When it comes to procurement, the ability to leverage high-quality data isn’t just an advantage—it’s a necessity. Effective data strategies are now at the core of every successful procurement team’s operations, helping organizations enhance decision-making and maximize ROI.
The recent webinar, “Maximizing ROI with Good Data”, brought together industry experts to share actionable insights on improving procurement through data management and generative AI (Gen AI).
Speakers
Here are the top 5 takeaways from the session:
1. Good data is the backbone of ROI and AI success
One of the key themes of the webinar was that good data underpins the success of procurement processes, decision-making, and AI adoption.
Key insights from the experts:
- Patrick Marlow (Google): Quality trumps volume. High-quality, consistent data leads to better decision-making and enables more effective AI outcomes.
- Mike Smyklo (S&P Global): A data-first mindset is critical for Gen AI initiatives to succeed in procurement.
- Stephany Lapierre (TealBook): A strong data foundation ensures ROI for procurement technology investments.
Whether you’re focused on sustainability, efficiency, or business continuity, good data is essential.
Take action: Conduct a data audit within your procurement systems. Address gaps in supplier data to create a robust foundation for strategic decision-making.
2. The top challenge in procurement? Supplier data consistency
The poll results from the webinar revealed a common pain point for procurement teams—inconsistent supplier data across systems. Without clean, centralized, and trustworthy data, procurement professionals face significant inefficiencies and missed opportunities.
Stephany Lapierre stressed how the complexity of supplier data often leads to poor visibility and undervaluation of supplier assets. Orlando Malone shared that supplier data inconsistencies are especially problematic during merger and acquisition (M&A) processes, where quick and accurate supplier evaluations are critical.
Other common challenges highlighted include:
- Difficulty integrating existing tools and technologies.
- Limited resources for ongoing data management.
Take action: Consolidate and standardize your supplier data that is currently across multiple systems.
3. Gen AI’s promise in streamlining procurement
Gen AI is redefining the procurement landscape. From optimizing spend analysis to streamlining contract negotiations, AI tools are being leveraged to unlock enormous value.
The panel discussed high-opportunity areas for Gen AI in procurement, including summarization, intelligence gathering, and enhancing strategic decision-making.
Use cases shared by the experts include:
- Spend Optimization: AI-driven analysis enables better forecasting and spend alignment.
- Contract Management: Streamline and automate the creation and negotiation of contracts.
- Supplier Discovery: Solutions like Aime leverage Gen AI to enhance supplier research, insights, and recommendations.
However, the panel stressed that Gen AI relies on clean and accurate data to function effectively.
Take action: Identify specific Gen AI use cases within your organization. Start with smaller, data-rich pilot projects to demonstrate results before scaling further.
4. Data governance is crucial for long-term success
Multiple speakers emphasized the role of data governance in achieving long-term success with data strategies and AI initiatives. Poor data quality and lack of oversight were cited as the most common barriers to success.
What does strong governance look like?
- Ensuring data accuracy through regular cleansing and enrichment.
- Prioritizing supplier data integration across platforms.
- Establishing clear policies for data ownership and security.
Mike Smyklo of S&P Global highlighted the critical need for high data governance, as it forms the foundation for digital transformation efforts.
Take action: Build a cross-functional data governance team to oversee data quality initiatives and ensure alignment with procurement goals.
5. A data-driven culture is key to innovation
The ultimate competitive advantage for procurement teams lies in fostering a data-driven culture. Jim Cahalan, Executive Advisor at Procurement Leaders, opened the webinar by underscoring the importance of embedding data into the procurement DNA.
Whether it’s sustainability, risk management, or efficiency, a data-driven approach leads to better outcomes for all areas of procurement.
Stephany Lapierre added that ESG reporting is becoming a priority, further emphasizing the need for accurate and reliable data.
Take action: Invest in training your procurement team to enhance data literacy and to understand how to use tools like Gen AI applications so they’re ready for change as it comes to the industry.
Watch the full webinar to learn more:
Fahad Muhammad is the VP of Marketing at TealBook.
