Being able to aggregate and analyze corporate spending data is not only a major player in cost reduction, but also a significant differentiator in a procurement organization’s ability to out-think competitors through more informed sourcing decisions. This is reliant on spend visibility.
The ability to effectively analyze spend data creates improvements throughout almost every stage of the procure to pay process, leading to a number of benefits:
• Improvements in reporting capabilities
• Higher quality data can be used for analysis to drive savings in procurement or identifying revenue generating opportunities
• A consolidated list of approved vendors to streamline the requisition process
• Greater identification and reduction of maverick spend
• Reduces financial savings leakage by driving compliance to negotiated contracts
In a recent webinar we hosted with The Hackett Group, Amy Fong shared their latest research and best practice on spend analysis. One of the stand-out statistics was the difference automating spend analysis can make.
According to The Hackett Group, companies with a highly, rather than partially, automated spend analysis solution experience 258% greater improvements in the time taken to complete the analysis. Not only that, they also experience 109% greater improvement in spend reporting accuracy.
Alternatively outsourcing spend analysis is an option. According to the Hackett Group Spend Analysis Survey (2015), these organizations are enjoying an 88% reduction in the time taken to complete analysis and a 73% increase in spend reporting accuracy.
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