Tag: How to do Spend analysis

vendor risk management

Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. With a total revenue of $20 billion, the company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

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spend management

Spend Management Solutions: A Holistic Guide for Procurement Companies

“Only a truly integrated spend management solution can fetch value for your company and result in intelligent procurement.”

Limited supply chain visibility, poor supplier transparency, new regulations, spend creep, contract management, risk mitigation, and the growing need to do “more with less” are some of the key challenges that procurement companies face. Spend creep has become one of the biggest challenges for companies today as companies are spending extensively to stay ahead of the competitors.

Unnecessary spend happens when businesses buy additional items, products or services, from suppliers that aren’t needed. Also, it happens because of misguided bid management process, weaker supply chain management systems, and lack of auditing and spend analysis. Therefore, procurement professionals need to have the right spend management solutions to tackle these challenges efficiently and effectively.

At SpendEdge, we understand the impact that spend management solutions can have on your business. And to help companies identify latent opportunities to devise strategic plans to minimize their expenditure in every category, our team of experts have provided a comprehensive guide to spend management.

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Spend Analysis

The 4C’s of Spend Analysis – Saving Your Hard-Earned Dollars

Every organization should thoroughly monitor where their hard-earned dollars and cents are spent. A proper tracking and monitoring of spends across categories increases the operational efficiency of the organization and improves the success of subsequent sourcing strategies. Penetrating, insightful, and actionable analysis of spend provides a strong base to devise effective sourcing plans. Organizations can opt for spend analysis solutions which will cleanse, validate, enrich, classify and report the spend data across spend categories and thereby generate accurate information and actionable insights.Contact US

4C’s of Spend Analysis

Spend Consolidation

The first essential step for a proper category spend analysis is to identify all data sources to collect spend data including accounts payable, pCard, eProcurement systems, and general ledger. Large organizations running on multiple ERP platforms should consolidate their data to comprehend the volume and costs associated with spending.

Spend Classification

After gathering one consolidated spend data into one central database, it is essential to standardize the spend data to facilitate the grouping and classification process. It is essential to correctly attribute each spend such as office supplies, legal, marketing travel, direct and indirect spend to their right category so an accurate analysis can be performed later. This process also helps in identifying duplicate and maverick purchases across different categories to ease the supplier negotiation priorities.request proposal

Spend Collaboration

Organizations can identify opportunities to consolidate suppliers based on similar purchases. Having a complete spend visibility of each category paves the way to find the best supplier for the given category in order to gain better value from a single supplier. Such synergies are very crucial in maintaining a long-term supplier relationship which can be beneficial in the long run.

Spend Control

An extensive spend analysis provides comprehensive information and insights for a CPO to make informed decisions on their organizational spend. Decisions supported by spending data can significantly increase the operational efficiency and subsequently set benchmarks for the future. Additionally, organizations should repeatedly assess their spend data and improvise their spend strategy.

To get detailed insights into spend analysis tools, supply chain management, spend data, procurement services, category spend analysis and spend analysis in procurement request a free demo now

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