Procurement & Data Vizualisation

Data is crucial for procurement as it provides insights into supplier performance, market trends, and pricing, enabling informed decision-making and strategic sourcing. Procurement teams need to be able to present data to convince and get to actions

What is data visualization ?

Data visualization is?the representation of data through use of graphics, such as charts, plots, infographics, and even animations.?These visual displays of information communicate complex data relationships and data-driven insights in a way that is easy to understand.

Procurement leaders need to build their stories to structure and present information supporting their cases. Additionally, KPIs and dashboard are data visual used to drive actions, quantify progresses and measure impact.?We are swimming in data, but we live in a world where people are effortlessly duped by way of terrible data, misrepresented data, and information that is cherry-picked or out of context. So, one step before using the data is getting it. I could write an entire book on data quality and how to extract, curate and make available good datasets. However, I committed to keeping those Procurement stories short. So, I will remain focused on the visualization aspect (still keep in mind data quality is critical !)?

Why is it important ?

In our everyday life, personally and professionally, we use data to tell our story, to convince people. Think about sensors, fitness trackers, weather forecasts, unemployment rates,… all those data presented to us and that we use every day without even thinking about it.?In a business context, Data and KPIs are driving what most employees are doing. Think about how we conduct change, model processes, and lead functions by leveraging it. It is an element of all critical processes. We should forget gut feelings and go towards fact/data based decisions.?So, we need to curate, analyze, visualize, and communicate with data.

Data visualization is essential for procurement as it transforms complex procurement data into easily understandable and actionable visual representations, enabling stakeholders to quickly identify patterns, trends, and outliers. It enhances decision-making, facilitates communication, and empowers procurement professionals to effectively monitor performance, identify opportunities, and drive strategic initiatives.

How do you do it ?

You need to think about a few?things when creating data visualization support. The aim is not to become data scientists, nor need to, but to focus on small improvements under our control.

To create good data visualization support, follow these steps:

• Define the objective: Clearly articulate the purpose of the visualization and what insights or messages you want to convey to your audience. Understand the specific goals and requirements of the visualization.
• Identify relevant data: Gather the necessary data that aligns with your objective. Ensure the data is accurate, complete, and relevant to the insights you want to present.??Think about the ease to access it on a regular basis.?Bespoke is only good for once-off. Strive for simplicity and repeatability.?
• Choose the right visualization type: Select the appropriate visualization type that best represents your data and effectively communicates your message. Consider options such as charts, graphs, maps, or interactive dashboards based on the nature of the data and the insights you want to highlight.
• Simplify and declutter: Keep the visualization simple and avoid overcrowding it with excessive information. Emphasize the most important data points while eliminating unnecessary clutter that can distract or confuse the audience.
• Use appropriate visual elements: Utilize visual elements such as colors, shapes, sizes, and labels to convey meaning and enhance understanding. Ensure consistency in the use of these elements to maintain clarity and readability.
• Provide context and annotations: Include appropriate context and annotations to provide additional insights and guide the audience's interpretation of the visualization. Use titles, captions, legends, and axis labels to explain the data and highlight key findings.
• Ensure readability and accessibility: Ensure that the visualization is visually appealing, easy to read, and accessible to a wide range of users. Use appropriate font sizes, clear labels, and consider colorblind-friendly palettes to accommodate diverse audiences.
• Test and iterate: Validate the effectiveness of the visualization by testing it with different users or stakeholders. Gather feedback and iterate based on their input to improve the clarity, usability, and impact of the visualization. Now, be a communicator, not a chart maker.?Your job is to enable decisions.?Communicating effectively means providing knowledge?to your audience, not beautifully designed charts.

Think all along to your audience. You won’t present the same level of detail to your CEO or your team, nor you will expect the same actions as a result. In general, the higher up you go in an organization, the less information you'll need. You won't create a 50-slide presentation for a CEO with much information and bullets about some aspect of your operations. If you use the same material with mid-level managers, those 50 slides with all the specifics could be precisely what's needed.

Remember, good data visualization support should be intuitive, insightful, and actionable, enabling users to easily understand and derive value from the presented data.