Using Spend Analytics to Impact the Bottom Line
3 comments October 4th, 2007 David Bush - Iasta
Recently, there was a fine article on spend analysis which was written by Tariq Hassan, of The Buying Triangle. (Apologies, this site uses frames and I cannot link directly to the article.)
Hassan suggests that spend analytics is coming back into favor with CPOs for a number of reasons. One such reason was described as: {companies} can keep the entire process within the procurement department or you can use a mix of services to handle some of the heavy lifting, freeing your team to focus on the analysis and on extracting value from the system.
Amen, brother! I mentioned this Monday in my Sourcing Innovation post, where I described the shift to autonomy and self sufficiency within procurement.
He sums up the article at the end with sound advice:
Information-based companies such as Google are proving that nothing is more critical than the delivery of timely information. Spend analytics is the source of timely information for your purchasing group and that information provides your team with the ability to impact the bottom line. Purchasing groups must become “kings of information” and make spend analytics their number one priority for 2008. Stakeholders are clamoring for timely spending information and this is the right time for purchasing groups to rise to the challenge of providing it.
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Entry Filed under: General, Spend Analysis, Suppliers, Supply Management Best Practices, Technology
