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In our series of New Year wishes (rather than predictions) for the procurement, supply and services market for the year ahead (read more about it here), today we hear from Susan Walsh, Owner and Founder of The Classification Guru, data classification and cleansing specialist.
My 3 wishes 2022:
1. Data quality becomes an investment, not a cost
For too long, data has been seen as a cost, and because it’s hard to quantify it very rarely gets the attention it needs to stay clean, accurate and relevant. I deal mainly with clients who are already in trouble with their data, which is causing problems elsewhere in the business, and that’s the only time they can get the funding to improve their data.
I’d like decision-makers to start viewing data quality as an investment, those in the know understand that by investing upfront to keep data clean and accurate, it can save thousands, if not millions in the long run, and that’s just the financial value, not the time involved by their own employees trying to fix and clean the data.
2. Data has its COAT on
I would love to hear more organizations talking about having their data COAT on. This means that their data is:
- Consistent – e.g. using the same date formats, units of measure, or processes
- Organized – make your data easy to find like clothes in a wardrobe. Sort them by categories such as country, region, department, division or category to be able to pull information quickly
- Accurate – the data has to be fit-for-purpose and accurate for the task in hand
- Trustworthy – once you have the C, O and A, you then have trustworthy data and can report back to your organization, confident that they will make better business decisions
And by implementing this philosophy it will help to keep data clean and accurate, offsetting some of the issues that cause businesses to pay to clean it up.
3. Data classification/categorization becomes a priority
The power of data classification is hugely underrated. And I’m not just talking about spend analytics, spend management or cost savings. It can help with supplier diversity, sustainability and responsible sourcing – all hot topics right now:
- Want to know which of your suppliers are diverse? Classify them.
- Want to know if a supplier has a modern slavery act in place, or operations in countries with poor human rights legislation? Classify them.
- Want to know if a supplier uses sustainable materials in their products? Classify them.
These are my top three wishes for 2022, by doing these things, it will help organizations run more efficiently, drive profitability and have more visibility not just over their own data and spend, but that of their suppliers.
Next today we hear from Vijay Ramnathan, President of AP and payment automation specialist MineralTree
My 3 wishes 2022:
2. The final obstacles to AP automation get removed
AP automation had been on a slow and steady rise, until the last 18 months, when the pandemic forced many businesses to quickly update their manual, paper-based payment processes. I think 2022 will carry that momentum forward as more buyers look to convert more payments to electronic methods and take advantage of all the other efficiencies AP automation provides. To do so, businesses need to work with their solution providers to onboard suppliers to accept digital payments and give their suppliers a choice in how they get paid to make it a win-win for both sides.
2. Suppliers get an equal seat at the table in B2B relationships
Supply chain disruptions in 2021 brought a lot of attention to the strategic importance of supplier relationships for many businesses. This was especially true in industries like healthcare where the steady flow of supplies is essential to delivering critical services. Accurate, timely payments are key to those relationships. This will give suppliers more say in how they get paid as organizations focus on keeping their businesses moving forward and preventing future supply chain vulnerabilities.
3. Enterprises leverage the wealth of data in their AP systems
As businesses continue to automate their AP function, they gain access to a treasure trove of data that can help them accelerate their modernization efforts — by forecasting cash flow more accurately, predicting payment fraud, analyzing payment and receivables trends, and understanding which payment methods cause the most or least problems with suppliers. The result can be more confident strategic decision-making, improved operational control, and a better understanding of customer and supplier needs.
Thanks to The Classification Guru and MineralTree and look out for the remainder of our solution and services provider wishes/predictions later this week with an overall take on the series from our analyst at the end. See more vendor predictions and wishes here.
If you are looking for procurement services providers to help you with your 2022 decisions, look no further than our Procurement Services Market Landscape Directory.
