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Why Your Organization Should Adopt Predictive Procurement

Procurement has typically been viewed as a reactionary role: the business determines a need, asks procurement to find a third-party solution, they spend time reviewing and presenting options then finally move forward with the solution. This process can take several months, especially at larger companies where more people are involved in decision-making. 

In the face of a dilemma like supply chain disruptions, a reactive strategy can set an organization back. A slower, reactive process also doesn’t take advantage of most procurement professionals' analytic and strategic talents.

Now, to stay ahead of disruptions and keep the business running smoothly, businesses are turning toward data analytics for a predictive approach to procurement. 

What is Predictive Procurement?

Predictive procurement is pure efficiency. The process requires a big technology investment upfront, but the return includes important insights into spending or supply and demand, enabling data-driven decision making. 

Procurement analytics takes large chunks of data related to procurement, from historic spending and performance to market trends, then uses predictive models to determine potential risks and future trends. Through forecasting, this strategy empowers procurement professionals to manage purchasing decisions and supplier relationships more effectively, improving overall business performance.

Benefits of Implementing Predictive Procurement

Getting ahead of future disruptions through predictive procurement builds supply chain resiliency. Rather than reacting to challenges as they come, at the risk of facing shortages or having to overcompensate with more spending, procurement professionals are able to plan ahead and adjust to reduce the impact to business or avoid it altogether. 

For example, analytics could predict an upcoming dip in supply for a material or product your company (and your competitors) relies on. Having this knowledge in advance enables the procurement team to spread out orders to make up for the deficit or seek a backup supplier before the shortage ever impacts the business. The company is able to strategically adjust and come out on top despite the challenge.

Through predictive analytics, procurement becomes a more strategic resource for the business rather than a reactionary one. 

Predictive Procurement Beyond the Data

Another facet of predictive procurement is what you do with the information you learn. Data is useless unless it results in action. One strategy to set procurement professionals up for success is establishing partnerships with providers who are not limited by supply shortages. Proactively establishing these partnerships ensures you are able to move and adjust quickly as needed, rather than scrambling for a solution that either doesn’t fit your needs or puts you over budget.  

The American Trucking Associations estimated that the United States is facing a deficit of about 80,000 truck drivers. This shortage in drivers is affecting a variety of industries, including moving companies. 

If your organization relies on one or two moving companies to handle the majority of your employee relocations, you face the risk of the company dropping out of a move last minute due to a lack of drivers. Not only does this set your business back by delaying the employee’s start date and scrambling for a backup solution, it also gives a bad impression to the employee who may look less favorably upon your company.

With predictive analytics, you could have been warned about the truck driver shortage and been prompted to partner with a relocation provider who has a national network accessible. Partnering with a provider who has also done the proactive work to build up their supply gives your company built-in resources to tap into when faced with a shortage, all through one supplier relationship. 

The Careful Movers®

As a single-source managed, end-to-end commercial moving provider, Allied Van Lines can guarantee access to transportation and labor capacity, exclusive technology, asset-based service delivery, in-market redundancy and market-based pricing. We do not work with subcontractors like some moving companies, instead managing all elements of the move in-house. This “ownership” of the entire process results in better quality control and security, greater transparency and cost savings and a more seamless experience from planning to implementation.

With one of the largest national moving company networks, Allied has the experience and efficiency to support your corporate relocation. Whether you’re moving across the country or across town, our agents know how to provide a quality, hassle-free move for your relocating employees. Allied agents lean on 90+ years of experience to overcome any challenge and ensure a positive relocation experience. Learn more.

Are you an employee who is relocating with a lump sum benefit? Contact our moving experts now and get started.
Are you an employee who is relocating with a lump sum benefit? Contact our moving experts now and get started.