Last edited 15 Aug 2024

Procurement analytics

Procurement analytics is the use of data analysis and technology to optimise and improve procurement processes. These analytics involve collecting, analysing, and interpreting data related to the procurement of goods, services, and other contracts within construction projects. The goal is to enhance decision-making, reduce costs, manage risks, and increase efficiency throughout the procurement lifecycle. It is a powerful tool that leverages data to improve procurement efficiency, reduce costs, and manage risks. Its adoption is increasingly critical as the industry faces pressures to deliver projects on time, within budget, and to high-quality standards.

Procurement analytics might involve:

Data collection and management:

Cost analysis:

  • Comparing procurement costs against industry benchmarks to ensure competitive pricing.
  • Examining historical spending patterns to identify areas of overspending or inefficiency.
  • Using data to find cost-effective alternatives for materials or processes without compromising quality.

Supplier performance management:

Contract management:

Supply chain optimisation:

Sustainability and compliance

Technology integration

Reporting and visualisation

Benefits of procurement analytics include:

Difficulties with procurement analytics include:

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