Procurement leaders of global enterprises are facing increasing challenges to do more with less in today’s intensely competitive landscape where spend management is one of the key factors of survival. Disparate data from disparate data sources can present significant challenges to the procurement team while conducting a spend analysis exercise.
Implementing a successful sourcing program depends on the ability of an organization to clearly identify and understand its spend. Getting spend analysis right is a key step towards actual cost reduction, continual process improvement and value creation.
Spend analysis services from ProcurePort help leading organizations across the globe identify and realize multimillion-dollar savings opportunities previously unknown to them.
Who am I spending money with?
Seems like a simple question, but when your organization is dealing with several hundred or several thousand suppliers; this gets harder to clearly define. A lot of the challenges arise due to data discrepancy such as:
Duplicate SpendSupplier name spelled in multiple ways during different transactions, resulting in inaccurate identification of spend with a single supplierUnclassified spend
Spend categories allow you to understand the overall money spent within a certain category, eg: Office Supplies, Telecom Equipment, etc. If the spend data is not accurately classified or if a standard spend classification is not followed during the recording of the spend, it becomes difficult to identify where the majority of your budget is being utilized.
The Spend Analysis Process answers to the above questions and provides actionable insights that you can utilize to reduce maverick spend as well as identify savings opportunities. A thorough Spend Analysis should always be part of any sourcing strategy.
Initial consultation and advisory services related to sourcing goals and objectives
Our experienced consultants engage with your team to understand your objectives and create a plan of action that addresses the data collection process including data extracts from multiple ERP related to Accounts Payable, Purchase Order and P-Card transactions.
Data aggregation services involving collection of data from various repositories
ProcurePort sourcing team can assist with data extraction, digitization and collation of all your spend data so that a single repository of all your spend data can be created for further analysis
Data entry services for converting paper invoices / spend reports into digital entries where required
ProcurePort also provides data entry services if there are paper or pdf invoices that need digitization.
Data cleansing and data normalization including supplier categorization (by UNSPSC or custom taxonomy)
Using Spend Analytics tools, our data analysts will take all raw data and perform the necessary cleansing, supplier normalization and spend classification process to ensure a high degree of accuracy
Final Spend Cube preparation (see ProcurePort’s Spend analysis process for more details) Once the data is cleansed and classified, it is organized in an excel spend cube. The spend cube can be used to filter data to create actionable insights.
Web based access to our Spend Analysis software for On Demand Analytics Additionally, the spend data is also fed in the ProcurePort analysis software for generating interactive dashboards. Dashboards provide an easy way to run multiple strategic sourcing scenarios to assist with optimizing future spend in your overall supply chain.
Identification of Addressable vs. Non-addressable spend
The spend analysis dashboards also identify different areas of spend that are addressable vs non-addressable. This allows the procurement team to easily target spend that can be easily optimized without having any negative impact on the overall supply chain operation.
Consulting and strategy on strategic sourcing techniques for generating cost savings & supplier mix optimization for all addressable spend
ProcurePort consultants engage with your team to analyze the final spend cube and assist with identifying areas of spend that can be easily targeted to achieve long term cost savings.
As a procurement professional, if you are looking to get a clear picture about your organizational spend without having to dedicate internal resources or implementing an expensive in-house spend analysis solution, contact ProcurePort. We provide a disciplined process performed by category experts to produce savings strategies and opportunity assessment.
Spend analysis software implementations require significant investments in time and money as well as IT resources. Typical implementations require extensive training to understand and may also require customization and configuration to meet your organizations specific needs.
Learn how ProcurePort’s Analysis Services and Spend analysis tools can help your business with your Spend Management. Contact us today to get an estimate on your spend analysis / Spend Visibility project.
Chat with one of our experts to discuss how we can help you with your Spend Analysis project. Its easy to gain insights into your spend data with the ProcurePort Spend Analysis Service.