Big data and analytics in enhancing procurement and supply chain efficiency: a literature and empirical study

Abstract

In the dynamically changing business environment, the role of procurement is increasingly becoming critical, a phenomenon that is particularly relevant to Greek manufacturing companies, the focal point of this master's thesis. With over six years of hands on experience in the procurement sector, this research aims to delve into the potential of Big Data and Data Analytics to enhance procurement practices. The study consists of two main elements: a review of existing literature a nd an empirical investigation involving questionnaire a nd surveys. The findings indicate a rising trend in the application of data analytics within procurement and supply chain operations. The level of investment in analytics varies depending on the industry and specific organizational needs. The research emphasizes the n eed for a well defined data management plan that aligns with a company’s overall business strategy for effective implementation. Furthermore, having the necessary resources like technology, analytical tools and expertise is vital for successfully integrati ng analytics into procurement. Additionally, Big Data can offer insights into the supply chain, improve risk management, and provide an edge in negotiations.This happens because through the digital supply chain, companies are able to provide better services to customers, reduce costs and order lead times, increase trust with stakeholders in the supply chain, and ultimately enhance their position in the market. However, the adoption of Big Data in procurement faces challenges, notably issues related to data compatibility and integration. Despite these hurdles, Big Data has substantial potential. It can aid in identifying new vendors, enhance transparency, and eve n offer predictive insights for better decision making. In summary, the effective use of Big Data and analytics holds the promise of making procurement processes more efficient and strategic.