How well do you understand your spend?
Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing.
How well do you understand your spend? Recently, I have been having more frequent conversations about understanding spend. What has been interesting lately is that this question seems to be on the top of the minds of procurement professionals. It seems that, collectively, this topic has had a bit of a renaissance and we will all be better off as a result. It has always been fairly common that companies don’t have a very clear view into their spend and there have been many different approaches on how to overcome this challenge. Some set out on a lengthy, labor-intensive process, perhaps turning to spend cubes and the like.
Regardless of the method used for analyzing spend; there are often some common concerns. One such concern is the time and resources required to complete this analysis. This is particularly true when an organization approaches this task on its own. Another concern is whether or not the output of the effort is actionable.
At SafeSourcing, we have been addressing this question for our clients for years. Our approach is called SafeSpendAnalysis™. SafeSourcing’s clients that leverage this solution are able to understand their spend in just about two weeks. Better yet, the results of this solution are actionable immediately. SafeSpendAnalysis™ analyzes 100% of our clients’ spend for a 12-month period and assigns all vendors into Categories and Subcategories. SafeSpendAnalysis™ also determines the estimated savings opportunity for each based on SafeSouring’s extensive category experience and data.
When we review the results with our clients, we typically spend an entire day onsite meeting with the teams that will benefit from the new information. When that day is done, we have a clear picture of what the top targets are and where to focus. We also typically have over 100 categories identified for eProcurement.
As a result of the SafeSpendAnalysis™, our clients can answer confidently that they understand their spend well. Beyond that, they are able to make decisions and take actions to control their spend.
I’ll ask again – How well do you understand your spend? For more information, please contact SafeSourcing.
We look forward to your comments.