Dun and Bradstreet (D&B) is an example of data analytics and insights provider that offers a range of databases and services that can support enriching procurement data. D&B’s global database holds of over 400 million companies that can help procurement teams identify potential suppliers and evaluate their financial health, ownership structure, and performance.

This information can help procurement teams make informed decisions when selecting suppliers and managing supplier risk.

Other service is compliance verifications, supply chain understanding and market intelligence.

Enriching Procurement data – How and Why?

Enriching procurement data involves the process of enhancing existing procurement-related information by adding additional relevant data from various sources, both internal and external. This process improves the quality, detail, and value of the data, making it more useful for decision-making. Here’s a detailed explanation:

Broadening Data Context

Enrichment involves integrating additional contextual information with existing data. For instance, you might augment supplier data with financial stability scores, market trends, geopolitical risks, or sustainability metrics.

Enhancing Data Quality

Data enrichment ensures that the procurement data is not only accurate but also complete. It often involves cleaning up existing data (like removing duplicates or correcting errors) and adding missing but critical details.

Increasing Data Usability

By enriching procurement data, it becomes more actionable. For example, adding industry benchmarks or performance metrics to supplier data can help procurement professionals make more informed decisions.

Integrating Internal and External Data

This could involve combining internal procurement data (like historical purchase orders, supplier performance records, etc.) with external data (like market analyses, supplier financial reports, risk assessments).

Facilitating Advanced Analytics

Enriched data is more conducive to advanced analytical techniques like predictive analytics or machine learning. It can provide deeper insights into spending patterns, supply chain risks, and potential cost-saving opportunities.

Improving Strategic Sourcing

Enriched data can reveal opportunities for cost savings, process improvements, or risk mitigation in the procurement process, aiding in more strategic sourcing decisions.

Supporting Compliance and Risk Management

Adding compliance-related information, such as regulatory standards, supplier certifications, or ethical sourcing data, helps in managing risks and ensuring adherence to policies and regulations.

Enhancing Supplier Relationship Management

Enriched data can give a more comprehensive view of supplier performance, including aspects like delivery reliability, quality metrics, and responsiveness, aiding in building better supplier relationships.

Enriching procurement data is about making the data more comprehensive, accurate, relevant, and actionable. This process is essential for procurement departments to gain deeper insights, drive efficiency, and make more strategic decisions.

Example: D&B support a digitized supplier onboarding process:

Digitized Supplier Onboarding is becoming increasingly popular in procurement departments as it provides a more streamlined and efficient process for bringing new suppliers into the fold. However, the onboarding process can still be time-consuming and complex, especially when it comes to validating supplier information and ensuring compliance with regulations. Learn more about Jakamo’s supplier collaboration platform in an blogpost.

This is where Dun and Bradstreet (D&B) services can help to enrich the digitized supplier onboarding process.

• Supplier Validation: D&B has a vast database of company information that can be used to validate supplier information, such as company registration, ownership structure, and financial health. By using D&B services, procurement departments can quickly and easily verify the legitimacy of potential suppliers, reducing the risk of fraud and non-compliance. Learn more about the Know Your Supplier Process in the online course.
• Compliance Checks: D&B also offers compliance checks to help ensure that potential suppliers are compliant with regulations such as anti-bribery and anti-corruption laws. This is important for procurement departments that need to meet regulatory requirements and avoid reputational damage. Learn more about Web Crawlers in the blogpost
• Risk Management: D&B services can also help to manage supplier risk by providing information on a supplier’s financial health, credit history, and payment behavior. This information can be used to assess the potential risk of doing business with a particular supplier and inform risk mitigation strategies.
• Improved Efficiency: By using D&B services, procurement departments can automate many of the manual processes associated with supplier onboarding. This can help to improve the efficiency of the onboarding process, reduce the risk of errors, and free up time for procurement staff to focus on more strategic activities.
• Supplier Performance Management: D&B services can also be used to monitor supplier performance and identify areas for improvement. This can help procurement departments to build stronger relationships with suppliers, improve the quality of goods and services received, and ultimately drive better business outcomes.

