(This article is in English)
In the previous article , Jon Hansen spoke about the need for organizations to be digital-ready if they hope to achieve maximum return from their S2P implementation. The biggest and most important first step towards this digital readiness is having clean data.
What is it mean to have clean data, and why is it important.
Based on a September 2019 CIPS Supply Management article , having « clean data » means that « it’s an organization that’s spending and supplying data is accurate and up to date. » having clean data are two very different things.
The problem, which is a longstanding one according to Bank of America University Distinguished Professor of Supply Chain Management Dr. Robert Handfield , centers on not only, but who? Specifically, who should take the lead in ensuring that organization is data is digital ready?
Before I answer these questions, I think it is important to explain « the why, » as in why clean data is important for S2P implementation success.
The Reasons Behind the « Why »
In a recent paper that Fluxym co-authored with the leading accounting and business advisory firm Grant Thornton titled What is the real impact of supplier data? we identified the following four key points:
- Is a source of strategic value creation for companies, boosted by the growing rise in data volumes, the multiplication of regulatory requirements and risks, and the search for operational efficiency.
- The quality of a data supplier is an unavoidable prerequisite to meet the challenges faced by financial Procurement departments.
- Today, new solutions based on innovative technologies for the creation of a single, shared supplier repository. These propose an effective alternative to the « ERP only » approach.
- The tools alone can not guarantee perfect data quality. Awareness and support for stakeholders at all levels must be implemented to « data » culture in the company.
Considering the above, the reasons (and importance) are obvious.
What is not obvious and what is it?
Who’s at The Wheel?
Once again, I would like to make an argument about why it is an organization and I need to be accurate and up to date.
The more immediate challenge is figuring out who should take the lead in overseeing the cleansing process.
While acknowledging the value of clean data, the CPOs and their team do not have the cycles to facilitate, let alone oversee the exercise. She then went on to ask; « How much cleansing does it actually need to enable the analytics to work? »
In addressing the last query, the CIO for NASPO suggests that perhaps a « clean slate » approach may be an effective starting point. He then suggests using a filtering mechanism to assess the importance of waming cleansing.
Of course, there are still those who believe that the S2P service provider. Handfield, believe that this is the least viable strategy to pursue.
So, what is the answer?
Collaboration AND Implementation
A turnkey solution. An end-to-end S2P platform.
What is the one thing the above statements have in common? That’s right; they both promise simplicity and results through a « one shop, one-stop » commitment process.
Now I want to be clear; unlike the eProcurement functionality within the old ERP platforms, today’s digital solutions are more robust from both a user-friendly and standpoint.
With the train, enterprise-wide implementations would typically span several years, costing millions of dollars. Conversely, the cloud-based pay-by-the-drink digital solutions of today can be fully functional (in their core competency scope) in a matter of weeks, if not days.
However, and while there is a substantial reduction in timelines and costs,
As illustrated in the graphic below , the methodology to which I am referring (our methodology) involves several stages starting with readiness through to « going live » in a production environment and the provision of on-going support.
What makes the above model unique is our role as an expert « procurement and supply chain » facilitator. Think of us as being a « business partner » with the help of your organization.
In future articles, I will share with you additional insights as well as case studies. Right now, I would like to invite you to download our paper; What is the real impact of supplier data?
About Thierry Jaffry: Thierry Jaffry is the Managing Director – USA & Canada for Fluxym. Awarded « Pro to Know » by Supply Chain Executive magazine in 2018, he has 18 years of experience in business transformation projects, and 10 years of S2P implementation experience in 5 countries. He has extensive knowledge in Source to Pay, with Ivalua, Basware, Jaggaer (Bravo), Coupa, and SAP Ariba.