LUT University and Sievo, a company providing procurement data analytics solutions, have collaboratively created an analysis tool to enable organizations to develop their procurement processes. In practice, the tool is a maturity assessment that helps determine the organization’s current state, detect the most critical development targets, and identify potential opportunities.
Procurement data and analytics maturity refer to an organization's ability to collect, analyze, and use data effectively in procurement processes. Data helps to optimize supplier performance, savings, sustainability, and risks.
”Procurement maturity has previously been examined more in research papers than easy-access tools. Our tool can be used free of charge and does not obligate the user in any way,” explains Elina Karttunen, post-doctoral researcher at LUT Business School.
Karttunen states that the free tool suits any company where procurement is a key part of operations.
”The questions may hit closer to home for larger businesses than very small ones. That’s because smaller companies may have less data, a simpler supplier network, and fewer resources for procurement analytics. That said, there’s no reason they shouldn’t try the tool out.”
Feedback on seven themes
The tool is available on the Sievo website and requires no registration. It’s based on self-assessment: users assess statements on a scale of 1 to 5, where 1 means ‘disagree’ and 5 means ‘agree’.
Based on the responses, the analysis tool provides an overall assessment of seven themes or sections. If any section obtains a lower score than the rest, it might be worth developing further. The tool also generates a short, written evaluation of each section.
Sections of the tool
- procurement data analytics
- procurement data management
- digital procurement strategy
- procurement systems and IT landscape
- spend and finance
- sustainable procurement
Procurement promotes a company’s goals
Jasmiina Toikka, head of content marketing at Sievo, Jukka Hallikas, professor of supply management at LUT Business School, and Elina Karttunen started compiling the tool in autumn 2022.
“We first reviewed literature to find out how procurement maturity has previously been measured. Based on that literature, we first chose the themes under which we then outlined statements we considered topical. The individual statements are not rooted strictly in any scientific indicators. Instead, they’re a synthesis of Sievo’s experiential knowledge and scientific literature themes,” Karttunen says.
Karttunen points out that even though the tool is available for free, it directs companies to Sievo’s website and portrays a positive corporate image.
In Karttunen’s opinion, businesses should show interest in the tool because it can promote their goals.
”Conventionally, procurement data have been considered part of financial monitoring: what products and services are bought and how much is spent on them. Procurement data can reveal opportunities for savings but also promote the company’s objectives in areas such as quality management, eco-friendliness or innovations. Procurement data provide insights into the prevailing situation and are used extensively for a range of analyses, such as emission calculations,” Karttunen concludes.