Searching for Clues – Making Spend Analysis Work

We mentioned the second session in the BravoSolution Real World Sourcing series last week, led by Guy Allen – “Searching for Clues - Making Spend Analysis Work".

It's a topic that was seen for some years as a bit dull perhaps - spend analysis was clearly useful, at least to understand broadly where the organisation’s procurement expenditure was going. But in the early days, we tended to end up with huge Excel spreadsheets that were difficult to handle, and the ability to produce useful insights was therefore limited. Certainly, being able to do rapid analysis and produce clear charts and graphs was a dream for those of us struggling with those basic “spend cubes” 10 years or more ago....

But now the technology has improved so much, giving us a lot more options in terms of what can be done, and extending the areas of benefit. Last week, Guy presented seven areas in which spend analysis can be useful and profitable.

Opportunity Analysis - Selecting priorities for the procurement function

Pricing Variance - Measuring actual prices to budget or contract prices, on previous year’s prices

Compliance Tracking - Measuring conformance to preferred suppliers or processes

Category  Planning - Preparing  the strategy for your category

Tail Leverage - Managing a supplier reduction programme

Supplier Base Management - Monitoring Key Supply Base information, ie Diversity

Fraud Detection - Identifying possible fraudulent (or inaccurate) activity

Even that's not the end of it - bringing data from other sources together with spend data can lead to further opportunities – for instance, in terms of monitoring suppliers’ adherence to contracted terms. Anyway, the full set of slides from the session are available on line here - free on registration.

And don't forget, you can take the on-line test once you've been through the material and then use that as Continuous Professional Development credit. The top scorers across the 6 sessions (who have also attended at least 3 sessions in person) will be invited to a end of year slap-up dinner, where we'll also announce the winner of the BravoSolution scholarship. That’s worth £2,500 which can be used towards training / development / education activities of your choice.

The remaining sessions are selling out fast –the next one is Guy again on e-auctions on 30th May, (very few places left), then the other three are after the summer holidays. Book now if you’re interested...

There is also a new briefing paper form BravoSolution available (free on registration) – “Driving Lasting Savings with Spend Compliance” which looks at how spend analysis tools can help to manage compliance and – yes, you guessed it  – drive savings! It is available here.

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