SPEND ANALYSIS & SOURCING
Procurement teams are constantly looking for ways to optimise their processes and uncover the next driver of strategic value .
Within their arsenal lies a combination of two vital tools : spend analysis and strategic sourcing . By leveraging these tools , companies can unlock hidden opportunities , reduce costs and gain a significant competitive edge .
Spend analysis currently finds itself at the cornerstone of effective procurement strategy , providing a comprehensive view of what an organisation is buying , from whom , at what price and under what terms .
Key components of spend analysis
• Data collection : Gathering spent data from various sources across the organisation .
• Data cleansing : Ensuring accuracy and consistency of the collected data .
• Data classification : Categorising spend data into meaningful groups .
• Data analysis : Applying analytical tools to uncover insights and trends
By implementing a robust spend analysis process , organisations can achieve several critical objectives :
• Cost reduction : Uncovering areas of excessive spending ;
130 December 2024