Understanding the role of Procurement Intelligence

Procurement Intelligence (PI) ensures up -to-date relevant information is available to aid Procurement decision making regards sourcing strategies, evaluating procurement performance, forecasting, and quality and improving bottom line financial performance amongst other key considerations.

Procurement Intelligence must certainly not be a one -off exercise but a continuous strategic orientated information gathering process focused on influential factors such as:

  • Market conditions & volatility
  • suppliers and supplier options
  • Supply Process Stability
  • Procurement and sourcing strategies
  • New or emerging technologies and or products
  • Geopolitics,
  • Compliance (objective and subjective)
  • Price
  • Inventory
  • Procurement and Operational cost reductions,
  • Savings, economics,
  • Products offered by Competitors
  • Value creation
  • Quality and reliability of product buy ins etc.
  • Departmental Management Practice (objective and subjective)


The PI must feed into the overall strategic sourcing system of the organization for analytical purposes that lead to informed, flexible and competent strategic decisions and risk mitigations.

PI forms a major feed into strategic sourcing which in itself should extend beyond cost and supply management into areas such as asset utilisation and First to Market which all influence return on capital invested and overall bottom line market performance.

What are your views?

Should you have any pertaining enquiries email Karl at karl@furrutterandassociates.co.za or contact him on (27) 82 393-3685. Furrutter and Associates works nationally (South Africa) and internationally.