Optimizing

Cost control, risk management, business continuity, asset maximization, sustainability... Companies keep piling objectives onto raw material buyers. How can they make sure their decisions are consistent?

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Augmented decisions, embedded in your workflow

Learn more about Datapred's unique combination of market analyses and industrial optimization.

 

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The ability to predict outcomes, quickly assess innumerable alternatives, and take action (…) must become a core competency embedded throughout the organization.”

Gartner - When and how to combine predictive and prescriptive techniques to solve business problems

Augmented decisions

Raw material buyers have always maintained a dual outlook - internal (on the company's operations) as well as external (on raw material markets).

But coordinating procurement with operations is increasingly complex, because companies keep piling new objectives onto buyers, such as asset maximization or emission reduction… And the more objectives, the likelier they could collide.

Datapred includes a flexible optimization engine that lets you integrate any business rule, constraint, cost or objective relevant to your buying activity: demand predictions, hedging requirement, inventory capacity, lead time, production schedule, yield maximization...

With the nitty-gritty thus attended to, raw material buyers are free to focus on the strategic aspects of their decisions.

Robust cost savings

According to Gartner, 97% companies use year-on-year savings to define procurement’s value.

Augmented sourcing decisions can, in our experience, shave 3-5% off your raw material spend, year over year. Nothing magic or even surprising here - we are just injecting more data and technology into a well-honed process.

What is really unique about Datapred’s purchase order suggestions is their being continuously fed back (together with your actual decisions) to our predictive and optimization engines. Closing this feedback loop ensures that your buying decisions are not only optimal individually, but also sequentially, over time.

That is the key difference between successful bets and robust efficiency gains.


Sustainable procurement

Sustainability has become a critical part of corporate strategies, especially in material-intensive industries: Sustainable Brands found that "during the past 5 years, the percentage of the world’s 200 largest companies with public, specific sustainability targets has risen from 77 to 94%".

But for procurement teams, sustainability targets can generate painful headaches:

  • In process industries, what if the raw material mix that minimizes cost, differs from the mix that maximizes yield, and from the mix that minimizes emissions?
  • In discrete industries, how should you balance orders between suppliers that compete on sustainability rating, in addition to price, quality, delivery delay and payment terms?

With Datapred, these are just additional parameters of the sourcing optimization equation. Define your preferences in Datapred's optimization engine, and receive purchase order suggestions ensuring compliance with company objectives.

 

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What is required for direct material procurement optimization?

Download this six-page datasheet for a description of the main requirements for using Datapred.

 

Download datasheet