Spend Analysis In 60 Seconds
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This document provides an overview of spend management and procurement software. It discusses features like spend analysis, supplier management, sourcing, invoicing and payment, e-procurement, and contract compliance. Spend analysis involves gathering spending data from multiple sources, categorizing spend, standardizing items, and establishing contracts. The document uses an example of a global pharmaceutical company to show how spend analysis can identify savings opportunities between 15-50% through implementing sourcing best practices and reducing buyer/supplier administration by up to 80%.
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Spend Analysis In 60 Seconds
- 1. print spend managementprocuremanagepaySpend AnalysisIn 60 seconds
- 2. Spend AnalysisSpend assessment, powerful MI, performance dashboards, analyticsSupplier ManagementSupplier onboarding, capabilities management, performance managementSourcingUnique RFx (RFQ, RFI, RFP) + contract rates + spot buyingInvoicing & PaymentInvoice matching, reconciliation, ‘ok-to-pay’ file exportE-ProcurementCompare bids, raise & issue purchase orders, catalogue management etcContract Compliance360⁰ view of spend including spend limits, cost controls, supplier performance, etcCircle ProcessSavings & Efficienciessoftware-as-a-servicespend management overview© Claritum 2009
- 3. spend analysis$Spend Discovery - gather data from multiple sources- AP, ERP, Supplier systems, agenciesBuyers£Marketing€Office /Branch£Suppliers
- 4. spend analysis$Categorise - Establish a single view of spendWhat was bought (specifications)
- 5. How it was bought (open /closed RFx, contract price, etc)
- 6. When it was bought (once, ad hoc, repeated)
- 7. Who bought it (the same buyer, multiple buyers in same business unit or dispersed buyers)
- 8. Who it was bought from (same items bought from same or different suppliers)
- 9. What it was bought for (quoted price, ordered price, invoiced price)Buyers££Marketing€Office /Branch£Suppliers
- 10. spend analysis$Buyers£££Marketing€Standardise - identify savings opportunitiesCreate catalogue of standard specifications
- 11. Predict likely volume, buying patterns
- 12. Match requirement to supplier base
- 13. Gain pricing Office /Branch£Suppliers
- 14. spend analysis$$Buyers££££Marketing€€Office /BranchContract - Create Catalogue of contracted prices / volumes Implement rules for buyers / suppliers
- 15. Deploy tools to enforce contract compliance££Suppliers
- 16. spend analysis$$Buyers££££SourcingMarketing€€Office /BranchClaritum Sourcing - Embed the savings by deploying Claritum sourcing toolsEnsure compliance to best practice sourcing
- 17. Enforce standardisation of specifications
- 18. Eliminate off contract buying ££Suppliers
- 19. Current Buying ProfileExample - Global PharmaceuticalsBuyer quote “we’re always too busy but we do buy well, we get the best price and place the order”= major variances in price and specification, no consistency, no tools to streamline process
- 20. Opportunity AssessmentHigh AverageLow AverageBest Market AverageExample - Global PharmaceuticalsAnalysis showed between 15% and 50% savings can be achieved by implementing sourcing best practice and up to 80% reduction in buyer / supplier administration
- 21. BenchmarkingExample - Global PharmaceuticalsBenchmarking historical performance against market prices shows opportunities for savings, without increasing risk.currenthigh pricecurrent low priceYour rangeYouropportunityRisk?current ‘market price’
- 22. thank you.Contact: James SamuelsClaritum Limited251-253 London Road East, Bath BA1 7RL, UKT: +44 (0)1225 851666© Claritum 2009