Benefits of Spend Analysis Having an effective spend analysis solution in place is more of a requisite to maximize savings. But to reap maximum benefits from the current spend management strategy is not an easy task. Having worked with 50+ clients across industries and multiple consulting firms, our spend analysis experts have curated the top […]
READ MORE >>Benefits of Spend Analysis
Having an effective spend analysis solution in place is more of a requisite to maximize savings. But to reap maximum benefits from the current spend management strategy is not an easy task. Having worked with 50+ clients across industries and multiple consulting firms, our spend analysis experts have curated the top five benefits of spend analysis:
- Minimize maverick purchasing
- Rationalize supplier base
- Benchmark performance against market developments
- Identify price arbitrages
- Effectively manage risks
Spend Analysis: A 6-step approach
At SpendEdge we understand how important it is for companies to overcome the traditional roadblocks to spend management in order to gain insights into the ways to improve their sourcing strategies. A ‘Spend Analysis’ helps businesses do just that. Our experts have outlined the seven essential steps to conduct a proper spend analysis:
Step 1: Identify
The initial and most crucial step revolves around the identification of spend data available from different departments across an organizations business units. It includes- general ledger data, accounts payable, and data from e-procurement systems.
Step 2: Gather
The second step involves consolidation of all the spend data into a central database.
Step 3: Group
Group suppliers into different categories for better supplier management.
Step 4: Categorize
Categorize your spend data to analyze where the maximum amount is being spent.
Step 5: Analyze
Analyzing spend data is a major step to ensure that you have negotiated the best contract deals per supplier.
Step 6: Repeat
Performing a spend analysis once is a good start to identifying potential savings opportunities. However, to ensure the adherence to your contract terms it is important to update the data continually and repeat the process periodically.
About the Client
The client- is an asset management company that specializes in managing a wide range of mutual funds, pension plans, and other similar services.
Continue reading to gain in-depth insights into the benefits of spend analysis or Request a free proposal.
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