Updates from Enporion
Contacts Us
North America
Clark, NJ
(Global Headquarters)
100 Walnut Avenue, Suite 304
Clark, NJ 07066
Phone: 732-382-6565
Email: info@gep.com
Alternative Approaches to Spend Analysis Projects
Alternative Approaches: More affordable and faster ROI Spend Analysis and Strategic Sourcing
Advanced spend analysis is critical to understanding the current spend in indirect and direct categories. The following sourcing efforts are the key to developing opportunities into cost savings and process efficiencies. Some cost-effective alternatives available for spend analysis and strategic sourcing include:
One-Time Spend Assessment Services
Companies with a one-time need with only a few categories of interest or spend, may not be interested in implementing a software suite. The cost-effective option would be to use a spend assessment as a one-time service using an external service provider that can take a “data dump” from a company’s systems and perform an analysis to deliver the insights needed to source these categories in a short timeframe. These insights include vendor consolidation opportunities, category profiles, spend patterns, etc. Where a category or commodity structure is missing, one can be adapted quickly for a company’s needs. The spend assessment may also include customized reporting for the categories of spend or the company’s focus areas.
On-going spend assessment, analysis, and reporting services
| Spend Tool feature set can drive faster ROI A major advantage when considering tool features is to get a scalable solution that can be rolled out to small groups and then easily expanded to a large number of users. The ability to get started with a small investment is also consistent with scalability. The benefits of spend analysis need not be “back-end” loaded into a sourcing process. Likewise, ease of use and ability to leverage existing technology platforms and infrastructure are very important. The easier the tool is to use and teach to an extended group of users, the more pervasive its use will be within an organization. |
Similar to the “one-time need” case, if your company does not have the resources and/or expertise to implement and conduct on-going spend assessments, a good option is to find an external service provider that can. This solution will be at a fraction of the cost of the software and with little time commitment from in-house resources. Additionally, the assessments will be conducted in a short timeframe that can be customized based on your requirements by spend analysis experts. This approach is also attractive to companies that may want to rely on the external provider while their staff focuses on a different set of priorities. Customized reporting is typically included for the categories and the company’s focus areas.
An external service provider can also offer services related to on-going spend analysis in the categories of interest, market intelligence, reporting and analytical services, tracking and monitoring of rebates, and more. Some of these service providers also happen to provide e-sourcing and e-procurement software solutions and include on-going analysis and reporting as part of the product offering. In other words, there are several avenues available to gain the benefits of these functions in a very cost-effective way without using internal resources that already have a full workload.
Opportunity Assessment Services
The quick and cost-effective way to obtain an opportunity assessment on your direct and indirect categories of spend is to use an external service provider who can take your spend data and in a short time develop the opportunity analysis. Using a qualified external service provider will also help you improve your understanding of the savings opportunities because you are leveraging their expertise and market knowledge, as well as that of your own professionals.
