Picture this: Your organization is looking to cut costs. Not a difficult scenario to imagine. What is difficult to imagine, however, is where to even begin when looking at all of your company's spend categories and trying to figure out where cost reduction is even possible. Before the anxiety sets in, there is a process you can follow for identifying impactable spend, called a Spend Analysis.

What is a Spend Analysis? 

Simply put, its the process of analyzing your company's spend by collecting, cleansing, and categorizing your spend data for the purpose of driving visibility in to your spend patterns and history.

How do you conduct a Spend Analysis?

There are a few different ways you can approach analyzing your company's spend, such as conducting the process manually, seeking external support from spend consultants, or implementing a spend analysis software. Note, implementing spend analysis tools can be a time, resource, and financial endeavor, requiring the support your IT and Finance teams to get properly established. If your company is new to the spend analysis and strategic sourcing process, it may be better to first conduct the process manually to gauge if the investment in a software is the best fit for your organization.

Where can I find Spend Analysis help?
Source One's SpendConsultant.com has you covered. Spend Analysis and Strategic Sourcing is our bread and butter- meaning we've conducted countless spend analyses, helping our clients save billions over the last two decades. Whether you need support getting through the spend analysis process, or conducting cost-reduction initiatives from start to finish, our spend consultants and strategic sourcing experts can help you identify areas of impactable spend and go-to-market based on your organization's unique needs.

To help you get through the Spend Analysis process, our spend consultants are launching a Spend Analysis Podcast Series - walking you through the critical steps of data collection, normalization, and classifications. Kicking off the six part series, Source One Associate Director and Spend Consultant, Jennifer Ulrich explains How to Get Started. She explains where to look when collecting spend data, and the pitfalls to avoid during the data gathering phase.

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