Link Spend Analysis Efforts to Your Sourcing Processes

 In Data Optimization, Procurement Blog, Procurement Spend, Spend Analytics, Spend Analytics Software

Ardent Partners Chief Revenue Officer, Andrew Bartolini, shares a 101-perspective and level set on spend analysis as a process and business solution.

Spend analysis is the name of the process used to (a) collect the spend data from the different enterprise source systems, validate it, and then place it in a standardized and usable format (b) organize the information into a standard classification structure and cleanse the information by eliminating any mistakes, discrepancies, and/or flaws in the data set (c) enrich the spend data with complementary information that can provide greater context around the category, supplier, and usage within the enterprise and (d) analyze (i.e. “slice & dice”) the spend data to identify opportunities and support decisions.

Visibility into enterprise spend is the desired output of spend analysis and helps procurement departments understand what money is being spent with which suppliers and on what categories. Whether it is helping procurement organizations to identify and prioritize sourcing opportunities or monitor and manage compliance or enabling business units to track spend against budgets and plan for the next cycle, spend analysis seeks to provide data in a usable format with context to help stakeholders make better, more-informed decisions. For spend data to drive real value, organizations must take action on it. Unfortunately, 39% of enterprises fail to link the output of their spend analysis efforts to their sourcing processes thereby leaving significant savings on the table.

By contrast, Best-in-Class procurement departments, who are almost 2.5 times more likely to have enterprise-level spend visibility, use this powerful asset to drive strategic planning, refine operational focus, and deliver superior business results. These leaders and their performance serve as tangible proof that spend analysis is the foundation upon which operational excellence within procurement is built.

Read the article in its entirety here and join SpendHQ & Ardent Partners for a complimentary webinar, How to Navigate Your Spend Analysis Journey: Guideposts for Optimal Solution Selection, as they share how spend analysis truly delivers.

 

About SpendHQ

SpendHQ is a spend analysis solution that provides rapid, accurate and detailed visibility into enterprise spend data. This full-service SaaS (Software-as-a-Service) spend analytics solution delivers actionable insight for sourcing and procurement professionals.

Recognized for innovation and industry impact in the procurement space, SpendHQ was named to the 2015 Red Herring Global 100 list, and listed as a finalist in the 2017 SIIA CODiE Awards as a “Best Big Data Reporting & Analytics Solution” and “Best Data Visualization Technology” solution. With SpendHQ at their fingertips, clients ranging from Fortune 500s to mid-market companies are finally able to see their enterprise spend clearly and drive savings confidently.

As a standalone extension of Insight Sourcing Group, SpendHQ is built by industry leaders with unmatched sourcing knowledge. Inc. Magazine has ranked Insight Sourcing Group among the fastest-growing private companies in America every year since 2008. In 2017, Insight Sourcing Group was also named the #1 Boutique Consulting Firm in the U.S. by Vault.com and the #1 Small Strategy Firm by Consulting Magazine.

Learn more about SpendHQ’s spend analysis solution and start taking control of enterprise spend data at www.spendhq.com and request a free spend analytics demo today.

Stay up to date with all things procurement by visiting SpendHQ’s procurement blog, and by following on LinkedIn.

 

About CPO Rising

CPO Rising is a news and media site written for and about Chief Procurement Officers and other supply management executives. It is also the largest website focused on procurement and supply management. Our mission is to engage executive leaders with a steady stream of top-quality, progressive, and original content. CPO Rising is published by noted analyst, Andrew Bartolini, the Chief Research Officer at Ardent Partners.

CPO Rising seeks to deliver:

  • Compelling articles that provide insight and progressive approaches to the procurement agenda.
  • Information that educates, challenges, entertains and engages the reader.
  • Real-world case studies based on more than a decade of work and research with leading practitioners in supply management.
  • The opportunity to regularly engage with procurement executives from leading companies.
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