Data Mesh in Procurement: Treating P2P as a Data Product Domain in IFS Cloud

Data Mesh Applied to Procurement in IFS Cloud: Treating P2P as a Data Product Domain

Discover how to transform your procurement processes in IFS Cloud using Data Mesh principles. This guide provides a detailed, step-by-step approach to defining procurement as a data domain, wrapping procurement data in products, adding event-driven signals, building procurement lobbies for KPIs, and applying federated governance. Learn how to drive operational efficiency, improve data quality, and achieve audit-ready governance.

Introduction

Traditional procurement processes often rely on centralized data systems that create bottlenecks, reduce agility, and limit visibility. By applying Data Mesh principles to procurement in IFS Cloud, organizations can decentralize data ownership, improve data quality, and enable real-time decision-making. This approach treats procurement processes like Procure-to-Pay (P2P) and Procure-to-Receive as data product domains, each with its own owners, contracts, and KPIs.

In this guide, you’ll learn how to:

  • Define procurement as a data domain
  • Wrap procurement data in products using OData projections
  • Add event-driven procurement signals with IFS Connect
  • Build procurement lobbies for KPI tracking
  • Apply federated governance for audit-readiness
  • Start small with a focused implementation slice

1. Define Procurement as a Data Domain

Procurement is a complex function that encompasses suppliers, purchase orders, receipts, and invoices. In a Data Mesh architecture, procurement becomes a bounded domain where buyers and procurement analysts act as data product owners. These owners are responsible for:

  • Data Quality: Ensuring accuracy, completeness, and consistency of procurement data.
  • Timeliness: Guaranteeing that data is up-to-date and available when needed.
  • Usability: Making data accessible and easy to use for stakeholders across the organization.

By treating procurement as a data domain, organizations can shift from centralized reporting to decentralized, governed data services that procurement teams can own and evolve.

Example: Supplier Data Ownership

A procurement analyst might be responsible for maintaining supplier master data, ensuring that supplier information is accurate, up-to-date, and aligned with organizational standards. This includes managing supplier contracts, performance metrics, and compliance documentation.

2. Wrap Procurement Data in Products

Use IFS Cloud OData v4 projections to expose key procurement entities as curated data products. These data products are not raw database tables but well-defined, governed datasets with clear contracts that include:

  • Schema: The structure of the data, including fields, data types, and relationships.
  • SLAs (Service Level Agreements): Commitments around data freshness, availability, and update frequency.
  • Versioning: Tracking changes to data products over time to ensure backward compatibility.

Key procurement entities to expose as data products include:

  • PurchaseOrder: Details of purchase orders, including order dates, quantities, and supplier information.
  • PurchaseReceipt: Records of received goods, including receipt dates, quantities, and quality checks.
  • Supplier: Information about suppliers, including contact details, contracts, and performance metrics.
  • Invoice: Invoice data, including amounts, due dates, and payment status.

Example: Purchase Order Data Product

A PurchaseOrder data product might include fields such as PO number, supplier ID, order date, expected delivery date, and status. The contract for this data product could specify that:

  • PO data is updated in real time as orders are created or modified.
  • Delivery dates are validated against supplier lead times.
  • Changes to POs are logged for audit purposes.

3. Add Event-Driven Procurement Signals

IFS Connect enables organizations to broadcast procurement events in real time. These events can trigger automation, alerts, and downstream processes. Common procurement events include:

  • Delivery Date Changes: Notifications when a supplier updates a delivery date.
  • Late ASN (Advance Shipping Notice): Alerts when a supplier fails to provide an ASN on time.
  • Receipt Exceptions: Notifications when received goods do not match the purchase order.

Event-driven signals enable procurement teams to respond quickly to issues and automate routine tasks. For example:

  • A late ASN event could trigger an alert in a buyer’s Lobby dashboard, prompting them to follow up with the supplier.
  • A receipt exception event could automatically update a supplier’s performance scorecard.

Example: Late ASN Alert

When a supplier fails to provide an ASN by the agreed-upon deadline, IFS Connect broadcasts a «Late ASN» event. This event triggers an alert in the buyer’s Lobby dashboard and sends a notification to the supplier requesting an update. The event is also logged in the supplier’s performance record.

