The Case for Spend AnalysisorHow To Avoid Procurement Malpractice 10/27/2010
Procurement in 2010 • Economic forces are driving the need for deeper cost-cutting measures • Procurement officers must shore up suppliers and vendors so as not to cause disruptions to service levels or product delivery –at margins that support company growth! • To deliver anything less would be Procurement Malpractice • Now, more than ever, investing in Spend Analysis is key
Strategies for Procurement Success The spend analysis formula: Visibility + Analysis +Process = Success
Strategies for Procurement Success: Visibility • Spend analysis will give you the visibility you need • Do you know? • What am I really spending? • With whom am I spending it? • Am I getting what’s been promised to me?
Strategies for Procurement Success: Analysis • The next step in spend analysis is to analyze the information • Some helpful filters: • What is my aggregated spend with a single supplier? • How can I benchmark across pricing trends? • What are my best practices for managing category sourcing enterprise-wide? • What else do I need to know to drive the best terms?
Strategies for Procurement Success: Process • Vendor complexity and business volatility means increased pressure in choosing suppliers • Enterprise-wide spend analysis processes can drive value to the supplier relationship • Processes should span identifying needs, contract execution and managing service-level agreements (SLAs) • It’s all about creating a balance between cost and value
Avoid Procurement Malpractice • Spend analysis is the foundation upon which Best-in-Class procurement is built • Rigorous spend analysis drives value across your organization, your suppliers and your customers • Don’t commit procurement malpractice, begin your spend analysis today
Contact Us • 400 Chesterfield Pkwy Malvern, PA 19355 Phone: 610-240-0600 Fax: 610-240-9470 • For more information on BravoSolution’s spend analysis tool, visit BravoSolution.com.
Requirements for SlideShare • Title: The Case for Spend Analysis • Brief description: How and why companies must achieve enterprise-wide spend excellence using spend analysis. • Category: Business & Management • Tags: spend analysis, procurement, spend management, strategic sourcing, process, esourcing, strategy