=\"summary-box-padding overflow-visible\">\n        <div class=\"icon-box has-icon  fadeIn\" style=\"border-color: rgb(0, 77, 144);\" data-animated-icon=\"true\">\n            \n                <div class=\"icon\">\n                    <div class=\"inner\">\n\n                                                                                    <svg id=\"animatedIcon-4b074234e4cec9d73dd9661143aa5775\" data-id=\"4b074234e4cec9d73dd9661143aa5775\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" viewBox=\"0 0 120 120\" xml:space=\"preserve\" width=\"75\" height=\"75\">\n                                    <path fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\" class=\"st0\" d=\"M36.7,40.1c0-9.9,7.6-20.7,17.6-22.7c0,0,14.5-5.6,27.1,7.3c4.4,4.5,6.2,11.1,5.5,17.3C86,49,81.9,54.7,76.9,59.3C76,60.2,75,61,74,61.8c-3.4,2.7-7.7,4.6-10.3,8.2c-3.3,4.6-2.4,10.7-2.4,16v1.2\"\/>\n                                    <line fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\"  class=\"st0\" x1=\"61.2\" y1=\"94.3\" x2=\"61.2\" y2=\"109.5\"\/>\n                                <\/svg>\n                            \n                        \n                    <\/div>\n                <\/div>\n\n            \n                            <div is=\"accordion\">\n                    <div class=\"accordion-item\">\n                        <div class=\"accordion-header\" id=\"heading-4b074234e4cec9d73dd9661143aa5775\">\n                            <button class=\"accordion-button collapsed\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-4b074234e4cec9d73dd9661143aa5775\" aria-expanded=\"false\" aria-controls=\"collapse-4b074234e4cec9d73dd9661143aa5775\">\n                                <span class=\"accordion-button-label\">\n                                    <span>Read the answer<\/span>\n                                <\/span>\n                            <\/button>\n                        <\/div>\n                        <div id=\"collapse-4b074234e4cec9d73dd9661143aa5775\" class=\"accordion-collapse collapse\" aria-labelledby=\"heading-4b074234e4cec9d73dd9661143aa5775\">\n                            <div class=\"accordion-body\">\n                                <p>In today\u2019s rapidly evolving procurement landscape, it\u2019s more challenging than ever to stay ahead of the competition.<br \/>\nProcurement organizations are under constant pressure to\u2026<\/p>\n<ul>\n<li>Reduce costs, in increasingly complex and highly competitive markets,<\/li>\n<li>Enhance resilience with faster and better-informed decision-making, and<\/li>\n<li>Accelerate their digital transformations with digitally enabled employees.<\/li>\n<\/ul>\n<p>But what if these challenges could be transformed into opportunities to stay ahead of the competition?<br \/>\nWe believe that GenAI technology and Advanced Analytics have the power to revolutionize procurement processes from the ground up, but we observe, in practice, that our clients often struggle to fully exploit those opportunities in the right way.<br \/>\nFor example,<\/p>\n<ul>\n<li>Growing amounts of unharmonized data from different sources cannot be systematically processed, consolidated, or analyzed<\/li>\n<li>Inadequate data transparency hinders fully comprehensive procurement analytics<\/li>\n<li>There\u2019s a lack of expertise on how to identify and make use of procurement-relevant cases.<\/li>\n<\/ul>\n<p>However, when successfully integrated and utilized, GenAI and Advanced Analytics can deliver significant benefits alongside the entire procurement process:<\/p>\n<ul>\n<li>Faster time to insight, and data-driven decision-making<\/li>\n<li>Automatic identification of cost-savings opportunities<\/li>\n<li>Increased accuracy and reliability to boost procurement processes.<\/li>\n<\/ul>\n<p>Embracing new technological advancements in procurement, such as Gen AI and Advanced Analytics, is crucial for your business to streamline operations and secure a competitive advantage.<\/p>\n\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/div>\n\n            \n        <\/div>\n    <\/div>\n<\/div>\n\n\n<\/div><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h3><span style=\"color: #a0d60a;\"><strong>(2\/3) <\/strong><\/span>How can analytics and generative AI enhance my procurement organization?<\/h3><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/OpfVGrHIDt4?si=oN7GnKIHnKDzVn89\" width=\"100%\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div>\n<div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<div class=\"icon-boxes  \" data-moduleID=\"105212\" is=\"summary-box\">\n    <div class=\"summary-box-padding overflow-visible\">\n        <div class=\"icon-box has-icon  fadeIn\" style=\"border-color: rgb(0, 77, 144);\" data-animated-icon=\"true\">\n            \n                <div class=\"icon\">\n                    <div class=\"inner\">\n\n                                                                                    <svg id=\"animatedIcon-b58a1304f5e8029a5646b252609b67c8\" data-id=\"b58a1304f5e8029a5646b252609b67c8\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" viewBox=\"0 0 120 120\" xml:space=\"preserve\" width=\"75\" height=\"75\">\n                                    <path fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\" class=\"st0\" d=\"M36.7,40.1c0-9.9,7.6-20.7,17.6-22.7c0,0,14.5-5.6,27.1,7.3c4.4,4.5,6.2,11.1,5.5,17.3C86,49,81.9,54.7,76.9,59.3C76,60.2,75,61,74,61.8c-3.4,2.7-7.7,4.6-10.3,8.2c-3.3,4.6-2.4,10.7-2.4,16v1.2\"\/>\n                                    <line fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\"  class=\"st0\" x1=\"61.2\" y1=\"94.3\" x2=\"61.2\" y2=\"109.5\"\/>\n                                <\/svg>\n                            \n                        \n                    <\/div>\n                <\/div>\n\n            \n                            <div is=\"accordion\">\n                    <div class=\"accordion-item\">\n                        <div class=\"accordion-header\" id=\"heading-b58a1304f5e8029a5646b252609b67c8\">\n                            <button class=\"accordion-button collapsed\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-b58a1304f5e8029a5646b252609b67c8\" aria-expanded=\"false\" aria-controls=\"collapse-b58a1304f5e8029a5646b252609b67c8\">\n                                <span class=\"accordion-button-label\">\n                                    <span>Read the answer<\/span>\n                                <\/span>\n                            <\/button>\n                        <\/div>\n                        <div id=\"collapse-b58a1304f5e8029a5646b252609b67c8\" class=\"accordion-collapse collapse\" aria-labelledby=\"heading-b58a1304f5e8029a5646b252609b67c8\">\n                            <div class=\"accordion-body\">\n                                <p>If you want to stay ahead in today&#8217;s fast-paced business world, you need cutting-edge technologies that enhance every part of your operations.<\/p>\n<p>GenAI and Advanced analytics can offer significant enhancements across a multitude of applications, in your strategic procurement process.<\/p>\n<p>From creating greater transparency and unveiling new insights through spend analytics \u2013 to evaluating supply markets, automating RFx processes and conducting negotiations \u2013 these technologies streamline operations and empower data-driven decision-making.<br \/>\nLet&#8217;s dive into a practical example in the spend transparency phase.<br \/>\nWith the Price and Quantity Development Analysis, you can quickly understand how purchased quantities and corresponding prices have evolved over time, and identify materials or services which are out of step with current market trends.<\/p>\n<p>Thanks to GenAI, you can use that knowledge to find alternative suppliers and generate the necessary documents for supplier discussions.<\/p>\n<p>And this is just one example of how GenAI and advanced analytics work hand in hand. Imagine the possibilities \u2013 from benchmarking and predictive analysis, to enhancing data quality and streamlining the overall RFx process.<\/p>\n<p>As illustrated with these examples, integrating Gen AI and analytics in procurement helps you to transform from transactional activities to strategic enablement \u2013 driving efficiency, cost savings and value creation across your organization.<\/p>\n\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/div>\n\n            \n        <\/div>\n    <\/div>\n<\/div>\n\n<\/div><\/div><\/div>\n<h3><\/h3>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h3><span style=\"color: #a0d60a;\"><strong>(3\/3)<\/strong><\/span> How can the KGM Strategy AI Value Finder add valuable insights to your procurement organization?<\/h3><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/vk3a27THYQI?si=Y6KGtrWKm24TT9h9\" width=\"100%\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div>\n<div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<div class=\"icon-boxes  \" data-moduleID=\"105213\" is=\"summary-box\">\n    <div class=\"summary-box-padding overflow-visible\">\n        <div class=\"icon-box has-icon  fadeIn\" style=\"border-color: rgb(0, 77, 144);\" data-animated-icon=\"true\">\n            \n                <div class=\"icon\">\n                    <div class=\"inner\">\n\n                                                                                    <svg id=\"animatedIcon-3b29946ee83d2c93c67021daf931209b\" data-id=\"3b29946ee83d2c93c67021daf931209b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" viewBox=\"0 0 120 120\" xml:space=\"preserve\" width=\"75\" height=\"75\">\n                                    <path fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\" class=\"st0\" d=\"M36.7,40.1c0-9.9,7.6-20.7,17.6-22.7c0,0,14.5-5.6,27.1,7.3c4.4,4.5,6.2,11.1,5.5,17.3C86,49,81.9,54.7,76.9,59.3C76,60.2,75,61,74,61.8c-3.4,2.7-7.7,4.6-10.3,8.2c-3.3,4.6-2.4,10.7-2.4,16v1.2\"\/>\n                                    <line fill=\"none\" stroke-width=\"20\" stroke-miterlimit=\"10\" stroke=\"#a0d60a\"  class=\"st0\" x1=\"61.2\" y1=\"94.3\" x2=\"61.2\" y2=\"109.5\"\/>\n                                <\/svg>\n                            \n                        \n                    <\/div>\n                <\/div>\n\n            \n                            <div is=\"accordion\">\n                    <div class=\"accordion-item\">\n                        <div class=\"accordion-header\" id=\"heading-3b29946ee83d2c93c67021daf931209b\">\n                            <button class=\"accordion-button collapsed\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-3b29946ee83d2c93c67021daf931209b\" aria-expanded=\"false\" aria-controls=\"collapse-3b29946ee83d2c93c67021daf931209b\">\n                                <span class=\"accordion-button-label\">\n                                    <span>Read the answer<\/span>\n                                <\/span>\n                            <\/button>\n                        <\/div>\n                        <div id=\"collapse-3b29946ee83d2c93c67021daf931209b\" class=\"accordion-collapse collapse\" aria-labelledby=\"heading-3b29946ee83d2c93c67021daf931209b\">\n                            <div class=\"accordion-body\">\n                                <p>Procurement organizations typically have access to data. Yet, gaining usable insights and value from that data is often challenging.