ProcurementIQ Report Enhancements
ProcurementIQ is dedicated to providing the highest quality data and intelligence so you can make the best and most efficient decisions. With that in mind, we have redesigned our website and report layout to push actionable and immediate content to you. This article will highlight some of the key changes and additions.
We are moving away from the 7-step sourcing process to reduce the redundancy of information that is repeated across several sections. Instead, we are organizing everything into 5 key chapters and adding depth and specificity to the content so that it is more actionable for you.
- Chapter 1: Opportunity Assessment
- Chapter 2: Buyer Power Score
- Chapter 3: Price Environment
- Chapter 4: Supply Chain & Vendors
- Chapter 5: Business Requirements
We're also adding, updating and enhancing data and analysis to help you find immediate and actionable information. Read on to learn more ...
Buyer Power Score
Buyer Power is now being measured on a scale from negative 5 to positive 5, and is tracked over the past 3 years. By looking at how buyer power has changed over time, you can assess how your position in the market today compares to the last time that you went out to bid for this category.
We’re also adding a forward-looking component to the buyer power score to help you plan for future purchases, as well as a “buy now vs. buy later” indicator. For example, the analyst has marked Janitorial Services as “Buy Later” which doesn’t necessarily mean you should hold off on buying janitorial services. However, it DOES tell you that market dynamics are expected to improve in the next year, and that you might do better to extend a current contract in the short term instead of going out to RFP. Even if that’s not an option, this Buyer Power Score shows you right away that there are factors working against you today that you should be fully aware of before negotiating a long-term contract.
With this more robust Buyer Power Score, you can utilize your spend analytics with our data develop strategies for the upcoming year and identify those unforeseen opportunities for buying now.
Probably the biggest change throughout our entire reports will be the addition of Recent Developments section. We are completely overhauling how our analysts refresh reports, so that instead of each report getting updated 1 to 4 times per year, analysts will now be adding near-real-time updates based on external market impacts.
Now, when something like the Suez Canal Blockage happens, or a merger or acquisition is announced, our analysts will understand the impacts on each market that is affected, and will feed this information into the relevant reports. Major changes will be reflected within a couple of days of the event, rather than waiting until the report’s next scheduled update. This means that you will be able to log into a ProcurementIQ report and know that the information here is up-to-date. We will also hyperlink directly to the report sections impacted, so that you know the data in those sections is also up to date with the most current market information.
The Recent Developments section will help you to keep track of changes in high-spend categories, share relevant information with your stakeholders as you work through a project, and have valuable insights to regularly update category strategies or playbooks.
Another new section that we are adding is SWOT Analysis - strengths, weaknesses, opportunities and threats - for the market as a whole. This can further help to build out your initial opportunity assessment when purchasing a product or service.
Key Takeaways and At a Glance
Another new feature that we are adding is the Key Takeaways and At a Glance section at the top of each major chapter. This section calls out major impacts on buyer power, and quickly summarize key data points from the chapter. These takeaways can be pulled and put into a presentation or used to drive conversation with internal stakeholders.
The At a Glance section also lets you quickly get a handle on tier 2 spend where in-depth information is not yet required.
Cost Structure Benchmarks
The cost structure is another part of our reports that clients have found valuable for cost benchmarking and negotiating activities. Similar to the Buyer Power Score, we are now going to show the cost structure across a 3-year period, including a forward-looking perspective.
There are multiple ways to apply this section, but for example, here you can see that from 2020 to 2021, wages did not change much as a percentage of suppliers’ revenue.
But in 2022, our analysts are expecting that wages will increase as a share of revenue by quite a bit. This can help you identify where to focus when scrutinizing price quotes, or where you should be wary of tying prices to an index or to specific supplier costs.
The biggest change to the Supply Chain chapter is that we are adding a section on ESG, or Environment, Social and Governance. This section will discuss how current suppliers in the market measure up on standards like energy efficiency, waste management, pay equity, anti-corruption, lobbying practices and more. In addition to the current level, we are evaluating the what kinds of commitments suppliers have made toward improving their corporate social responsibility, to provide an Opportunity Level for each factor as well.
This will help companies to set more realistic sustainable and socially responsible sourcing goals, and to help buyers recognize where they can focus their efforts when evaluating suppliers or pushing for terms that will encourage both companies to improve on their ESG goals.
Lastly, the Business Requirements tab is meant to help build out all of the end-stage sourcing process and the ongoing supplier performance management requirements that are increasingly impactful in procurement processes.
For example, the buying lead time section is being expanded to map out how much time should be expected at each key stage of the purchasing process based on the size of you as the buyer. This is still a market average, but can help buyers plan ahead appropriately.
We’re also building out a more detailed list of vendor qualifications, which is replacing the shorter Buying-Decision Scorecard, with the importance of each factor ranked as 1 through 5. This will allow you to choose the qualifications that best match your needs and assign weightings accordingly.
Finally, we’ve added 3 new sections under vendor management: Contract Clauses, Key Performance Indicators, and Service Level Agreements.
Key Contract Clauses will allow you to protect yourselves against undue harm by reviewing fair conditions for contracts and incorporating best practices for structuring contacts in this market.
Additionally, KPIs and SLAs will assist clients with establishing the most favorable contract conditions, even when there is little ability to negotiate on prices, and to provide best practices that can be referenced once a contract has been executed and vendor performance management is the key metric for success.
With the addition of KPIs and SLAs, ProcurementIQ now covers all 4 key components to market intelligence for procurement: Price, Market, Supplier and Contract
Contact your ProcurementIQ Client Relationship Manager or Sales Representative to learn more or schedule a demo!