Gaining Insights into MRO Spend Through Data Analytics

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Procurement has been getting a lot of attention when it comes to digitizing and MRO has plenty to gain from these new tools.

Capturing data is essential for procurement to identify when maverick and tail spend are located. It can even find duplicate suppliers and can even identify, through predictive and preventative maintenance when a part or service will be needed.

Here's why data analytics is now the key to understanding and maintaining control over MRO spending.

Data Analytics Becomes Table Stakes

To keep pace with the competition, companies need to be data-driven. This requires implementing solutions for capturing data, but also solutions for analyzing and managing that data in a way that generates value for the business.

Data analytics can provide critical insights into how supply chains are performing, but they are also now key to analyzing spending patterns within the procurement department. The function generates plenty of data through its spending activities, but manual processes are no longer reasonable for taking control over maverick and tail spend.

If data is not captured effectively, it can mean that vital areas of the business will suffer. Procurement may find itself struggling with high costs. The business may struggle to keep up with competitors who are harnessing data analytics for cost and efficiency advantages.

MRO data analytics can be used by procurement teams to identify spending patterns than go outside company policy. This can help to prevent overspending, unnecessary spending, and the accumulation of duplicate supplies.

Implementing Data Analytics in MRO Spend

For data analytics to be effective, data needs to be captured in a structured way. This data can come from a variety of sources, including purchase orders, invoices, and contracts.

Once this data is collected, it needs to be analyzed to identify spending patterns. Data visualization tools can be used to help make sense of the data and spot trends.

From there, procurement teams can work on implementing solutions to address any issues that have been identified. This might involve working with suppliers to improve contract terms or developing better internal processes for managing MRO spend.

Data analytics is becoming increasingly important for procurement teams as they look to gain insights into their spend and keep costs under control. By taking advantage of data analytics solutions, MRO teams can improve their spending patterns and keep their organization competitive.

The Role of AI and Predictive Analytics in MRO Spend Management

Both AI and predictive analytics can be used to analyze data in a way that generates insights into how the function's spending patterns are performing now, as well as how they'll perform in the future. This is especially valuable for MRO spend management, where data can be used to identify cost savings within the company's critical spend.

More importantly, AI and predictive analytics can be used together to provide actionable insights so that procurement teams can reduce the likelihood of maverick and tail spend in the future. Ideally, an analytics solution will be able to predict when specific parts, materials, or assets should be ordered. This prevents the company from overspending on supplies and services as an attempted failsafe against disruptions.

Harness the Power of Data Analytics

Data analytics is becoming increasingly important for procurement teams as they look to gain insights into their MRO spend and keep costs under control. By taking advantage of data analytics solutions, MRO teams can improve their spending patterns and keep their organization competitive.

To learn more about how data analytics can help your procurement teams, don't miss ProcureCon MRO 2022, happening from October 17th to 18th at the Hyatt Regency in Atlanta, Georgia.

Download the agenda today.