Many companies spend money to ensure their customers receive the best quality product or service. The hidden costs are often overlooked. Spend analytics tools measure how much money companies spend on procuring products and services.
Some companies are already (or are planning to) invest in a spend analytics tool in order to manage their spend, but due to a lack of knowledge, many are realising the true value of spend analytics.
Here are some of the benefits to help you understand what spend analytics can bring to your organisation.
What is spend analytics?
It is a process that identifies, gathers, cleanses, groups. categorises and analyses the expenses of your organisation with the goal of reducing procurement costs and increasing efficiencies.
What are the benefits of a spend analytics tool?
At DataKITE, we believe it’s time for companies to reassess this approach.
Procurement Cost Reduction Strategies
1. Risk Management
The majority of businesses face supply chain issues that have a negative impact on forecasting and profit margin. Spend Analytics Dashboards will give you a better look at your supply chain, making it easier to manage and reduce risks. Companies can increase profit and consciously manage their supply chains to their advantage with Spend Analytics Software.
DataKITE example of analysis: Spend and number of suppliers by division / facility / region
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2. Delivery performance improvement
The data you get from your spend analytics program can be used to improve delivery performance, which will make customers happier and give you a better understanding of delivery cycles..
This can improve deliveries while reducing costs to your business.
DataKITE example of OTD analysis: OTD split by category / region and value. Including contract compliance additional filters.
3. Increase opportunities to save money and improve the bottom line
Focus your efforts and find suppliers that offer the best value and are easily accessible for buyers throughout the organisation.
By consolidating all of your spending data in one place so that you can get a clearer picture of what’s happening and identify opportunities for improvement.