Without accurate supplier data, even the most ambitious digital transformations are doomed to fail. At DPW Amsterdam, Boston Consulting Group’s Tyler Vigen and TealBook’s Alex Denomme discuss why getting the basics right is the smartest move a CPO can make…
At this year’s DPW Amsterdam, amid a sea of stands proclaiming the virtues of artificial intelligence, automation and digital transformation, two procurement experts made a simple but crucial point: none of it works without reliable supplier data.
For Tyler Vigen, Managing Director and Partner at Boston Consulting Group (BCG), and Alex Denomme, Solutions Engineer at TealBook, the message is clear. Procurement’s grand ambitions for AI and automation are meaningless unless the foundation – supplier data – is clean, connected and current.
Garbage in, garbage out
“Just about every booth downstairs has AI on the back of it,” says Vigen, “but you can’t do AI unless you have the right data to feed it.”
Within procurement, BCG advises global enterprises on optimising operating models, integrating digital tools, and creating sustainable value through advanced analytics and AI. With experts such as Tyler Vigen at the forefront of digital procurement strategy, BCG is shaping how large organisations reimagine source-to-pay in an era defined by data and automation. Vigen advises clients across the US on procurement operating models and digital transformation. He’s seen time and again how poor supplier data can quietly cripple progress. “When a procurement leader tells me their team spends 30% of their time manually fixing supplier records, that’s a clear sign there’s a breakdown in the process for collecting that data,” he reveals. “It means you’ve either expanded your scope without resetting your data foundations or you’re working with inconsistent processes.”
Those inconsistencies ripple through the business. “If you’re spending that much time on manual data entry, your process probably isn’t deterministic,” Vigen adds. “Different people are producing different results depending on how they interpret things. You end up with inconsistent records, which causes chaos down the line.”
Entity Resolution: A persistent blind spot
One of the most persistent issues in procurement data management is entity resolution — the process of accurately identifying and linking supplier records to the correct legal entity, even when names, identifiers, or formats vary across systems. “Most organisations can’t tell how many unique suppliers they’re doing business with, or which ones share the same legal entity,” says Vigen. “That creates huge challenges. If a supplier knows more about how much you’re spending with them across divisions than you do, they have more leverage in negotiations. You’re also missing opportunities for consolidation and risk management.”
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