Spend Matters Perspective - Free Research Download
NEW! Where Spend Analysis Meets the Supply Chain
Good performance management approaches have to rest on good data – data that is indisputably referenced by business units, corporate leadership, and suppliers alike. The spend analytics field has matured to the point where leading solutions (such as Spend Radar/SciQuest, Zycus, BravoSolution and others) can process complex data sets from a broad range of ERP solutions and provide consolidated dashboards and reports with drilldown to the lowest-detail levels within hours of designated close time. Near real-time spend analysis is of course possible, but rarely a business need.
By contrast, SPM (supplier performance management) often involves manual work such as entering information in balanced scorecards, which obviously makes timely reports difficult. Rolling out traditional SPM in a global organization across many business areas without creating “apples to oranges” comparisons because of the different definitions and data points used makes it an even greater challenge.
How do you uniformly define concepts like "quality" and "on-time delivery," for example? The question is as much centered on process and definitions as focused on the ability to execute the measurement of these areas in a unified application. One approach is to shift the paradigm of spend analysis to supplier performance management.
This paper explores the case study of how FMC Technologies, a large oil & gas firm, was able to do just that. Download to read their story and come away with action items you can apply to your own organization.