Increasing the effectiveness of procurement decisions: The value of big data in the procurement process

Big data are a commonly discussed topic, and their value in marketing and sales has been thoroughly investigated. Although some authors have also discussed their relevance to purchasing and supply management, the literature on this topic remains scant. This paper aims to investigate the role of big data in supporting the procurement process and the implementation of procurement practices. The main benefits of such procurement practices for companies are highlighted. By presenting the results of a focus group of procurement professionals and experts and discussing four exploratory case studies (supported by secondary data analysis), the paper addresses 1) how (and in which format) big data affects different activities in the procurement process and 2) which benefits procurement professionals can expect from adopting big data.