Spend Analysis Series


Spend Analysis,
Tri Series Executive Reports Q2 2011
Author: Ben Ngobi

 

 


Part I: This report finds that as the number and diversity of data increases, the greater the level of resources required to achieve the necessary level of accuracy. The desire to achieve greater visibility of spend data creates the need for information to be aggregated using a variety of tools and processes; the data can be enhanced using either home grown or third-party taxonomies, allowing comparison of what is bought by region, by business, by supplier, by buyer, by product and by cost. Unless procurement takes the decision to invest in spend analysis, the function will not have the detailed visibility of spend under management.

In Part I: This report, you will find detailed analysis of the following and its significance to Spend Analysis:

  • Introduction to Spend Analysis
  • PIU Approach to Spend Analysis
  • Benefits of Spend Analysis
  • Research Findings - Challenges and Approach
  • Conclusions

Part ll: The second part of this report will focus on the capabilities required to execute spend analysis effectively, providing gap analysis of the key enablers relative to the spend maturity cycle. The PIU's Capability Development model introduces four stages, which represent the journey to sophisticated analytics:

  • Early Adopters, characterised by their ability to analyse spend using less complex metrics;
  • While those organisations labelled as Developing are carrying out greater categorisation of data;
  • Advanced entities are using purchase order systems to enhance the quality of data;
  • While sophisticated organisations use spend analysis to drive demand strategy and product standardisation.

Part lll: The third part of this series, comprises a comprehensive 360o review of the spend analysis vendor market, documenting the user and vendor perspective. The 360o approach to spend analysis has yielded interesting results, in that all vendors believe themselves to be providing best-in-class products or software, and have referral clients to prove this to be the case.

To receive an overview of this tri series, including an Executive Summary, via email, simply complete the short form below entering your corporate email address.

The full report is now available via our corporate membership scheme. If you are a PIU member, simply click here to read the reports.