Data problems prevent efficient procurement, says report

Its survey shows that while 33% of respondents believe savings are available by adopting spend management software, 35% reckon data accuracy is their biggest issue. Indeed, 50% said their data was of low quality, or that they didn't have the ability to measure its quality. As a result, almost 55% don't take advantage of international materials classification standards, such as UNSPSC, eCl@ss or GS1 to classify and manage purchasing. The survey is interesting in view of Sir Philip Green's 2010 report for the UK coalition government, in which he outlined the public sector's deficiencies with consolidated procurement. This survey appears to show that much of the UK private sector needs to address similar data management and cultural issues. "It's concerning to see that in these times of essential cost reduction, more isn't being done to reduce procurement waste across British industry," comments Colin Rickard, business development director, EMEA at DataFlux. "By maintaining accurate information on who is buying what, when and for how much, you can conduct powerful analysis which can result in more efficient consolidated ordering and ultimately improve the bottom line," he explains.