Have you uncovered the hidden potential lying within your data? Data visibility is often the most challenging for procurement pros to achieve. Scott McBride (Iasta Director of Global Alliances) shares the importance of “going beyond” with spend analysis in this short video below.
With Scott’s perspective in mind, below are three ways you can improve your modern sourcing process using spend analysis:
1-Centralize your data. Data in a silo is useless. When data lies in different systems, the information is not “speaking” together. If you don’t centralize your data into one location, you’re restricting visibility into your company’s spend. And without insight into your company’s spend, you could be missing out on cost saving opportunities.
2-Cleanse your data. Even if you have a clean cube of data, it still has to be laundered in order to make sense. So, how clean is clean? Well, once you’ve cleansed and classified your data, you’ll be left with information needed to make the right choices when mapping out a sourcing action plan or other strategic initiative.
3-Get the Visibility Factor. The visibility factor can help you mitigate risk, avoid a savings leakage, and provides a solid foundation for any successful strategic sourcing initiative.
Once you’ve centralized, cleansed, and gained valuable insight into your company’s spend, you now have the data necessary to act as a baseline against and evaluate any spend management initiative. If you have no baseline, how do you know whether you are succeeding or failing?
The majority of Iasta clients go way beyond the classical definition of “spend analysis” by applying different methods and using strategic solutions that are available. If you’re interested in learning more about the visibility factor, download this helpful article.
In the meantime, share how you’re company is improving your sourcing process by commenting below or tweeting us @iasta.