Spend
Analysis is process which includes information gathering categorizing,
evaluating historical data with the help of different reports. This process
ultimately increase cost saving of any organization through renegotiation
events for different existing contacts.
Spend
analysis is very difficult without any specialized ERP because it involve lot
of steps of getting data that may come from multiple sources and the type of
data always include supplier, commodity and spend information. Therefore it is
essential requirement of any organization to develop a software through which
data can be compiled in meaningful ways so that organization can see spending
patterns and identify opportunities for savings.
Spend
Analysis data will allow you to make an informed decision on how processes
within your organization could be improved. It also helps to manage maverick
spend, supplier relationship, over payments and quantify organization savings.
In current business era many organizations are running their business with
collaboration of local SMEs and If you have all your spend data in one place,
and in a format common to other organizations, it becomes much easier to
consolidate your data together. The spend cube is the final output of a spend
analysis process. The spend cube allows stakeholders to look at all the
analyzed data from various angles. Supplier density in specific categories,
Spend volumes across categories, addressable vs non-addressable spend, etc. are
some of the key value outputs derived from the spend cube.
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