Spend analysis involves consolidation of enterprise wide spend information in all formats, across multiple sources and disparate systems – accounts payable, procurement cards, purchase orders, and every other buying channel.
The spend data must also be aggregated and normalized by commodity, supplier, category, language, currency, etc.; it is crucial that this be done without any impact on the enterprise or its IT function, if spend analytics is to deliver maximum ROI. The crucial next step is to process the incoming data in a manner that promotes understanding and clear visibility of purchase patterns and trends.
Put your spend data to good use
Spend analytics enables you to turn spend data into opportunities by revealing the meaning in the mass of information. It gives you the power to transform procurement value through visibility and control of enterprise-wide spend.
Spend analytics tools are specifically designed to optimize the value of spend data – industry-leading spend analytics technology platforms like GEP SMARTTM deploy artificial Intelligence-based tools and algorithms to power through large volumes of spend data and apply appropriate taxonomies for accurate spend classification.
The output? Detailed insights into spending trends and buying activities – and subsequent identification of potential savings opportunities.
Why spend analytics software?
Spend analytics software can maximize the value of spend data by:
- Cleansing, validating, classifying, normalizing, reporting and enriching spend data across disparate systems
- Providing comprehensive spend analytics dashboards and analytical reporting capabilities for full stakeholder coverage
- Eliminating order and payment duplication, minimizing invoice exceptions and rapidly identifying price and service-level variance
- Integrating spend data with run-rate procure-to-pay (P2P) activity for holistic reporting
- Examining your purchase patterns with different vendors for better supplier relationship management
- Providing a new level of decision support for programs that drive transformation in procurement strategy
- Identifying savings and compliance opportunities you never know existed
- Limiting the risk of supply chain failure arising from overdependence on a small set of vendors