The Case for Spend Analysis

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How To Avoid Procurement Malpractice


Procurement in 2012•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-Classprocurement is built

• Rigorous spend analysis drives value across your organization,your suppliers and your customers

• Don’t commit procurement malpractice, begin your spendanalysis today


Contact Us

217 N. JeffersonSuite 400

Chicago, IL 60661Phone: 312-373-3100

For more information on BravoSolution’s spend analysis tool,visit BravoSolution.com.

The Case for Spend Analysis

Business

Transcript of The Case for Spend Analysis