Spend analysis involves collecting, cleansing, and analyzing third-party spend data to uncover cost-saving opportunities. It provides a comprehensive view of expenditures, helping negotiate better deals and develop strategic procurement plans.
– Collect Spend Data: Aggregate data sources. – Cleanse & Enrich Data: Remove redundancies, and enhance accuracy. – Classify Spend Data: Categorize spending groups. – Analyze Spend Data: Identify trends and opportunities.
– IT/Telecom: IT services, hardware, telecom. – Claims & LAE: Claims, fraud investigation. – General & Professional Services: Consulting, marketing, labor. – Real Estate & Facilities: Leasing, energy, security. – Underwriting Services: Valuation, credit reports.
– Ensure Continuity: Build resilient supply base – Optimize Capital: Align payment terms – Reduce Maverick Spend: Redirect off-contract purchases – Manage Risks: Monitor supplier compliance
- Maximize value from the supply base. - Stay ahead with strategic cost reduction programs. - Enhance procurement strategies to fuel growth and performance.
Effective spend analysis combines detailed data with market benchmarks to drive cost savings, enhance procurement efficiency, and enable companies to focus on core business activities for sustained growth.