4. Build Procurement Lobbies for KPIs

Lobbies in IFS Cloud are role-based dashboards that provide procurement teams with real-time visibility into key performance indicators (KPIs). These KPIs help teams monitor performance, identify issues, and make data-driven decisions. Common procurement KPIs include:

  • POs at Risk: Purchase orders that are at risk of delay or non-delivery.
  • Late ASN Trend: The frequency and severity of late ASNs from suppliers.
  • Dock-to-Stock Time: The time it takes for received goods to be available for use.
  • OTIF (On-Time In Full) Delivery Rate: The percentage of orders delivered on time and in full.

Lobbies are directly tied to data products and contracts, ensuring that governance and daily operations remain aligned. For example, a buyer’s Lobby might display:

  • A list of POs at risk of delay, with options to contact suppliers or escalate issues.
  • A trend chart showing late ASNs over time, highlighting suppliers with recurring issues.
  • A dock-to-stock time heatmap, showing performance by site or supplier.

Example: Buyer Lobby Dashboard

A buyer’s Lobby dashboard might include:

  • A summary of POs at risk, with filters for supplier, site, and priority.
  • A chart showing late ASN trends, with drill-down capabilities to identify root causes.
  • A scorecard tracking OTIF performance by supplier, with options to view detailed performance history.

5. Apply Federated Governance

Federated governance ensures that procurement data is managed consistently and compliantly across the organization. Key governance activities include:

  • Monthly Data Quality Reviews: Regular reviews to identify and address data quality issues.
  • Quarterly Access Recertifications: Periodic reviews of data access permissions to ensure compliance with security policies.
  • Data Product Ownership: Assigning clear ownership for each data product, with responsibilities for maintenance and improvement.
  • Lineage Records: Tracking the origin and transformations of data to ensure transparency and auditability.
  • Permission Checks: Enforcing separation of duties and role-based access controls.

Federated governance balances standardization with flexibility, enabling procurement teams to adapt to changing business needs while maintaining audit-readiness.

Example: Data Quality Review

During a monthly data quality review, a procurement analyst might:

  • Identify incomplete or inaccurate supplier records.
  • Work with suppliers to update missing information.
  • Document changes and updates for audit purposes.

6. Start Small with One Slice

Implementing Data Mesh in procurement can be complex, so it’s best to start with a focused slice. The Procure-to-Receive process is an ideal starting point because it directly impacts supplier performance and operational efficiency. Steps to implement this slice include:

  1. Expose Key Data Products: Use OData projections to expose PurchaseOrder, Supplier, and Receipt data.
  2. Publish Events: Configure IFS Connect to broadcast events for delivery delays and receipt exceptions.
  3. Build Lobby Tiles: Create dashboard tiles in Lobbies to track OTIF performance and other KPIs.
  4. Monitor Outcomes: Measure the impact of the implementation on supplier performance and operational efficiency.

Once the Procure-to-Receive slice is successful, organizations can expand the approach to other procurement processes, such as Procure-to-Pay and sourcing.

Example: Procure-to-Receive Implementation

An organization might start by implementing Data Mesh for the Procure-to-Receive process at a single site. After demonstrating success — such as reduced delivery delays and improved OTIF performance — they can roll out the approach to additional sites and processes.

Expected Benefits

Implementing Data Mesh in procurement delivers a range of benefits, including:

  • Earlier Detection of Supplier Delays: Real-time alerts enable procurement teams to address issues before they impact operations.
  • Faster Resolution of Exceptions: Automated workflows and dashboards help teams identify and resolve issues quickly.
  • Higher OTIF Performance: Improved visibility and accountability lead to better on-time, in-full delivery rates.
  • Lower Cost per Delivered Unit: Reduced manual effort and improved efficiency lower procurement costs.
  • Audit-Ready Governance: Clear ownership, contracts, and lineage records ensure compliance and auditability.

What Next?

For a detailed roadmap and additional resources, see our Roadmap for Implementing Procurement Data Mesh in IFS Cloud.

Ready to transform your procurement processes with Data Mesh? Contact us to learn how we can help you implement these best practices in IFS Cloud.

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