Spend Analysis - A world of hidden savings awaits

When building your eSourcing program, you need to know where you’re headed. 


Monday, April 6, 2020

When building your eSourcing program, you need to know where you’re headed. 

With a strong and well-constructed Spend Visibility program, you can have a roadmap for your eSourcing activities.

Spend Analysis is more than a backward-looking reporting engine. Instead, it is a window into your spend looking at your supply base, commodities and regions.

The mis-conceptions

When discussing Spend Analysis with clients we often hear something along the lines of, “you wouldn’t be able to do anything with our data; it’s held in multiple systems. Not even we know what’s going on with it”, or “we’ve only got certain data; not enough to be able to paint a complete picture”, or “the data is in there somewhere, but we just can’t see it or interrogate it properly: it’s a lost cause”. Basically, they are understandably fearful that the old tech adage “garbage in, garbage out” will rear its ugly head and leave them looking stupid after making a sizable investment in Spend Analysis software, that ends in failure.

The reality

Good news… this is exactly why Spend Analysis software was created! If most companies had great quality spend data that was easily accessible, there wouldn’t be a Spend Analysis software market. Our Spend Analysis module is designed to connect, and automatically extract the most complicated and extensive procurement data from all kinds of data sources. Once extracted, the data is then cleansed and classified using AI, rules and collaboration with the client (over time, the cleansing and classification will be further optimized through continuous collaboration with the client). Then comes the best part; all of the cleansed and categorized data is displayed on a beautifully organized, user-friendly dashboard, containing a myriad of colorful graphs and charts that all but shout out at the analyst to say, “savings opportunity here”, “operational inefficiency over here”, “tail spend is out of control in category X”, “maverick spend is an issue in department Y”. Of course, there is also the ability to further interrogate and analyze the data by drilling down, searching and filtering. Clients can also create their own reports, graphs and charts to customize their dashboards. For those who believe there are too many holes in their data, we have this to say: to this day, we have never been in a situation where we have had to walk away from a project because we were unable to build enough value from the data-set to warrant implementing the module. 

The possibilities

If you haven’t already deployed a Spend Analysis tool, or yours is under-performing, a whole world of previously hidden savings opportunities and operational efficiencies awaits you through much needed insights into maverick spend, tail spend, purchase price variance, supplier consolidation, spend aggregation and many other metrics.

For more information on this, contact your Scanmarket account managers or join us at www.scanmarket.com