Blogs

Why Data Orchestration in Procurement Matters: Closing the Gap Between Your ERP and Your Suppliers

08 January 2025

The PO life cycle involves numerous internal and external parties and data sources. Starting with internal supply chain and purchasing stakeholders and internal systems with the main one being the ERP system (In many cases you'll find companies with more than one ERP system due to multiple past acquisitions of smaller companies), financial systems, quality systems and other data systems.
The evolving role of technology in such efforts is becoming pivotal in transforming how businesses manage procurement and supplier relationships.

External parties will include suppliers, subcontractors, forwards, and others. Thus, Procurement processes can often feel overly complex and time-consuming: The amount of data and processes involving all the above parties is enormous, making the process of coordinating and managing various activities and resources to help manage the purchase order life cycle, difficult.  

Thus, Managing the purchase order (PO) lifecycle involves coordinating numerous internal and external stakeholders, each utilizing diverse systems and data sources. Data orchestration offers a solution by integrating these disparate elements into a cohesive, collaborative framework, ensuring seamless operations throughout the procurement process.

Closing the Gap Between Your ERP and Your Suppliers

Data orchestration in procurement refers to the systematic coordination of data from various sources—such as suppliers, inventory systems, financial platforms, and ERP systems—into a unified, actionable format.This integration facilitates real-time visibility, automation, and enhanced collaboration among all parties involved in the PO lifecycle.

Key Components of Data Orchestration

  • 1. Data Integration: Combining information from multiple systems to provide a comprehensive view of procurement activities. For instance, consolidating vendor codes across different manufacturing facilities enables suppliers to access all open POs through a single portal, streamlining operations and improving supply chain insights.

  • 2. Automation: Implementing automated workflows to manage repetitive tasks, reduce manual intervention, and minimize errors. This includes not only internal processes like PO approvals but also external interactions with suppliers, enhancing overall efficiency.

  • 3. Real-time Updates: Ensuring that data is continuously updated across all systems to maintain accuracy and reliability. For example, receiving real-time updates on suppliers' finished goods and work-in-process quantities can prevent unexpected shortages in the manufacturing process.

  • 4. Data Validation and Consistency: Verifying the accuracy of data and ensuring consistency across all platforms to prevent discrepancies that could disrupt the procurement process.

  • 5. Analytics and Reporting: Providing tools for monitoring, analyzing, and reporting on PO data to support strategic decision-making. Advanced analytics enable procurement teams to transition from reactive to proactive management, addressing potential issues before they impact operations.


Benefits of Data Orchestration in the PO Lifecycle

  • 1. Enhanced Visibility:A unified data platform offers real-time insights into every stage of the PO lifecycle, from requisition to payment, allowing stakeholders to monitor progress and identify bottlenecks promptly.

  • 2. Improved Collaboration: By integrating systems and data, all parties—including procurement agents, requesters, and suppliers—can access and act upon the same information, fostering better communication and coordination.

  • 3. Increased Efficiency: Automation of routine tasks accelerates the procurement process, reduces the likelihood of errors, and frees up resources for more strategic activities.

  • 4. Proactive Decision-Making: With real-time data and advanced analytics, procurement teams can anticipate potential disruptions, manage risks effectively, and make informed decisions that align with organizational goals.

By embracing data orchestration, organizations can transform their procurement processes, achieving greater efficiency, accuracy, and collaboration with all of their external partners throughout the purchase order lifecycle.

Empower Your Suppliers with Seamless Data Orchestration: Drive Collaboration and Efficiency in Every Purchase Order.

Contact us for a free Demo Now!

Request a Demo!