In the fierce competition of today’s business world, it is absolutely necessary for every organization to manage their resources and monitor their spending to improve their efficiency. It is only when an organization measurably analyzes as to what products and services it is purchasing, at what cost, from which suppliers and how often, can the management take apt decisions to improve the functioning of the organization.
This is where our Spend Analysis service comes into play. Spend Analysis is defined as the process of aggregating, classifying and analysing the spend data for the purpose of determining the trends, changes or loopholes in the way a company manages its expenses. Spend Analysis gives you a whole new perspective of your expenditures, in a manner that is more effective, accurate and lucid than the conventional tools like Excel or disparate data warehouses. Such comprehensive cost management improves the procurement productivity of a company in the long run.
The key features of the Spend Analysis application include:
- Extraction of all the spend data
- Validation of the aggregated data for completeness and accuracy
- Classification of the data as per classification systems which are industry-standardised.
- Cleaning of the data to remove discrepancies in naming conventions; and addition of complementary information like contract terms, minority status etc.
- Data analysis to determine the money spent across different categories and business lines.
Benefits of Spend Analysis
Spend Analysis fits into your business practice and gives you an all-new visibility of your spending ways. This can benefit your organization is a number of ways:
- Provides a better visibility and understanding of expenses
- Identifies the best saving opportunities in the company’s budget
- Helps monitor the effectiveness of a company’s sourcing.
- Improves the efficiency of spending
- Ensures fast and flexible spend data extraction
- Aids supplier rationalization
- Enables export of the spend data to third-party analytical tools.
- Eliminates maverick spending
- Allows easy prioritization for the policy makers