LONDON--(BUSINESS WIRE)--Spend analysis is an important part of running a business, but many organizations neglect it, focusing only on certain expenses or prioritizing other operational concerns. However, when done properly, spend analysis can give businesses a clear understanding of what is affecting their spending, how they can maximize profitability over the long term, and the best approach towards budgeting and supply chain management. After a thorough assessment, companies can save thousands or even millions of dollars yearly.
Spend Analysis Market Trends
Procurement is an important area to monitor even for organizations that don’t have a high amount of direct spend, such as IT services companies that do not produce physical goods. Indirect procurement is often decentralized, making it difficult to obtain an accurate picture of expenses or to consolidate purchases across departments. It is therefore an area where spend analysis is invaluable.
A leading IT company recently approached SpendEdge for help consolidating its sourcing and procurement activities across target regions. SpendEdge conducted a detailed assessment of the existing spend areas at an individual business unit and region level, and identified common suppliers across business units. This allowed the company to identify and eliminate duplications in purchases and implement industry best practices, saving over $10 million as a result.
Spend analysis is an important part of reducing costs and streamlining procurement. It examines areas of spending that are often ignored when looking for ways to save money, and as one client discovered, can reveal very substantial inefficiencies. There is a great deal that can be learned by collecting, categorizing, and analyzing spend data.
For more insights, get in touch with SpendEdge’s analytics solutions experts
How Can SpendEdge’s Spend Analysis Solutions Help You?
SpendEdge offers granular insights on buying activities, identifying cost saving opportunities to help clients save millions every year. Our insightful, actionable spend analysis drives successful sourcing plans, allowing you to make the most out of your resources. By combining our expertise with advanced tools and technology, we help procurement managers identify latent saving opportunities and create strategic plans to reduce expenditure in every category.
View SpendEdge’s success stories: https://www.spendedge.com/service/spend-analysis-benchmarking
SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred market intelligence partner for 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.