Spend Analytics – a huge opportunity for procurement , and introducing Rosslyn Analytics

Spend Analytics is a topic I want to get into more, both for my own personal knowledge and to feature on the blog. My friend Jason Busch at Spend Matters is a real expert here; have  a look at this if you want to see a demonstration of that. I'm a long way behind him but I will do my best to catch up somewhat!

When I was a CPO, (Monty Python 'four yorkshiremen' type comment coming here...) we were lucky to get any spend data, extracted with great difficulty and pain from huge, user unfriendly ERP systems.   But I think we always knew in a sense what we were missing, and how important good, timely, accurate  procurement information is; and how being able to access and analyse that data could lead to significant savings and better procurement decisions.

Things are very different now, and today's CPO has opportunities to get hold of and use data much more easily and quickly. Not only has ERP improved, but a whole host of software and services providers offer Spend Analytics solutions; some as part of broader sourcing and procurement offerings, some as a specialist stand alone.

I will be featuring more thoughts and provider information on this topic over the next months, but I wanted to introduce Rosslyn Analytics in this note.  UK owned and based, they are in the 'specialist' camp, with a pure spend analytics focus.

They have recently published a paper, "Strategic Spend Visibility: Untapped Potential for Cost Reduction" (under 'Resources', half way down their webpage - you need to register to download it) written by a leading US blogger and procurement guru, which outlines the benefits of analytics. It has a bit of a US focus in it, and a lot of numbers and % savings figures thrown around, but it is interesting and a very useful primer in terms of what good spend analysis can give you and how that can drive benefits.

There are other 'goodies' on their website, including a 'free trial' type offer, which I intend to try out and report back on before too long!

And any comments from readers on Spend Analytics experience gratefully received....

First Voice

  1. ajw53:

    Hi Peter, I have been benefiting from spend analysis for 2-3 years now, and it has been a very useful tool that has helped to focus activities – the main issue is of course the problem of “gigo”.

    Imo for spend analysis to work to its fullest potential the spend analysis solution needs access to line item coding for all the goods and services that are purchased – this is fine if you have a full purchase to pay system, but if you don’t the problems will vary from human error when the coding takes place to relying upon analysis of the supplier to determine what was purchased.

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