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Spend Analytics
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What is Spend Analytics

Though nobody wants to admit it, we all know: An organization’s spending is lined with deep, dark crevices of money “unwisely” (to put it gently) used that are hard to spot but decay a bottomline.  That’s why analyzing how money is spent is so important.  With Analytics, you can make waste into gold—or at least give it productive use.

Few organizations have formal procedures in place for analyzing and managing spend data.  It’s a complex, messy, shadowy area—at least it was.  Our Spend Analytics Solution extracts and cleanses spend data from various sources (invoices, purchase orders etc.) and disparate systems (ERPs, databases, Excel workbooks etc.), and then classifies the data by product category, vendor and employee using various advanced analytical techniques.  That lets you: 

Discover hidden spending patterns.
Drill down to reveal waste.
Spot bad spending practices. Move money to the bottomline.
         

Why Spend Analytics is Hot?

Better management of spend data leads to: 
Material/Services Costs:
Reduce costs by 2-12% through informed strategic sourcing strategies
Supplier Management:
Eliminate duplicate suppliers and negotiate better deals based on volume
Contract Compliance:
Improve compliance by 55%, and save around 7% through contract pricing
Regulatory Compliance:
Meet regulatory reporting rules
Inventory Management:
Cut excess stock by at least 50% and lower inventory costs by 25%.
Product Management:
Cut unnecessary part introductions by 20% and increase part reuse, and align design and supply strategies. 
Strategic Importance
Spend Analytics has assumed strategic importance for good reasons: 
Continued pressures to reduce costs in the face of increasing energy, transportation, and supply prices and new supply constraints.
Pressures to comply with negotiated contracts.
New regulations require companies to establish and document business controls, procedures for tracking and reporting material business information, procedures and systems for ensuring compliance and auditing.
Pressures to extend the value of existing sourcing, procurement, and ERP technology investments.
Goals to improve product development and inventory management operations through elimination of waste and redundant or unnecessary parts.
Increased availability of packaged software applications and services designed to automate, streamline, and enhance spend data extraction, cleansing, classification, and analysis processes. 

Contact us if you have an RFP, a spec, or a project.