--- title: "Data Mesh in Procurement: Treating P2P as a Data Product Domain in IFS Cloud" date: 2025-09-21 description: "Discover how to implement Data Mesh in IFS Cloud procurement by treating Procure-to-Pay (P2P) and Procure-to-Receive as data product domains. Learn to use OData projections, IFS Connect, and Lobbies to decentralize governance, improve KPIs, and drive operational efficiency with step-by-step guidance" author: "Dariusz Myśliwiec" intro_image: "https://ifs-erp.consulting/images/data_mesh_in_procurement.png" fulltext_image: "https://ifs-erp.consulting/images/data_mesh_in_procurement.png" categories: - name: "Implementation of IFS Cloud Data Mesh" url: "https://ifs-erp.consulting/implementation-of-ifs-cloud-data-mesh.md" --- # Data Mesh in Procurement: Treating P2P as a Data Product Domain in IFS Cloud ![Data Mesh in Procurement: Treating P2P as a Data Product Domain in IFS Cloud](https://ifs-erp.consulting/images/data_mesh_in_procurement.png) 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](https://ifs-erp.consulting/implementation-of-ifs-cloud-data-mesh/procurement-data-mesh). Ready to transform your procurement processes with Data Mesh? [Contact us](https://ifs-erp.consulting/contact) to learn how we can help you implement these best practices in IFS Cloud.