Tag: Procurement Spend

spend analytics

Three Reasons Why Spend Analytics is Important from a Business Perspective

There is a wide variety of procurement technology available today that helps businesses to manage different aspects of procurement processes including strategic sourcing and purchase-to-pay processes. Such technologies help in improving vendor management and contract management. Despite the availability of such solutions, many organizations struggle in managing their spend data and find it difficult to transform them into actionable insights.

Are you finding it difficult to identify opportunities for consolidation of spend and to reduce procurement costs? Get in touch with our experts now!

Why is Spend Analytics Important?

Reason #1: To overcome the challenge of data management

Spend data comes from multiple sources which include accounts payable systems, payment consolidators, and vendor data management systems. Therefore, it is crucial for businesses to identify sources of spend data resides is not a one-time process but an ongoing exercise. Also, enterprises are in constant flux due to mergers and divestitures. This makes it impossible for them to have all the data in one place. For proper spend data management, companies must leverage spend analytics solutions to understand and segregate the spend data into procurement-centric spend categories.

Our spend analytics solutions help companies to gain visibility, track procurement performance metrics and supply base. Request a FREE proposal now to gain more insights.

Reason #2: To deal with data visualization challenges

Spend analytics helps organizations in interpreting data and transforming it into useful information. Also, spend analytics solutions help in making spend data more productive both for sourcing and procurement professionals. Traditionally, enterprises use MS Excel to analyze data but relying on spreadsheets alone for spend analysis is a time-consuming process and requires a lot of resources in the long run. With customized spend analytics dashboards, businesses can visualize spend data and gain in-depth insights into factors affecting spend.

Request a FREE demo below to find out how our customized spend analytics dashboards can help you reduce maverick expenditure and capitalize on new opportunities.  

Reason #3:  For better spend data analysis

Availability of multiple procurement technology under one roof makes it difficult for enterprises to analyze spend data. Also, this limits their ability to leverage analytics outside the technology suite. But spend analytics solutions can help in spend data management while improving the workflow between sourcing and procurement process. Customized spend analytics dashboards aid in spend mapping by focusing on integrating modules and offering better data visualization capabilities. Therefore, spend analytics solutions offer purpose-driven experiences to companies across various business operations.

Want to know more about how customized analytics solutions can help you redesign your sourcing strategies and improve procurement efficiency? Request for more information below.

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spend analytics

A Beginner’s Guide to Spend Analytics

What is Spend Analytics?

Minimizing cost is the major cause of concern for many companies and this is the reason they spend more time in the process of spend management. Spend analytics can make this easier by optimizing the supply-side performance and consolidating the data from the supply chain. Spend analytics help companies to make data-driven decisions and identify better opportunities for savings by analyzing their spending patterns. Also, spend analytics can assist in examining the expenditure of an organization and offers significant visibility into the procurement spending of an organization. This can further help the organization to improve the supply chain operations and result in better returns.

Our spend analytics solution can help you in minimizing supply chain disruptions. Request a FREE proposal to learn more about our portfolio of services.

Benefits of Spend Analytics Solutions

spend analytics

Better visibility on suppliers and spending

By leveraging spend analytics solutions, any organization can yield valuable insights into its expenditure in real-time. This detailed information can be handy in improving the overall procurement process. Consequently,  organizations can adopt better practices for procurement that will be more helpful and efficient in managing the relationship with suppliers, improving supplier base and category management.

Spend analytics is the key to manage the tail spend of any organization. Request a FREE demo below to find out how it can help you unlock cost-saving opportunities.

Helps in the category level analysis

Spend analytics solution can help companies to analyze spend at the individual category level. This can assist in gaining visibility into the overall spending of the organization to control the cost-effectiveness. According to recent research results, organizations that leverage spend analytics develop a better relationship with preferred suppliers. Furthermore, spend analytics can help organizations to achieve bigger business objectives by making sourcing efficient and optimizing the supply base.

Assists in managing the risks

Working with the same suppliers for years can incur potential risks for organizations. A robust spend analytics solution can help organizations to innovate their supply chain and deliver new products and services to the customers. Also, by gaining actionable insights from analytics dashboards, companies can make capital improvements and deal with unforeseen challenges such as supply chain disruptions, cash-flow issues, and labour shortages. Spend analytics also provides an opportunity for procurement teams to contribute to wider business objectives and deliver unit cost savings and reduced maverick spend across buying centres.

Are you finding it difficult to improve your bottom-line due to inefficient spend management? Get in touch with our experts right away!

Quantzig’s Advantage

The fragmented, inaccurate, and unstructured data can lead to undesired outcomes for businesses and can charge heavily on their pockets. Quantzig’s spend analytics solution offers comprehensive category wise spend analysis based on commodities, suppliers, supplier locations, buying locations, business units, and cost centres. This helps businesses to enhance visibility into spending patterns for all indirect spend categories across an organization’s supply base. Our customized analytics dashboards deliver accurate results that instil confidence in sourcing and category teams regarding the spend data that can help them deliver value.

USD 4 million savings on procurement spend achieved by oil field services company through implementation of spend analytics solution

Business Challenge: Streamlining supplier management process for cost savings.

A leading North American oil field services company wanted to conduct spend analytics for evaluation of its suppliers to implement the most cost effective solution.

Situation: Optimization of supplier selection and management process to achieve cost savings.

The client had a global network of suppliers and wanted to analyze the spend on suppliers and procurement, quantify supplier profitability, and develop a supplier selection scorecard to shortlist ideal purchasing partners.

Solution/Approach: Spend analysis, supplier evaluation and vendor scorecard development.

We developed a solution that was capable of churning the client’s global procurement and spend data and performing spend analysis, cost benchmarking, and supplier evaluation. Based on this, the client was able to create a vendor scorecard, to quantify supplier performance, map procurement spending to strategic sourcing requirements, and identify best possible options for supplier selection.

Impact: USD 4 million savings on procurement spend.

The client used our vendor scorecard and insights to identify the most cost effective suppliers and develop effective spend practice, which resulted in better supplier relationship management, while reducing procurement spend by USD 4 million.

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