Spend Analytics – Tungsten’s New Approach Opens Up New Opportunities

Our website was down most of last Thursday - a major technical hitch. You may have missed a couple of the articles from that day, so we are repeating them this week. Here you go ...

We’ve got a new briefing paper available now, titled Tungsten Analytics – Insight From a New Approach to Spend Analytics. In this paper, we interview Stefan Foryszewski from Tungsten to get the latest on the new approaches that are being taken by the firm and their clients.

Tungsten is best known as an eInvoicing and supply chain finance provider, the firm having grown out of OB10, the market leading eInvoicing firm. (Stefan was one of the founders). But their analytics offering is gaining interest as it opens up some new applications that are not readily available from “conventional” analytics platforms. You can download the paper here, free on registration. Here is an extract to whet your appetite.

Tungsten Analytics – Insight From a New Approach to Spend Analytics (extract)

Tungsten Analytics

It is clear that the biggest difference between the Tungsten offering and the traditional spend analysis approach is the real-time nature of the data that is being analysed. That leads on to the various opportunities discussed later.

"What we provide is very different from the traditional spend analysis that takes place weeks or even months after the event" says Foryszewski , EVP at Tungsten with responsibility for the Analytics product. As one of the co-founders of OB10, and originally a supply chain manager himself, he has had an interest for many years in analytics and data and what it can do to help procurement organisations.

Because the data is being analysed directly from the e-invoicing platform, it is close to real time analytics – usable information is obtained within an hour of the invoice being processed, unlike "traditional" spend analytics, which can be weeks or even months after invoices are received and payment is made ...

Cost recovery
Buyers often assume that if spend is covered by a purchase order, then it must be legitimate. But evidence from Tungsten suggests that when comparisons can actually be made on an invoice by invoice basis, there can still be discrepancies. In one case, two invoices for the same item from the same supplier some months apart showed a pricing difference of $65,000! That may have been simple error, or the supplier exploiting poor procurement practices in one part of the organisation, but once it is identified, then action can be taken to recover costs.

Traditional analytics would probably not have picked that up, as the systems look at category and supplier level spend, but rarely get down into that item detail. Duplicate payments can also be identified and challenged, and again the beauty of Tungsten Analytics is that these issues are identified before the invoice is actually paid. Tungsten is now also engaging with a number of specialist cost recovery organisations who are using the platform within their wider cost recovery processes.

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