What is the Aim of Procurement Spend Analytics?
Procurement Spend Analytics aims to provide procurement with insights using historical spend data, that form the basis of strategic and tactical sourcing decisions, protect supply, and deliver value for money. Aligned with company objectives, procurement spend analysis provides, clarity, spend visibility, and a sourcing framework, that aims to create a competitive advantage.
What is Spend Analytics?
In Spend analytics, statistical and mathematical techniques are used to analyse procurement spend data to discover, interpret, and predict meaningful patterns. Spend Analytics Dashboards provide procurement with the insight it needs to make informed, data-driven decisions aligned with the company's goals and objectives.
Spend Analytics Dashboards simplify managing data from multiple sources. Spend Analytics Dashboard provides management with a complete view of procurement spend by monitoring, analysing, and displaying KPI metrics.
We combine the data sources into a single version of the truth after analysing them individually. Automated Spend Analysis, is the process of systematically, extracting, consolidating, aggregating, transforming, and sharing company spend data. As a result, suppliers spend is analysed, opportunity assessment is performed, and sourcing cost savings can be identified.
Spend Analytics Discovery
The foundation of any spend analytics process is Data Preparation.
Data preparation spend analysis, involves extracting, transforming, organizing, verifying, essential data required to build procurement spend analytics reporting. A solid foundation is critical to the success of creating a data-driven spend analysis culture.
What Procurement Data is needed for Spend Analytics
Procurement data consists of the purchase order, accounts payable, expenses, and credit card spending, which are then analyzed, to provide data-driven insights and action-orientated outcomes. Fact-based decision support, which involves data capture, cleansing, aggregation, and transformation, is applied to leverage procurement value, and gain a competitive advantage.
Spend Data Classification
Spend Data Classification is the process of grouping spend data for similar goods or services, assigning them to predefined categories using a Taxonomy document. A hierarchal taxonomy or framework, that spans many major purchasing sectors with multiple sub-categories, that provides procurement managers with clarity, spend visibility, and purpose.
Spend Analytics Software
Spend Analytics Software transforms raw procurement spend data into business analytics, a spend visibility tool, with easy-to-understand dashboards and analysis, in the form of graphs, charts, tables, and text.
Spend Analytics Insight
Spend Analysis Dashboards work by providing category managers with spend information, presented in an easy to digest and understand visualisations. Spend Dashboards provide management with powerful insights, that track, monitor and manage the attainment of direct procurement metrics.