Up front analysis drives increased results through prioritized focus.
Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing.
In this post rerun, Dave discusses eProcurement Planning.
We often talk about how an organization can utilize various eProcurement solutions to drive savings and find safe, qualified sources of supply. We also commonly talk about the results of eProcurement efforts derived from the same. These are two incredibly important pillars of any organization’s eProcurement strategy and are certainly deserving of the attention paid to them. That said, there is another eProcurement strategy pillar on which I’ll elaborate. This pillar, often overlooked and infrequently discussed compared to its counterparts, is eProcurement planning.
eProcurement planning can be done in any number of ways either with an organization’s own internal resources, external consultants, or some mix of both. In the remainder of this post, I will discuss the approach which SafeSourcing recommends. We offer this approach as a spend analysis service called SafeSpendAnalysis™.
When we engage with an organization to deliver a SafeSpendAnalysis™, we are looking to analyze 100% of that organization’s spend for a 12-month period at minimum including all capital, cost of goods, and expense spending.
The SafeSpendAnalysis™ service compares your spend data to the SafeSourcing database. The spend data is run against our SafeSourceIt™ Supplier Database of over 432,000 global suppliers to fully identify the companies within. Then that augmented spend data is compared to historical SafeSourceIt™ Events to identify appropriate supplier categories and subcategories. We then run that data set against the SafeSourceIt™ historical Events to establish potential savings based on category averages.
The output of SafeSpendAnalysis™ is a detailed presentation with an in-depth category analysis; recommendations, questions, and savings opportunities identified in several key areas such as high spend categories, high supplier count categories, and quick wins.
During the SafeSpendAnalysis™ review with the leadership team and the teams responsible for the various spend categories, SafeSourcing works with your organization to identify appropriate categories for which you will utilize eProcurement in the future. It is common for SafeSpendAnalysis™ to identify tens of millions of dollars in potential eProcurement savings and offers the deep insight required to prioritize resource planning for maximum impact in the minimum amount of time.
Dave Wenig is a Regional Sales Manager at SafeSourcing. Dave or any member of the experienced team at SafeSourcing would be happy to discuss how SafeSourcing can help you with SafeSpendAnalysis™. For more information, please contact SafeSourcing.
We look forward to your comments.