Spend Analysis

Traditionally viewed solely as a driver of cost savings, procurement is now capable of delivering strategic value for an organization. And, the first step in enabling these benefits is to gain comprehensive visibility into costs with 3rd party suppliers, through a spend analysis exercise. Spend analysis enables getting a holistic view of the spend across business channels which helps us to negotiate better with vendors, reducing siloed philosophy

SPEND VISIBILITY CAN HELP AN ORGANIZATION ACHIEVE ITS MOST STRATEGIC GOALS

  • Spend visibility can help an organization achieve its most strategic goals: Spend analysis is critical in understanding how a company's costs have evolved over time. By combining this information with proprietary, best-in-class industry data, Valorant is helping companies maximize value from their supply base and stay ahead of the market.

  • Managing 3rd Party Risk: We help organizations develop a diversified and robust supplier base for critical items. This in turn reduces a company's dependence on a single supplier, which is critical in minimizing exposure to supply chain disturbances.

  • Optimizing Working Capital: Gaining visibility into supplier payment terms and ensuring they are aligned with industry standards can help organizations maximize the availability of working capital.

  • Reducing Maverick Purchasing: Negotiating advantageous terms with strategic suppliers is only beneficial if purchases are made against those specific contracts. Through a spend analysis project, We estimate the amount of spend that falls outside of pre-negotiated, available contracts and develop a strategy (along with CSR and Legal measures) to re-route this spend and drive immediate savings.

Methodology

  • Collect spend data from various sources, such as Accounts Payable, General Ledger, Travel and Expense, Claims Systems and ERP solutions

  • Cleanse data to remove redundancies (e.g. typographical errors), discrepancies (e.g. descriptions vs. transactions) as well as validate and update missing codes

  • Enrich data to ensure accuracy, vendor standardization and easy viewing

  • Categorize suppliers as well as spend into meaningful groups based on proprietary, industry-leading taxonomy

  • Analyze spend to identify savings and performance improvement opportunities

INDUSTRY LEADING SPEND TAXONOMY

Illustrative Example, Sub-category List Above Not Exhaustive
  • A spend analysis project is successful only if it acts as a foundation through which companies can identify and drive cost-reduction opportunities. By consolidating data across multiple sources, leveraging cutting-edge analytics and classifying spend according to an industry-leading taxonomy, Valorant empowers it’s clients to quickly identify and realize value creation initiatives.

LET’S TALK

Please reach out to us if you’re interested to know how Valorant can help your organization save more while reducing risk.

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