What is Spend Analysis and how DataKITE can help
Procurement spend analysis is the process of collecting, cleaning, classifying, and analyzing an organization’s procurement data to gain insights into its spending patterns, identify opportunities for savings, and improve supplier relationships.
Procurement spend analysis is a key component of strategic procurement and can be used to support a variety of initiatives, including:
- Identifying and negotiating better pricing: Spend analysis can help organizations identify areas where they are overpaying for goods and services. This information can then be used to negotiate better pricing with suppliers.
- Reducing maverick spend: Maverick spend occurs when employees purchase goods and services outside of the approved procurement process. Spend analysis can help organizations identify and reduce maverick spend by providing visibility into all of the organization’s spending.
- Improving supplier relationships: Spend analysis can be used to identify key suppliers and develop stronger relationships with them. For example, organizations can use spend analysis to identify suppliers that are providing high-quality goods and services at a competitive price.
Spend analysis can be conducted manually or using specialized software like DataKITE. Manual spend analysis can be time-consuming and error-prone, while DataKITE spend analysis software can automate the process and provide more insights.
The following are some of the benefits of procurement spend analysis:
- Reduced costs: Spend analysis can help organizations identify and eliminate waste in their procurement spending.
- Increased efficiency: Spend analysis can help organizations to streamline their procurement processes and improve their overall efficiency.
- Improved supplier relationships: Spend analysis can help organizations to build stronger relationships with their key suppliers.
- Reduced risk: Spend analysis can help organizations to identify and mitigate risks in their supply chain.
If you want to learn more about DataKITE and how to use it for your spend analysis needs, clink on the link below.