In today’s fast-paced and interconnected global economy, procurement departments of multinational corporations face a complex and ever-evolving landscape. To make informed decisions and ensure cost-effective supply chain management, it is crucial for these companies to stay ahead of the curve. This is where inflation and market analytics software play a vital role in guiding procurement departments. In this blog, we will explore how Anvil Analytical tools are indispensable for making well-informed procurement decisions in a world marked by inflation and economic fluctuations.
Understanding Inflation and Its Impact
Inflation is the gradual increase in the prices of goods and services, reducing the purchasing power of a currency over time. For global companies, inflation can have a significant impact on their procurement costs. When prices rise, procurement departments are faced with the challenge of sourcing materials and services at higher prices, which can erode profit margins and disrupt the supply chain.
Here’s where Anvil Analytical market analytics software comes into play, offering valuable insights and data-driven guidance for procurement professionals. By collecting and analysing data from various sources, including market trends, historical price movements, and economic indicators, these tools can help companies anticipate inflationary pressures and make proactive decisions.
How our Inflation and Market Analytics Software Can Help
1. Highlighting Market Trends: We leverage 000’s of indices and benchmarks to show a full breakdown of the inflationary impact aligned to the user’s spend profile, which allows them to prepare their budget and adjust their procurement strategies according to the specific inflationary factors that drive their cost base.
2. Understanding Your Spend Portfolio’s Sensitivity: Users are able to see the indices to which their spending portfolio is most sensitive – the additional inflationary cost of 1% increase in an index in a given month could cause
3. Risk Mitigation: Procurement departments can use our inflation analytics to highlight potential supply chain risks in their spend profile, such as unreasonable supplier price increases, and counter these proposed prices when they are not supported by our inflation data.
4. Detailed Inflation Analysis: We are subscribed to over 800 prices and indices from markets, banks and national bodies that track the historical and forecasted movement of inflation by category and provide auto generated YoY change, direction of travel and trading range insights.
Anvil Case Study
“We have been very impressed with Anvil’s insights and analytics during a 10-month GNFR and GFR opportunity diagnostic and savings delivery programme. Following the initial diagnostic and execution, the team identified further 50% savings, resulting in the programme extension and the total savings of 2.5 times the initial savings identified across Majestics UK, as well as its sister companies Naked Wines UK and Naked Wines US.”
– James Crawford, CFO
Conclusion
In today’s globalized and interconnected world, procurement departments of multinational companies need advanced tools to navigate the challenges of inflation and market fluctuations successfully. Our inflation and market analytics software offer a data-driven approach that empowers procurement professionals to make informed decisions, reduce costs, and mitigate risks. By leveraging these tools, global companies can adapt to the ever-changing economic landscape, maintain
their competitive edge, and ensure a resilient and efficient supply chain. As the global economy continues to evolve, the integration of these software solutions will become increasingly crucial for procurement departments in global corporations.
Eduard Florescu
Anvil Analytical Senior Data Analyst