Conclusion: Enriching procurement data with D&B

In summary, D&B services can enrich the digitized supplier onboarding process by providing critical information and insights that can help to validate supplier information, ensure compliance with regulations, manage supplier risk, improve efficiency, and monitor supplier performance. By leveraging these services, procurement departments can streamline the onboarding process, reduce the risk of non-compliance, and ultimately drive better business outcomes.

Learn more about Digitization of Supplier onboarding in the online course.

Examples of other sources of data for a enriching procurement data beside D&B

Compiling data from various external suppliers can provide a wealth of information that supports strategic procurement activities. Here’s a list of types of external suppliers of data that are relevant for a procurement department:

Industry Market Research Firms

Suppliers like Gartner, Forrester, and IDC provide detailed market analysis, trends, and forecasts in various industries. They offer valuable insights into market dynamics, supplier landscapes, and emerging technologies.

Financial Data Providers

Companies like Bloomberg, Thomson Reuters, and Moody’s offer financial data and analytics. This information is crucial for assessing the financial stability and creditworthiness of potential suppliers.

Supply Chain and Logistics Data Providers

Firms like Transport Intelligence provide insights into supply chain risks, logistics efficiency, and transportation trends.

Commodity Price Indexes

Resources like the London Metal Exchange or the US Bureau of Labor Statistics provide information on commodity prices, which is essential for understanding cost drivers in the supply chain. Learn more about indexes in the blogpost Raw material indexes for Procurement.

Government and Regulatory Bodies

Government agencies and international organizations (like the WTO) provide data on regulations, trade tariffs, and economic indicators that can impact sourcing decisions.

Supplier Directories and Databases

Platforms like ThomasNet, and Kompass offer comprehensive directories of suppliers across various industries and regions.

Environmental, Social, and Governance (ESG) Data Providers

Organizations like Sustainalytics and CDP (formerly the Carbon Disclosure Project) offer insights into suppliers’ sustainability and corporate social responsibility practices.

Trade Associations and Industry Groups

Associations specific to industries provide valuable information about industry standards, best practices, and potential suppliers.

Technology and Innovation Insights

Companies like Crunchbase and CB Insights provide data on startups, new technologies, and innovation trends that could impact procurement strategies.

Customer Reviews and Feedback Platforms

Websites like Trustpilot or industry-specific review platforms can offer insights into supplier performance and reputation.

Competitive Intelligence Providers

Firms like Fuld & Company or Beroe offer tailored competitive intelligence services that can provide deep insights into competitors’ supply chain and procurement strategies.

Risk Management and Compliance Data Providers

Companies like LexisNexis and Riskmethods offer information on potential risks associated with certain suppliers or regions, including political risks, natural disasters, and compliance issues.

Each of these data sources can provide unique and valuable insights that help in making informed, strategic decisions in procurement by enriching procurement data. It’s important to integrate and analyze data from multiple sources to get a comprehensive view of the supply chain and market environment.

Learn more how one can get all data in one “lake” and bring it together in the blogpost How BI capabilities can support procurement.

Understanding the Procurement analyst role

A procurement analyst’s responsibility within a company is to support the operative, tactical and management roles with data and enable fact-based decisions. A strong analyst provide a high level of credibility to the procurement function.

The role must have a good understanding of the key procurement processes, as Category management and Sourcing process.

Having a working technical knowledge of the goods or services being purchased is important for procurement analysts in order to facilitate the access to (for example) correct market price and connected cost break down (including value and cost based pricing principles).

Preferable the Procurement analyst understand the market and connected driving forces which the company meet. Communication and presentation skills assure conversion of data to insights and decision support. Get a general understanding of the Procurement analyst role in the online course.

About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency. More about LHTS in Swedish.

Note: Illustration to the blogpost “Enriching procurement data – example and sources” was created by ChatGPT on September 15, 2024.