When it comes to procurement, gaining insights into overall spending made by various departments is important. With multiple spend categories, it is difficult for any enterprise to know who is spending what, why and where. Spend analysis can help enterprises understand spending patterns, identify savings opportunities, and mitigates risks.
Data from spend analysis will help you identify the key suppliers and spend categories, and gives you a detailed view of spending activities across the enterprise. Spend analysis requires you to pull complete purchase history and evaluate who, what, when, where and how an organization is spending. Building an eProcurement model can help enterprise, analyze spend and cut procure-to-pay cycle times by half.
The following are some ways through which eProcurement drives savings throughout the procure-to-pay cycle:
Negotiate better prices by rationalizing price differences offered by suppliers.
Select preferred suppliers by consolidating the supplier base and make most of the increased spending.
Procurement software can help conduct sourcing events for spend categories, which can set up approved pricing and keeps spending under control
Cut Down Maverick Spending
Eliminating off-contract spending can improve savings with approved vendors and reduce purchase-to-pay cycle times.
eProcurement software compares budget, actual and committed spend and ensures spending is on the bar with organizational policies.
PRM360 can help you analyze the data in four steps: Data Extraction, Data Cleansing, Data Enrichment, and Classification. You will get accurate and actionable information with complete visibility across the enterprise.
Spend analysis gives you a complete spend profile that encompasses the number of suppliers, spend volume, number of transactions and the frequency of requisitions. This information can be used to identify areas where savings are possible.
Procure-to-pay process can be improved by:
Minimizing leakage by automating the purchasing process
Consolidating multiple purchases into larger transactions
PRM360 provides granular insights into spending trends and purchasing activities that helps key decision makers outline strategies to achieve short and long-term savings.