<\/p>\n<p>In our experience, the data itself is often problematic. Perhaps it\u2019s unstructured. It might have been gathered by different parts of your organization in inconsistent ways \u2013 with countries, suppliers and other category types varying. Or maybe its quality is simply not good enough, and it\u2019s unusable.<\/p>\n<p>So, how can you benefit fully, gain insights and identify new opportunities?<\/p>\n<p>Well, what if there was a way to transform your underutilized data into actionable insights, effortlessly?<\/p>\n<p>Let\u2019s take a look at one practical project example to see how the KGM Strategy AI Value Finder can help to generate value-adding insights:<\/p>\n<p><strong>Phase 1:<\/strong><\/p>\n<ul>\n<li>We receive unstructured customer data from multiple systems and countries<\/li>\n<li>Through a comprehensive data scan, we apply GenAI technologies to harmonize both supplier information and also payment terms \u2013 making the data fully usable for advanced analytics<\/li>\n<\/ul>\n<p>Additionally, we utilize GenAI for spend categorization, which sets the stage for in-depth transparency and analyses.<\/p>\n<p><strong>Phase 2:<\/strong><\/p>\n<ul>\n<li>With the data now prepared, a range of analyses becomes possible.<\/li>\n<\/ul>\n<p>From simple spend transparency to advanced insights \u2013 like price developments, bundling, and maverick buying \u2013 procurement professionals can gain direct access to actionable insights, and so enable data-driven decision making.<\/p>\n<p>By leveraging advanced analytics and GenAI, the full potential of your data can be unlocked. That enables the transformation of challenges into opportunities across a wide range of use cases, from procurement analytics to daily operations and project management.<\/p>\n\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                <\/div>\n\n            \n        <\/div>\n    <\/div>\n<\/div>\n\n<\/div><\/div><\/div>\n\n    <div class=\"container authors-section fadeIn \" is=\"authors-and-partners\">\n        <div class=\"description row\">\n            <h2>\n                                    Do you have any further questions? Then contact our experts!\n                            <\/h2>\n        <\/div>\n\n        <div class=\"row\">\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/12\/christoph-schenter-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/12\/christoph-schenter-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/12\/christoph-schenter-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Christoph Schenter<\/h3>\n                        <p class=\"person-position\">Principal Data & Insights<\/p>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:christoph.schenter@kgmstrategy.com\" class=\"mail-link\">christoph.schenter@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/advanced-analytics-unlocking-procurements-future\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/Simon_Sirch-250x250.jpg\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/Simon_Sirch-250x250.jpg 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/Simon_Sirch.jpg 400w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Simon Seggedi<\/h3>\n                        <p class=\"person-position\">Lead Data & Insights<\/p>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:simon.sirch@kgmstrategy.com\" class=\"mail-link\">simon.seggedi@kgmstrategy.com<\/a>\n                                                                                    <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/advanced-analytics-unlocking-procurements-future\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is the focus of our &#8220;Procurement Let&#8217;s Get Real&#8221; video series, where we take a deep dive into these transformative technologies and explore practical examples of how they can be applied to solve real-world procurement challenges.<\/p>\n","protected":false},"author":10,"featured_media":57986,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[708,706],"tags":[],"class_list":["post-105202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advanced-analytics-ai","category-video"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/comments?post=105202"}],"version-history":[{"count":2,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105202\/revisions"}],"predecessor-version":[{"id":110068,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105202\/revisions\/110068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media\/57986"}],"wp:attachment":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media?parent=105202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/categories?post=105202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/tags?post=105202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}