Considered a sure bet for planning and decision-making in procurement management, Business Intelligence (BI) – a mix of technologies, processes and applications focused on business intelligence – can help companies to improve their acquisitions.
Through BI platforms and applications, along with Analytics, information can be intuitively viewed, extracted and shared in real time.
To strengthen the organization’s digital punch, BI must track processes in different departments. In corporate procurement, for instance, one of the key benefits of investing in Business Intelligence is the fact that BI can drive the ability to analyze purchasing trends.
Another benefit is its contribution to information transparency, which helps reinforcing compliance in transactions with suppliers. The buyer can cross-check purchases from a partner, for instance, by category, seasonality, geography, business unit and lead time.
The evolution of Business Intelligence
Even seeming a recent concept, BI was created in 1958 by Hans Peter Luhn, a German computer scientist. At that time, he defined Business Intelligence as “a set of concepts and methods to improve decision-making through systems of factual data analysis”.
But what Hans couldn’t predict is that the decision analysis tools of Business Intelligence would go beyond simple reporting processes. In fact, BI is more about discovery nowadays.
We know that the tool’s ability to monitor the activities of businesses and orient the management of their choices exceeds human competences.
This skill is achieved with the help of Artificial Intelligence (AI) and Machine Learning, which allow a 360° view of organizations, including expenses, risks and performance.
With lighter interfaces, excellent usability and intuitive solutions based on Software as a Service (SaaS), the current BI has even mobility in its favor – which makes key data and indicators accessible through a smartphone screen.
ME Boost: Mercado Eletrônico’s BI for procurement management
Mercado Eletrônico offers a cloud solution, which takes Business Intelligence (BI) technology to the realm of corporate procurement, thus making procurement management and control of negotiations with suppliers easier.
ME Boost stores information related to purchases and transactions, and interprets it with charts, according to the user’s presets. All data can be accessed over the web, anytime, at any place and device.
Besides, ME Boost can be programmed to identify data patterns and show views that will enable any action plans from the manager. As the modules are being used, in addition to the simpler views – such as savings, procurement lead time and spend by category – the manager can also check root causes by means of data combinations.
In the Supplier Management (SRM) solution, for instance, the manager could find that the overall cost of valves in the North region is much higher, due to the low number of certified suppliers in this category, in that region.
We have seen above how Business Intelligence (BI) is the surest way to create goals and make more accurate procurement decisions, as they are based on data and information.
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