LONDON--(BUSINESS WIRE)--Spend analysis originated over 30 years ago when organizations realized that the EPR software solutions were not enough to help in sourcing because of various factors such as incomplete data, duplicate vendor names, and its static nature that remains incompatible with the ever-changing nature of spend data. SpendEdge, a procurement market intelligence company, provides actionable insights on how companies can generate high profit by performing spend analysis, and how it fits the sourcing process, focusing mainly on three areas – cost centers, vendors, and commodities.
Procurement intelligence analysts from SpendEdge have recently announced their top four benefits companies receive when conducting spend analysis:
Savings on delivered products
Every business, big or small, aims to optimize on cost savings while at the same time not compromise on the products delivered. Spend analysis, when utilized methodically, can help procurement companies to save millions of dollars. In this present economy, where sale prices are either flat or plummeting, a company’s only way to recover their bottom line is cost management. Experts at SpendEgde provide procurement insights on how performing spend analysis can help an organization find high-cost saving opportunities amid these challenges.
Vendor analysis and risk management
The total dependency on one single vendor can have a negative impact on the goods and services provided when this vendor goes out of business. To avoid such a scenario, procurement organizations need to perform spend analysis on vendors that will help them measure the performance of the vendors and keep track of their annual revenue, thereby reducing the overall supply chain failure risks for organizations.
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Control excess payment for commodities
In order to manage costs, organizations should understand how they are spending on resources; whether they are buying the same product from different locations; and what quality of goods and services they are buying, at what price and from which supplier. When a company conducts a spend analysis, they will be able to identify specific areas where commodities are overpaid and how much excess has been paid.
Operational efficiency and improvement
Over the years, it has been noted that companies practicing spend analysis have cast aside tactical purchasing and are adopting strategic sourcing that involves a systematic, holistic approach to acquiring the needs of an organization at a minimal total cost of ownership with minimal risk to the supply chain. Spend analysis helps procurement managers to make an informed decision to improve the processes within the organization and achieve shorter lead times.
Procurement market intelligence experts at SpendEdge offer further information on how procurement companies can benefit from spend analysis, which products can be restructured for cost reduction, and which supplier will perfectly suit an organization for procuring goods and services.
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred market intelligence partner for leading Fortune 500 firms and other leading companies across industries. Our strength lies in delivering actionable insights that help sourcing and procurement professionals get the right information in the right format, without any unnecessary frills.
Our procurement market intelligence coverage extends across critical processes of sourcing strategy planning process and helps clients achieve more than mere monetary savings. Our procurement insights are well-defined to meet the information needs of the procurement organizations and are aimed at helping category managers extract hidden values out of sourcing teams, suppliers, contracts, and processes.