The current purchasing portfolio of a company is managed subjectively using a combination of information extracted from the finance, procurement and ERP systems. Spend analysis or similar data extraction tools are used to see the data in categories and supplier detail. Missing details of the items or services being sourced, their risk to source and their financial impact have been calculated manually.
Goals and Objectives
Real time automated information on purchased items/services as it relates to the strategic importance of the items/services; their added value to the enterprise and final customer delivered products/services; and the effect their costs have on the organization’s profitability. In addition, this real time financial impact is measured against the complexity and risk of the supply from scarcity to abundance; the required materials/services or applicable substitutions; logistics and external market risk aspects; and monopoly and oligopoly conditions that might exist.
Enterprise Hardware, Personal devices, Cloud, Big data/analytics, Mobile, Applications, Connectivity Services, Cognitive, Next Generation Security, IoT, ARVR, 3D Printing, Robotics, Drones
Use Case Summary
The Kraljic Digital Twin brings together the virtual and physical world to automate the financial impact and sourcing risk/complexity of each purchased item and service within the purchasing portfolio. The Kraljic Digital Twin aids in modeling, predicting and optimization of purchased items/services.