Big Data in the Procurement Sector Is Not Enough

26 november 2019

“Big data in the procurement sector has not been accumulated sufficiently to become the basis for analytical and learning programs as the precursors of artificial intelligence,” Pavel Tikhomirov, Head of the Corporate Reforms and Procurement Department of the Analytical Center, said at the conference “Corporate Procurement: Practice 2019.”

According to Mr. Tikhomirov, the volume of digitized data is differentiated in accordance with the stage of the procurement cycle. The digitized public data on the procurement procedures has been accumulated most of all. This data is available on the website of the Unified Information System, electronic platforms, and official websites of corporate customers.

The information on procedures and participants help evaluate the market volumes and needs and explore the competitive environment. But without a detailed contract with its terms and conditions, requirements and prices, administration at the performance stage it is impossible to create a system that allows to calculate the initial (maximum) prices of contracts and budgets of planned procurement or to choose a qualified and reliable supplier under the specific need.

As Mr. Tikhomirov said, today we do not have enough digitized data on the counterparty’s sub-tiers, their production capacities and contract portfolio, which does not allow to estimate the risks of entering into contractual relations with them.

The expert states that big data has been accumulated in corporate information systems but they are not available for external analysis. The speaker thinks that we need to overcome set patterns and approaches to closing and restricting access to the data on procurement and counterparties which is kept in large companies to combine corporate data aimed to increase the accuracy of analytical indicators, reduce labor efforts for information search and processing, make timely and effective decisions.

“Of course, we’ll need serious measures for information protection from unauthorized access and cyber threats, but the future is in data aggregation,” Mr. Tikhomirov said at the end of his speech.

Photos from open sources

Read also:

August 1, 2019 – “Recurring” Procurement Participants: Good and Bad Practices

July 31, 2019 – We Need to Create a Cross-Industry Summary Supplier Database

April 9, 2019 – Quality Supplier Assessment Criteria Need to be Developed during Supplier Selection