Spend Analytics: Monitor & Analyse Data at 'Source'

Charlotte Sutton
Charlotte Sutton,
Managers throughout an organisation need to have a handle on what is being bought, from who, and at what volume in order to effectively manage their functions and budgets. Procurement professionals need accurate information for strategic activities such as vendor negotiations and supplier consolidation initiatives.
But in most organisations, procurement involves a tremendous number of transactions, each of which goes through multiple stages with multiple individuals ranging from employees to managers and buyers. Hundreds of suppliers may be involved across thousands of different items. Even when all of this detail activity is captured electronically, people need a way to turn all of this ‘data’ into the ‘information’ they need to perform their respective functions. And busy managers need a way of keeping a handle on all this activity with reports, alerts, and KPIs that are appropriate to their respective roles.

What is needed is a the ability to manage spend at 'source'. Providing an up-to-the-moment view and base of information that contains the details of all procurement activity combined with tools that make it easy to: create virtually any summarisation or KPI that is needed; drill down from summary reports to detail transactions whenever necessary; enable procurement professionals to analyse spend across any time period, supplier group, or commodity in order to continually improve the supplier base and supplier agreements; and enable managers throughout the organisation to identify the information which is most important to them within their span of control and have it at their fingertips at all times.

In addition, to capturing every procurement transaction, as well as the details about every supplier, contract, and item, leading Spend Control and eProcurement solutions like PROACTIS, provide powerful tools that make it easy to create, publish, and access virtually any form of summary of detail report with instant drill-down to the lowest level of detail. In a fully electronic procurement system, you can maintain extensive information about past, present, and future purchasing activity. This includes:
  • Full ‘cost pipeline’ visibility for better management decision-making
  • Full commitment information for better fund management
  • Contract and volume information for better price and service negotiation
  • Workflow information for business process improvement and visibility
  • Spend Analysis by requester, source and category
Personalised dashboards, flexible reporting tools, and powerful drill-down capabilities give managers easy access to this information for analysis and decision-making purposes. By exploiting the benefits of a fully electronic procurement system you can capture Spend details at ‘source’ and empower managers to effectively monitor and analyse spend.