Course Overview

Procurement Analytics is the practice of applying quantitative and analytical approaches to extract actionable insights from a huge pool of procurement data to increase value and enhance operations.

Why data analytics is important in procurement?

The process of procurement analytics is performed by gathering procurement data from a variety of sources, classifying it according to standard or user-defined characteristics, and presenting it in a visual format that decision-makers can understand.

What is the procurement process?

Several key decision-making processes fail to deliver the expected results during procurement analytics. This is due to the lack of tools and systems to do these analytics. Many businesses cannot gather and evaluate this data. Procurement Analytics’ value extends far beyond spending to all aspects of the Source-to-Pay (S2P) process. Businesses are taking notice of the breadth of data available to support business decisions at all levels. Procurement analytics can help you manage risk and evaluate the performance of your vendors.

This Zoe training course will empower you with complete information and knowledge about procurement analytics and understand overall performance from an operational, transactional, and supplier standpoint. Additionally, through this course, you would acquire the skills and capabilities to work in any aspect of Procurement Analytics, thus broadening avenues for greater opportunities promoting career growth.

Course Objectives

This course’s main goal is to empower professionals in the procurement sector to:

• Understand why analytics is essential to the procurement process and its impact
• Know the challenges faced in the procurement process and how analytics can help make better decisions
• Review several procurement analytics tools and techniques
• Develop cost models to assess the competitiveness of supplier pricing
• Adopt Microsoft Excel’s advanced decision-making features for procurement analysis
• Create target pricing models as part of your negotiation approach
• Understand the various statistical techniques employed in procurement analytics
• Understand the concept of programs management by analysing procurement data
• Oversee the development of necessary procurement projects for an efficient decision-making process

Training Methodology

Training courses are available from Zoe Talent Solutions on a variety of topics. Professionals with relevant experience give training in the appropriate domain. A portion of the training is offered in a classroom, while other parts are delivered through practical activities. Trainees are handed projects and tasks in groups, encouraging interaction between them and the trainer. The facilitators at Zoe use role-plays, as applicable during learning sessions.

This training structure is created by Zoe Talent Solutions.  We call it the Do–Review–Learn–Apply Model.

Organisational Benefits

With professionals undergoing this course, the organisation will benefit in the ways mentioned below:

• Seamless procurement processes managed by trained, experienced professionals
• Application of various advanced procurement analytics techniques to help with an effective and efficient procurement decision-making process
• A method for identifying, controlling, and mitigating procurement risks
• Regular training of other employees on excelling in effective negotiations as a procurement specialist using target costing models
• Detailed management review of various possible instances of analysing procurement-related data
• Seamless evaluation of sourcing processes, contracts, bidding processes, and assets turnover due to interactive visualisations and dashboards
• Advanced analytical tools and techniques are being used to improve the quality of procurement processes carried out by specialists

Personal Benefits

Professionals who take this course will benefit in the following ways:

• Complete understanding of procurement analytics and its impact on the overall business
• Have a better understanding and expertise of how to use statistical approaches to analyse procurement data
• Improved exposure and confidence to recognise policies’ effects on various performance metrics
• Enhanced Innovative thinking at each phase of the procurement lifecycle
• Increased confidence and knowledge in training other professionals on using various statistical concepts in procurement analytics
• Contributing to the organisation’s overall procurement decision-making processes using advanced analytical techniques
• Comprehensive understanding of business analytics techniques to address complex procurement challenges
• Greater potential to manage public costs by effective operations in procurement processes

Who Should Attend?

• Procurement officials in both public and private organisations
• Employees in public and private sectors who work with procurement data
• Non-procurement experts managing procurement activities
• Procurement Specialists looking to update their domain knowledge about procurement analytics
• Managers and Business professionals who assist procurement specialists in Operations and decision making
• Anyone interested in learning more about procurement analytics

Course Outline

The course covers the following topics regarding being a Public sector procurement specialist:

Module 1: Introduction to Procurement Analytics

• General Overview of procurement analytics
• Significance of Procurement Analytics
• Basics of Data in Procurement
• The Data Challenge in procurement analytics
• Building insights from Procurement Data
• Classification of Procurement Data
• Challenges faced in procurement analytics

Module 2: Introduction to Data Analytics

• Overview of Data Analytics
• Types of analytics and their relationships
• Data Pre-processing
• Conducting Exploratory Data Analysis
• Basic Practices for data visualisation
• Building Dashboards
• Identifying and analysing Key Performance Indicators
• Mitigating the Risks involved in Procurement

Module 3: Program Management

• Tools and Techniques for tracking of Procurement projects
• Management of Procurement tasks and activities
• Activities affecting procurement projects
• Creating progress reports for procurement projects
• Identifying performance risks across procurement projects
• Market trends

Module 4: Performance Evaluation

• Evaluating and analysing performance data on suppliers
• Evaluating operational performance (buyers on workload, productivity, procurement cycle time)
• Management tools for evaluation
• Techniques for data analysis during performance evaluation
• Identifying performance risks across multiple dimensions
• Mitigating performance risks.

Module 5: Software for Procurement Analytics

• Introduction to various software used for procurement analytics
• Typical features and functionality of an analytics software
• BI Tools and Advanced Analytical Tools
• Procure-to-pay and Strategic sourcing tools
• Introduction to SAP Ariba and a case study
• Introduction to GEP Smart and a case study
• Introduction to Procurify and a case study

Module 6: Procurement Analytics with Microsoft Excel

• Introduction to Microsoft Excel for procurement analytics
• Overview of cost models
• Developing cost models
• Assessing supplier pricing
• Developing weighted average supplier scorecards
• Application of Macros for Strategic purchasing work

Module 7: Procurement Analytics with Microsoft Excel II

• Spend Analysis
• Development of charts to compare bids and track performance
• Pivot Tables, Functions, and Subtotals for purchasing data
• Developing Target Pricing Models
• Improving Negotiation strategies through target costing models
• Filtering, Conditional Formatting, and VLOOKUP

Module 8: Statistical Analysis

• Measures of Central Tendency
• Measures of Variance
• Confidence Interval
• Skewness
• Normalisation through Log Transformation

Module 9: Statistical Analysis II

• Hypothesis Testing (One-tailed test)
• Hypothesis Testing (2-tailed test)
• Predictive Analytics for decision making

Module 10: Business Analytics

• Understanding decision making in business
• Maturity Stage in Analytics
• Analytics Techniques in Use
• Analytics Lifecycle
• Data Visualization
• Case Study