Our 2015 Papers – Full Value Buying and Tungsten Analytics

Before we get into all the exciting new briefing and research papers we will have for you in 2016, we thought we would just remind you of those we published in 2015. They are all free to download; and we always aim to make them stimulating and thought-provoking but not too full of jargon, technological detail or business waffle. Look on it as our contribution towards the continuous professional development of the procurement profession.

So this week we will just have a brief reminder of those papers. And of course we welcome any comments, positive or negative, and indeed if there are areas where you would like to see us focus more attention, we’re very grateful for ideas and thoughts on that too!

Today, in our final selection, we have our thoughts on what value really means, and a look at a new type of spend analytics.

Full Value Buying: Moving Beyond Price Negotiation

Sponsored by Comensura - Download here

In this paper, we suggest that many procurement functions spend too much time focused on price and run the risk of missing out on the major benefits that can be obtained from other aspects of the wider value picture.

The authors look at the range of mechanisms that can be used to drive better value, and then consider two aspects in more detail – demand management and specification. Focusing on the specification of what is being bought can often lead to even greater benefits; and demand management has the potential to save 100% if the entire purchase can be avoided! Real-life examples from the contingent labour procurement spend category are used to illustrate the possibilities as well.

Tungsten Analytics – Insight From a New Approach to Spend Analytics

Sponsored by Tungsten - Download here

Spend Analytics is hardly a new idea. The first "spend cubes" were developed some 25 years ago, enabled by the growing power of distributed computing, as executives started realising what their new personal computers could do. That enabled forward-thinking procurement teams to apply computing power to obtain insightful information from data about the money organisations were spending with suppliers.

Fast-forward to today, and many organisations have barely moved on from that initial idea. Spend analysis information might be somewhat more detailed, and perhaps presented in a more attractive, graphical format, but it is still obtained some time after the end of the period being considered and is often not particularly granular, easy to manipulate or understand.

That being said, the latest developments in this field are challenging the traditional ways to conduct such analysis and are opening up different options in terms of how spend data can be used to identify valuable opportunities. Spend Matters interviewed Stefan Foryszewski from Tungsten Analytics to discuss how.

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