Find Out What Your Data is Trying to Tell You
What is Spend Analytics?
Can you pinpoint exactly how much your company is spending and where that money is going? It would be useful to have this information; however, knowing just that is not enough in today’s extremely complex environments. It is crucial to get a deeper understanding of spend because it has an even stronger influence on decision making.The challenges that exist today surrounding optimizing and analyzing spend data include but are not limited to:
- Poor quality data that cannot be used for decision making.
- Different formats used for data results in longer wait times for access.
- Disorganized data that exists in silos.
- Poor analytical tools to analyze and gain insight into spend.
- Poor spend management processes.
Spend analysis is the procedure by which you identify, aggregate, enrich, organize, and analyze your company’s spend data or purchasing. By analyzing your organization’s spending patterns in real-time, you are able to get better visibility into your spend and identify ways in which you can lower your procurement costs, monitor compliance, make better sourcing decisions, and become more efficient in general.
Spend visibility is more than just keeping a track of how money flows through the company. It is the process through which you gain access to more detailed and holistic information about your company’s spend. This can be achieved via spend analysis.
If your company’s data is enriched and categorized, you can start analyzing information and spotting trends and patterns in the data. Doing so can help you understand things such as whether you are using competitive pricing, where the money is going, and where the money is currently sitting. Generating a report is crucial for several different people in the company including the procurement department and the finance department. For instance, the Chief Financial Officer or the Chief Procurement Officer of the company can use the analytic report to get insights into and look for patterns in the current spend, monitor the budget more effectively, determine how the inventory is being managed and set a strategic sourcing roadmap. The spend analysis serves as the single source of truth and turns your data into a powerhouse of information and insight.
This stage is actually where you start making process improvements and changes using the analyses that you generated in the second stage. In this stage, you can design your process roadmap and determine solutions if problems are identified, improve decision-making (if necessary), and also take actionable steps to change behavior. For example, you can do multiple spend analyses for a certain category if you are trying to monitor data within that category in order to see if there are any changes over time. This enables you to have a solid strategic sourcing procurement process in place.
Improve visibility and gain insight into your spend
Find opportunities you didn’t know existed
Make quicker and better buying decisions
Compare performance with that of competitors
Improve negotiation tactics with your vendors
Assess and mitigate your organization’s supply chain failure risk
Intrigo’s team of experts use best practice guidelines to help companies connect their shop-floor activities and tasks to top-floor/corporate processes for:
Real-time visibility and control
Reduced manufacturing lead-times by 20%
Improved accuracy of order commit dates